ETSY INC (ETSY)

US29786A1060 - Common Stock

66.87  -1.48 (-2.17%)

After market: 66.64 -0.23 (-0.34%)

Fundamental Rating

6

Overall ETSY gets a fundamental rating of 6 out of 10. We evaluated ETSY against 34 industry peers in the Broadline Retail industry. Both the health and profitability get an excellent rating, making ETSY a very profitable company, without any liquidiy or solvency issues. ETSY is growing strongly while it is still valued neutral. This is a good combination! With these ratings, ETSY could be worth investigating further for growth and quality investing!.



7

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.
ETSY had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

ETSY's Return On Assets of 11.45% is amongst the best of the industry. ETSY outperforms 87.88% of its industry peers.
ETSY has a Return On Invested Capital of 13.92%. This is amongst the best in the industry. ETSY outperforms 84.85% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ETSY is above the industry average of 11.22%.
The last Return On Invested Capital (13.92%) for ETSY is above the 3 year average (13.53%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 11.45%
ROE N/A
ROIC 13.92%
ROA(3y)-0.67%
ROA(5y)3.74%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.53%
ROIC(5y)12.59%

1.3 Margins

ETSY has a Profit Margin of 11.19%. This is amongst the best in the industry. ETSY outperforms 90.91% of its industry peers.
In the last couple of years the Profit Margin of ETSY has declined.
With an excellent Operating Margin value of 12.66%, ETSY belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
ETSY's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 69.85%, ETSY belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
In the last couple of years the Gross Margin of ETSY has remained more or less at the same level.
Industry RankSector Rank
OM 12.66%
PM (TTM) 11.19%
GM 69.85%
OM growth 3Y-19.84%
OM growth 5Y0.48%
PM growth 3Y-17.92%
PM growth 5Y-2.71%
GM growth 3Y-1.49%
GM growth 5Y0.42%

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), ETSY is creating some value.
ETSY has less shares outstanding than it did 1 year ago.
ETSY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ETSY has an improved debt to assets ratio.

2.2 Solvency

ETSY has an Altman-Z score of 2.63. 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 better Altman-Z score (2.63) than 66.67% of its industry peers.
The Debt to FCF ratio of ETSY is 3.59, which is a good value as it means it would take ETSY, 3.59 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 3.59, ETSY is doing good in the industry, outperforming 69.70% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 3.59
Altman-Z 2.63
ROIC/WACC1.59
WACC8.74%

2.3 Liquidity

ETSY has a Current Ratio of 2.21. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.21, ETSY is doing good in the industry, outperforming 78.79% of the companies in the same industry.
ETSY has a Quick Ratio of 2.21. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
ETSY has a Quick ratio of 2.21. This is amongst the best in the industry. ETSY outperforms 90.91% of its industry peers.
Industry RankSector Rank
Current Ratio 2.21
Quick Ratio 2.21

8

3. Growth

3.1 Past

ETSY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 139.20%, which is quite impressive.
The Earnings Per Share has been growing by 30.26% 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 7.11%.
ETSY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.41% yearly.
EPS 1Y (TTM)139.2%
EPS 3Y-5.78%
EPS 5Y30.26%
EPS growth Q2Q-19.48%
Revenue 1Y (TTM)7.11%
Revenue growth 3Y16.78%
Revenue growth 5Y35.41%
Revenue growth Q2Q4.35%

3.2 Future

ETSY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.85% yearly.
Based on estimates for the next years, ETSY will show a quite strong growth in Revenue. The Revenue will grow by 10.69% on average per year.
EPS Next Y18.57%
EPS Next 2Y17.92%
EPS Next 3Y19.6%
EPS Next 5Y31.85%
Revenue Next Year3.91%
Revenue Next 2Y5.78%
Revenue Next 3Y6.72%
Revenue Next 5Y10.69%

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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

5

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 29.72, which means the current valuation is very expensive for ETSY.
60.61% of the companies in the same industry are more expensive than ETSY, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ETSY to the average of the S&P500 Index (25.25), we can say ETSY is valued inline with the index average.
A Price/Forward Earnings ratio of 25.07 indicates a quite expensive valuation of ETSY.
ETSY's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of ETSY to the average of the S&P500 Index (21.67), we can say ETSY is valued inline with the index average.
Industry RankSector Rank
PE 29.72
Fwd PE 25.07

4.2 Price Multiples

ETSY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ETSY is cheaper than 63.64% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ETSY indicates a rather cheap valuation: ETSY is cheaper than 81.82% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 11.9
EV/EBITDA 20.72

4.3 Compensation for Growth

ETSY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ETSY has a very decent profitability rating, which may justify a higher PE ratio.
ETSY's earnings are expected to grow with 19.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.6
PEG (5Y)0.98
EPS Next 2Y17.92%
EPS Next 3Y19.6%

0

5. Dividend

5.1 Amount

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

ETSY INC

NASDAQ:ETSY (4/24/2024, 7:00:01 PM)

After market: 66.64 -0.23 (-0.34%)

66.87

-1.48 (-2.17%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.92B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 29.72
Fwd PE 25.07
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.6
PEG (5Y)0.98
Profitability
Industry RankSector Rank
ROA 11.45%
ROE N/A
ROCE
ROIC
ROICexc
ROICexgc
OM 12.66%
PM (TTM) 11.19%
GM 69.85%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.02
Health
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.21
Quick Ratio 2.21
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)139.2%
EPS 3Y-5.78%
EPS 5Y
EPS growth Q2Q
EPS Next Y18.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.11%
Revenue growth 3Y16.78%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y