# Etsy Fundamentals

ETSY | - USA Stock | ## USD 86.62 5.46 5.93% |

Etsy | Select Account or Indicator |

**M**in 2022, whereas Weighted Average Shares is likely to drop slightly above 119.9

**M**in 2022.

## Etsy Profit Margin Analysis

Etsy's Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.## Etsy Profit Margin | ## 0.23 |

Profit Margin | = | Net Income Revenue | X | 100 |

## Current Etsy Profit Margin | 21.19 % |

Most of Etsy's fundamental indicators, such as Profit Margin, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Etsy Inc is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

## Etsy Profit Margin Historical Pattern

Today, most investors in Etsy Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Etsy's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's profit margin growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Etsy profit margin as a starting point in their analysis. Etsy Profit Margin |

Timeline |

In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Compare to competition |

## Etsy Operating Margin

## Operating Margin | ## 23.86 |

Based on the latest financial disclosure, Etsy Inc has a Profit Margin of 21.19%. This is much higher than that of the Consumer Cyclical sector and significantly higher than that of the Internet Retail industry. The profit margin for all United States stocks is notably lower than that of the firm.

## Etsy Inc Fundamental Drivers Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Etsy's current stock value. Our valuation model uses many indicators to compare Etsy value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Etsy competition to find correlations between indicators driving Etsy's intrinsic value. More Info.Etsy Inc is one of the top stocks in net income category among related companies. It is one of the top stocks in cash flow from operations category among related companies making about 1.32 of Cash Flow from Operations per Net Income. Etsy Net Income is fairly stable at the moment as compared to the past year. Etsy reported Net Income of 493.51 Million in 2021. Comparative valuation analysis is a catch-all model that can be used if you cannot value Etsy by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Etsy's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Etsy's earnings, one of the primary drivers of an investment's value.## Etsy Cash per Share Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Etsy's direct or indirect competition against its Cash per Share to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Etsy could also be used in its relative valuation, which is a method of valuing Etsy by comparing valuation metrics of similar companies.Etsy is currently under evaluation in cash per share category among related companies.

## Etsy Current Valuation Drivers

We derive many important indicators used in calculating different scores of Etsy from analyzing Etsy's financial statements. These drivers represent accounts that assess Etsy's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Etsy's important valuation drivers and their relationship over time.

2017 | 2018 | 2019 | 2020 | 2021 | 2022 (projected) | ||

Net Income Per Employee | 109.95 K | 88.66 K | 77.33 K | 246.32 K | 221.69 K | 239.19 K | |

Revenue Per Employee | 593.05 K | 690.72 K | 659.98 K | 1.22 M | 1.1 M | 1.18 M | |

Average Assets | 566.18 M | 893.93 M | 1.53 B | 1.97 B | 3.28 B | 3.54 B | |

Earnings Before Interest Taxes and Depreciation Amortization EBITDA | 70.59 M | 104 M | 153 M | 465.92 M | 555.81 M | 599.69 M | |

Earnings Before Interest Taxes and Depreciation Amortization USD | 70.59 M | 104 M | 153 M | 465.92 M | 555.81 M | 599.69 M | |

Earnings before Tax | 32.27 M | 55.08 M | 80.65 M | 365.71 M | 471.65 M | 508.89 M | |

Average Equity | 337.11 M | 396.8 M | 402.29 M | 585.03 M | 594.19 M | 526.03 M | |

Enterprise Value | 2.3 B | 5.7 B | 5.41 B | 22.39 B | 29.45 B | 31.78 B | |

Free Cash Flow | 55.95 M | 178.37 M | 191.64 M | 671.85 M | 623.38 M | 672.6 M | |

Invested Capital | 209.64 M | 687.85 M | 1.41 B | 1.49 B | 2.84 B | 3.06 B | |

Invested Capital Average | 249.1 M | 644.69 M | 1.35 B | 1.44 B | 2.58 B | 2.79 B | |

