ETSY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 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 growing strongly while it is still valued neutral. This is a good combination! With these ratings, ETSY could be worth investigating further for growth investing!.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
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

With a decent Return On Assets value of 6.87%, ETSY is doing good in the industry, outperforming 76.67% of the companies in the same industry.
The Return On Invested Capital of ETSY (13.92%) is better than 86.67% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ETSY is significantly above the industry average of 9.28%.

		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

ETSY has a better Profit Margin (6.38%) than 66.67% of its industry peers.
ETSY's Profit Margin has declined in the last couple of years.
ETSY has a Operating Margin of 13.79%. This is amongst the best in the industry. ETSY outperforms 90.00% of its industry peers.
ETSY's Operating Margin has improved in the last couple of years.
ETSY has a Gross Margin of 72.04%. This is amongst the best in the industry. ETSY outperforms 90.00% of its industry peers.
In the last couple of years the Gross Margin of ETSY 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

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ETSY is creating value.
The number of shares outstanding for ETSY has been reduced compared to 1 year ago.
ETSY has less shares outstanding than it did 5 years ago.
ETSY has a worse debt/assets ratio than last year.

2.2 Solvency

ETSY has an Altman-Z score of 1.70. 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 of 1.70. This is comparable to the rest of the industry: ETSY outperforms 53.33% of its industry peers.
ETSY has a debt to FCF ratio of 4.84. This is a neutral value as ETSY would need 4.84 years to pay back of all of its debts.
The Debt to FCF ratio of ETSY (4.84) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	4.84
Altman-Z	1.7

ROIC/WACC1.91

WACC7.28%

2.3 Liquidity

A Current Ratio of 3.17 indicates that ETSY has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.17, ETSY belongs to the best of the industry, outperforming 96.67% of the companies in the same industry.
A Quick Ratio of 3.17 indicates that ETSY has no problem at all paying its short term obligations.
ETSY has a Quick ratio of 3.17. This is amongst the best in the industry. ETSY outperforms 96.67% 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.
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 1.98% in the past year.
Measured over the past years, ETSY 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
The Revenue is expected to grow by 4.73% on average over the next years.

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.
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.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

ETSY is valuated rather expensively with a Price/Earnings ratio of 22.07.
Compared to the rest of the industry, the Price/Earnings 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/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.32.
The Price/Forward Earnings ratio is 20.37, which indicates a rather expensive current valuation of ETSY.
ETSY's Price/Forward Earnings is on the same level as the industry average.
ETSY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.57.

		Industry Rank	Sector Rank
PE	22.07
Fwd PE	20.37

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, ETSY is valued a bit cheaper than 63.33% of the companies 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.