ETSY INC (3E2.DE) Stock Fundamental Analysis

Europe • Frankfurt Stock Exchange • FRA:3E2 • US29786A1060

48.3 EUR

-0.21 (-0.42%)

Last: Jan 28, 2026, 07:00 PM

Fundamental Rating

Taking everything into account, 3E2 scores 6 out of 10 in our fundamental rating. 3E2 was compared to 13 industry peers in the Broadline Retail industry. While 3E2 has a great profitability rating, there are some minor concerns on its financial health. 3E2 is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make 3E2 a good candidate for growth investing.

Quickly go to:

1. Profitability

1.1 Basic Checks

In the past year 3E2 was profitable.
3E2 had a positive operating cash flow in the past year.
Of the past 5 years 3E2 4 years were profitable.
Each year in the past 5 years 3E2 had a positive operating cash flow.

1.2 Ratios

Looking at the Return On Assets, with a value of 6.87%, 3E2 is in line with its industry, outperforming 53.85% of the companies in the same industry.
The Return On Invested Capital of 3E2 (13.92%) is better than 84.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 3E2 is significantly above the industry average of 8.68%.

		Industry Rank	Sector Rank
ROA	6.87%
ROE	N/A
ROIC	13.92%

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

Looking at the Profit Margin, with a value of 6.38%, 3E2 is in line with its industry, outperforming 46.15% of the companies in the same industry.
3E2's Profit Margin has declined in the last couple of years.
3E2's Operating Margin of 13.79% is amongst the best of the industry. 3E2 outperforms 92.31% of its industry peers.
In the last couple of years the Operating Margin of 3E2 has grown nicely.
3E2 has a Gross Margin of 72.04%. This is amongst the best in the industry. 3E2 outperforms 100.00% of its industry peers.
In the last couple of years the Gross Margin of 3E2 has grown nicely.

		Industry Rank	Sector Rank
OM	13.79%
PM (TTM)	6.38%
GM	72.04%

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 5Y1.6%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

3E2 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, 3E2 has less shares outstanding
3E2 has less shares outstanding than it did 5 years ago.
3E2 has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.77, we must say that 3E2 is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 1.77, 3E2 is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
3E2 has a debt to FCF ratio of 4.84. This is a neutral value as 3E2 would need 4.84 years to pay back of all of its debts.
3E2's Debt to FCF ratio of 4.84 is in line compared to the rest of the industry. 3E2 outperforms 53.85% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	4.84
Altman-Z	1.77

ROIC/WACC1.94

WACC7.17%

2.3 Liquidity

3E2 has a Current Ratio of 3.17. This indicates that 3E2 is financially healthy and has no problem in meeting its short term obligations.
3E2 has a better Current ratio (3.17) than 76.92% of its industry peers.
3E2 has a Quick Ratio of 3.17. This indicates that 3E2 is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of 3E2 (3.17) is better than 84.62% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.17
Quick Ratio	3.17

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 22.45% over the past year.
The Earnings Per Share has been growing by 25.54% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 1.98% in the past year.
Measured over the past years, 3E2 shows a very strong growth in Revenue. The Revenue has been growing by 27.97% on average per year.

EPS 1Y (TTM)22.45%

EPS 3Y-11.42%

EPS 5Y25.54%

EPS Q2Q%40%

Revenue 1Y (TTM)1.98%

Revenue growth 3Y6.44%

Revenue growth 5Y27.97%

Sales Q2Q%2.36%

3.2 Future

The Earnings Per Share is expected to grow by 26.09% on average over the next years. This is a very strong growth
Based on estimates for the next years, 3E2 will show a small growth in Revenue. The Revenue will grow by 4.73% on average per year.

EPS Next Y-44.62%

EPS Next 2Y4.74%

EPS Next 3Y8.77%

EPS Next 5Y26.09%

Revenue Next Year2.33%

Revenue Next 2Y2.59%

Revenue Next 3Y3.69%

Revenue Next 5Y4.73%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

3E2 is valuated rather expensively with a Price/Earnings ratio of 24.03.
3E2's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.30. 3E2 is around the same levels.
3E2 is valuated rather expensively with a Price/Forward Earnings ratio of 22.23.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 3E2 indicates a somewhat cheap valuation: 3E2 is cheaper than 61.54% of the companies listed in the same industry.
3E2's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	24.03
Fwd PE	22.23

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 3E2 indicates a rather cheap valuation: 3E2 is cheaper than 84.62% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 3E2 indicates a rather cheap valuation: 3E2 is cheaper than 100.00% of the companies listed in the same industry.