ETSY INC (ETSY) Stock Fundamental Analysis
NASDAQ:ETSY - Nasdaq - US29786A1060 - Common Stock - Currency: USD
Overall ETSY gets a fundamental rating of 6 out of 10. We evaluated ETSY against 28 industry peers in the Broadline Retail industry. While ETSY has a great profitability rating, 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.
Of the past 5 years ETSY 4 years were profitable.
In the past 5 years ETSY always reported a positive cash flow from operatings.
1.2 Ratios
ETSY has a better Return On Assets (6.41%) than 71.43% of its industry peers.
With a decent Return On Invested Capital value of 14.18%, ETSY is doing good in the industry, outperforming 78.57% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for ETSY is above the industry average of 11.32%.
| 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 67.86% of its industry peers.
ETSY's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 14.01%, ETSY belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
ETSY's Operating Margin has improved in the last couple of years.
The Gross Margin of ETSY (72.20%) is better than 92.86% 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.
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
An Altman-Z score of 1.99 indicates that ETSY is not a great score, but indicates only limited risk for bankruptcy at the moment.
ETSY's Altman-Z score of 1.99 is in line compared to the rest of the industry. ETSY outperforms 50.00% 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.
ETSY's Debt to FCF ratio of 4.85 is in line compared to the rest of the industry. ETSY outperforms 53.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.84
WACC7.7%
2.3 Liquidity
A Current Ratio of 3.39 indicates that ETSY has no problem at all paying its short term obligations.
The Current ratio of ETSY (3.39) is better than 92.86% 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.
ETSY's Quick ratio of 3.39 is amongst the best of the industry. ETSY outperforms 96.43% of its industry peers.
| 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%.
ETSY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.54% yearly.
Looking at the last year, ETSY shows a small growth in Revenue. The Revenue has grown by 2.38% in the last year.
The Revenue has been growing by 27.97% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, ETSY will show a small growth in Revenue. The Revenue will grow by 4.49% on average per year.
EPS Next Y-31.94%
EPS Next 2Y9.38%
EPS Next 3Y10.44%
EPS Next 5Y25.31%
Revenue Next Year-1.5%
Revenue Next 2Y0.07%
Revenue Next 3Y1.9%
Revenue Next 5Y4.49%
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 29.26.
The rest of the industry has a similar Price/Earnings ratio as ETSY.
ETSY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.82, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.91, which indicates a rather expensive current valuation of ETSY.
Based on the Price/Forward Earnings ratio, ETSY is valued a bit cheaper than 60.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of ETSY to the average of the S&P500 Index (35.24), we can say ETSY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.26 | ||
| Fwd PE | 22.91 |
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.
85.71% 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 | 10.67 | ||
| EV/EBITDA | 16.27 |
4.3 Compensation for Growth
ETSY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.15
EPS Next 2Y9.38%
EPS Next 3Y10.44%
5. Dividend
5.1 Amount
No dividends for ETSY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
64.96
-1.47 (-2.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners122.43%
Inst Owner Change6.06%
Ins Owners1.02%
Ins Owner Change0.39%
Market Cap6.77B
Analysts68.21
Price Target64.91 (-0.08%)
Short Float %17.36%
Short Ratio3.06
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)23.15%
PT rev (3m)25.79%
EPS NQ rev (1m)-2.66%
EPS NQ rev (3m)-9.01%
EPS NY rev (1m)0%
EPS NY rev (3m)-3%
Revenue NQ rev (1m)1.57%
Revenue NQ rev (3m)-1.06%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.26 | ||
| Fwd PE | 22.91 | ||
| P/S | 2.39 | ||
| P/FCF | 10.67 | ||
| P/OCF | 9.82 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.27 |
EPS(TTM)2.22
EY3.42%
EPS(NY)2.84
Fwd EY4.36%
FCF(TTM)6.09
FCFY9.37%
OCF(TTM)6.61
OCFY10.18%
SpS27.22
BVpS-10.78
TBVpS-14.19
PEG (NY)N/A
PEG (5Y)1.15
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 | 1.99 |
F-Score6
WACC7.7%
ROIC/WACC1.84
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-31.94%
EPS Next 2Y9.38%
EPS Next 3Y10.44%
EPS Next 5Y25.31%
Revenue 1Y (TTM)2.38%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%3.84%
Revenue Next Year-1.5%
Revenue Next 2Y0.07%
Revenue Next 3Y1.9%
Revenue Next 5Y4.49%
EBIT growth 1Y7.82%
EBIT growth 3Y-6.54%
EBIT growth 5Y33.76%
EBIT Next Year96.25%
EBIT Next 3Y29.23%
EBIT Next 5Y20.28%
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%