Etsy Inc

Consumer Discretionary
Business Services
www.etsy.com

Earnings Score
Safety Score

Market Cap $6.63B
Debt $2.29B
Cash $818.94M
EV $8.09B
FCF $717.24M

Earnings

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Sales & Net Margins

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Earnings	$256.64M
EBIT	$341.61M
ROA	14%
FCF	$717.24M
Equity	-$624.30M
Growth Stability	-222%
PE	25.82
PEG	3.14
PB	-10.61
P/FCF	9.24
P/S	2.37
Price/Cash	0.12
Debt/Equity	-3.66
Debt/FCF	3.19
Net Margins	9%
Gross Margins	71%
Op. Margins	12%
Earnings CAGR	11%
Sales Growth YoY	4%
Sales Growth QoQ	2%
Sales CAGR	37%
FCF CAGR	82%
Equity CAGR	4%
Earnings Stability	0.19
Earnings Growth YoY	-35%

Earnings Growth QoQ	8%
Earnings CAGR 5Y	8%
Sales CAGR 5Y	25%
FCF CAGR 5Y	19%
Equity CAGR 5Y	1%
Earnings CAGR 3Y	7%
Sales CAGR 3Y	7%
FCF CAGR 3Y	8%
Market Cap	$6.63B
Revenue	$2.80B
Assets	$2.44B
Total Debt	$2.29B
Cash	$818.94M
Shares Outstanding	112.85M
EV	8.09B
Earnings Score	10%
Safety Score	33%
Working Capital	767.72M
Current Ratio	2.39
Gross Profit	$1.99B
Shares Growth 3y	-4%
Equity Growth QoQ	-2%
Equity Growth YoY	0%

Assets & ROA

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Stockholders Equity & ROE

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Etsy operates a top-10 e-commerce marketplace operator in the U.S. and the U.K., with sizable operations in Germany, France, Australia, and Canada. The firm dominates an interesting niche, connecting buyers and sellers through its online market to exchange vintage and craft goods. With $13.5 billion in 2021 consolidated gross merchandise volume, the firm has cemented itself as one of the largest players in a quickly growing space, generating revenue from listing fees, commissions on sold items, advertising services, payment processing, and shipping labels. As of the end of 2021, the firm connected more than 96 million buyers and more than 7.5 million sellers on its marketplace properties: Etsy, Reverb (musical equipment), Elo7 (crafts in Brazil), and Depop (clothing resale).

SEC Filings

Direct access to Etsy Inc (ETSY) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Etsy Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Etsy Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 11%

Stability 19%

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Etsy Inc Discounted Cash Flow

Fully customizable DCF calculator online for Etsy Inc.

Years

Calculation mode

= $1.3T

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$717M	$1.3B	$2.4B	$4.3B	$7.8B	$14B	$26B	$47B	$84B	$153B	$278B	$2.8T
DCF		$1.2B	$2B	$3.2B	$5.3B	$8.8B	$14B	$24B	$39B	$65B	$107B	$1.1T
Value	$1.3T

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	12/2023	TTM
Net Margins	-8%	-20%	-8%	19%	13%	12%	20%	21%	-27%	11%	9%
ROA	-	-0%	3%	5%	8%	6%	18%	12%	-25%	11%	14%
ROE	-	-16%	-9%	21%	19%	24%	47%	79%	127%	-57%	-

Net Margins (8.86%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Safety and Stability

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	12/2023	TTM
Debt over FCF	-	-	-	0	1.4	3.94	1.57	3.55	3.39	3.3	3.19
Debt over Equity	-	-	-	0	0.69	1.93	1.43	3.62	-4.17	-4.2	-3.66
Growth Stability	-	-	-	-	-	100%	100%	100%	-222%	100%	-222%

Neutral Debt/FCF ratio (3.19)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Good Debt/Equity ratio (-3.66)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-222%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	40%	33%	21%	37%	36%	111%	35%	10%	7%	25%
Earnings YoY growth	-	255%	-45%	-373%	-5%	24%	264%	41%	-241%	-144%	8%
Equity YoY growth	-	393%	4%	15%	1%	1%	83%	-15%	-187%	-1%	1%
FCF YoY growth	-	68%	-40%	489%	212%	1%	240%	-5%	5%	3%	19%