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NASDAQ:ETSY—A High-Growth Stock Gearing Up for Its Next Upward Move.

By Mill Chart

Last update: Apr 1, 2024

In this article, we'll take a closer look at ETSY INC (NASDAQ:ETSY) as a potential candidate for growth investing. While it's important for investors to conduct their own research, ETSY INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Growth Examination for NASDAQ:ETSY

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:ETSY has received a 8 out of 10:

  • The Earnings Per Share has grown by an impressive 139.20% over the past year.
  • Measured over the past years, ETSY shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.26% on average per year.
  • The Revenue has been growing by 35.41% on average over the past years. This is a very strong growth!
  • Based on estimates for the next years, ETSY will show a very strong growth in Earnings Per Share. The EPS will grow by 31.85% on average per year.
  • ETSY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.69% yearly.

Health Analysis for NASDAQ:ETSY

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:ETSY, the assigned 7 reflects its health status:

  • ETSY's Altman-Z score of 2.64 is fine compared to the rest of the industry. ETSY outperforms 66.67% of its industry peers.
  • ETSY has a debt to FCF ratio of 3.59. This is a good value and a sign of high solvency as ETSY would need 3.59 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 3.59, ETSY is doing good in the industry, outperforming 69.70% of the companies in the same industry.
  • A Current Ratio of 2.21 indicates that ETSY has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 2.21, ETSY is in the better half of the industry, outperforming 75.76% of the companies in the same industry.
  • ETSY has a Quick Ratio of 2.21. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
  • The Quick ratio of ETSY (2.21) is better than 87.88% of its industry peers.

Analyzing Profitability Metrics

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:ETSY has achieved a 7:

  • With an excellent Return On Assets value of 11.45%, ETSY belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
  • The Return On Invested Capital of ETSY (13.92%) is better than 84.85% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ETSY is above the industry average of 11.05%.
  • The last Return On Invested Capital (13.92%) for ETSY is above the 3 year average (13.53%), which is a sign of increasing profitability.
  • The Profit Margin of ETSY (11.19%) is better than 90.91% of its industry peers.
  • ETSY's Operating Margin of 12.66% is amongst the best of the industry. ETSY outperforms 84.85% of its industry peers.
  • With an excellent Gross Margin value of 69.85%, ETSY belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:ETSY this score is currently 7:

Although the technical rating is bad, ETSY does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period.

More Strong Growth stocks can be found in our Strong Growth screener.

Check the latest full fundamental report of ETSY for a complete fundamental analysis.

For an up to date full technical analysis you can check the technical report of ETSY

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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ETSY INC

NASDAQ:ETSY (5/24/2024, 7:25:10 PM)

After market: 60.75 +0.13 (+0.21%)

60.62

-1.46 (-2.35%)

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