ETSY INC (1ETSY.MI) Stock Fundamental Analysis
BIT:1ETSY - Euronext Milan - US29786A1060 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 1ETSY. 1ETSY was compared to 11 industry peers in the Broadline Retail industry. 1ETSY has an excellent profitability rating, but there are some minor concerns on its financial health. 1ETSY has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1ETSY was profitable.
1ETSY had a positive operating cash flow in the past year.
Of the past 5 years 1ETSY 4 years were profitable.
Each year in the past 5 years 1ETSY had a positive operating cash flow.
1.2 Ratios
1ETSY has a Return On Assets (8.87%) which is in line with its industry peers.
1ETSY's Return On Invested Capital of 18.05% is amongst the best of the industry. 1ETSY outperforms 91.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1ETSY is significantly above the industry average of 8.84%.
The 3 year average ROIC (14.75%) for 1ETSY is below the current ROIC(18.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.87% | ||
| ROE | N/A | ||
| ROIC | 18.05% |
ROA(3y)-0.78%
ROA(5y)5.01%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.75%
ROIC(5y)14.2%
1.3 Margins
1ETSY has a Profit Margin (6.69%) which is comparable to the rest of the industry.
1ETSY's Profit Margin has declined in the last couple of years.
1ETSY has a Operating Margin of 13.91%. This is amongst the best in the industry. 1ETSY outperforms 83.33% of its industry peers.
1ETSY's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 72.30%, 1ETSY belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1ETSY's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.91% | ||
| PM (TTM) | 6.69% | ||
| GM | 72.3% |
OM growth 3Y-12.19%
OM growth 5Y4.53%
PM growth 3Y-20.12%
PM growth 5Y-1.62%
GM growth 3Y0.24%
GM growth 5Y1.61%
2. Health
2.1 Basic Checks
1ETSY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for 1ETSY has been reduced compared to 1 year ago.
1ETSY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1ETSY is higher compared to a year ago.
2.2 Solvency
1ETSY has an Altman-Z score of 2.08. This is not the best score and indicates that 1ETSY is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.08, 1ETSY is doing worse than 75.00% of the companies in the same industry.
The Debt to FCF ratio of 1ETSY is 3.49, which is a good value as it means it would take 1ETSY, 3.49 years of fcf income to pay off all of its debts.
1ETSY's Debt to FCF ratio of 3.49 is fine compared to the rest of the industry. 1ETSY outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 2.08 |
ROIC/WACC2.41
WACC7.5%
2.3 Liquidity
1ETSY has a Current Ratio of 2.14. This indicates that 1ETSY is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of 1ETSY (2.14) is better than 75.00% of its industry peers.
1ETSY has a Quick Ratio of 2.14. This indicates that 1ETSY is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of 1ETSY (2.14) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 2.14 |
3. Growth
3.1 Past
1ETSY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.82%.
The Earnings Per Share has been growing by 25.54% on average over the past years. This is a very strong growth
Looking at the last year, 1ETSY shows a small growth in Revenue. The Revenue has grown by 2.18% in the last year.
1ETSY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.97% yearly.
EPS 1Y (TTM)6.82%
EPS 3Y-11.42%
EPS 5Y25.54%
EPS Q2Q%-4.17%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%0.81%
3.2 Future
The Earnings Per Share is expected to grow by 24.28% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 5.24% on average over the next years.
EPS Next Y-31.94%
EPS Next 2Y9.38%
EPS Next 3Y10.44%
EPS Next 5Y24.28%
Revenue Next Year-1.6%
Revenue Next 2Y-0.02%
Revenue Next 3Y1.83%
Revenue Next 5Y5.24%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.72, which indicates a rather expensive current valuation of 1ETSY.
1ETSY's Price/Earnings ratio is in line with the industry average.
1ETSY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.61, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.61, which indicates a rather expensive current valuation of 1ETSY.
