ETSY INC (ETSY) Stock Fundamental Analysis
USA - NYSE:ETSY - US29786A1060 - Common Stock
73.9 USD
+0.02 (+0.03%)
74.4 USD
+0.5 (+0.68%)
ETSY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. ETSY has an excellent profitability rating, but there are some minor concerns on its financial health. ETSY has a correct valuation and a medium growth rate.
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
Looking at the Return On Assets, with a value of 6.41%, ETSY is in the better half of the industry, outperforming 73.33% of the companies in the same industry.
ETSY has a Return On Invested Capital of 14.18%. This is amongst the best in 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
The Profit Margin of ETSY (5.78%) is better than 66.67% of its industry peers.
In the last couple of years the Profit Margin of ETSY has declined.
ETSY has a better Operating Margin (14.01%) than 86.67% of its industry peers.
In the last couple of years the Operating Margin of ETSY has grown nicely.
The Gross Margin of ETSY (72.20%) is better than 93.33% of its industry peers.
ETSY's Gross Margin has improved in the last couple of years.
| 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
ETSY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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
An Altman-Z score of 2.08 indicates that ETSY is not a great score, but indicates only limited risk for bankruptcy at the moment.
ETSY has a Altman-Z score of 2.08. This is comparable to the rest of the industry: ETSY outperforms 53.33% of its industry peers.
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.
With a Debt to FCF ratio value of 4.85, ETSY perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 2.08 |
ROIC/WACC1.92
WACC7.37%
2.3 Liquidity
A Current Ratio of 3.39 indicates that ETSY has no problem at all paying its short term obligations.
ETSY's Current ratio of 3.39 is amongst the best of the industry. ETSY outperforms 93.33% of its industry peers.
A Quick Ratio of 3.39 indicates that ETSY has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 3.39, ETSY belongs to the top of the industry, outperforming 96.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.39 | ||
| Quick Ratio | 3.39 |
3. Growth
3.1 Past
ETSY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.30%.
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%.
ETSY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.97% yearly.
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
Based on estimates for the next years, ETSY will show a very strong growth in Earnings Per Share. The EPS will grow by 25.31% on average per year.
ETSY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.57% yearly.
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
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
ETSY is valuated quite expensively with a Price/Earnings ratio of 33.29.
Based on the Price/Earnings ratio, ETSY is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.91. ETSY is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 26.22, ETSY can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETSY is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.92. ETSY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.29 | ||
| Fwd PE | 26.22 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ETSY.
ETSY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ETSY is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.54 | ||
| EV/EBITDA | 17.35 |
4.3 Compensation for Growth
ETSY has a very decent profitability rating, which may justify a higher PE ratio.
ETSY's earnings are expected to grow with 12.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)1.3
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 |
73.9
+0.02 (+0.03%)
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 Cap7.32B
Revenue(TTM)2.84B
Net Income(TTM)164.02M
Analysts68.72
Price Target66.63 (-9.84%)
Short Float %22.15%
Short Ratio3.86
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 | 33.29 | ||
| Fwd PE | 26.22 | ||
| P/S | 2.58 | ||
| P/FCF | 11.54 | ||
| P/OCF | 10.62 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.35 |
EPS(TTM)2.22
EY3%
EPS(NY)2.82
Fwd EY3.81%
FCF(TTM)6.4
FCFY8.66%
OCF(TTM)6.96
OCFY9.42%
SpS28.64
BVpS-11.35
TBVpS-14.93
PEG (NY)N/A
PEG (5Y)1.3
Graham NumberN/A
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%
ROICexgc growth 3Y8.44%
ROICexgc 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 | 2.08 |
F-Score6
WACC7.37%
ROIC/WACC1.92
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%
ETSY INC / ETSY FAQ
Can you provide the ChartMill fundamental rating for ETSY INC?
ChartMill assigns a fundamental rating of 6 / 10 to ETSY.
What is the valuation status of ETSY INC (ETSY) stock?
ChartMill assigns a valuation rating of 4 / 10 to ETSY INC (ETSY). This can be considered as Fairly Valued.
How profitable is ETSY INC (ETSY) stock?
ETSY INC (ETSY) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ETSY INC (ETSY) stock?
The Price/Earnings (PE) ratio for ETSY INC (ETSY) is 33.29 and the Price/Book (PB) ratio is -6.51.