Etsy, Inc.
Etsy, Inc. Fundamental Analysis
Etsy, Inc. (3E2.F) shows weak financial fundamentals with a PE ratio of 29.84, profit margin of 5.65%, and ROE of -15.36%. The company generates $3.1B 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 56.4/100 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.F's fundamental strength across five key dimensions:
Efficiency Score
Weak3E2.F struggles to generate sufficient returns from assets.
Valuation Score
Weak3E2.F trades at a premium to fair value.
Growth Score
Weak3E2.F faces weak or negative growth trends.
Financial Health Score
Excellent3E2.F maintains a strong and stable balance sheet.
Profitability Score
Weak3E2.F struggles to sustain strong margins.
Key Financial Metrics
Is 3E2.F Expensive or Cheap?
P/E Ratio
3E2.F trades at 29.84 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 3E2.F's PEG of 22.89 indicates potential overvaluation.
Price to Book
The market values Etsy, Inc. at -4.43 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.71 times EBITDA. This is generally considered low.
How Well Does 3E2.F Make Money?
Net Profit Margin
For every $100 in sales, Etsy, Inc. keeps $5.65 as profit after all expenses.
Operating Margin
Core operations generate 9.23 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-15.36 in profit for every $100 of shareholder equity.
ROA
Etsy, Inc. generates $5.76 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 $747.43M, showing steady but balanced cash generation.
Free Cash Flow
Etsy, Inc. generates strong free cash flow of $688.51M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $6.43 in free cash annually.
FCF Yield
3E2.F converts 12.18% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
29.84
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
22.89
vs 25 benchmark
P/B Ratio
Price to book value ratio
-4.43
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.82
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.80
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.44
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.15
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.18
vs 25 benchmark
How 3E2.F Stacks Against Its Sector Peers
| Metric | 3E2.F Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 29.84 | 23.80 | Worse (Expensive) |
| ROE | -15.36% | 1105.00% | Weak |
| Net Margin | 5.65% | -512.00% (disorted) | Weak |
| Debt/Equity | -2.80 | 0.78 | Strong (Low Leverage) |
| Current Ratio | 1.44 | 2.64 | Neutral |
| ROA | 5.76% | -8048.00% (disorted) | Weak |
3E2.F outperforms its industry in 1 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
16.78%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
26.09%
Industry Style: Cyclical, Growth, Discretionary
High Growth