Etsy, Inc.
Etsy, Inc. Fundamental Analysis
Etsy, Inc. (3E2.BE) shows weak financial fundamentals with a PE ratio of 30.35, profit margin of 6.38%, and ROE of -18.65%. The company generates $2.8B in annual revenue with weak year-over-year growth of 2.68%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze 3E2.BE's fundamental strength across five key dimensions:
Efficiency Score
Weak3E2.BE struggles to generate sufficient returns from assets.
Valuation Score
Moderate3E2.BE shows balanced valuation metrics.
Growth Score
Weak3E2.BE faces weak or negative growth trends.
Financial Health Score
Excellent3E2.BE maintains a strong and stable balance sheet.
Profitability Score
Weak3E2.BE struggles to sustain strong margins.
Key Financial Metrics
Is 3E2.BE Expensive or Cheap?
P/E Ratio
3E2.BE trades at 30.35 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, 3E2.BE's PEG of -1.26 indicates potential undervaluation.
Price to Book
The market values Etsy, Inc. at -4.97 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.85 times EBITDA. This is generally considered low.
How Well Does 3E2.BE Make Money?
Net Profit Margin
For every $100 in sales, Etsy, Inc. keeps $6.38 as profit after all expenses.
Operating Margin
Core operations generate 10.23 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-18.65 in profit for every $100 of shareholder equity.
ROA
Etsy, Inc. generates $6.87 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Etsy, Inc. produces operating cash flow of $686.88M, showing steady but balanced cash generation.
Free Cash Flow
Etsy, Inc. generates strong free cash flow of $631.34M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.40 in free cash annually.
FCF Yield
3E2.BE converts 11.55% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.35
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
-4.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.92
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.17
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.19
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.14
vs 25 benchmark
How 3E2.BE Stacks Against Its Sector Peers
| Metric | 3E2.BE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.35 | 24.19 | Worse (Expensive) |
| ROE | -18.65% | 1204.00% | Weak |
| Net Margin | 6.38% | 2563.00% | Weak |
| Debt/Equity | -2.76 | 0.71 | Strong (Low Leverage) |
| Current Ratio | 3.17 | 2.83 | Strong Liquidity |
| ROA | 6.87% | -8376.00% (disorted) | Weak |
3E2.BE outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Etsy, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
106.30%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-42.39%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
26.09%
Industry Style: Cyclical, Growth, Discretionary
High Growth