ETSY INC (ETSY)
US29786A1060 - Common Stock
We assign a fundamental rating of 6 out of 10 to ETSY. ETSY was compared to 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make ETSY suitable for growth and quality investing!
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.
ETSY had positive earnings in 4 of the past 5 years.
In the past 5 years ETSY always reported a positive cash flow from operatings.
1.2 Ratios
ETSY has a better Return On Assets (11.45%) than 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.
ETSY had an Average Return On Invested Capital over the past 3 years of 13.53%. This 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 Rank | Sector 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
Looking at the Profit Margin, with a value of 11.19%, ETSY belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
In the last couple of years the Profit Margin of ETSY has declined.
The Operating Margin of ETSY (12.66%) is better than 84.85% of its industry peers.
In the last couple of years the Operating Margin of ETSY has remained more or less at the same level.
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.
ETSY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
2. Health
2.1 Basic Checks
ETSY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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.
The debt/assets ratio for ETSY has been reduced compared to a year ago.
2.2 Solvency
ETSY has an Altman-Z score of 2.61. 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 (2.61) 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.
ETSY's Debt to FCF ratio of 3.59 is fine compared to the rest of the industry. ETSY outperforms 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.59 | ||
| Altman-Z | 2.61 |
ROIC/WACC1.66
WACC8.4%
2.3 Liquidity
A Current Ratio of 2.21 indicates that ETSY has no problem at all paying its short term obligations.
ETSY's Current ratio of 2.21 is fine compared to the rest of the industry. ETSY outperforms 78.79% of its industry peers.
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.
The Quick ratio of ETSY (2.21) is better than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.21 | ||
| Quick Ratio | 2.21 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 139.20% over the past year.
Measured over the past years, ETSY shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.26% on average per year.
Looking at the last year, ETSY shows a small growth in Revenue. The Revenue has grown by 7.11% in the last year.
The Revenue has been growing by 35.41% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 31.85% on average over the next years. This is a very strong growth
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.93 indicates a quite expensive valuation of ETSY.
Based on the Price/Earnings ratio, ETSY is valued a bit cheaper than 60.61% of the companies in the same industry.
When comparing the Price/Earnings ratio of ETSY to the average of the S&P500 Index (24.80), we can say ETSY is valued slightly more expensively.
ETSY is valuated quite expensively with a Price/Forward Earnings ratio of 25.24.
The rest of the industry has a similar Price/Forward Earnings ratio as ETSY.
The average S&P500 Price/Forward Earnings ratio is at 21.27. ETSY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.93 | ||
| Fwd PE | 25.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ETSY is valued a bit cheaper than 63.64% of the companies in the same industry.
ETSY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ETSY is cheaper than 78.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.99 | ||
| EV/EBITDA | 20.45 |
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)1.61
PEG (5Y)0.99
EPS Next 2Y17.92%
EPS Next 3Y19.6%
5. Dividend
5.1 Amount
ETSY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ETSY INC
NASDAQ:ETSY (4/18/2024, 7:00:02 PM)
Premarket: 66.6416 -0.7 (-1.04%)67.34
-0.15 (-0.22%)
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 Cap7.98B
Analysts
Price Target
Dividend
| Industry Rank | Sector 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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.93 | ||
| Fwd PE | 25.24 | ||
| 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)1.61
PEG (5Y)0.99
Profitability
| Industry Rank | Sector 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 Rank | Sector 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