ETSY INC (ETSY) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ETSY - US29786A1060 - Common Stock
55.44 USD
+0.08 (+0.14%)
55.44 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to ETSY. ETSY was compared to 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! 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.
In the past 5 years ETSY always reported a positive cash flow from operatings.
1.2 Ratios
ETSY's Return On Assets of 6.41% is fine compared to the rest of the industry. ETSY outperforms 73.33% of its industry peers.
ETSY's Return On Invested Capital of 14.18% is amongst the best of the industry. ETSY outperforms 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 9.29%.
| 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
ETSY has a better Profit Margin (5.78%) than 66.67% 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 90.00% of its industry peers.
ETSY's Operating Margin has improved in the last couple of years.
ETSY has a Gross Margin of 72.20%. This is amongst the best in the industry. ETSY outperforms 90.00% 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.
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.
The debt/assets ratio for ETSY is higher compared to a year ago.
2.2 Solvency
ETSY has an Altman-Z score of 1.78. 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 (1.78) which is comparable to the rest of the 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.
Looking at the Debt to FCF ratio, with a value of 4.85, ETSY is in line with its industry, outperforming 56.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 4.85 | ||
| Altman-Z | 1.78 |
ROIC/WACC1.95
WACC7.28%
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 96.67% of its industry peers.
A Quick Ratio of 3.39 indicates that ETSY has no problem at all paying its short term obligations.
The Quick ratio of ETSY (3.39) is better than 96.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.39 | ||
| Quick Ratio | 3.39 |
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.
ETSY shows a small growth in Revenue. In the last year, the Revenue has grown by 2.18%.
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)2.18%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%2.36%
3.2 Future
The Earnings Per Share is expected to grow by 25.26% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 4.81% on average over the next years.
EPS Next Y-45.19%
EPS Next 2Y4.99%
EPS Next 3Y8.68%
EPS Next 5Y25.26%
Revenue Next Year2.33%
Revenue Next 2Y2.66%
Revenue Next 3Y3.71%
Revenue Next 5Y4.81%
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
With a Price/Earnings ratio of 23.10, ETSY is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of ETSY indicates a somewhat cheap valuation: ETSY is cheaper than 66.67% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. ETSY is around the same levels.
ETSY is valuated rather expensively with a Price/Forward Earnings ratio of 21.22.
ETSY's Price/Forward Earnings ratio is in line with the industry average.
ETSY is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 21.22 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as ETSY.
Based on the Price/Free Cash Flow ratio, ETSY is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.62 | ||
| EV/EBITDA | 13.69 |
4.3 Compensation for Growth
The decent profitability rating of ETSY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.9
EPS Next 2Y4.99%
EPS Next 3Y8.68%
5. Dividend
5.1 Amount
ETSY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
55.44
+0.08 (+0.14%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners127.24%
Inst Owner Change-3.77%
Ins Owners1.06%
Ins Owner Change0.13%
Market Cap5.47B
Revenue(TTM)2.81B
Net Income(TTM)164.02M
Analysts68.5
Price Target68.79 (24.08%)
Short Float %18.13%
Short Ratio4.66
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)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)-185.33%
EPS beat(16)6
Avg EPS beat(16)-132.18%
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)-3.26%
PT rev (3m)3.25%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.86%
EPS NY rev (1m)-2.25%
EPS NY rev (3m)-3.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.27%
Revenue NY rev (3m)1.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.1 | ||
| Fwd PE | 21.22 | ||
| P/S | 1.93 | ||
| P/FCF | 8.62 | ||
| P/OCF | 7.93 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 13.69 |
EPS(TTM)2.4
EY4.33%
EPS(NY)2.61
Fwd EY4.71%
FCF(TTM)6.43
FCFY11.6%
OCF(TTM)6.99
OCFY12.6%
SpS28.76
BVpS-11.39
TBVpS-14.99
PEG (NY)N/A
PEG (5Y)0.9
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 | 1.78 |
F-Score6
WACC7.28%
ROIC/WACC1.95
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-45.19%
EPS Next 2Y4.99%
EPS Next 3Y8.68%
EPS Next 5Y25.26%
Revenue 1Y (TTM)2.18%
Revenue growth 3Y6.44%
Revenue growth 5Y27.97%
Sales Q2Q%2.36%
Revenue Next Year2.33%
Revenue Next 2Y2.66%
Revenue Next 3Y3.71%
Revenue Next 5Y4.81%
EBIT growth 1Y7.82%
EBIT growth 3Y-6.54%
EBIT growth 5Y33.76%
EBIT Next Year94.66%
EBIT Next 3Y28.55%
EBIT Next 5Y20.35%
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.
Can you provide the valuation status for ETSY INC?
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.
Can you provide the financial health for ETSY stock?
The financial health rating of ETSY INC (ETSY) is 5 / 10.
Can you provide the expected EPS growth for ETSY stock?
The Earnings per Share (EPS) of ETSY INC (ETSY) is expected to decline by -45.19% in the next year.