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ETSY INC (ETSY) Stock Fundamental Analysis

NASDAQ:ETSY - Nasdaq - US29786A1060 - Common Stock - Currency: USD

44.3  +1.79 (+4.21%)

After market: 44.3 0 (0%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to ETSY. ETSY was compared to 31 industry peers in the Broadline Retail industry. While ETSY has a great profitability rating, there are some minor concerns on its financial health. ETSY is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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8

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.
ETSY had positive earnings in 4 of the past 5 years.
ETSY had a positive operating cash flow in each of the past 5 years.
ETSY Yearly Net Income VS EBIT VS OCF VS FCFETSY 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

The Return On Assets of ETSY (12.54%) is better than 90.32% of its industry peers.
ETSY's Return On Invested Capital of 16.02% is amongst the best of the industry. ETSY outperforms 87.10% of its industry peers.
ETSY had an Average Return On Invested Capital over the past 3 years of 14.75%. This is above the industry average of 11.80%.
The last Return On Invested Capital (16.02%) for ETSY 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%
ETSY Yearly ROA, ROE, ROICETSY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 100

1.3 Margins

ETSY has a Profit Margin of 10.80%. This is amongst the best in the industry. ETSY outperforms 87.10% of its industry peers.
In the last couple of years the Profit Margin of ETSY has declined.
Looking at the Operating Margin, with a value of 13.54%, ETSY belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
ETSY's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 72.42%, ETSY belongs to the top of the industry, outperforming 93.55% of the companies in the same industry.
In the last couple of years the Gross Margin of ETSY 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%
ETSY Yearly Profit, Operating, Gross MarginsETSY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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5

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.
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.
ETSY Yearly Shares OutstandingETSY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
ETSY Yearly Total Debt VS Total AssetsETSY 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

ETSY has an Altman-Z score of 1.82. 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.
ETSY has a Altman-Z score (1.82) which is in line with its industry peers.
The Debt to FCF ratio of ETSY is 3.37, which is a good value as it means it would take ETSY, 3.37 years of fcf income to pay off all of its debts.
ETSY's Debt to FCF ratio of 3.37 is fine compared to the rest of the industry. ETSY outperforms 67.74% of its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 3.37
Altman-Z 1.82
ROIC/WACC2.05
WACC7.83%
ETSY Yearly LT Debt VS Equity VS FCFETSY 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

ETSY has a Current Ratio of 2.00. This is a normal value and indicates that ETSY is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 2.00, ETSY is doing good in the industry, outperforming 70.97% of the companies in the same industry.
ETSY has a Quick Ratio of 2.00. This is a normal value and indicates that ETSY is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Quick ratio value of 2.00, ETSY belongs to the best of the industry, outperforming 80.65% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2
Quick Ratio 2
ETSY Yearly Current Assets VS Current LiabilitesETSY 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

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6

3. Growth

3.1 Past

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

ETSY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.97% yearly.
The Revenue is expected to grow by 5.04% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ETSY Yearly Revenue VS EstimatesETSY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B 4B 5B
ETSY Yearly EPS VS EstimatesETSY 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

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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 18.85, ETSY is valued on the expensive side.
Based on the Price/Earnings ratio, ETSY is valued a bit cheaper than the industry average as 64.52% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.22, ETSY is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.69, the valuation of ETSY can be described as correct.
Based on the Price/Forward Earnings ratio, ETSY is valued a bit cheaper than 64.52% of the companies in the same industry.
ETSY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.86.
Industry RankSector Rank
PE 18.85
Fwd PE 15.69
ETSY Price Earnings VS Forward Price EarningsETSY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ETSY is valued a bit cheaper than the industry average as 67.74% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, ETSY is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 6.54
EV/EBITDA 11.4
ETSY Per share dataETSY 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 ETSY does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of ETSY may justify a higher PE ratio.
PEG (NY)2.55
PEG (5Y)0.74
EPS Next 2Y9.16%
EPS Next 3Y11.58%

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0

5. Dividend

5.1 Amount

No dividends for ETSY!.
Industry RankSector Rank
Dividend Yield N/A

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ETSY INC

NASDAQ:ETSY (5/2/2025, 8:00:02 PM)

After market: 44.3 0 (0%)

44.3

+1.79 (+4.21%)

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 Change0.47%
Ins Owners0.9%
Ins Owner Change0.26%
Market Cap4.63B
Analysts67.8
Price Target55.41 (25.08%)
Short Float %16.42%
Short Ratio3.7
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)-6.06%
PT rev (3m)-11.34%
EPS NQ rev (1m)-0.09%
EPS NQ rev (3m)-3.02%
EPS NY rev (1m)-1.02%
EPS NY rev (3m)-5.54%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-2.86%
Revenue NY rev (1m)-0.94%
Revenue NY rev (3m)-3.56%
Valuation
Industry RankSector Rank
PE 18.85
Fwd PE 15.69
P/S 1.65
P/FCF 6.54
P/OCF 6.16
P/B N/A
P/tB N/A
EV/EBITDA 11.4
EPS(TTM)2.35
EY5.3%
EPS(NY)2.82
Fwd EY6.37%
FCF(TTM)6.78
FCFY15.3%
OCF(TTM)7.19
OCFY16.24%
SpS26.85
BVpS-7.26
TBVpS-12.52
PEG (NY)2.55
PEG (5Y)0.74
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 1.82
F-Score7
WACC7.83%
ROIC/WACC2.05
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%