ETSY INC (ETSY) Stock Fundamental Analysis
USA - NYSE:ETSY - US29786A1060 - Common Stock
62 USD
+0.07 (+0.11%)
61.773 USD
-0.23 (-0.37%)
Overall ETSY gets a fundamental rating of 6 out of 10. We evaluated ETSY against 30 industry peers in the Broadline Retail industry. ETSY scores excellent on profitability, but there are some minor concerns on its financial health. ETSY is growing strongly while it is still valued neutral. This is a good combination! These ratings could make ETSY a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
In the past year ETSY was profitable.
ETSY had a positive operating cash flow in the past year.
Of the past 5 years ETSY 4 years were profitable.
ETSY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ETSY has a better Return On Assets (6.41%) than 73.33% of its industry peers.
ETSY has a Return On Invested Capital of 14.18%. This is amongst the best in the industry. ETSY outperforms 83.33% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ETSY is above the industry average of 10.45%.
| 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
With a decent Profit Margin value of 5.78%, ETSY is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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 86.67% 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 93.33% of the companies in the same industry.
ETSY's Gross Margin has improved in the last couple of years.
| 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.
Compared to 1 year ago, ETSY has less shares outstanding
ETSY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, ETSY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.89 indicates that ETSY is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.89, ETSY is in line with its industry, outperforming 56.67% of the companies in the same industry.
ETSY has a debt to FCF ratio of 4.85. This is a neutral value as ETSY would need 4.85 years to pay back of all of its debts.
ETSY has a Debt to FCF ratio (4.85) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 1.89 |
ROIC/WACC1.96
WACC7.23%
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 Current ratio of 3.39. This is amongst the best in the industry. ETSY outperforms 93.33% of its industry peers.
A Quick Ratio of 3.39 indicates that ETSY has no problem at all paying its short term obligations.
ETSY has a better Quick ratio (3.39) than 96.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.39 | ||
| Quick Ratio | 3.39 |
3. Growth
3.1 Past
ETSY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.45%, which is quite impressive.
Measured over the past years, ETSY shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.54% on average per year.
The Revenue has been growing slightly by 2.18% in the past year.
ETSY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 27.97% yearly.
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
ETSY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.31% yearly.
Based on estimates for the next years, ETSY will show a small growth in Revenue. The Revenue will grow by 4.57% on average per year.
EPS Next Y-42.56%
EPS Next 2Y9.43%
EPS Next 3Y13.35%
EPS Next 5Y25.31%
Revenue Next Year0.8%
Revenue Next 2Y1.48%
Revenue Next 3Y2.87%
Revenue Next 5Y4.57%
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
A Price/Earnings ratio of 25.83 indicates a quite expensive valuation of ETSY.
ETSY's Price/Earnings ratio is a bit cheaper when compared to the industry. ETSY is cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.10, ETSY is valued at the same level.
ETSY is valuated rather expensively with a Price/Forward Earnings ratio of 21.85.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETSY is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 22.52. ETSY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.83 | ||
| Fwd PE | 21.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ETSY is on the same level as its industry peers.
ETSY's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ETSY is cheaper than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.68 | ||
| EV/EBITDA | 15.02 |
4.3 Compensation for Growth
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 13.35% in the coming years.
PEG (NY)N/A
PEG (5Y)1.01
EPS Next 2Y9.43%
EPS Next 3Y13.35%
5. Dividend
5.1 Amount
ETSY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
62
+0.07 (+0.11%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners133.97%
Inst Owner Change-0.54%
Ins Owners1.02%
Ins Owner Change0.26%
Market Cap6.14B
Revenue(TTM)2.81B
Net Income(TTM)164.02M
Analysts68.72
Price Target69.07 (11.4%)
Short Float %18.77%
Short Ratio3.27
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)3.67%
PT rev (3m)30.76%
EPS NQ rev (1m)0.86%
EPS NQ rev (3m)-0.49%
EPS NY rev (1m)0.76%
EPS NY rev (3m)-15.6%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)0.83%
Revenue NY rev (1m)0.07%
Revenue NY rev (3m)2.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.83 | ||
| Fwd PE | 21.85 | ||
| P/S | 2.16 | ||
| P/FCF | 9.68 | ||
| P/OCF | 8.91 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.02 |
EPS(TTM)2.4
EY3.87%
EPS(NY)2.84
Fwd EY4.58%
FCF(TTM)6.4
FCFY10.33%
OCF(TTM)6.96
OCFY11.22%
SpS28.64
BVpS-11.35
TBVpS-14.93
PEG (NY)N/A
PEG (5Y)1.01
Graham NumberN/A
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%
ROICexgc growth 3Y8.44%
ROICexgc 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 | 1.89 |
F-Score6
WACC7.23%
ROIC/WACC1.96
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)22.45%
EPS 3Y-11.42%
EPS 5Y25.54%
EPS Q2Q%40%
EPS Next Y-42.56%
EPS Next 2Y9.43%
EPS Next 3Y13.35%
EPS Next 5Y25.31%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%2.36%
Revenue Next Year0.8%
Revenue Next 2Y1.48%
Revenue Next 3Y2.87%
Revenue Next 5Y4.57%
EBIT growth 1Y7.82%
EBIT growth 3Y-6.54%
EBIT growth 5Y33.76%
EBIT Next Year97.4%
EBIT Next 3Y29.11%
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%
ETSY INC / ETSY FAQ
Can you provide the ChartMill fundamental rating for ETSY INC?
ChartMill assigns a fundamental rating of 6 / 10 to ETSY.
What is the valuation status of ETSY INC (ETSY) stock?
ChartMill assigns a valuation rating of 4 / 10 to ETSY INC (ETSY). This can be considered as Fairly Valued.
How profitable is ETSY INC (ETSY) stock?
ETSY INC (ETSY) has a profitability rating of 7 / 10.
What are the PE and PB ratios of ETSY INC (ETSY) stock?
The Price/Earnings (PE) ratio for ETSY INC (ETSY) is 25.83 and the Price/Book (PB) ratio is -5.46.