Market Capitalization | 2.49 B | 5.73 B | 5.25 B | 22.43 B | 27.76 B | 29.95 B | |

Tangible Asset Value | 562.94 M | 829.78 M | 1.2 B | 2.08 B | 1.85 B | 1.48 B | |

Working Capital | 336.79 M | 568.23 M | 732.51 M | 1.44 B | 725.91 M | 672.35 M |

## Etsy Fundamentals

Return On Equity | 71.99 % | |||

Return On Asset | 9.34 % | |||

Profit Margin | 21.19 % | |||

Operating Margin | 20.00 % | |||

Current Valuation | 21.1 B | |||

Shares Outstanding | 126.78 M | |||

Shares Owned by Insiders | 0.69 % | |||

Shares Owned by Institutions | 92.33 % | |||

Number of Shares Shorted | 9.2 M | |||

Price to Earning | 27.35 X | |||

Price to Book | 21.83 X | |||

Price to Sales | 5.01 X | |||

Revenue | 2.33 B | |||

Gross Profit | 1.67 B | |||

EBITDA | 540 M | |||

Net Income | 493.51 M | |||

Cash and Equivalents | 984.61 M | |||

Cash per Share | 7.74 X | |||

Total Debt | 2.39 B | |||

Debt to Equity | 3.80 % | |||

Current Ratio | 2.18 X | |||

Book Value Per Share | 4.22 X | |||

Cash Flow from Operations | 651.55 M | |||

Short Ratio | 2.53 X | |||

Earnings Per Share | 3.37 X | |||

Price to Earnings To Growth | 1.64 X | |||

Number of Employees | 2.34 K | |||

Beta | 1.68 | |||

Market Capitalization | 11.67 B | |||

Total Asset | 553.06 M | |||

Retained Earnings | (233.4 M) | |||

Working Capital | 278.93 M | |||

Current Asset | 359.05 M | |||

Current Liabilities | 80.12 M | |||

Z Score | 6.4 |

## About Etsy Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Etsy Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Etsy using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Etsy Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.Last Reported | Projected for 2022 | |

Deferred Revenue | 12.3 M | 10.5 M |

Cost of Revenue | 654.5 M | 706.2 M |

Revenues | 2.3 B | 2.5 B |

Revenue to Assets | 0.83 | 0.85 |

Revenue Per Employee | 1.1 M | 1.2 M |

## Etsy Investors Sentiment

The influence of Etsy's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Etsy. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.## Etsy Implied Volatility | 106.58 |

Etsy's implied volatility exposes the market's sentiment of Etsy Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Etsy's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Etsy stock will not fluctuate a lot when Etsy's options are near their expiration.

Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Etsy in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Etsy's short interest history, or implied volatility extrapolated from Etsy options trading.

## Pair Trading with Etsy

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Etsy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Etsy will appreciate offsetting losses from the drop in the long position's value.## Etsy Pair Correlation

### Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Etsy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Etsy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Etsy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Etsy Inc to buy it.

The correlation of Etsy is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Etsy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Etsy Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Etsy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Continue to Etsy Piotroski F Score and Etsy Altman Z Score analysis. Note that the Etsy Inc information on this page should be used as a complementary analysis to other Etsy's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

## Complementary Tools for Etsy Stock analysis

When running Etsy Inc price analysis, check to measure Etsy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Etsy is operating at the current time. Most of Etsy's value examination focuses on studying past and present price action to predict the probability of Etsy's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Etsy's price. Additionally, you may evaluate how the addition of Etsy to your portfolios can decrease your overall portfolio volatility.

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The market value of Etsy Inc is measured differently than its book value, which is the value of Etsy that is recorded on the company's balance sheet. Investors also form their own opinion of Etsy's value that differs from its market value or its book value, called intrinsic value, which is Etsy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Etsy's market value can be influenced by many factors that don't directly affect Etsy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Etsy's value and its price as these two are different measures arrived at by different means. Investors typically determine Etsy value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Etsy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.