ETSY INC (3E2.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:3E2 - US29786A1060 - Common Stock
48.3 EUR
-0.21 (-0.42%)
We assign a fundamental rating of 6 out of 10 to 3E2. 3E2 was compared to 13 industry peers in the Broadline Retail industry. 3E2 has an excellent profitability rating, but there are some minor concerns on its financial health. 3E2 is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make 3E2 a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
- In the past year 3E2 was profitable.
- 3E2 had a positive operating cash flow in the past year.
- 3E2 had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years 3E2 had a positive operating cash flow.
1.2 Ratios
- 3E2 has a Return On Assets of 6.87%. This is comparable to the rest of the industry: 3E2 outperforms 53.85% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 13.92%, 3E2 belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 3E2 is significantly above the industry average of 8.68%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.87% | ||
| ROE | N/A | ||
| ROIC | 13.92% |
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
- Looking at the Profit Margin, with a value of 6.38%, 3E2 is in line with its industry, outperforming 46.15% of the companies in the same industry.
- In the last couple of years the Profit Margin of 3E2 has declined.
- The Operating Margin of 3E2 (13.79%) is better than 92.31% of its industry peers.
- In the last couple of years the Operating Margin of 3E2 has grown nicely.
- 3E2's Gross Margin of 72.04% is amongst the best of the industry. 3E2 outperforms 100.00% of its industry peers.
- 3E2's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.79% | ||
| PM (TTM) | 6.38% | ||
| GM | 72.04% |
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 5Y1.6%
2. Health
2.1 Basic Checks
- 3E2 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 3E2 has been reduced compared to 1 year ago.
- 3E2 has less shares outstanding than it did 5 years ago.
- 3E2 has a worse debt/assets ratio than last year.
2.2 Solvency
- 3E2 has an Altman-Z score of 1.77. This is a bad value and indicates that 3E2 is not financially healthy and even has some risk of bankruptcy.
- 3E2 has a worse Altman-Z score (1.77) than 69.23% of its industry peers.
- 3E2 has a debt to FCF ratio of 4.84. This is a neutral value as 3E2 would need 4.84 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 4.84, 3E2 perfoms like the industry average, outperforming 53.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.84 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.94
WACC7.17%
2.3 Liquidity
- 3E2 has a Current Ratio of 3.17. This indicates that 3E2 is financially healthy and has no problem in meeting its short term obligations.
- 3E2's Current ratio of 3.17 is fine compared to the rest of the industry. 3E2 outperforms 76.92% of its industry peers.
- 3E2 has a Quick Ratio of 3.17. This indicates that 3E2 is financially healthy and has no problem in meeting its short term obligations.
- 3E2's Quick ratio of 3.17 is amongst the best of the industry. 3E2 outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.17 | ||
| Quick Ratio | 3.17 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 22.45% over the past year.
- The Earnings Per Share has been growing by 25.54% on average over the past years. This is a very strong growth
- The Revenue has been growing slightly by 1.98% in the past year.
- Measured over the past years, 3E2 shows a very strong growth in Revenue. The Revenue has been growing by 27.97% on average per year.
EPS 1Y (TTM)22.45%
EPS 3Y-11.42%
EPS 5Y25.54%
EPS Q2Q%40%
Revenue 1Y (TTM)1.98%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%2.36%
3.2 Future
- The Earnings Per Share is expected to grow by 26.09% on average over the next years. This is a very strong growth
- Based on estimates for the next years, 3E2 will show a small growth in Revenue. The Revenue will grow by 4.73% on average per year.
EPS Next Y-44.62%
EPS Next 2Y4.74%
EPS Next 3Y8.77%
EPS Next 5Y26.09%
Revenue Next Year2.33%
Revenue Next 2Y2.59%
Revenue Next 3Y3.69%
Revenue Next 5Y4.73%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- 3E2 is valuated rather expensively with a Price/Earnings ratio of 24.15.
- The rest of the industry has a similar Price/Earnings ratio as 3E2.
- 3E2 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.60, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 22.24, 3E2 is valued on the expensive side.
- Based on the Price/Forward Earnings ratio, 3E2 is valued a bit cheaper than 61.54% of the companies in the same industry.
- 3E2's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.15 | ||
| Fwd PE | 22.24 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 3E2 is valued cheaper than 84.62% of the companies in the same industry.
- 100.00% of the companies in the same industry are more expensive than 3E2, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.99 | ||
| EV/EBITDA | 14.12 |
4.3 Compensation for Growth
- 3E2 has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.95
EPS Next 2Y4.74%
EPS Next 3Y8.77%
5. Dividend
5.1 Amount
- 3E2 does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ETSY INC / 3E2.DE FAQ
What is the fundamental rating for 3E2 stock?
ChartMill assigns a fundamental rating of 6 / 10 to 3E2.DE.
What is the valuation status of ETSY INC (3E2.DE) stock?
ChartMill assigns a valuation rating of 4 / 10 to ETSY INC (3E2.DE). This can be considered as Fairly Valued.
What is the profitability of 3E2 stock?
ETSY INC (3E2.DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ETSY INC (3E2.DE) stock?
The Price/Earnings (PE) ratio for ETSY INC (3E2.DE) is 24.15 and the Price/Book (PB) ratio is -5.13.