NASDAQ:ETSY is showing good growth, while it is not too expensive.

Last update: Nov 7, 2023

Discover ETSY INC (NASDAQ:ETSY), an undervalued growth gem identified by our stock screener. NASDAQ:ETSY is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Growth Insights: NASDAQ:ETSY

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:ETSY has received a 7 out of 10:

The Earnings Per Share has grown by an impressive 144.44% over the past year.
Looking at the last year, ETSY shows a quite strong growth in Revenue. The Revenue has grown by 9.58% in the last year.
The Revenue has been growing by 42.21% on average over the past years. This is a very strong growth!
Based on estimates for the next years, ETSY will show a very strong growth in Earnings Per Share. The EPS will grow by 26.53% on average per year.
Based on estimates for the next years, ETSY will show a quite strong growth in Revenue. The Revenue will grow by 10.70% on average per year.

What does the Valuation looks like for NASDAQ:ETSY

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:ETSY has achieved a 6 out of 10:

73.53% of the companies in the same industry are more expensive than ETSY, based on the Price/Earnings ratio.
ETSY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. ETSY is cheaper than 61.76% of the companies in the same industry.
ETSY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ETSY is cheaper than 64.71% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ETSY indicates a somewhat cheap valuation: ETSY is cheaper than 70.59% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
ETSY has an outstanding profitability rating, which may justify a higher PE ratio.
ETSY's earnings are expected to grow with 37.33% in the coming years. This may justify a more expensive valuation.

Evaluating Health: NASDAQ:ETSY

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:ETSY was assigned a score of 6 for health:

With a decent Altman-Z score value of 2.80, ETSY is doing good in the industry, outperforming 64.71% of the companies in the same industry.
ETSY has a debt to FCF ratio of 3.57. This is a good value and a sign of high solvency as ETSY would need 3.57 years to pay back of all of its debts.
The Debt to FCF ratio of ETSY (3.57) is better than 64.71% of its industry peers.
ETSY has a Current Ratio of 2.45. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.45, ETSY is doing good in the industry, outperforming 79.41% of the companies in the same industry.
ETSY has a Quick Ratio of 2.45. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
ETSY has a Quick ratio of 2.45. This is amongst the best in the industry. ETSY outperforms 91.18% of its industry peers.

What does the Profitability looks like for NASDAQ:ETSY

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:ETSY has achieved a 8:

The Return On Assets of ETSY (13.63%) is better than 94.12% of its industry peers.
The Return On Invested Capital of ETSY (15.46%) is better than 88.24% of its industry peers.
ETSY had an Average Return On Invested Capital over the past 3 years of 14.62%. This is above the industry average of 9.81%.
The last Return On Invested Capital (15.46%) for ETSY is above the 3 year average (14.62%), which is a sign of increasing profitability.
ETSY's Profit Margin of 12.30% is amongst the best of the industry. ETSY outperforms 91.18% of its industry peers.
With an excellent Operating Margin value of 13.70%, ETSY belongs to the best of the industry, outperforming 85.29% of the companies in the same industry.
ETSY's Operating Margin has improved in the last couple of years.
ETSY has a Gross Margin of 70.56%. This is amongst the best in the industry. ETSY outperforms 88.24% of its industry peers.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

Our latest full fundamental report of ETSY contains the most current fundamental analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.