ETSY INC (ETSY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ETSY - US29786A1060 - Common Stock
52.19 USD
-1.64 (-3.05%)
52.08 USD
-0.11 (-0.21%)
Taking everything into account, ETSY scores 6 out of 10 in our fundamental rating. ETSY was compared to 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 is growing strongly while it is still valued neutral. This is a good combination! These ratings could make ETSY a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
ETSY had positive earnings in the past year.
ETSY had a positive operating cash flow in the past year.
Of the past 5 years ETSY 4 years were profitable.
Each year in the past 5 years ETSY had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.41%, ETSY is doing good in the industry, outperforming 73.33% of the companies in the same industry.
ETSY's Return On Invested Capital of 14.18% is amongst the best of the industry. ETSY outperforms 86.67% of its industry peers.
ETSY had an Average Return On Invested Capital over the past 3 years of 14.75%. This is significantly above the industry average of 9.35%.
| 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.
ETSY's Profit Margin has declined in the last couple of years.
ETSY has a better Operating Margin (14.01%) than 90.00% of its industry peers.
ETSY's Operating Margin has improved in the last couple of years.
The Gross Margin of ETSY (72.20%) is better than 90.00% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ETSY is creating value.
The number of shares outstanding for ETSY has been reduced compared to 1 year ago.
Compared to 5 years ago, ETSY has less shares outstanding
Compared to 1 year ago, ETSY has a worse debt to assets ratio.
2.2 Solvency
ETSY has an Altman-Z score of 1.76. This is a bad value and indicates that ETSY is not financially healthy and even has some risk of bankruptcy.
ETSY has a Altman-Z score (1.76) which 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.
Looking at the Debt to FCF ratio, with a value of 4.85, ETSY is in line with its industry, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 1.76 |
ROIC/WACC2.01
WACC7.06%
2.3 Liquidity
ETSY has a Current Ratio of 3.39. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
ETSY's Current ratio of 3.39 is amongst the best of the industry. ETSY outperforms 96.67% of its industry peers.
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.
With an excellent Quick ratio value of 3.39, ETSY belongs to the best 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
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
Looking at the last year, ETSY shows a small growth in Revenue. The Revenue has grown by 2.18% in the last year.
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)22.45%
EPS 3Y-11.42%
EPS 5Y25.54%
EPS Q2Q%40%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%2.36%
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 25.26% on average per year.
The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y-43.93%
EPS Next 2Y9.01%
EPS Next 3Y13.17%
EPS Next 5Y25.26%
Revenue Next Year2.05%
Revenue Next 2Y2.35%
Revenue Next 3Y3.49%
Revenue Next 5Y4.81%
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
With a Price/Earnings ratio of 21.75, ETSY is valued on the expensive side.
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.
When comparing the Price/Earnings ratio of ETSY to the average of the S&P500 Index (26.41), we can say ETSY is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 18.53, the valuation of ETSY can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETSY is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, ETSY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.75 | ||
| Fwd PE | 18.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ETSY is on the same level as its industry peers.
86.67% of the companies in the same industry are more expensive than ETSY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.12 | ||
| EV/EBITDA | 13.37 |
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 13.17% in the coming years.
PEG (NY)N/A
PEG (5Y)0.85
EPS Next 2Y9.01%
EPS Next 3Y13.17%
5. Dividend
5.1 Amount
No dividends for ETSY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
52.19
-1.64 (-3.05%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners133.97%
Inst Owner Change-3.78%
Ins Owners1.02%
Ins Owner Change0.24%
Market Cap5.15B
Revenue(TTM)2.81B
Net Income(TTM)164.02M
Analysts69.23
Price Target71.11 (36.25%)
Short Float %17.98%
Short Ratio3.49
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)2.95%
PT rev (3m)6.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.86%
EPS NY rev (1m)-2.39%
EPS NY rev (3m)-2.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.75 | ||
| Fwd PE | 18.53 | ||
| P/S | 1.81 | ||
| P/FCF | 8.12 | ||
| P/OCF | 7.47 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.37 |
EPS(TTM)2.4
EY4.6%
EPS(NY)2.82
Fwd EY5.4%
FCF(TTM)6.43
FCFY12.32%
OCF(TTM)6.99
OCFY13.39%
SpS28.76
BVpS-11.39
TBVpS-14.99
PEG (NY)N/A
PEG (5Y)0.85
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 | 1.76 |
F-Score6
WACC7.06%
ROIC/WACC2.01
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)22.45%
EPS 3Y-11.42%
EPS 5Y25.54%
EPS Q2Q%40%
EPS Next Y-43.93%
EPS Next 2Y9.01%
EPS Next 3Y13.17%
EPS Next 5Y25.26%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%2.36%
Revenue Next Year2.05%
Revenue Next 2Y2.35%
Revenue Next 3Y3.49%
Revenue Next 5Y4.81%
EBIT growth 1Y7.82%
EBIT growth 3Y-6.54%
EBIT growth 5Y33.76%
EBIT Next Year97.4%
EBIT Next 3Y29.11%
EBIT Next 5Y20.35%
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 21.75 and the Price/Book (PB) ratio is -4.58.