ETSY INC (ETSY) Fundamental Analysis & Valuation
NYSE:ETSY • US29786A1060
Current stock price
48.52 USD
+0.29 (+0.6%)
At close:
48.52 USD
0 (0%)
After Hours:
This ETSY fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. ETSY Profitability Analysis
1.1 Basic Checks
- In the past year ETSY was profitable.
- In the past year ETSY had a positive cash flow from operations.
- ETSY had positive earnings in 4 of the past 5 years.
- In the past 5 years ETSY always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 5.76%, ETSY is in the better half of the industry, outperforming 76.67% of the companies in the same industry.
- ETSY's Return On Invested Capital of 12.18% is amongst the best of the industry. ETSY outperforms 83.33% of its industry peers.
- ETSY had an Average Return On Invested Capital over the past 3 years of 13.54%. This is above the industry average of 8.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.76% | ||
| ROE | N/A | ||
| ROIC | 12.18% |
ROA(3y)9.92%
ROA(5y)3.26%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.54%
ROIC(5y)12.85%
1.3 Margins
- The Profit Margin of ETSY (5.65%) is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of ETSY has declined.
- ETSY has a Operating Margin of 12.76%. This is amongst the best in the industry. ETSY outperforms 90.00% of its industry peers.
- In the last couple of years the Operating Margin of ETSY has declined.
- The Gross Margin of ETSY (71.64%) is better than 90.00% of its industry peers.
- ETSY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.76% | ||
| PM (TTM) | 5.65% | ||
| GM | 71.64% |
OM growth 3Y-5.38%
OM growth 5Y-12.28%
PM growth 3YN/A
PM growth 5Y-22.52%
GM growth 3Y0.31%
GM growth 5Y-0.39%
2. ETSY Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ETSY is creating value.
- ETSY has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for ETSY has been reduced compared to 5 years ago.
- ETSY has a worse debt/assets ratio than last year.
2.2 Solvency
- ETSY has an Altman-Z score of 1.22. This is a bad value and indicates that ETSY is not financially healthy and even has some risk of bankruptcy.
- ETSY has a Altman-Z score (1.22) which is comparable to the rest of the industry.
- ETSY has a debt to FCF ratio of 4.82. This is a neutral value as ETSY would need 4.82 years to pay back of all of its debts.
- ETSY's Debt to FCF ratio of 4.82 is in line compared to the rest of the industry. ETSY outperforms 56.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.82 | ||
| Altman-Z | 1.22 |
ROIC/WACC1.71
WACC7.12%
2.3 Liquidity
- A Current Ratio of 1.44 indicates that ETSY should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.44, ETSY perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
- ETSY has a Quick Ratio of 1.44. This is a normal value and indicates that ETSY is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.44, ETSY perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 |
3. ETSY Growth Analysis
3.1 Past
- ETSY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.38%.
- ETSY shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -3.17% yearly.
- Looking at the last year, ETSY shows a small growth in Revenue. The Revenue has grown by 2.68% in the last year.
- ETSY shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.81% yearly.
EPS 1Y (TTM)-3.38%
EPS 3YN/A
EPS 5Y-3.17%
EPS Q2Q%-10.68%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y3.96%
Revenue growth 5Y10.81%
Sales Q2Q%3.46%
3.2 Future
- The Earnings Per Share is expected to grow by 33.98% on average over the next years. This is a very strong growth
- Based on estimates for the next years, ETSY will show a small growth in Revenue. The Revenue will grow by 2.43% on average per year.
EPS Next Y39.37%
EPS Next 2Y25.48%
EPS Next 3Y21.86%
EPS Next 5Y33.98%
Revenue Next Year-5.2%
Revenue Next 2Y-0.99%
Revenue Next 3Y0.54%
Revenue Next 5Y2.43%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. ETSY Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 21.19, the valuation of ETSY can be described as rather expensive.
- 66.67% of the companies in the same industry are more expensive than ETSY, based on the Price/Earnings ratio.
- ETSY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.61, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 15.20 indicates a correct valuation of ETSY.
- The rest of the industry has a similar Price/Forward Earnings ratio as ETSY.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, ETSY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 15.2 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ETSY indicates a somewhat cheap valuation: ETSY is cheaper than 70.00% of the companies listed in the same industry.
- 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 | 7.31 | ||
| EV/EBITDA | 11.12 |
4.3 Compensation for Growth
- ETSY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- ETSY has a very decent profitability rating, which may justify a higher PE ratio.
