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ETSY INC (3E2.DE) Stock Fundamental Analysis

FRA:3E2 - Deutsche Boerse Ag - US29786A1060 - Common Stock - Currency: EUR

40.06  +1.68 (+4.36%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to 3E2. 3E2 was compared to 12 industry peers in the Broadline Retail industry. 3E2 scores excellent on profitability, but there are some minor concerns on its financial health. 3E2 is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year 3E2 was profitable.
3E2 had a positive operating cash flow in the past year.
Of the past 5 years 3E2 4 years were profitable.
3E2 had a positive operating cash flow in each of the past 5 years.
3E2.DE Yearly Net Income VS EBIT VS OCF VS FCF3E2.DE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M

1.2 Ratios

3E2 has a Return On Assets of 12.54%. This is amongst the best in the industry. 3E2 outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.02%, 3E2 belongs to the top of the industry, outperforming 92.31% of the companies in the same industry.
3E2 had an Average Return On Invested Capital over the past 3 years of 14.75%. This is significantly above the industry average of 9.16%.
The last Return On Invested Capital (16.02%) for 3E2 is above the 3 year average (14.75%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 12.54%
ROE N/A
ROIC 16.02%
ROA(3y)-0.78%
ROA(5y)5.01%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)14.75%
ROIC(5y)14.2%
3E2.DE Yearly ROA, ROE, ROIC3E2.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 100

1.3 Margins

The Profit Margin of 3E2 (10.80%) is better than 69.23% of its industry peers.
3E2's Profit Margin has declined in the last couple of years.
The Operating Margin of 3E2 (13.54%) 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 72.42% is amongst the best of the industry. 3E2 outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of 3E2 has grown nicely.
Industry RankSector Rank
OM 13.54%
PM (TTM) 10.8%
GM 72.42%
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%
3E2.DE Yearly Profit, Operating, Gross Margins3E2.DE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

5

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.
3E2 has less shares outstanding than it did 1 year ago.
3E2 has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 3E2 has a worse debt to assets ratio.
3E2.DE Yearly Shares Outstanding3E2.DE Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
3E2.DE Yearly Total Debt VS Total Assets3E2.DE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

An Altman-Z score of 1.87 indicates that 3E2 is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.87, 3E2 is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
3E2 has a debt to FCF ratio of 3.37. This is a good value and a sign of high solvency as 3E2 would need 3.37 years to pay back of all of its debts.
3E2's Debt to FCF ratio of 3.37 is fine compared to the rest of the industry. 3E2 outperforms 69.23% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 3.37
Altman-Z 1.87
ROIC/WACC2.02
WACC7.94%
3E2.DE Yearly LT Debt VS Equity VS FCF3E2.DE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

2.3 Liquidity

3E2 has a Current Ratio of 2.00. This is a normal value and indicates that 3E2 is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 2.00, 3E2 is doing good in the industry, outperforming 76.92% of the companies in the same industry.
A Quick Ratio of 2.00 indicates that 3E2 should not have too much problems paying its short term obligations.
3E2 has a Quick ratio of 2.00. This is in the better half of the industry: 3E2 outperforms 76.92% of its industry peers.
Industry RankSector Rank
Current Ratio 2
Quick Ratio 2
3E2.DE Yearly Current Assets VS Current Liabilites3E2.DE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

6

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.82% over the past year.
Measured over the past years, 3E2 shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.54% on average per year.
3E2 shows a small growth in Revenue. In the last year, the Revenue has grown by 2.18%.
3E2 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

Based on estimates for the next years, 3E2 will show a very strong growth in Earnings Per Share. The EPS will grow by 25.97% on average per year.
3E2 is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.04% yearly.
EPS Next Y7.39%
EPS Next 2Y9.16%
EPS Next 3Y11.58%
EPS Next 5Y25.97%
Revenue Next Year-1.11%
Revenue Next 2Y0.83%
Revenue Next 3Y2.42%
Revenue Next 5Y5.04%

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.
3E2.DE Yearly Revenue VS Estimates3E2.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B 4B 5B
3E2.DE Yearly EPS VS Estimates3E2.DE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 -5 10

