ETSY INC (ETSY) Stock Fundamental Analysis
USA - NASDAQ:ETSY - US29786A1060 - Common Stock
64.99 USD
+0.14 (+0.22%)
64.1 USD
-0.89 (-1.37%)
Overall ETSY gets a fundamental rating of 6 out of 10. We evaluated ETSY against 28 industry peers in the Broadline Retail industry. ETSY has an excellent profitability rating, but there are some minor concerns on its financial health. ETSY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
ETSY had positive earnings in the past year.
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 Return On Assets of 6.41%. This is in the better half of the industry: ETSY outperforms 71.43% of its industry peers.
ETSY's Return On Invested Capital of 14.18% is amongst the best of the industry. ETSY outperforms 82.14% of its industry peers.
ETSY had an Average Return On Invested Capital over the past 3 years of 14.75%. This is above the industry average of 11.01%.
| 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
The Profit Margin of ETSY (5.78%) is better than 67.86% of its industry peers.
In the last couple of years the Profit Margin of ETSY has declined.
The Operating Margin of ETSY (14.01%) is better than 85.71% of its industry peers.
In the last couple of years the Operating Margin of ETSY has grown nicely.
ETSY's Gross Margin of 72.20% is amongst the best of the industry. ETSY outperforms 92.86% of its industry peers.
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
The number of shares outstanding for ETSY has been reduced compared to 5 years ago.
Compared to 1 year ago, ETSY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.94 indicates that ETSY is not a great score, but indicates only limited risk for bankruptcy at the moment.
ETSY has a Altman-Z score (1.94) which is in line with its industry peers.
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 of 4.85. This is comparable to the rest of the industry: ETSY outperforms 53.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 1.94 |
ROIC/WACC1.84
WACC7.71%
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 better Current ratio (3.39) than 92.86% of its industry peers.
A Quick Ratio of 3.39 indicates that ETSY has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 3.39, ETSY belongs to the best of the industry, outperforming 96.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.39 | ||
| Quick Ratio | 3.39 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 2.30% 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
Looking at the last year, ETSY shows a small growth in Revenue. The Revenue has grown by 2.38% in the last year.
The Revenue has been growing by 27.97% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)2.3%
EPS 3Y-11.42%
EPS 5Y25.54%
EPS Q2Q%-31.71%
Revenue 1Y (TTM)2.38%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%3.84%
3.2 Future
The Earnings Per Share is expected to grow by 25.31% 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 4.59% on average per year.
EPS Next Y-42.56%
EPS Next 2Y8.63%
EPS Next 3Y11.73%
EPS Next 5Y25.31%
Revenue Next Year0.73%
Revenue Next 2Y1.43%
Revenue Next 3Y2.75%
Revenue Next 5Y4.59%
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 stable.
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
The Price/Earnings ratio is 29.27, which means the current valuation is very expensive for ETSY.
ETSY's Price/Earnings ratio is a bit cheaper when compared to the industry. ETSY is cheaper than 64.29% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. ETSY is around the same levels.
With a Price/Forward Earnings ratio of 23.24, ETSY is valued on the expensive side.
60.71% of the companies in the same industry are more expensive than ETSY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, ETSY is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.27 | ||
| Fwd PE | 23.24 |
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.
Based on the Price/Free Cash Flow ratio, ETSY is valued cheaply inside the industry as 82.14% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.15 | ||
| EV/EBITDA | 15.58 |
4.3 Compensation for Growth
ETSY has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.15
EPS Next 2Y8.63%
EPS Next 3Y11.73%
5. Dividend
5.1 Amount
ETSY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
64.99
+0.14 (+0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners122.43%
Inst Owner Change6.07%
Ins Owners1.02%
Ins Owner Change0.36%
Market Cap6.44B
Analysts68.72
Price Target66.63 (2.52%)
Short Float %18.98%
Short Ratio3.35
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)2.65%
PT rev (3m)32.46%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-7.53%
EPS NY rev (1m)-15.61%
EPS NY rev (3m)-18.14%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)1.82%
Revenue NY rev (1m)2.26%
Revenue NY rev (3m)2.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.27 | ||
| Fwd PE | 23.24 | ||
| P/S | 2.27 | ||
| P/FCF | 10.15 | ||
| P/OCF | 9.34 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.58 |
EPS(TTM)2.22
EY3.42%
EPS(NY)2.8
Fwd EY4.3%
FCF(TTM)6.4
FCFY9.85%
OCF(TTM)6.96
OCFY10.71%
SpS28.64
BVpS-11.35
TBVpS-14.93
PEG (NY)N/A
PEG (5Y)1.15
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%
ROICexcg growth 3Y8.44%
ROICexcg 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 | 1.94 |
F-Score6
WACC7.71%
ROIC/WACC1.84
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)2.3%
EPS 3Y-11.42%
EPS 5Y25.54%
EPS Q2Q%-31.71%
EPS Next Y-42.56%
EPS Next 2Y8.63%
EPS Next 3Y11.73%
EPS Next 5Y25.31%
Revenue 1Y (TTM)2.38%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%3.84%
Revenue Next Year0.73%
Revenue Next 2Y1.43%
Revenue Next 3Y2.75%
Revenue Next 5Y4.59%
EBIT growth 1Y7.82%
EBIT growth 3Y-6.54%
EBIT growth 5Y33.76%
EBIT Next Year96.25%
EBIT Next 3Y29.23%
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%