Etsy Inc
ETSY
Services-Business Services, NEC
Mkt Cap
$9.276BPE
27.79Debt
$2.283BCash
$742MEV
$10.82BFCF
$692.5MP/E Ratio
27.79Debt
$2.283BCash
$742MEV
$10.82BFCF
$692.5MEtsy, Inc., together with its subsidiaries, operates two-sided online marketplaces that connect buyers and sellers in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. Its primary marketplace is Etsy.com that connects artisans and entrepreneurs with various consumers. The company also offers Reverb, a musical instrument marketplace; Depop, a fashion resale marketplace; and Elo7, a Brazil-based marketplace for handmade and unique items. In addition, it offers various seller services, including Etsy Payments, a payment processing service; Etsy Ads, an advertising platform; and Shipping Labels, which allows sellers in the United States, Canada, the United Kingdom, Australia, and India to purchase discounted shipping labels. Further, the company provides various seller tools, including Shop Manager dashboard, a centralized hub for Etsy sellers includes ability to manage inventory, check order status, receive notifications about repeat customers, add photos, listing videos, and purchase and print shipping labels. Additionally, it offers educational resources comprising blog posts, video tutorials, Etsy Seller Handbook, Etsy.com online forums, and insights; Etsy Teams, a platform to build personal relationships with other Etsy sellers; and a Star Seller program. As of December 31, 2022, it connected a total of 7.5 million active sellers to 95.1 million active buyers. The company was formerly known as Indieco, Inc changed its name to Etsy, Inc. in June 2006. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York.
Sector
![AMWL Logo](data:image/svg+xml,<svg xmlns='http://www.w3.org/2000/svg' width='18' height='18'><defs><linearGradient id="a" x1="3.349" x2="21.904" y1="3.122" y2="24.434" gradientUnits="userSpaceOnUse"><stop stop-color="%231A1E21"/><stop offset="1" stop-color="%2306060A"/></linearGradient></defs><path fill="url(%23a)" d="M0 0h18v18H0z"/><text x='50%' y='52%' dominant-baseline='middle' text-anchor='middle' font-size='5' font-family='sans-serif' fill='gray'>AMWL</text></svg>){kind=small}
![BFH Logo](data:image/svg+xml,<svg xmlns='http://www.w3.org/2000/svg' width='18' height='18'><defs><linearGradient id="a" x1="3.349" x2="21.904" y1="3.122" y2="24.434" gradientUnits="userSpaceOnUse"><stop stop-color="%231A1E21"/><stop offset="1" stop-color="%2306060A"/></linearGradient></defs><path fill="url(%23a)" d="M0 0h18v18H0z"/><text x='50%' y='52%' dominant-baseline='middle' text-anchor='middle' font-size='5' font-family='sans-serif' fill='gray'>BFH</text></svg>){kind=small}
DCF
Discounted Cash Flow Valuation of Etsy Inc
Value
Growth
%
%
Discount
%
%
Multiple
| g\r | +10% | +11% | +12% | +13% | +14% |
|---|---|---|---|---|---|
| 0% | 10 | 9 | 8 | 8 | 7 |
| +1% | 11 | 10 | 9 | 8 | 8 |
| +2% | 13 | 11 | 10 | 9 | 8 |
| +3% | 14 | 13 | 11 | 10 | 9 |
| +4% | 17 | 14 | 12 | 11 | 10 |
| Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FCF | $692.5M | $900.3M | $1.145B | $1.425B | $1.734B | $2.062B | $2.394B | $2.713B | $2.999B | $3.233B | $3.394B | $33.94B |
| DCF | $782.9M | $866.1M | $937.2M | $991.5M | $1.025B | $1.035B | $1.02B | $980.5M | $919M | $839M | $8.39B | |
| Value | $17.79B | |||||||||||
In the chart Earnings are multiplied by this value.
Earnings Growth 62%
Earnings Stability 22%
Competitiveness and MOAT
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Margin | -7.8% | -20% | -8.2% | 19% | 13% | 12% | 20% | 21% | -27% | 12% |
| ROA | -2.5% | -0.34% | 3% | 5.3% | 8.3% | 5.8% | 18% | 12% | -25% | 13% |
| ROE | -23% | -16% | -8.7% | 21% | 19% | 24% | 47% | 79% | 130% | -54% |
What is the average Net Margin?
The average Net Margin over the past 5 years is +9.57%.
What is the trend of Net Margin?
The trend of Net Margin over the past 5 years is -5.55%.
What is the average Return on Assets (ROA)?
The average ROA over the past 5 years is +4.05%.
What is the trend of Return on Assets (ROA)?
The trend of ROA over the past 5 years is -3.65%.
What is the average Return on Equity (ROE)?
The average ROE over the past 5 years is +52.65%.
What is the trend of Return on Equity (ROE)?
The trend of ROE over the past 5 years is +20.93%.
Safety & Stabiliy
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
| Years | 12-2014 | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt FCF | - | - | - | 0.00 | 1.40 | 3.94 | 1.57 | 3.55 | 3.39 | 3.30 |
| Debt Equity | - | - | - | 0.00 | 0.69 | 1.93 | 1.43 | 3.62 | -4.17 | -3.67 |
| MIN | ||||||||||
| Graham Stability | - | - | - | - | - | 100% | 100% | 100% | -220% | -220% |
What is the Debt/FCF?
The Debt/FCF trailing twelve month is 3.30.
What is the trend of Debt/FCF?
The trend of Debt/FCF over the past 5 years is 0.60.
What is the Graham’s Stability?
Graham’s Stability measure stands at -2.22.
Growth
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
| Years | 12-2015 | 12-2017 | 12-2019 | 12-2021 | Trend |
|---|---|---|---|---|---|
| Revenue | 38% | 42% | 46% | 10% | -0.5% |
| Net Income | - | - | - | - | 38% |
| Stockholders Equity | - | - | - | - | -150% |
| FCF | 68% | 60% | 50% | 5.2% | -3.6% |
What is the 5 year Revenue CAGR?
The Revenue CAGR over the past 5 years is +42.21%.
What is the trend of Revenue growth?
The trend of Revenue growth rate over the past 5 years is -0.5%.
What is the 5 year Earnings CAGR?
The Earnings CAGR over the past 5 years is -.
What is the trend of Earnings growth?
The trend of Earnings growth rate over the past 5 years is +38%.
What is the 5 year Equity CAGR?
The Equity CAGR over the past 5 years is -.
What is the trend of Equity growth?
The trend of Equity growth rate over the past 5 years is -151.33%.
What is the 5 year FCF CAGR?
The FCF CAGR over the past 5 years is +60.37%.
What is the trend of FCF growth?
The trend of FCF growth rate over the past 5 years is -3.64%.