ETSY INC (ETSY)
US29786A1060 - Common Stock
ETSY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 32 industry peers in the Broadline Retail industry. Both the health and profitability get an excellent rating, making ETSY a very profitable company, without any liquidiy or solvency issues. ETSY has a decent growth rate and is not valued too expensively. With these ratings, ETSY could be worth investigating further for quality 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.
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.
ETSY has a better Return On Invested Capital (15.35%) than 81.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ETSY is above the industry average of 11.71%.
The 3 year average ROIC (13.89%) for ETSY is below the current ROIC(15.35%), indicating increased profibility in the last year.
| 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.
ETSY's Profit Margin has declined in the last couple of years.
ETSY has a Operating Margin of 13.12%. This is amongst the best in the industry. ETSY outperforms 90.63% of its industry peers.
In the last couple of years the Operating Margin of ETSY has grown nicely.
With an excellent Gross Margin value of 71.16%, ETSY belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
In the last couple of years the Gross Margin of ETSY has remained more or less at the same level.
| 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.
Compared to 1 year ago, ETSY has less shares outstanding
Compared to 5 years ago, ETSY has less shares outstanding
Compared to 1 year ago, ETSY has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.32 indicates that ETSY is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of ETSY (2.32) is comparable to the rest of the industry.
ETSY has a debt to FCF ratio of 3.48. This is a good value and a sign of high solvency as ETSY would need 3.48 years to pay back of all of its debts.
ETSY has a Debt to FCF ratio of 3.48. This is in the better half of the industry: ETSY outperforms 65.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.48 | ||
| Altman-Z | 2.32 |
ROIC/WACC2.11
WACC7.29%
2.3 Liquidity
ETSY has a Current Ratio of 2.39. This indicates that ETSY is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.39, ETSY belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
ETSY has a Quick Ratio of 2.39. This indicates that ETSY is financially healthy and has no problem in meeting 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%.
Measured over the past years, ETSY shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.26% on average per year.
Looking at the last year, ETSY shows a small growth in Revenue. The Revenue has grown by 3.14% in the last year.
Measured over the past years, ETSY shows a very strong growth in Revenue. The Revenue has been growing by 35.41% on average per year.
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 23.16% on average over the next years. This is a very strong growth
ETSY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.54% yearly.
EPS Next Y1.34%
EPS Next 2Y9.43%
EPS Next 3Y10.01%
EPS Next 5Y23.16%
Revenue Next Year3.16%
Revenue Next 2Y2.93%
Revenue Next 3Y3.69%
Revenue Next 5Y5.54%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 28.98, which means the current valuation is very expensive for ETSY.
Compared to the rest of the industry, the Price/Earnings ratio of ETSY is on the same level as its industry peers.
When comparing the Price/Earnings ratio of ETSY to the average of the S&P500 Index (27.20), we can say ETSY is valued inline with the index average.
