ETSY INC (ETSY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ETSY - US29786A1060 - Common Stock
55.44 USD
+0.08 (+0.14%)
55.44 USD
0 (0%)
Overall ETSY gets a fundamental rating of 6 out of 10. We evaluated ETSY 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 is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make ETSY suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year ETSY was profitable.
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.
1.2 Ratios
ETSY has a better Return On Assets (6.41%) than 73.33% of its industry peers.
The Return On Invested Capital of ETSY (14.18%) is better than 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 9.29%.
| 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 has a better Operating Margin (14.01%) than 90.00% 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 90.00% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ETSY is creating value.
Compared to 1 year ago, ETSY has less shares outstanding
Compared to 5 years ago, ETSY has less shares outstanding
ETSY has a worse debt/assets ratio than last year.
2.2 Solvency
ETSY has an Altman-Z score of 1.78. 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 (1.78) which is in line with 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 56.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 1.78 |
ROIC/WACC1.95
WACC7.26%
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 has a Current ratio of 3.39. This is amongst the best in the industry. ETSY outperforms 96.67% 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 strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.45%, which is quite impressive.
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.
Looking at the last year, ETSY shows a small growth in Revenue. The Revenue has grown by 2.18% 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)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.
ETSY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.81% yearly.
EPS Next Y-45.19%
EPS Next 2Y4.99%
EPS Next 3Y8.68%
EPS Next 5Y25.26%
Revenue Next Year2.33%
Revenue Next 2Y2.66%
Revenue Next 3Y3.71%
Revenue Next 5Y4.81%
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.
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
A Price/Earnings ratio of 23.10 indicates a rather 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 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.51, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 21.22, the valuation of ETSY can be described as rather expensive.
ETSY's Price/Forward Earnings ratio is in line with the industry average.
ETSY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 21.22 |
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 | 8.62 | ||
| EV/EBITDA | 13.69 |
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)0.9
EPS Next 2Y4.99%
EPS Next 3Y8.68%
5. Dividend
5.1 Amount
ETSY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
55.44
+0.08 (+0.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners127.24%
Inst Owner Change-3.77%
Ins Owners1.06%
Ins Owner Change0.13%
Market Cap5.47B
Revenue(TTM)2.81B
Net Income(TTM)164.02M
Analysts68.5
Price Target68.79 (24.08%)
Short Float %18.13%
Short Ratio4.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)-185.33%
EPS beat(16)6
Avg EPS beat(16)-132.18%
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)-3.26%
PT rev (3m)3.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.86%
EPS NY rev (1m)-2.25%
EPS NY rev (3m)-3.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 21.22 | ||
| P/S | 1.93 | ||
| P/FCF | 8.62 | ||
| P/OCF | 7.93 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.69 |
EPS(TTM)2.4
EY4.33%
EPS(NY)2.61
Fwd EY4.71%
FCF(TTM)6.43
FCFY11.6%
OCF(TTM)6.99
OCFY12.6%
SpS28.76
BVpS-11.39
TBVpS-14.99
PEG (NY)N/A
PEG (5Y)0.9
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 | 1.78 |
F-Score6
WACC7.26%
ROIC/WACC1.95
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-45.19%
EPS Next 2Y4.99%
EPS Next 3Y8.68%
EPS Next 5Y25.26%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%2.36%
Revenue Next Year2.33%
Revenue Next 2Y2.66%
Revenue Next 3Y3.71%
Revenue Next 5Y4.81%
EBIT growth 1Y7.82%
EBIT growth 3Y-6.54%
EBIT growth 5Y33.76%
EBIT Next Year94.66%
EBIT Next 3Y28.55%
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.
Can you provide the valuation status for ETSY INC?
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.
Can you provide the financial health for ETSY stock?
The financial health rating of ETSY INC (ETSY) is 5 / 10.
Can you provide the expected EPS growth for ETSY stock?
The Earnings per Share (EPS) of ETSY INC (ETSY) is expected to decline by -45.19% in the next year.