NasdaqGS:ETSY

Stock Analysis Report

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Executive Summary

Etsy, Inc. operates online market places for buyers and sellers primarily in the United States, the United Kingdom, Canada, Australia, France, and Germany.


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Etsy's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ETSY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

23.6%

ETSY

3.1%

US Online Retail

2.5%

US Market


1 Year Return

128.6%

ETSY

72.2%

US Online Retail

15.9%

US Market

Return vs Industry: ETSY exceeded the US Online Retail industry which returned 69.4% over the past year.

Return vs Market: ETSY exceeded the US Market which returned 14.9% over the past year.


Shareholder returns

ETSYIndustryMarket
7 Day23.6%3.1%2.5%
30 Day14.4%9.4%5.8%
90 Day61.8%36.5%18.2%
1 Year128.6%128.6%72.3%72.2%18.4%15.9%
3 Year710.6%710.6%115.5%115.3%39.9%30.9%
5 Year690.9%690.9%288.0%287.2%72.9%54.2%

Price Volatility Vs. Market

How volatile is Etsy's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

196.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ETSY ($126.62) is trading above our estimate of fair value ($104.69)

Significantly Below Fair Value: ETSY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ETSY is poor value based on its PE Ratio (196.5x) compared to the US Online Retail industry average (29.3x).

PE vs Market: ETSY is poor value based on its PE Ratio (196.5x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: ETSY is poor value based on its PEG Ratio (5.5x)


Price to Book Ratio

PB vs Industry: ETSY is overvalued based on its PB Ratio (36.8x) compared to the US Online Retail industry average (3.9x).


Next Steps

Future Growth

How is Etsy forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

35.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ETSY's forecast earnings growth (35.5% per year) is above the savings rate (2.2%).

Earnings vs Market: ETSY's earnings (35.5% per year) are forecast to grow faster than the US market (22.3% per year).

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

Revenue vs Market: ETSY's revenue (19.1% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: ETSY's revenue (19.1% 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 (27.5%)


Next Steps

Past Performance

How has Etsy performed over the past 5 years?

63.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ETSY has high quality earnings.

Growing Profit Margin: ETSY's current net profit margins (8.8%) are lower than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: ETSY has become profitable over the past 5 years, growing earnings by 63.3% per year.

Accelerating Growth: ETSY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ETSY had negative earnings growth (-20.1%) over the past year, making it difficult to compare to the Online Retail industry average (-13.7%).


Return on Equity

High ROE: ETSY's Return on Equity (18.9%) is considered low.


Next Steps

Financial Health

How is Etsy's financial position?


Financial Position Analysis

Short Term Liabilities: ETSY's short term assets ($907.0M) exceed its short term liabilities ($158.8M).

Long Term Liabilities: ETSY's short term assets ($907.0M) do not cover its long term liabilities ($951.9M).


Debt to Equity History and Analysis

Debt Level: ETSY's debt to equity ratio (195.2%) is considered high.

Reducing Debt: ETSY's debt to equity ratio has increased from 0% to 195.2% over the past 5 years.

Debt Coverage: ETSY's debt is well covered by operating cash flow (25.8%).

Interest Coverage: ETSY's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


Next Steps

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?

3.2yrs

Average management tenure


CEO

Josh Silverman (51 yo)

3.25yrs

Tenure

US$1,083,400

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 ($USD1.08M) is below average for companies of similar size in the US market ($USD11.35M).

Compensation vs Earnings: Josh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Joshua Silverman
CEO, President & Director3.25yrsUS$1.08m0.070%
$ 9.9m
Rachel Glaser
Chief Financial Officer3.25yrsUS$3.49m0.016%
$ 2.2m
Michael Fisher
Chief Technology Officer3.08yrsUS$3.45m0.021%
$ 2.9m
Jill Simeone
General Counsel & Secretary3.58yrsUS$2.75m0.0097%
$ 1.4m
Raina Moskowitz
Senior Vice President of People2.58yrsUS$2.75m0.0045%
$ 626.6k
Robert Kalin
Co-Founder15.58yrsno datano data
Jared Tarbell
Co-Founder15.58yrsno datano data
Merilee Buckley
VP & Chief Accounting Officer0.33yrno datano data
Debra Wasser
Vice President of Investor Relationsno datano datano data
Kelly Clausen
Director of Corporate Communicationsno datano datano data
Ryan Scott
Chief Marketing Officer1.17yrsno data0.0010%
$ 141.9k
Kruti Goyal
Chief Product Officer2yrsno data0.019%
$ 2.6m

3.2yrs

Average Tenure

44yo

Average Age

Experienced Management: ETSY's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joshua Silverman
CEO, President & Director3.25yrsUS$1.08m0.070%
$ 9.9m
Frederick Wilson
Independent Chairman3.25yrsUS$295.33k0.51%
$ 71.2m
Jonathan Klein
Independent Director9.17yrsUS$185.31k0.031%
$ 4.4m
Martha Burns
Independent Director6.42yrsUS$192.31k0.011%
$ 1.5m
Gary Briggs
Independent Director2.33yrsUS$185.31k0.0038%
$ 528.2k
Margaret Smyth
Independent Director4.17yrsUS$198.31k0.0094%
$ 1.3m
Edith Cooper
Independent Director2.33yrsUS$185.31k0.0038%
$ 528.2k
Melissa Reiff
Independent Director5.33yrsUS$190.31k0.0012%
$ 170.0k

4.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: ETSY's board of directors are considered experienced (4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ETSY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Etsy, Inc.'s company bio, 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$14.049b
  • Shares outstanding: 118.68m
  • Website: https://www.etsy.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ETSYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2015
300DB (Deutsche Boerse AG)YesCommon StockDEEURApr 2015
0IIWLSE (London Stock Exchange)YesCommon StockGBUSDApr 2015
ETSYWBAG (Wiener Boerse AG)YesCommon StockATEURApr 2015
ETSY *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2015

Biography

Etsy, Inc. operates online market places for buyers and sellers primarily in the United States, the United Kingdom, Canada, Australia, France, and Germany. Its online market places include Etsy.com and Rev ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 01:12
End of Day Share Price2020/08/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.