The Price/Forward Earnings ratio is 21.08, which indicates a rather expensive current valuation of ETSY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ETSY is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.73. ETSY is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.98 | ||
| Fwd PE | 21.08 |
4.2 Price Multiples
ETSY's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, ETSY is valued cheaply inside the industry as 81.25% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.3 | ||
| EV/EBITDA | 15.91 |
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)21.65
PEG (5Y)0.96
EPS Next 2Y9.43%
EPS Next 3Y10.01%
5. Dividend
5.1 Amount
ETSY does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ETSY INC
NASDAQ:ETSY (12/20/2024, 8:07:41 PM)
Premarket: 58.46 +1.65 (+2.9%)56.81
-0.33 (-0.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners105.19%
Inst Owner Change3.41%
Ins Owners0.93%
Ins Owner Change0.16%
Market Cap6.39B
Analysts66
Price Target62.64 (10.26%)
Short Float %17.26%
Short Ratio5.33
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)-13.33%
Min EPS beat(2)-16.48%
Max EPS beat(2)-10.19%
EPS beat(4)0
Avg EPS beat(4)-12.91%
Min EPS beat(4)-21.6%
Max EPS beat(4)-3.38%
EPS beat(8)2
Avg EPS beat(8)-4.01%
EPS beat(12)4
Avg EPS beat(12)-173.79%
EPS beat(16)8
Avg EPS beat(16)-123.54%
Revenue beat(2)1
Avg Revenue beat(2)0.21%
Min Revenue beat(2)-0.47%
Max Revenue beat(2)0.88%
Revenue beat(4)1
Avg Revenue beat(4)-0.46%
Min Revenue beat(4)-2.02%
Max Revenue beat(4)0.88%
Revenue beat(8)3
Avg Revenue beat(8)0.17%
Revenue beat(12)6
Avg Revenue beat(12)0.76%
Revenue beat(16)9
Avg Revenue beat(16)1.74%
PT rev (1m)-5.67%
PT rev (3m)-9.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.35%
EPS NY rev (1m)0.56%
EPS NY rev (3m)-7.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.98 | ||
| Fwd PE | 21.08 | ||
| P/S | 2.28 | ||
| P/FCF | 9.3 | ||
| P/OCF | 8.72 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.91 |
EPS(TTM)1.96
EY3.45%
EPS(NY)2.69
Fwd EY4.74%
FCF(TTM)6.11
FCFY10.75%
OCF(TTM)6.51
OCFY11.46%
SpS24.88
BVpS-5.55
TBVpS-10.73
PEG (NY)21.65
PEG (5Y)0.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.51% | ||
| ROE | N/A | ||
| ROCE | 19.43% | ||
| ROIC | 15.35% | ||
| ROICexc | 34.35% | ||
| ROICexgc | 110.81% | ||
| OM | 13.12% | ||
| PM (TTM) | 9.17% | ||
| GM | 71.16% | ||
| FCFM | 24.55% |
ROA(3y)-0.67%
ROA(5y)3.74%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)13.89%
ROIC(5y)12.81%
ROICexc(3y)29.7%
ROICexc(5y)44.31%
ROICexgc(3y)155.78%
ROICexgc(5y)N/A
ROCE(3y)17.58%
ROCE(5y)16.21%
ROICexcg growth 3YN/A
ROICexcg growth 5Y15.45%
ROICexc growth 3Y-33.01%
ROICexc growth 5Y0.16%
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%
F-Score6
Asset Turnover1.15
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 3.48 | ||
| Debt/EBITDA | 5.05 | ||
| Cap/Depr | 43.6% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 155.28% | ||
| Profit Quality | 267.68% | ||
| Current Ratio | 2.39 | ||
| Quick Ratio | 2.39 | ||
| Altman-Z | 2.32 |
F-Score6
WACC7.29%
ROIC/WACC2.11
Cap/Depr(3y)40.89%
Cap/Depr(5y)34.45%
Cap/Sales(3y)1.4%
Cap/Sales(5y)1.35%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-18.33%
EPS 3Y-5.78%
EPS 5Y30.26%
EPS Q2Q%-31.82%
EPS Next Y1.34%
EPS Next 2Y9.43%
EPS Next 3Y10.01%
EPS Next 5Y23.16%
Revenue 1Y (TTM)3.14%
Revenue growth 3Y16.78%
Revenue growth 5Y35.41%
Sales Q2Q%4.1%
Revenue Next Year3.16%
Revenue Next 2Y2.93%
Revenue Next 3Y3.69%
Revenue Next 5Y5.54%
EBIT growth 1Y-1.26%
EBIT growth 3Y-4.06%
EBIT growth 5Y38.08%
EBIT Next Year156.55%
EBIT Next 3Y41.3%
EBIT Next 5Y26.96%
FCF growth 1Y7.39%
FCF growth 3Y-0.27%
FCF growth 5Y36.05%
OCF growth 1Y7.36%
OCF growth 3Y1.28%
OCF growth 5Y28.82%