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ETSY

EtsyNasdaqGS:ETSY Stock Report

Market Cap

US$31.3b

7D

9.3%

1Y

69.8%

Updated

26 Oct, 2021

Data

Company Financials +
ETSY fundamental analysis
Snowflake Score
Valuation1/6
Future Growth5/6
Past Performance5/6
Financial Health4/6
Dividends0/6

ETSY Overview

Etsy, Inc. operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India.

Etsy Competitors

Amazon.com

NasdaqGS:AMZN

US$1.7t

Alibaba Group Holding

NYSE:BABA

US$460.8b

eBay

NasdaqGS:EBAY

US$51.0b

Wayfair

NYSE:W

US$24.5b

Price History & Performance

Summary of all time highs, changes and price drops for Etsy
Historical stock prices
Current Share PriceUS$247.52
52 Week HighUS$113.49
52 Week LowUS$255.76
Beta1.61
1 Month Change11.07%
3 Month Change21.97%
1 Year Change69.79%
3 Year Change498.02%
5 Year Change1,811.35%
Change since IPO725.07%

Recent News & Updates

Oct 07

Etsy's Profit Margins Are Hanging By A Thread

Etsy reported a 25% operating income decline for Q2 2021 sending the shares down 13% on August 5, 2021. The stock has since recovered and is unchanged from previous levels. The rapid contraction in profitability and 44% cash flow decline in Q2 are casting doubt on the sustainability of Etsy’s elevated profit margins in recent quarters. The company is forecasting a continuation of its rapid sales deceleration for Q3 2021. Due to limited visibility, Etsy was unable to provide guidance for Q4. Consensus forecasts are for 9% sales growth in Q4 2021. With rapidly contracting profit margins, 2022 consensus estimates look to be at significant risk. Etsy should be on the watchlist of all growth stock investors given the dynamic growth and profit potential of its platform business model and excellent brand potential.

Sep 14
Here is how Etsy's (NASDAQ:ETSY) Growth Strategy Creates Value for Investors

Here is how Etsy's (NASDAQ:ETSY) Growth Strategy Creates Value for Investors

Long term investing can be life changing when you buy and hold the truly great businesses. And we've seen some truly amazing gains over the years. For example, the Etsy, Inc. (NASDAQ:ETSY) share price is up a whopping 327% since 2019, a handsome return for long term holders. It is clear that this is a combination of a great business model and the online shopping catalyst. In this article, we are going to examine the growth potential of Etsy and how can that impact the stock.

Sep 09

Where Will Etsy Stock Be In 5 Years? Consider Product Category And International Expansion Potential

I don't think ETSY's shares are overpriced even though its stock price has almost doubled in the last year. It is critical to focus on Etsy's future growth prospects, rather than Wall Street's target prices which are typically determined based on a one-year investment time horizon. ETSY should capture a greater share of the company's total addressable market in five years' time by expanding into new product categories and growing its presence in foreign markets. I view Etsy stock as a Buy, as its valuations are more attractive than its peers despite better financial metrics, and it still has a very long growth runway ahead.

Aug 30

Etsy Is An E-Commerce Powerhouse That Should Be On Every Investor's Radar

Etsy operates four e-commerce marketplaces: ETSY, Reverb, depop, and elo7. Etsy is the largest one and it specializes in handmade and vintage products. Gross merchandise sales (GMS) and revenue had been growing at a very healthy pace and then they accelerated during the pandemic. Shares appear somewhat overvalued but it can be justified by the impressive revenue and GMS growth rates.

Aug 19

Is Etsy Stock A Buy Or Sell? Why It's One Of My Largest Positions

ETSY has been a multi-bagger over the last 2 years, but the future remains as bright as ever. Growth has slowed as the company laps pandemic quarters. ETSY trades at only 12.9x sales and 55x earnings. I explain why ETSY is a strong buy for long term investors.

Shareholder Returns

ETSYUS Online RetailUS Market
7D9.3%-2.1%0.9%
1Y69.8%-11.2%33.4%

Return vs Industry: ETSY exceeded the US Online Retail industry which returned -8.5% over the past year.

Return vs Market: ETSY exceeded the US Market which returned 33.4% over the past year.

