ETSY INC (ETSY) Stock Fundamental Analysis
NASDAQ:ETSY - US29786A1060 - Common Stock
56.02 USD
-1.98 (-3.41%)
55.98 USD
-0.04 (-0.07%)
We assign a fundamental rating of 6 out of 10 to ETSY. ETSY was compared to 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.
Of the past 5 years ETSY 4 years were profitable.
In the past 5 years ETSY always reported a positive cash flow from operatings.
1.2 Ratios
ETSY's Return On Assets of 6.41% is fine compared to the rest of the industry. ETSY outperforms 71.43% of its industry peers.
ETSY has a better Return On Invested Capital (14.18%) than 82.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ETSY is above the industry average of 11.00%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | N/A | ||
| ROIC | 14.18% |
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's Profit Margin of 5.78% is fine compared to the rest of the industry. ETSY outperforms 67.86% of its industry peers.
ETSY's Profit Margin has declined in the last couple of years.
ETSY has a Operating Margin of 14.01%. This is amongst the best in the industry. ETSY outperforms 85.71% of its industry peers.
In the last couple of years the Operating Margin of ETSY has grown nicely.
With an excellent Gross Margin value of 72.20%, ETSY belongs to the best 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 | 14.01% | ||
| PM (TTM) | 5.78% | ||
| GM | 72.2% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ETSY is creating value.
The number of shares outstanding for ETSY has been reduced compared to 1 year ago.
Compared to 5 years ago, ETSY has less shares outstanding
The debt/assets ratio for ETSY is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.83 indicates that ETSY is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 1.83, ETSY perfoms like the industry average, outperforming 53.57% of the companies in the same industry.
The Debt to FCF ratio of ETSY is 4.85, which is a neutral value as it means it would take ETSY, 4.85 years of fcf income to pay off all of its debts.
ETSY's Debt to FCF ratio of 4.85 is in line compared to the rest of the industry. ETSY outperforms 53.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 1.83 |
ROIC/WACC1.88
WACC7.56%
2.3 Liquidity
ETSY has a Current Ratio of 3.39. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
ETSY has a better Current ratio (3.39) than 92.86% of its industry peers.
ETSY has a Quick Ratio of 3.39. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
ETSY's Quick ratio of 3.39 is amongst the best of the industry. ETSY outperforms 96.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.39 | ||
| Quick Ratio | 3.39 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.30% 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.
The Revenue has been growing slightly by 2.38% in the past 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)2.3%
EPS 3Y-11.42%
EPS 5Y25.54%
EPS Q2Q%-31.71%
Revenue 1Y (TTM)2.38%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%3.84%
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 25.31% on average per year.
Based on estimates for the next years, ETSY will show a small growth in Revenue. The Revenue will grow by 4.59% on average per year.
EPS Next Y-42.56%
EPS Next 2Y8.63%
EPS Next 3Y11.73%
EPS Next 5Y25.31%
Revenue Next Year0.7%
Revenue Next 2Y1.33%
Revenue Next 3Y2.6%
Revenue Next 5Y4.59%
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
The Price/Earnings ratio is 25.23, which means the current valuation is very expensive for ETSY.
Based on the Price/Earnings ratio, ETSY is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
ETSY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.07, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 20.03, the valuation of ETSY can be described as rather expensive.
Based on the Price/Forward Earnings ratio, ETSY is valued a bit cheaper than 64.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.59. ETSY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 20.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ETSY is valued a bit cheaper than 60.71% of the companies in the same industry.
82.14% 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 | 8.75 | ||
| EV/EBITDA | 14.23 |
4.3 Compensation for Growth
The decent profitability rating of ETSY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2Y8.63%
EPS Next 3Y11.73%
5. Dividend
5.1 Amount
No dividends for ETSY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
56.02
-1.98 (-3.41%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners122.43%
Inst Owner Change6.07%
Ins Owners1.02%
Ins Owner Change0.36%
Market Cap5.55B
Analysts68.72
Price Target66.75 (19.15%)
Short Float %16.88%
Short Ratio3.03
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)0
Avg EPS beat(2)-25.34%
Min EPS beat(2)-42.84%
Max EPS beat(2)-7.84%
EPS beat(4)1
Avg EPS beat(4)-14.75%
Min EPS beat(4)-42.84%
Max EPS beat(4)8.16%
EPS beat(8)2
Avg EPS beat(8)-8.3%
EPS beat(12)3
Avg EPS beat(12)-185.37%
EPS beat(16)6
Avg EPS beat(16)-132.21%
Revenue beat(2)1
Avg Revenue beat(2)0.61%
Min Revenue beat(2)-0.66%
Max Revenue beat(2)1.89%
Revenue beat(4)1
Avg Revenue beat(4)-0.6%
Min Revenue beat(4)-3.17%
Max Revenue beat(4)1.89%
Revenue beat(8)2
Avg Revenue beat(8)-0.8%
Revenue beat(12)5
Avg Revenue beat(12)0.22%
Revenue beat(16)8
Avg Revenue beat(16)0.48%
PT rev (1m)2.84%
PT rev (3m)32.7%
EPS NQ rev (1m)-0.95%
EPS NQ rev (3m)-9.69%
EPS NY rev (1m)-15.61%
EPS NY rev (3m)-18.14%
Revenue NQ rev (1m)0.61%
Revenue NQ rev (3m)-0.79%
Revenue NY rev (1m)2.22%
Revenue NY rev (3m)2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 20.03 | ||
| P/S | 1.96 | ||
| P/FCF | 8.75 | ||
| P/OCF | 8.05 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 14.23 |
EPS(TTM)2.22
EY3.96%
EPS(NY)2.8
Fwd EY4.99%
FCF(TTM)6.4
FCFY11.43%
OCF(TTM)6.96
OCFY12.42%
SpS28.64
BVpS-11.35
TBVpS-14.93
PEG (NY)N/A
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.41% | ||
| ROE | N/A | ||
| ROCE | 19.21% | ||
| ROIC | 14.18% | ||
| ROICexc | 44.6% | ||
| ROICexgc | 96.8% | ||
| OM | 14.01% | ||
| PM (TTM) | 5.78% | ||
| GM | 72.2% | ||
| FCFM | 22.36% |
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 Turnover1.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.85 | ||
| Debt/EBITDA | 6.08 | ||
| Cap/Depr | 51.55% | ||
| Cap/Sales | 1.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 136.69% | ||
| Profit Quality | 386.93% | ||
| Current Ratio | 3.39 | ||
| Quick Ratio | 3.39 | ||
| Altman-Z | 1.83 |
F-Score6
WACC7.56%
ROIC/WACC1.88
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)2.3%
EPS 3Y-11.42%
EPS 5Y25.54%
EPS Q2Q%-31.71%
EPS Next Y-42.56%
EPS Next 2Y8.63%
EPS Next 3Y11.73%
EPS Next 5Y25.31%
Revenue 1Y (TTM)2.38%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%3.84%
Revenue Next Year0.7%
Revenue Next 2Y1.33%
Revenue Next 3Y2.6%
Revenue Next 5Y4.59%
EBIT growth 1Y7.82%
EBIT growth 3Y-6.54%
EBIT growth 5Y33.76%
EBIT Next Year96.25%
EBIT Next 3Y29.23%
EBIT Next 5Y20.44%
FCF growth 1Y-2.92%
FCF growth 3Y4.49%
FCF growth 5Y30.17%
OCF growth 1Y-0.07%
OCF growth 3Y4.91%
OCF growth 5Y29.46%