- ETSY's earnings are expected to grow with 21.86% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y25.48%
EPS Next 3Y21.86%
5. ETSY Dividend Analysis
5.1 Amount
- No dividends for ETSY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
ETSY Fundamentals: All Metrics, Ratios and Statistics
48.52
+0.29 (+0.6%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)02-19 2026-02-19/bmo
Earnings (Next)04-28 2026-04-28
Inst Owners120.78%
Inst Owner Change-9.52%
Ins Owners1.11%
Ins Owner Change0.23%
Market Cap4.67B
Revenue(TTM)2.88B
Net Income(TTM)162.98M
Analysts69.23
Price Target63.26 (30.38%)
Short Float %14.58%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2
Avg EPS beat(2)12.31%
Min EPS beat(2)7.17%
Max EPS beat(2)17.46%
EPS beat(4)2
Avg EPS beat(4)-6.51%
Min EPS beat(4)-42.84%
Max EPS beat(4)17.46%
EPS beat(8)3
Avg EPS beat(8)-5.99%
EPS beat(12)5
Avg EPS beat(12)-3.62%
EPS beat(16)6
Avg EPS beat(16)-133.74%
Revenue beat(2)1
Avg Revenue beat(2)-0.44%
Min Revenue beat(2)-2.32%
Max Revenue beat(2)1.44%
Revenue beat(4)2
Avg Revenue beat(4)0.09%
Min Revenue beat(4)-2.32%
Max Revenue beat(4)1.89%
Revenue beat(8)3
Avg Revenue beat(8)-0.55%
Revenue beat(12)4
Avg Revenue beat(12)-0.56%
Revenue beat(16)7
Avg Revenue beat(16)0.23%
PT rev (1m)-7.21%
PT rev (3m)-10.23%
EPS NQ rev (1m)37.89%
EPS NQ rev (3m)37.84%
EPS NY rev (1m)23.09%
EPS NY rev (3m)22.31%
Revenue NQ rev (1m)-6.55%
Revenue NQ rev (3m)-6.71%
Revenue NY rev (1m)-7.83%
Revenue NY rev (3m)-7.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.19 | ||
| Fwd PE | 15.2 | ||
| P/S | 1.62 | ||
| P/FCF | 7.31 | ||
| P/OCF | 6.73 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.12 |
EPS(TTM)2.29
EY4.72%
EPS(NY)3.19
Fwd EY6.58%
FCF(TTM)6.64
FCFY13.68%
OCF(TTM)7.2
OCFY14.85%
SpS29.96
BVpS-11.41
TBVpS-14.89
PEG (NY)0.54
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.76% | ||
| ROE | N/A | ||
| ROCE | 25.14% | ||
| ROIC | 12.18% | ||
| ROICexc | 52.23% | ||
| ROICexgc | 163.61% | ||
| OM | 12.76% | ||
| PM (TTM) | 5.65% | ||
| GM | 71.64% | ||
| FCFM | 22.15% |
ROA(3y)9.92%
ROA(5y)3.26%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.54%
ROIC(5y)12.85%
ROICexc(3y)40.44%
ROICexc(5y)33.69%
ROICexgc(3y)147.39%
ROICexgc(5y)148.29%
ROCE(3y)21.93%
ROCE(5y)19.91%
ROICexgc growth 3Y-1.4%
ROICexgc growth 5YN/A
ROICexc growth 3Y17.12%
ROICexc growth 5Y-13.15%
OM growth 3Y-5.38%
OM growth 5Y-12.28%
PM growth 3YN/A
PM growth 5Y-22.52%
GM growth 3Y0.31%
GM growth 5Y-0.39%
F-Score5
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.82 | ||
| Debt/EBITDA | 6.55 | ||
| Cap/Depr | 53.67% | ||
| Cap/Sales | 1.9% | ||
| Interest Coverage | 30.07 | ||
| Cash Conversion | 147.61% | ||
| Profit Quality | 391.91% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 1.22 |
F-Score5
WACC7.12%
ROIC/WACC1.71
Cap/Depr(3y)45.87%
Cap/Depr(5y)43.33%
Cap/Sales(3y)1.63%
Cap/Sales(5y)1.53%
Profit Quality(3y)280.7%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.38%
EPS 3YN/A
EPS 5Y-3.17%
EPS Q2Q%-10.68%
EPS Next Y39.37%
EPS Next 2Y25.48%
EPS Next 3Y21.86%
EPS Next 5Y33.98%
Revenue 1Y (TTM)2.68%
Revenue growth 3Y3.96%
Revenue growth 5Y10.81%
Sales Q2Q%3.46%
Revenue Next Year-5.2%
Revenue Next 2Y-0.99%
Revenue Next 3Y0.54%
Revenue Next 5Y2.43%
EBIT growth 1Y-3.23%
EBIT growth 3Y-1.63%
EBIT growth 5Y-2.8%
EBIT Next Year182.9%
EBIT Next 3Y45.79%
EBIT Next 5Y28.81%
FCF growth 1Y-9.9%
FCF growth 3Y-0.4%
FCF growth 5Y-0.98%
OCF growth 1Y-7.85%
OCF growth 3Y0.48%
OCF growth 5Y0.42%
ETSY INC / ETSY Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for ETSY INC?
ChartMill assigns a fundamental rating of 5 / 10 to ETSY.
Can you provide the valuation status for ETSY INC?
ChartMill assigns a valuation rating of 6 / 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 6 / 10.
Can you provide the financial health for ETSY stock?
The financial health rating of ETSY INC (ETSY) is 4 / 10.
Can you provide the expected EPS growth for ETSY stock?
The Earnings per Share (EPS) of ETSY INC (ETSY) is expected to grow by 39.37% in the next year.