ETSY INC (ETSY) Stock Fundamental Analysis
USA - NYSE:ETSY - US29786A1060 - Common Stock
53.04 USD
-1.46 (-2.68%)
ETSY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. While ETSY has a great profitability rating, there are some minor concerns on its financial health. ETSY is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, ETSY could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year ETSY was profitable.
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
The Return On Assets of ETSY (6.41%) is better than 73.33% of its industry peers.
ETSY's Return On Invested Capital of 14.18% is amongst the best of the industry. ETSY outperforms 83.33% 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 10.24%.
| 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
Looking at the Profit Margin, with a value of 5.78%, ETSY is in the better half of 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 Operating Margin of 14.01%. This is amongst the best in the industry. ETSY outperforms 86.67% of its industry peers.
In the last couple of years the Operating Margin of ETSY has grown nicely.
ETSY's Gross Margin of 72.20% is amongst the best of the industry. ETSY outperforms 93.33% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ETSY is creating value.
The number of shares outstanding for ETSY has been reduced compared to 1 year ago.
The number of shares outstanding for ETSY has been reduced compared to 5 years ago.
Compared to 1 year ago, ETSY has a worse debt to assets ratio.
2.2 Solvency
ETSY has an Altman-Z score of 1.77. 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 of 1.77. This is comparable to the rest of the industry: ETSY outperforms 60.00% of its industry peers.
ETSY has a debt to FCF ratio of 4.85. This is a neutral value as ETSY would need 4.85 years to pay back of 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 53.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 1.77 |
ROIC/WACC1.98
WACC7.17%
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.
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 96.67% of its industry peers.
| 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
ETSY shows a small growth in Revenue. In the last year, the Revenue has grown by 2.18%.
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
The Earnings Per Share is expected to grow by 25.26% on average over the next years. This is a very strong growth
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-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
ETSY is valuated rather expensively with a Price/Earnings ratio of 22.10.
ETSY's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of ETSY to the average of the S&P500 Index (25.46), we can say ETSY is valued inline with the index average.
A Price/Forward Earnings ratio of 18.83 indicates a rather expensive valuation of ETSY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETSY is on the same level as its industry peers.
ETSY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.1 | ||
| Fwd PE | 18.83 |
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.
Based on the Price/Free Cash Flow ratio, ETSY is valued cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.28 | ||
| EV/EBITDA | 13.55 |
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 13.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)0.87
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 |
NYSE:ETSY (11/19/2025, 2:58:21 PM)
53.04
-1.46 (-2.68%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners133.97%
Inst Owner Change-4.14%
Ins Owners1.02%
Ins Owner Change6.52%
Market Cap5.26B
Revenue(TTM)2.81B
Net Income(TTM)164.02M
Analysts69.23
Price Target69.07 (30.22%)
Short Float %17.71%
Short Ratio3.15
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)3.67%
PT rev (3m)6.42%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)0.11%
EPS NY rev (1m)-1.65%
EPS NY rev (3m)-17.62%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.39%
Revenue NY rev (1m)1.31%
Revenue NY rev (3m)3.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.1 | ||
| Fwd PE | 18.83 | ||
| P/S | 1.85 | ||
| P/FCF | 8.28 | ||
| P/OCF | 7.62 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.55 |
EPS(TTM)2.4
EY4.52%
EPS(NY)2.82
Fwd EY5.31%
FCF(TTM)6.4
FCFY12.07%
OCF(TTM)6.96
OCFY13.12%
SpS28.64
BVpS-11.35
TBVpS-14.93
PEG (NY)N/A
PEG (5Y)0.87
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 | 1.77 |
F-Score6
WACC7.17%
ROIC/WACC1.98
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 22.1 and the Price/Book (PB) ratio is -4.67.