Now trading at a price of $80.56, Etsy has moved -1.3% so far today.
Etsy returned losses of -38.0% last year, with its stock price reaching a high of $149.91 and a low of $58.2. Over the same period, the stock underperformed the S&P 500 index by -55.0%. As of April 2023, the company's 50-day average price was $66.97. Etsy, 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. Based in Brooklyn, NY, the large-cap Consumer Discretionary company has 2,790 full time employees. Etsy has not offered a dividend during the last year.
Growing Revenues With Increasing Reinvestment in the Business:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $604 | $818 | $1,726 | $2,329 | $2,566 | $2,713 |
| Revenue Growth | n/a | 35.56% | 110.86% | 34.97% | 10.18% | 5.74% |
| Gross Margins | 44% | 44% | 52% | 48% | 3% | 41% |
| Operating Margins | 12% | 11% | 25% | 20% | -26% | 11% |
| Net Margins | 13% | 12% | 21% | 21% | -27% | 12% |
| Net Income (MM) | $77 | $96 | $367 | $498 | -$694 | $335 |
| Net Interest Expense (MM) | $22 | $24 | $42 | $10 | $11 | $14 |
| Depreciation & Amort. (MM) | $27 | $48 | $58 | $74 | $97 | $91 |
| Earnings Per Share | $0.61 | $0.76 | $2.69 | $3.4 | -$5.48 | $2.6500000000000004 |
| Diluted Shares (MM) | 127 | 126 | 136 | 147 | 127 | 131 |
| Free Cash Flow (MM) | $198 | $199 | $678 | $640 | $673 | $693 |
| Capital Expenditures (MM) | $1 | $8 | $1 | $11 | $10 | $10 |
Etsy has growing revenues and increasing reinvestment in the business, exceptional EPS growth, and wider gross margins than its peer group. Furthermore, Etsy has average net margins with a stable trend and irregular cash flows.
The Market May Be Overvaluing Etsy's Earnings and Assets:
Etsy has a trailing twelve month P/E ratio of 27.1, compared to an average of 22.96 for the Consumer Discretionary sector. Based on its EPS guidance of $2.74, the company has a forward P/E ratio of 24.4.
Etsy Has an Average Rating of Hold:
The 29 analysts following Etsy have set target prices ranging from $47.0 to $125.0 per share, for an average of $74.03 with a hold rating. As of April 2023, the company is trading -9.5% away from its average target price, indicating that there is an analyst consensus of little upside potential.
Etsy has an above average percentage of its shares sold short because 13.9% of the company's shares are sold short. Institutions own 101.5% of the company's shares, and the insider ownership rate stands at 0.8%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $1,104,483,906.
