ETSY INC (ETSY) Stock Fundamental Analysis
NASDAQ:ETSY - Nasdaq - US29786A1060 - Common Stock - Currency: USD
ETSY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 28 industry peers in the Broadline Retail industry. ETSY has an excellent profitability rating, but there are some minor concerns on its financial health. ETSY has a decent growth rate and is not valued too expensively.
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
The Return On Assets of ETSY (8.87%) is better than 78.57% of its industry peers.
The Return On Invested Capital of ETSY (18.05%) is better than 85.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ETSY is above the industry average of 11.59%.
The last Return On Invested Capital (18.05%) for ETSY is above the 3 year average (14.75%), which is a sign of increasing profitability.
| 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
ETSY has a better Profit Margin (6.69%) than 67.86% of its industry peers.
ETSY's Profit Margin has declined in the last couple of years.
ETSY has a better Operating Margin (13.91%) than 85.71% of its industry peers.
In the last couple of years the Operating Margin of ETSY has grown nicely.
Looking at the Gross Margin, with a value of 72.30%, ETSY belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
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.
ETSY has less shares outstanding than it did 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
An Altman-Z score of 2.05 indicates that ETSY is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ETSY (2.05) is comparable to the rest of the industry.
ETSY has a debt to FCF ratio of 3.49. This is a good value and a sign of high solvency as ETSY would need 3.49 years to pay back of 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 | 2.05 |
ROIC/WACC2.26
WACC7.98%
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.
ETSY has a better Current ratio (2.14) than 75.00% 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.
Looking at the Quick ratio, with a value of 2.14, ETSY belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.14 | ||
| Quick Ratio | 2.14 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.82% 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 25.54% on average per year.
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)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 24.28% yearly.
Based on estimates for the next years, ETSY will show a small growth in Revenue. The Revenue will grow by 5.24% on average per year.
EPS Next Y-32.42%
EPS Next 2Y9.43%
EPS Next 3Y10.07%
EPS Next 5Y24.28%
Revenue Next Year-1.67%
Revenue Next 2Y-0.03%
Revenue Next 3Y1.79%
Revenue Next 5Y5.24%
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 23.14.
Compared to the rest of the industry, the Price/Earnings ratio of ETSY indicates a somewhat cheap valuation: ETSY is cheaper than 67.86% of the companies listed in the same industry.
ETSY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 19.16 indicates a rather expensive valuation of ETSY.
ETSY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ETSY is cheaper than 60.71% of the companies in the same industry.
ETSY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.14 | ||
| Fwd PE | 19.16 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ETSY.
89.29% of the companies in the same industry are more expensive than ETSY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.28 | ||
| EV/EBITDA | 13.94 |
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)0.91
EPS Next 2Y9.43%
EPS Next 3Y10.07%
5. Dividend
5.1 Amount
ETSY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
54.37
+1.41 (+2.66%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners118.59%
Inst Owner Change-1.14%
Ins Owners0.96%
Ins Owner Change0.38%
Market Cap5.67B
Analysts67.5
Price Target52.7 (-3.07%)
Short Float %22.77%
Short Ratio4.05
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)2.14%
PT rev (3m)-10.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.22%
EPS NY rev (1m)-3.68%
EPS NY rev (3m)-37.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.14 | ||
| Fwd PE | 19.16 | ||
| P/S | 2.02 | ||
| P/FCF | 8.28 | ||
| P/OCF | 7.74 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.94 |
EPS(TTM)2.35
EY4.32%
EPS(NY)2.84
Fwd EY5.22%
FCF(TTM)6.57
FCFY12.08%
OCF(TTM)7.03
OCFY12.92%
SpS26.98
BVpS-8.73
TBVpS-13.05
PEG (NY)N/A
PEG (5Y)0.91
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 | 2.05 |
F-Score6
WACC7.98%
ROIC/WACC2.26
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-32.42%
EPS Next 2Y9.43%
EPS Next 3Y10.07%
EPS Next 5Y24.28%
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-0.03%
Revenue Next 3Y1.79%
Revenue Next 5Y5.24%
EBIT growth 1Y7.43%
EBIT growth 3Y-6.54%
EBIT growth 5Y33.76%
EBIT Next Year96.47%
EBIT Next 3Y28.9%
EBIT Next 5Y20.9%
FCF growth 1Y6.44%
FCF growth 3Y4.49%
FCF growth 5Y30.17%
OCF growth 1Y7.79%
OCF growth 3Y4.91%
OCF growth 5Y29.46%