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ETSY INC (ETSY) Stock Fundamental Analysis

NASDAQ:ETSY - Nasdaq - US29786A1060 - Common Stock - Currency: USD

62.46  -1.52 (-2.38%)

After market: 62.11 -0.35 (-0.56%)

Fundamental Rating

6

Overall ETSY gets a fundamental rating of 6 out of 10. We evaluated ETSY 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 is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

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.
ETSY had a positive operating cash flow in each of the past 5 years.
ETSY Yearly Net Income VS EBIT VS OCF VS FCFETSY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M

1.2 Ratios

ETSY has a better Return On Assets (8.87%) than 78.57% of its industry peers.
With an excellent Return On Invested Capital value of 18.05%, ETSY belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
ETSY had an Average Return On Invested Capital over the past 3 years of 14.75%. This 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 RankSector 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%
ETSY Yearly ROA, ROE, ROICETSY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50 -50 100

1.3 Margins

ETSY has a Profit Margin of 6.69%. This is in the better half of the industry: ETSY outperforms 67.86% of its industry peers.
ETSY's Profit Margin has declined in the last couple of years.
The Operating Margin of ETSY (13.91%) is better than 85.71% of its industry peers.
ETSY's Operating Margin has improved in the last couple of years.
The Gross Margin of ETSY (72.30%) is better than 92.86% of its industry peers.
In the last couple of years the Gross Margin of ETSY has grown nicely.
Industry RankSector 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%
ETSY Yearly Profit, Operating, Gross MarginsETSY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

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6

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.
Compared to 1 year ago, ETSY has less shares outstanding
Compared to 5 years ago, ETSY has less shares outstanding
Compared to 1 year ago, ETSY has a worse debt to assets ratio.
ETSY Yearly Shares OutstandingETSY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
ETSY Yearly Total Debt VS Total AssetsETSY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.2 Solvency

An Altman-Z score of 2.25 indicates that ETSY is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.25, ETSY is in line with its industry, outperforming 53.57% of the companies in the same 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.
The Debt to FCF ratio of ETSY (3.49) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 3.49
Altman-Z 2.25
ROIC/WACC2.31
WACC7.8%
ETSY Yearly LT Debt VS Equity VS FCFETSY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

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 Current ratio of 2.14. This is in the better half of the industry: ETSY outperforms 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.
ETSY has a better Quick ratio (2.14) than 85.71% of its industry peers.
Industry RankSector Rank
Current Ratio 2.14
Quick Ratio 2.14
ETSY Yearly Current Assets VS Current LiabilitesETSY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

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6

3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 6.82% over the past year.
ETSY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.54% yearly.
Looking at the last year, ETSY shows a small growth in Revenue. The Revenue has grown by 2.18% in the last year.
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

Based on estimates for the next years, ETSY will show a very strong growth in Earnings Per Share. The EPS will grow by 24.28% on average per year.
The Revenue is expected to grow by 5.24% on average over the next years.
EPS Next Y-31.94%
EPS Next 2Y9.38%
EPS Next 3Y10.44%
EPS Next 5Y24.28%
Revenue Next Year-1.6%
Revenue Next 2Y-0.02%
Revenue Next 3Y1.83%
Revenue Next 5Y5.24%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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.
ETSY Yearly Revenue VS EstimatesETSY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 1B 2B 3B 4B 5B
ETSY Yearly EPS VS EstimatesETSY Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 -5 10

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4

4. Valuation

4.1 Price/Earnings Ratio

ETSY is valuated quite expensively with a Price/Earnings ratio of 26.58.
Based on the Price/Earnings ratio, ETSY is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of ETSY to the average of the S&P500 Index (28.04), we can say ETSY is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 22.03, the valuation of ETSY can be described as rather expensive.
ETSY's Price/Forward Earnings ratio is in line with the industry average.
ETSY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 37.64.
Industry RankSector Rank
PE 26.58
Fwd PE 22.03
ETSY Price Earnings VS Forward Price EarningsETSY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as ETSY.
Based on the Price/Free Cash Flow ratio, ETSY is valued cheaper than 89.29% of the companies in the same industry.
Industry RankSector Rank
P/FCF 9.51
EV/EBITDA 15.95
ETSY Per share dataETSY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 20

4.3 Compensation for Growth

The decent profitability rating of ETSY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.04
EPS Next 2Y9.38%
EPS Next 3Y10.44%

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0

5. Dividend

5.1 Amount

ETSY does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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ETSY INC

NASDAQ:ETSY (7/25/2025, 8:00:01 PM)

After market: 62.11 -0.35 (-0.56%)

62.46

-1.52 (-2.38%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)04-30 2025-04-30/bmo
Earnings (Next)07-30 2025-07-30/bmo
Inst Owners118.59%
Inst Owner Change-0.89%
Ins Owners0.96%
Ins Owner Change0.45%
Market Cap6.51B
Analysts67.69
Price Target52.82 (-15.43%)
Short Float %21.67%
Short Ratio3.92
Dividend
Industry RankSector 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)5.02%
PT rev (3m)-10.26%
EPS NQ rev (1m)-3.28%
EPS NQ rev (3m)-9.28%
EPS NY rev (1m)0.71%
EPS NY rev (3m)-36.62%
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)0.31%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)-0.81%
Valuation
Industry RankSector Rank
PE 26.58
Fwd PE 22.03
P/S 2.31
P/FCF 9.51
P/OCF 8.89
P/B N/A
P/tB N/A
EV/EBITDA 15.95
EPS(TTM)2.35
EY3.76%
EPS(NY)2.84
Fwd EY4.54%
FCF(TTM)6.57
FCFY10.52%
OCF(TTM)7.03
OCFY11.25%
SpS26.98
BVpS-8.73
TBVpS-13.05
PEG (NY)N/A
PEG (5Y)1.04
Profitability
Industry RankSector 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 RankSector 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 2.25
F-Score6
WACC7.8%
ROIC/WACC2.31
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-31.94%
EPS Next 2Y9.38%
EPS Next 3Y10.44%
EPS Next 5Y24.28%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%0.81%
Revenue Next Year-1.6%
Revenue Next 2Y-0.02%
Revenue Next 3Y1.83%
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%