Investors should take note of NASDAQ:ETSY, a growth stock that remains attractively priced.

Consider ETSY INC (NASDAQ:ETSY) as an affordable growth stock, identified by our stock screening tool. NASDAQ:ETSY is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Examination for NASDAQ:ETSY

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:ETSY has earned a 8 for growth:

• The Earnings Per Share has grown by an impressive 139.20% 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 strong growth in Revenue. Measured over the last years, the Revenue has been growing by 35.41% yearly.
• Based on estimates for the next years, ETSY will show a very strong growth in Earnings Per Share. The EPS will grow by 31.85% on average per year.
• ETSY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.69% yearly.

Assessing Valuation for NASDAQ:ETSY

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:ETSY scores a 5 out of 10:

• Based on the Price/Earnings ratio, ETSY is valued a bit cheaper than 60.61% of the companies in the same industry.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ETSY indicates a somewhat cheap valuation: ETSY is cheaper than 63.64% of the companies listed in the same industry.
• Based on the Price/Free Cash Flow ratio, ETSY is valued cheaper than 81.82% of the companies in the same industry.
• ETSY has a very decent profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as ETSY's earnings are expected to grow with 19.60% in the coming years.

Health Analysis for NASDAQ:ETSY

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:ETSY, the assigned 7 reflects its health status:

• ETSY has a better Altman-Z score (2.60) than 66.67% of its industry peers.
• The Debt to FCF ratio of ETSY is 3.59, which is a good value as it means it would take ETSY, 3.59 years of fcf income to pay off all of its debts.
• With a decent Debt to FCF ratio value of 3.59, ETSY is doing good in the industry, outperforming 69.70% of the companies in the same industry.
• A Current Ratio of 2.21 indicates that ETSY has no problem at all paying its short term obligations.
• ETSY has a better Current ratio (2.21) than 78.79% of its industry peers.
• A Quick Ratio of 2.21 indicates that ETSY has no problem at all paying its short term obligations.
• With an excellent Quick ratio value of 2.21, ETSY belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.

Assessing Profitability 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 7:

• Looking at the Return On Assets, with a value of 11.45%, ETSY belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.
• ETSY's Return On Invested Capital of 13.92% is amongst the best of the industry. ETSY outperforms 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 11.22%.
• The 3 year average ROIC (13.53%) for ETSY is below the current ROIC(13.92%), indicating increased profibility in the last year.
• ETSY has a better Profit Margin (11.19%) than 90.91% of its industry peers.
• ETSY has a Operating Margin of 12.66%. This is amongst the best in the industry. ETSY outperforms 84.85% of its industry peers.
• Looking at the Gross Margin, with a value of 69.85%, ETSY belongs to the top of the industry, outperforming 87.88% of the companies in the same industry.

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

Check the latest full fundamental report of ETSY for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.