Price Volatility

Is ETSY's price volatile compared to industry and market?
ETSY volatility
ETSY Beta1.61
Industry Beta1.1
Market Beta1

Stable Share Price: ETSY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ETSY's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20051,598Josh Silvermanhttps://www.etsy.com

Etsy, Inc. operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. Its online market places include Etsy.com and Reverb.com. The company offers approximately 85 million items in its various retail categories to buyers.

Etsy Fundamentals Summary

How do Etsy's earnings and revenue compare to its market cap?
ETSY fundamental statistics
Market CapUS$31.33b
Earnings (TTM)US$482.32m
Revenue (TTM)US$2.15b

65.0x

P/E Ratio

14.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ETSY income statement (TTM)
RevenueUS$2.15b
Cost of RevenueUS$562.83m
Gross ProfitUS$1.59b
ExpensesUS$1.10b
EarningsUS$482.32m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 03, 2021

Earnings per share (EPS)3.81
Gross Margin73.80%
Net Profit Margin22.45%
Debt/Equity Ratio428.3%

How did ETSY perform over the long term?

See historical performance and comparison

Valuation

Is Etsy undervalued compared to its fair value and its price relative to the market?

1.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ETSY ($247.52) is trading below our estimate of fair value ($250.02)

Significantly Below Fair Value: ETSY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ETSY is poor value based on its PE Ratio (65x) compared to the US Online Retail industry average (32.5x).

PE vs Market: ETSY is poor value based on its PE Ratio (65x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: ETSY is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: ETSY is overvalued based on its PB Ratio (59x) compared to the US Online Retail industry average (4.6x).


Future Growth

How is Etsy forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

22.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETSY's forecast earnings growth (22.1% per year) is above the savings rate (2%).

Earnings vs Market: ETSY's earnings (22.1% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ETSY's revenue (19.6% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: ETSY's revenue (19.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ETSY's Return on Equity is forecast to be high in 3 years time (38.3%)


Past Performance

How has Etsy performed over the past 5 years?

63.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ETSY has high quality earnings.

Growing Profit Margin: ETSY's current net profit margins (22.5%) are higher than last year (13.8%).


Past Earnings Growth Analysis

Earnings Trend: ETSY has become profitable over the past 5 years, growing earnings by 63.1% per year.

Accelerating Growth: ETSY's earnings growth over the past year (211%) exceeds its 5-year average (63.1% per year).

Earnings vs Industry: ETSY earnings growth over the past year (211%) exceeded the Online Retail industry 62%.


Return on Equity

High ROE: Whilst ETSY's Return on Equity (90.87%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Etsy's financial position?


Financial Position Analysis

Short Term Liabilities: ETSY's short term assets ($2.7B) exceed its short term liabilities ($407.0M).

Long Term Liabilities: ETSY's short term assets ($2.7B) exceed its long term liabilities ($2.4B).


Debt to Equity History and Analysis

Debt Level: ETSY's debt to equity ratio (428.3%) is considered high.

Reducing Debt: ETSY's debt to equity ratio has increased from 0% to 428.3% over the past 5 years.

Debt Coverage: ETSY's debt is well covered by operating cash flow (30.7%).

Interest Coverage: ETSY's interest payments on its debt are well covered by EBIT (24x coverage).


Balance Sheet


Dividend

What is Etsy current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate ETSY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate ETSY's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ETSY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ETSY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ETSY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Josh Silverman (52 yo)

4.42yrs

Tenure

US$1,934,307

Compensation

Mr. Joshua G. Silverman, also known as Josh, is the Chief Executive Officer and President of Etsy, Inc. since May 3, 2017. Mr. Silverman was an Executive-in-Residence at Greylock Partners from October 2015...


CEO Compensation Analysis

Compensation vs Market: Josh's total compensation ($USD1.93M) is below average for companies of similar size in the US market ($USD11.15M).

Compensation vs Earnings: Josh's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ETSY's management team is considered experienced (4.3 years average tenure).


Board Members

Experienced Board: ETSY's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.1%.


Top Shareholders

Company Information

Etsy, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Etsy, Inc.
  • Ticker: ETSY
  • Exchange: NasdaqGS
  • Founded: 2005
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$31.330b
  • Shares outstanding: 126.58m
  • Website: https://www.etsy.com

Number of Employees


Location

  • Etsy, Inc.
  • 117 Adams Street
  • Brooklyn
  • New York
  • 11201
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/26 22:39
End of Day Share Price2021/10/26 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.