ETSY INC (3E2.DE) Stock Fundamental Analysis

Europe - Frankfurt Stock Exchange - FRA:3E2 - US29786A1060 - Common Stock

52.16 EUR

-2.09 (-3.85%)

Last: 1/23/2026, 7:00:00 PM

Fundamental Rating

3E2 gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 13 industry peers in the Broadline Retail industry. 3E2 has an average financial health and profitability rating. 3E2 is not overvalued while it is showing excellent growth. This is an interesting combination. This makes 3E2 very considerable for growth investing!

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1. Profitability

1.1 Basic Checks

3E2 had positive earnings in the past year.
3E2 had a positive operating cash flow in the past year.
3E2 had positive earnings in 4 of the past 5 years.
Each year in the past 5 years 3E2 had a positive operating cash flow.

1.2 Ratios

The Return On Assets of 3E2 (6.41%) is worse than 61.54% of its industry peers.
3E2 has a Return On Invested Capital of 14.18%. This is in the better half of the industry: 3E2 outperforms 76.92% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 3E2 is significantly above the industry average of 9.73%.

		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

3E2 has a Profit Margin of 5.78%. This is in the lower half of the industry: 3E2 underperforms 61.54% of its industry peers.
In the last couple of years the Profit Margin of 3E2 has declined.
With an excellent Operating Margin value of 14.01%, 3E2 belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Operating Margin of 3E2 has grown nicely.
The Gross Margin of 3E2 (72.20%) is better than 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	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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
The number of shares outstanding for 3E2 has been reduced compared to 1 year ago.
The number of shares outstanding for 3E2 has been reduced compared to 5 years ago.
The debt/assets ratio for 3E2 is higher compared to a year ago.

2.2 Solvency

An Altman-Z score of 1.91 indicates that 3E2 is not a great score, but indicates only limited risk for bankruptcy at the moment.
3E2 has a Altman-Z score of 1.91. This is in the lower half of the industry: 3E2 underperforms 69.23% of its industry peers.
The Debt to FCF ratio of 3E2 is 4.85, which is a neutral value as it means it would take 3E2, 4.85 years of fcf income to pay off all of its debts.
3E2's Debt to FCF ratio of 4.85 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	4.85
Altman-Z	1.91

ROIC/WACC1.96

WACC7.24%

2.3 Liquidity

A Current Ratio of 3.39 indicates that 3E2 has no problem at all paying its short term obligations.
The Current ratio of 3E2 (3.39) is better than 76.92% of its industry peers.
A Quick Ratio of 3.39 indicates that 3E2 has no problem at all paying its short term obligations.
3E2 has a better Quick ratio (3.39) than 84.62% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	3.39
Quick Ratio	3.39

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 22.45% over the past year.
Measured over the past years, 3E2 shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.54% on average per year.
3E2 shows a small growth in Revenue. In the last year, the Revenue has grown by 2.18%.
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)2.18%

Revenue growth 3Y6.44%

Revenue growth 5Y27.97%

Sales Q2Q%2.36%

3.2 Future

Based on estimates for the next years, 3E2 will show a very strong growth in Earnings Per Share. The EPS will grow by 26.09% on average per year.
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-45.19%

EPS Next 2Y4.99%

EPS Next 3Y8.68%

EPS Next 5Y26.09%

Revenue Next Year2.33%

Revenue Next 2Y2.64%

Revenue Next 3Y3.71%

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 25.44, 3E2 can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as 3E2.
3E2 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.37 indicates a rather expensive valuation of 3E2.
Based on the Price/Forward Earnings ratio, 3E2 is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
3E2 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	25.44
Fwd PE	23.37

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, 3E2 is valued cheaply inside the industry as 84.62% of the companies are valued more expensively.
3E2's Price/Free Cash Flow ratio is rather cheap when compared to the industry. 3E2 is cheaper than 100.00% of the companies in the same industry.