1ETSY's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of 1ETSY to the average of the S&P500 Index (37.13), we can say 1ETSY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 19.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1ETSY is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1ETSY indicates a rather cheap valuation: 1ETSY is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.47 | ||
| EV/EBITDA | 14.2 |
4.3 Compensation for Growth
1ETSY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y9.38%
EPS Next 3Y10.44%
5. Dividend
5.1 Amount
1ETSY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1ETSY (7/16/2025, 7:00:00 PM)
47.435
+6.01 (+14.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners118.59%
Inst Owner ChangeN/A
Ins Owners0.96%
Ins Owner ChangeN/A
Market Cap4.95B
Analysts67.69
Price Target46.88 (-1.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.16%
Min EPS beat(2)-7.84%
Max EPS beat(2)8.16%
EPS beat(4)1
Avg EPS beat(4)-6.59%
Min EPS beat(4)-16.48%
Max EPS beat(4)8.16%
EPS beat(8)3
Avg EPS beat(8)-2.89%
EPS beat(12)4
Avg EPS beat(12)-176.75%
EPS beat(16)7
Avg EPS beat(16)-129.16%
Revenue beat(2)0
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-3.17%
Max Revenue beat(2)-0.66%
Revenue beat(4)1
Avg Revenue beat(4)-0.86%
Min Revenue beat(4)-3.17%
Max Revenue beat(4)0.88%
Revenue beat(8)1
Avg Revenue beat(8)-1.09%
Revenue beat(12)5
Avg Revenue beat(12)0.33%
Revenue beat(16)7
Avg Revenue beat(16)0.29%
PT rev (1m)1.23%
PT rev (3m)-43.11%
EPS NQ rev (1m)-3.28%
EPS NQ rev (3m)-7.06%
EPS NY rev (1m)-3%
EPS NY rev (3m)-48.46%
Revenue NQ rev (1m)0.35%
Revenue NQ rev (3m)-7.55%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-12.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 19.61 | ||
| P/S | 2.06 | ||
| P/FCF | 8.47 | ||
| P/OCF | 7.92 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.2 |
EPS(TTM)2
EY4.22%
EPS(NY)2.42
Fwd EY5.1%
FCF(TTM)5.6
FCFY11.81%
OCF(TTM)5.99
OCFY12.63%
SpS23.01
BVpS-7.45
TBVpS-11.13
PEG (NY)N/A
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.87% | ||
| ROE | N/A | ||
| ROCE | 24.44% | ||
| ROIC | 18.05% | ||
| ROICexc | 39.38% | ||
| ROICexgc | 101.83% | ||
| OM | 13.91% | ||
| PM (TTM) | 6.69% | ||
| GM | 72.3% | ||
| FCFM | 24.34% |
ROA(3y)-0.78%
ROA(5y)5.01%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.75%
ROIC(5y)14.2%
ROICexc(3y)35.74%
ROICexc(5y)46.84%
ROICexgc(3y)158.04%
ROICexgc(5y)N/A
ROCE(3y)19.98%
ROCE(5y)19.24%
ROICexcg growth 3Y8.44%
ROICexcg growth 5Y39.3%
ROICexc growth 3Y36.7%
ROICexc growth 5Y26.36%
OM growth 3Y-12.19%
OM growth 5Y4.53%
PM growth 3Y-20.12%
PM growth 5Y-1.62%
GM growth 3Y0.24%
GM growth 5Y1.61%
F-Score6
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Debt/EBITDA | 4.76 | ||
| Cap/Depr | 43.95% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 146.52% | ||
| Profit Quality | 363.97% | ||
| Current Ratio | 2.14 | ||
| Quick Ratio | 2.14 | ||
| Altman-Z | 2.08 |
F-Score6
WACC7.5%
ROIC/WACC2.41
Cap/Depr(3y)40.81%
Cap/Depr(5y)35.34%
Cap/Sales(3y)1.48%
Cap/Sales(5y)1.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.82%
EPS 3Y-11.42%
EPS 5Y25.54%
EPS Q2Q%-4.17%
EPS Next Y-31.94%
EPS Next 2Y9.38%
EPS Next 3Y10.44%
EPS Next 5Y24.28%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%0.81%
Revenue Next Year-1.6%
Revenue Next 2Y-0.02%
Revenue Next 3Y1.83%
Revenue Next 5Y5.24%
EBIT growth 1Y7.43%
EBIT growth 3Y-6.54%
EBIT growth 5Y33.76%
EBIT Next Year96.47%
EBIT Next 3Y28.9%
EBIT Next 5Y20.9%
FCF growth 1Y6.44%
FCF growth 3Y4.49%
FCF growth 5Y30.17%
OCF growth 1Y7.79%
OCF growth 3Y4.91%
OCF growth 5Y29.46%