5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 19.35 indicates a rather expensive valuation of 3E2.
The rest of the industry has a similar Price/Earnings ratio as 3E2.
Compared to an average S&P500 Price/Earnings ratio of 27.52, 3E2 is valued a bit cheaper.
3E2 is valuated correctly with a Price/Forward Earnings ratio of 16.09.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 3E2 is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 35.58. 3E2 is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 19.35
Fwd PE 16.09
3E2.DE Price Earnings VS Forward Price Earnings3E2.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, 3E2 is valued a bit cheaper than 69.23% of the companies in the same industry.
3E2's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 3E2 is cheaper than 100.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 6.7
EV/EBITDA 12.03
3E2.DE Per share data3E2.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 3E2 may justify a higher PE ratio.
PEG (NY)2.62
PEG (5Y)0.76
EPS Next 2Y9.16%
EPS Next 3Y11.58%

0

5. Dividend

5.1 Amount

3E2 does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

ETSY INC

FRA:3E2 (4/22/2025, 7:00:00 PM)

40.06

+1.68 (+4.36%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)04-30 2025-04-30/bmo
Earnings (Next)07-29 2025-07-29/amc
Inst Owners112.17%
Inst Owner ChangeN/A
Ins Owners0.9%
Ins Owner ChangeN/A
Market Cap4.19B
Analysts67.8
Price Target48.33 (20.64%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.16%
Min EPS beat(2)-16.48%
Max EPS beat(2)8.16%
EPS beat(4)1
Avg EPS beat(4)-5.47%
Min EPS beat(4)-16.48%
Max EPS beat(4)8.16%
EPS beat(8)3
Avg EPS beat(8)-2.18%
EPS beat(12)4
Avg EPS beat(12)-176.2%
EPS beat(16)8
Avg EPS beat(16)-127.99%
Revenue beat(2)0
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-3.17%
Max Revenue beat(2)-0.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.19%
Min Revenue beat(4)-3.17%
Max Revenue beat(4)0.88%
Revenue beat(8)2
Avg Revenue beat(8)-0.88%
Revenue beat(12)5
Avg Revenue beat(12)0.28%
Revenue beat(16)8
Avg Revenue beat(16)0.45%
PT rev (1m)-9.86%
PT rev (3m)-20.29%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-3.03%
EPS NY rev (1m)-1.02%
EPS NY rev (3m)-3.38%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.58%
Revenue NY rev (1m)-0.94%
Revenue NY rev (3m)-3.56%
Valuation
Industry RankSector Rank
PE 19.35
Fwd PE 16.09
P/S 1.69
P/FCF 6.7
P/OCF 6.32
P/B N/A
P/tB N/A
EV/EBITDA 12.03
EPS(TTM)2.07
EY5.17%
EPS(NY)2.49
Fwd EY6.21%
FCF(TTM)5.98
FCFY14.92%
OCF(TTM)6.34
OCFY15.83%
SpS23.67
BVpS-6.4
TBVpS-11.04
PEG (NY)2.62
PEG (5Y)0.76
Profitability
Industry RankSector Rank
ROA 12.54%
ROE N/A
ROCE 21.69%
ROIC 16.02%
ROICexc 39.36%
ROICexgc 173.09%
OM 13.54%
PM (TTM) 10.8%
GM 72.42%
FCFM 25.25%
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-Score7
Asset Turnover1.16
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 3.37
Debt/EBITDA 4.88
Cap/Depr 40.25%
Cap/Sales 1.55%
Interest Coverage 42
Cash Conversion 154.1%
Profit Quality 233.77%
Current Ratio 2
Quick Ratio 2
Altman-Z 1.87
F-Score7
WACC7.94%
ROIC/WACC2.02
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 Y7.39%
EPS Next 2Y9.16%
EPS Next 3Y11.58%
EPS Next 5Y25.97%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%0.81%
Revenue Next Year-1.11%
Revenue Next 2Y0.83%
Revenue Next 3Y2.42%
Revenue Next 5Y5.04%
EBIT growth 1Y1.51%
EBIT growth 3Y-6.54%
EBIT growth 5Y33.76%
EBIT Next Year104.71%
EBIT Next 3Y31.49%
EBIT Next 5Y21.88%
FCF growth 1Y6.52%
FCF growth 3Y4.49%
FCF growth 5Y30.17%
OCF growth 1Y6.66%
OCF growth 3Y4.91%
OCF growth 5Y29.46%