ETSY INC (ETSY)
US29786A1060 - Common Stock
ETSY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 33 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! These ratings could make ETSY a good candidate 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.
Each year in the past 5 years ETSY had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ETSY (11.85%) is better than 87.88% of its industry peers.
The Return On Invested Capital of ETSY (14.90%) is better than 84.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ETSY is above the industry average of 11.29%.
The last Return On Invested Capital (14.90%) for ETSY is above the 3 year average (13.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.85% | ||
| ROE | N/A | ||
| ROIC | 14.9% |
ROA(3y)-0.67%
ROA(5y)3.74%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.89%
ROIC(5y)12.81%
1.3 Margins
ETSY's Profit Margin of 10.75% is amongst the best of 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 13.24%, ETSY belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
ETSY's Operating Margin has improved in the last couple of years.
ETSY's Gross Margin of 70.41% is amongst the best of the industry. ETSY outperforms 87.88% of its industry peers.
ETSY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.24% | ||
| PM (TTM) | 10.75% | ||
| GM | 70.41% |
OM growth 3Y-17.85%
OM growth 5Y1.97%
PM growth 3Y-17.92%
PM growth 5Y-2.71%
GM growth 3Y-1.4%
GM growth 5Y0.48%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so ETSY is still 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.
Compared to 1 year ago, ETSY has an improved debt to assets ratio.
2.2 Solvency
ETSY has an Altman-Z score of 2.55. 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's Altman-Z score of 2.55 is fine compared to the rest of the industry. ETSY outperforms 60.61% of its industry peers.
The Debt to FCF ratio of ETSY is 3.53, which is a good value as it means it would take ETSY, 3.53 years of fcf income to pay off all of its debts.
ETSY has a better Debt to FCF ratio (3.53) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 2.55 |
ROIC/WACC1.71
WACC8.71%
2.3 Liquidity
A Current Ratio of 2.49 indicates that ETSY has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.49, ETSY belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
ETSY has a Quick Ratio of 2.49. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
ETSY's Quick ratio of 2.49 is amongst the best of the industry. ETSY outperforms 93.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.49 | ||
| Quick Ratio | 2.49 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 137.87% 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.
ETSY shows a small growth in Revenue. In the last year, the Revenue has grown by 4.79%.
Measured over the past years, ETSY shows a very strong growth in Revenue. The Revenue has been growing by 35.41% on average per year.
EPS 1Y (TTM)137.87%
EPS 3Y-5.78%
EPS 5Y30.26%
EPS Q2Q%-9.43%
Revenue 1Y (TTM)4.79%
Revenue growth 3Y16.78%
Revenue growth 5Y35.41%
Sales Q2Q%0.79%
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 small growth in Revenue. The Revenue will grow by 7.74% on average per year.
EPS Next Y11.98%
EPS Next 2Y12.86%
EPS Next 3Y15.48%
EPS Next 5Y31.85%
Revenue Next Year2.08%
Revenue Next 2Y3.87%
Revenue Next 3Y5.04%
Revenue Next 5Y7.74%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.30, ETSY can be considered very expensive at the moment.
ETSY's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 24.41. ETSY is around the same levels.
A Price/Forward Earnings ratio of 21.73 indicates a rather expensive valuation of ETSY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETSY is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.59, ETSY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.3 | ||
| Fwd PE | 21.73 |
4.2 Price Multiples
ETSY's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ETSY is valued a bit cheaper than the industry average as 75.76% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.75 | ||
| EV/EBITDA | 17.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ETSY may justify a higher PE ratio.
ETSY's earnings are expected to grow with 15.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.36
PEG (5Y)0.94
EPS Next 2Y12.86%
EPS Next 3Y15.48%
5. Dividend
5.1 Amount
No dividends for ETSY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ETSY INC
NASDAQ:ETSY (7/26/2024, 7:27:40 PM)
After market: 62.27 0 (0%)62.27
+1.84 (+3.04%)
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 Cap7.28B
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)
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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)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.3 | ||
| Fwd PE | 21.73 | ||
| 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)2.36
PEG (5Y)0.94
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.85% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.24% | ||
| PM (TTM) | 10.75% | ||
| GM | 70.41% | ||
| 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 Turnover1.1
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 | 2.49 | ||
| Quick Ratio | 2.49 | ||
| 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)
High Growth Momentum
Growth
EPS 1Y (TTM)137.87%
EPS 3Y-5.78%
EPS 5Y
EPS Q2Q%
EPS Next Y11.98%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.79%
Revenue growth 3Y16.78%
Revenue growth 5Y
Sales 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