ETSY INC (ETSY) Stock Fundamental Analysis
USA - NYSE:ETSY - US29786A1060 - Common Stock
70.46 USD
-0.99 (-1.39%)
70.46 USD
0 (0%)
ETSY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. While ETSY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ETSY has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
ETSY had positive earnings in the past year.
In the past year ETSY had a positive cash flow from operations.
ETSY had positive earnings in 4 of the past 5 years.
Each year in the past 5 years ETSY had a positive operating cash flow.
1.2 Ratios
ETSY's Return On Assets of 6.41% is fine compared to the rest of the industry. ETSY outperforms 73.33% of its industry peers.
ETSY's Return On Invested Capital of 14.18% is amongst the best of the industry. ETSY outperforms 83.33% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ETSY is above the industry average of 10.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | N/A | ||
| ROIC | 14.18% |
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
With a decent Profit Margin value of 5.78%, ETSY is doing good in the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of ETSY has declined.
ETSY's Operating Margin of 14.01% is amongst the best of the industry. ETSY outperforms 86.67% of its industry peers.
ETSY's Operating Margin has improved in the last couple of years.
ETSY has a Gross Margin of 72.20%. This is amongst the best in the industry. ETSY outperforms 93.33% of its industry peers.
In the last couple of years the Gross Margin of ETSY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.01% | ||
| PM (TTM) | 5.78% | ||
| GM | 72.2% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ETSY is creating value.
ETSY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for ETSY has been reduced compared to 5 years ago.
The debt/assets ratio for ETSY is higher compared to a year ago.
2.2 Solvency
ETSY has an Altman-Z score of 2.03. This is not the best score and indicates that ETSY is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of ETSY (2.03) is comparable to the rest of the industry.
The Debt to FCF ratio of ETSY is 4.85, which is a neutral value as it means it would take ETSY, 4.85 years of fcf income to pay off all of its debts.
ETSY has a Debt to FCF ratio (4.85) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 2.03 |
ROIC/WACC1.96
WACC7.23%
2.3 Liquidity
A Current Ratio of 3.39 indicates that ETSY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.39, ETSY belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
ETSY has a Quick Ratio of 3.39. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
ETSY has a Quick ratio of 3.39. This is amongst the best in the industry. ETSY outperforms 96.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.39 | ||
| Quick Ratio | 3.39 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.30% 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
ETSY shows a small growth in Revenue. In the last year, the Revenue has grown by 2.38%.
Measured over the past years, ETSY shows a very strong growth in Revenue. The Revenue has been growing by 27.97% on average per year.
EPS 1Y (TTM)2.3%
EPS 3Y-11.42%
EPS 5Y25.54%
EPS Q2Q%-31.71%
Revenue 1Y (TTM)2.38%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%3.84%
3.2 Future
The Earnings Per Share is expected to grow by 25.31% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.57% on average over the next years.
EPS Next Y-42.99%
EPS Next 2Y9.05%
EPS Next 3Y12.94%
EPS Next 5Y25.31%
Revenue Next Year0.73%
Revenue Next 2Y1.43%
Revenue Next 3Y2.77%
Revenue Next 5Y4.57%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 31.74 indicates a quite expensive valuation of ETSY.
ETSY's Price/Earnings ratio is a bit cheaper when compared to the industry. ETSY is cheaper than 66.67% of the companies in the same industry.
ETSY's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.42.
ETSY is valuated quite expensively with a Price/Forward Earnings ratio of 25.00.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETSY is on the same level as its industry peers.
ETSY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.74 | ||
| Fwd PE | 25 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ETSY.
Based on the Price/Free Cash Flow ratio, ETSY is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11 | ||
| EV/EBITDA | 16.68 |
4.3 Compensation for Growth
ETSY has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ETSY's earnings are expected to grow with 12.94% in the coming years.
PEG (NY)N/A
PEG (5Y)1.24
EPS Next 2Y9.05%
EPS Next 3Y12.94%
5. Dividend
5.1 Amount
No dividends for ETSY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
70.46
-0.99 (-1.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners133.97%
Inst Owner Change-0.33%
Ins Owners1.02%
Ins Owner Change0.26%
Market Cap6.98B
Analysts68.72
Price Target66.63 (-5.44%)
Short Float %20.08%
Short Ratio3.22
Dividend
| Industry Rank | Sector 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)0
Avg EPS beat(2)-25.34%
Min EPS beat(2)-42.84%
Max EPS beat(2)-7.84%
EPS beat(4)1
Avg EPS beat(4)-14.75%
Min EPS beat(4)-42.84%
Max EPS beat(4)8.16%
EPS beat(8)2
Avg EPS beat(8)-8.3%
EPS beat(12)3
Avg EPS beat(12)-185.37%
EPS beat(16)6
Avg EPS beat(16)-132.21%
Revenue beat(2)1
Avg Revenue beat(2)0.61%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)1.89%
Revenue beat(4)1
Avg Revenue beat(4)-0.6%
Min Revenue beat(4)-3.17%
Max Revenue beat(4)1.89%
Revenue beat(8)2
Avg Revenue beat(8)-0.8%
Revenue beat(12)5
Avg Revenue beat(12)0.22%
Revenue beat(16)8
Avg Revenue beat(16)0.48%
PT rev (1m)0%
PT rev (3m)26.13%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-3.3%
EPS NY rev (1m)-0.74%
EPS NY rev (3m)-16.23%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)1.89%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.74 | ||
| Fwd PE | 25 | ||
| P/S | 2.46 | ||
| P/FCF | 11 | ||
| P/OCF | 10.13 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.68 |
EPS(TTM)2.22
EY3.15%
EPS(NY)2.82
Fwd EY4%
FCF(TTM)6.4
FCFY9.09%
OCF(TTM)6.96
OCFY9.88%
SpS28.64
BVpS-11.35
TBVpS-14.93
PEG (NY)N/A
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | N/A | ||
| ROCE | 19.21% | ||
| ROIC | 14.18% | ||
| ROICexc | 44.6% | ||
| ROICexgc | 96.8% | ||
| OM | 14.01% | ||
| PM (TTM) | 5.78% | ||
| GM | 72.2% | ||
| FCFM | 22.36% |
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 Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.85 | ||
| Debt/EBITDA | 6.08 | ||
| Cap/Depr | 51.55% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 136.69% | ||
| Profit Quality | 386.93% | ||
| Current Ratio | 3.39 | ||
| Quick Ratio | 3.39 | ||
| Altman-Z | 2.03 |
F-Score6
WACC7.23%
ROIC/WACC1.96
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)2.3%
EPS 3Y-11.42%
EPS 5Y25.54%
EPS Q2Q%-31.71%
EPS Next Y-42.99%
EPS Next 2Y9.05%
EPS Next 3Y12.94%
EPS Next 5Y25.31%
Revenue 1Y (TTM)2.38%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%3.84%
Revenue Next Year0.73%
Revenue Next 2Y1.43%
Revenue Next 3Y2.77%
Revenue Next 5Y4.57%
EBIT growth 1Y7.82%
EBIT growth 3Y-6.54%
EBIT growth 5Y33.76%
EBIT Next Year97.4%
EBIT Next 3Y29.11%
EBIT Next 5Y20.44%
FCF growth 1Y-2.92%
FCF growth 3Y4.49%
FCF growth 5Y30.17%
OCF growth 1Y-0.07%
OCF growth 3Y4.91%
OCF growth 5Y29.46%