ETSY INC (ETSY)
US29786A1060 - Common Stock
Overall ETSY gets a fundamental rating of 6 out of 10. We evaluated ETSY against 32 industry peers in the Broadline Retail industry. ETSY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, ETSY is valued expensive at the moment. These ratings could make ETSY a good candidate for quality investing.
1. Profitability
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.
ETSY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
ETSY has a better Return On Assets (10.51%) than 87.50% of its industry peers.
The Return On Invested Capital of ETSY (15.35%) is better than 81.25% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ETSY is above the industry average of 11.47%.
The last Return On Invested Capital (15.35%) for ETSY is above the 3 year average (13.89%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.51% | ||
| ROE | N/A | ||
| ROIC | 15.35% |
ROA(3y)-0.67%
ROA(5y)3.74%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.89%
ROIC(5y)12.81%
1.3 Margins
ETSY's Profit Margin of 9.17% is amongst the best of the industry. ETSY outperforms 84.38% of its industry peers.
In the last couple of years the Profit Margin of ETSY has declined.
The Operating Margin of ETSY (13.12%) is better than 90.63% of its industry peers.
In the last couple of years the Operating Margin of ETSY has grown nicely.
Looking at the Gross Margin, with a value of 71.16%, ETSY belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
ETSY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.12% | ||
| PM (TTM) | 9.17% | ||
| GM | 71.16% |
OM growth 3Y-17.85%
OM growth 5Y1.97%
PM growth 3Y-17.92%
PM growth 5Y-2.71%
GM growth 3Y-1.4%
GM growth 5Y0.48%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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 has been reduced compared to a year ago.
2.2 Solvency
ETSY has an Altman-Z score of 2.22. This is not the best score and indicates that ETSY is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.22, ETSY perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
The Debt to FCF ratio of ETSY is 3.48, which is a good value as it means it would take ETSY, 3.48 years of fcf income to pay off all of its debts.
ETSY has a better Debt to FCF ratio (3.48) than 62.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 2.22 |
ROIC/WACC2.1
WACC7.31%
2.3 Liquidity
A Current Ratio of 2.39 indicates that ETSY has no problem at all paying its short term obligations.
ETSY's Current ratio of 2.39 is amongst the best of the industry. ETSY outperforms 81.25% of its industry peers.
A Quick Ratio of 2.39 indicates that ETSY has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.39, ETSY belongs to the best of the industry, outperforming 90.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.39 |
3. Growth
3.1 Past
ETSY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -18.33%.
ETSY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 30.26% yearly.
Looking at the last year, ETSY shows a small growth in Revenue. The Revenue has grown by 3.14% in the last year.
The Revenue has been growing by 35.41% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-18.33%
EPS 3Y-5.78%
EPS 5Y30.26%
EPS Q2Q%-31.82%
Revenue 1Y (TTM)3.14%
Revenue growth 3Y16.78%
Revenue growth 5Y35.41%
Sales Q2Q%4.1%
3.2 Future
The Earnings Per Share is expected to grow by 31.85% 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 7.74% on average per year.
EPS Next Y0.78%
EPS Next 2Y8.57%
EPS Next 3Y9.97%
EPS Next 5Y31.85%
Revenue Next Year3.05%
Revenue Next 2Y2.93%
Revenue Next 3Y3.61%
Revenue Next 5Y7.74%
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 26.53, which means the current valuation is very expensive for ETSY.
The rest of the industry has a similar Price/Earnings ratio as ETSY.
ETSY is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.60, the valuation of ETSY can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETSY is on the same level as its industry peers.
ETSY's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.53 | ||
| Fwd PE | 19.6 |
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 a bit cheaper than the industry average as 78.13% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.51 | ||
| EV/EBITDA | 14.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of ETSY may justify a higher PE ratio.
PEG (NY)34.08
PEG (5Y)0.88
EPS Next 2Y8.57%
EPS Next 3Y9.97%
5. Dividend
5.1 Amount
No dividends for ETSY!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ETSY INC
NASDAQ:ETSY (11/21/2024, 8:25:20 PM)
After market: 51.9 -0.09 (-0.17%)51.99
+1.13 (+2.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap5.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.53 | ||
| Fwd PE | 19.6 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)34.08
PEG (5Y)0.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.51% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.12% | ||
| PM (TTM) | 9.17% | ||
| GM | 71.16% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.39 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-18.33%
EPS 3Y-5.78%
EPS 5Y
EPS Q2Q%
EPS Next Y0.78%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.14%
Revenue growth 3Y16.78%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y