ETSY INC (ETSY) Stock Fundamental Analysis
NASDAQ:ETSY - Nasdaq - US29786A1060 - Common Stock - Currency: USD
Taking everything into account, ETSY scores 6 out of 10 in our fundamental rating. ETSY was compared to 31 industry peers in the Broadline Retail industry. While ETSY belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. ETSY is not valued too expensively and it also shows a decent growth rate.
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.
Each year in the past 5 years ETSY had a positive operating cash flow.
1.2 Ratios
ETSY has a Return On Assets of 8.87%. This is amongst the best in the industry. ETSY outperforms 80.65% of its industry peers.
ETSY has a better Return On Invested Capital (18.05%) than 87.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ETSY is above the industry average of 11.52%.
The 3 year average ROIC (14.75%) for ETSY is below the current ROIC(18.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.87% | ||
| ROE | N/A | ||
| ROIC | 18.05% |
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
The Profit Margin of ETSY (6.69%) is better than 70.97% of its industry peers.
In the last couple of years the Profit Margin of ETSY has declined.
ETSY's Operating Margin of 13.91% is amongst the best of the industry. ETSY outperforms 90.32% of its industry peers.
In the last couple of years the Operating Margin of ETSY has grown nicely.
ETSY's Gross Margin of 72.30% is amongst the best of the industry. ETSY outperforms 93.55% of its industry peers.
In the last couple of years the Gross Margin of ETSY has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.91% | ||
| PM (TTM) | 6.69% | ||
| GM | 72.3% |
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.
The number of shares outstanding for ETSY has been reduced compared to 1 year ago.
ETSY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for ETSY is higher compared to a year ago.
2.2 Solvency
ETSY has an Altman-Z score of 1.92. 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.
Looking at the Altman-Z score, with a value of 1.92, ETSY is in line with its industry, outperforming 58.06% of the companies in the same industry.
The Debt to FCF ratio of ETSY is 3.49, which is a good value as it means it would take ETSY, 3.49 years of fcf income to pay off all of its debts.
ETSY has a Debt to FCF ratio (3.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Altman-Z | 1.92 |
ROIC/WACC2.15
WACC8.41%
2.3 Liquidity
ETSY has a Current Ratio of 2.14. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ETSY (2.14) is better than 77.42% of its industry peers.
ETSY has a Quick Ratio of 2.14. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
ETSY's Quick ratio of 2.14 is amongst the best of the industry. ETSY outperforms 87.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 2.14 |
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%.
The Earnings Per Share has been growing by 25.54% on average over the past years. This is a very strong growth
Looking at the last year, ETSY shows a small growth in Revenue. The Revenue has grown by 2.18% in the last year.
Measured over the past years, ETSY shows a very strong growth in Revenue. The Revenue has been growing by 27.97% on average per year.
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.
ETSY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.04% yearly.
EPS Next Y-29.84%
EPS Next 2Y12.28%
EPS Next 3Y11.51%
EPS Next 5Y25.97%
Revenue Next Year-1.67%
Revenue Next 2Y-0.09%
Revenue Next 3Y1.56%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 19.98, ETSY is valued on the expensive side.
67.74% of the companies in the same industry are more expensive than ETSY, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 25.91, ETSY is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.71, the valuation of ETSY can be described as correct.
Based on the Price/Forward Earnings ratio, ETSY is valued a bit cheaper than the industry average as 64.52% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of ETSY to the average of the S&P500 Index (21.85), we can say ETSY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.98 | ||
| Fwd PE | 15.71 |
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 80.65% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.17 | ||
| EV/EBITDA | 12.63 |
4.3 Compensation for Growth
ETSY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.78
EPS Next 2Y12.28%
EPS Next 3Y11.51%
5. Dividend
5.1 Amount
No dividends for ETSY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:ETSY (5/23/2025, 9:50:04 AM)
46.95
-1.01 (-2.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners112.17%
Inst Owner Change-2.31%
Ins Owners0.9%
Ins Owner Change0.26%
Market Cap4.91B
Analysts67.8
Price Target51.6 (9.9%)
Short Float %18.57%
Short Ratio4.1
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)1
Avg EPS beat(2)0.16%
Min EPS beat(2)-7.84%
Max EPS beat(2)8.16%
EPS beat(4)1
Avg EPS beat(4)-6.59%
Min EPS beat(4)-16.48%
Max EPS beat(4)8.16%
EPS beat(8)3
Avg EPS beat(8)-2.89%
EPS beat(12)4
Avg EPS beat(12)-176.75%
EPS beat(16)7
Avg EPS beat(16)-129.16%
Revenue beat(2)0
Avg Revenue beat(2)-1.92%
Min Revenue beat(2)-3.17%
Max Revenue beat(2)-0.66%
Revenue beat(4)1
Avg Revenue beat(4)-0.86%
Min Revenue beat(4)-3.17%
Max Revenue beat(4)0.88%
Revenue beat(8)1
Avg Revenue beat(8)-1.09%
Revenue beat(12)5
Avg Revenue beat(12)0.33%
Revenue beat(16)7
Avg Revenue beat(16)0.29%
PT rev (1m)-12.33%
PT rev (3m)-18.32%
EPS NQ rev (1m)-5.5%
EPS NQ rev (3m)-4.79%
EPS NY rev (1m)-34.67%
EPS NY rev (3m)-36.47%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-2.79%
Revenue NY rev (1m)-0.88%
Revenue NY rev (3m)-4.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.98 | ||
| Fwd PE | 15.71 | ||
| P/S | 1.75 | ||
| P/FCF | 7.17 | ||
| P/OCF | 6.7 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 12.63 |
EPS(TTM)2.35
EY5.01%
EPS(NY)2.99
Fwd EY6.36%
FCF(TTM)6.55
FCFY13.95%
OCF(TTM)7
OCFY14.92%
SpS26.9
BVpS-8.7
TBVpS-13.01
PEG (NY)N/A
PEG (5Y)0.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.87% | ||
| ROE | N/A | ||
| ROCE | 24.44% | ||
| ROIC | 18.05% | ||
| ROICexc | 39.38% | ||
| ROICexgc | 101.83% | ||
| OM | 13.91% | ||
| PM (TTM) | 6.69% | ||
| GM | 72.3% | ||
| FCFM | 24.34% |
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-Score6
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.49 | ||
| Debt/EBITDA | 4.76 | ||
| Cap/Depr | 43.95% | ||
| Cap/Sales | 1.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 146.52% | ||
| Profit Quality | 363.97% | ||
| Current Ratio | 2.14 | ||
| Quick Ratio | 2.14 | ||
| Altman-Z | 1.92 |
F-Score6
WACC8.41%
ROIC/WACC2.15
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 Y-29.84%
EPS Next 2Y12.28%
EPS Next 3Y11.51%
EPS Next 5Y25.97%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%0.81%
Revenue Next Year-1.67%
Revenue Next 2Y-0.09%
Revenue Next 3Y1.56%
Revenue Next 5Y5.04%
EBIT growth 1Y7.43%
EBIT growth 3Y-6.54%
EBIT growth 5Y33.76%
EBIT Next Year104.71%
EBIT Next 3Y31.49%
EBIT Next 5Y21.88%
FCF growth 1Y6.44%
FCF growth 3Y4.49%
FCF growth 5Y30.17%
OCF growth 1Y7.79%
OCF growth 3Y4.91%
OCF growth 5Y29.46%