Etsy Profitability Analysis

ETSY -  USA Stock  

USD 231.33  18.23  7.30%

For Etsy profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Etsy to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Etsy Inc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Etsy's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Etsy Inc over time as well as its relative position and ranking within its peers. Continue to Investing Opportunities.

Etsy Current Profitability Trends 

 
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Etsy Return on Sales is fairly stable at the moment as compared to the past year. Etsy reported Return on Sales of 0.24 in 2020. Sales per Share is likely to rise to 15.35 in 2021, whereas Price to Sales Ratio is likely to drop 10.47 in 2021. Etsy Accumulated Other Comprehensive Income is fairly stable at the moment as compared to the past year. Etsy reported Accumulated Other Comprehensive Income of 5.95 Million in 2020. Consolidated Income is likely to rise to about 376.8 M in 2021, whereas Preferred Dividends Income Statement Impact is likely to drop slightly above 229.1 K in 2021.

Etsy Revenues

1.86 BillionShare
Is Etsy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Etsy. If investors know Etsy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Etsy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
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.

Etsy Inc Total Asset vs. Return On Asset Fundamental Analysis

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.
Etsy Inc is one of the top stocks in return on asset category among related companies. It is rated # 3 in total asset category among related companies fabricating about  42,218,397  of Total Asset per Return On Asset. Etsy Total Assets are fairly stable at the moment as compared to the past year. Etsy reported Total Assets of 2.4 Billion in 2020. Total Assets Per Share is likely to rise to 20.61 in 2021, whereas Net Current Assets as percentage of Total Assets are likely to drop 53.40 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 Total Asset vs. Return On Asset

Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
Etsy 
Return on Asset 
 = 
Net Income 
Total Assets 
X
100 
13.10 %
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
Total Asset is everything that a business owns. It is the sum of current and long-term assets owned by a firm at a given time. These assets are listed on a balance sheet and typically valued based on their purchasing prices, not the current market value.
Etsy 
Total Asset 
 = 
Tangible Assets 
Intangible Assets 
553.06 M
Total Asset is typically divided on the balance sheet on current asset and long-term asset. Long-term is the value of company property and other capital assets that are expected to be useable for more than one year. Long term assets are reported net of depreciation. On the other hand current assets are assets that are expected to be sold or converted to cash as part of normal business operation.

Etsy Total Asset Comparison

Etsy is currently under evaluation in total asset category among related companies.

Etsy Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Etsy, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Etsy will eventually generate negative long term returns. The profitability progress is the general direction of Etsy's change in net profit over the period of time. It can combine multiple indicators of Etsy, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2021
Accumulated Other Comprehensive IncomeM6.4 M
Consolidated Income349.2 M376.8 M
Net Income349.2 M376.8 M
Net Income Common Stock349.2 M376.8 M
Operating Income424 M457.5 M
Preferred Dividends Income Statement Impact230.4 K229.1 K
Income Tax Expense16.5 M17.8 M
Net Income Per Employee246.3 K265.8 K
Etsy, Inc. operates two-sided online marketplaces that connect buyers and sellers primarily in the United States, the United Kingdom, Germany, Canada, Australia, France, and India. Etsy, Inc. was founded in 2005 and is headquartered in Brooklyn, New York. Etsy operates under Internet Retail classification in the United States and is traded on NASDAQ Exchange. It employs 1598 people.

Etsy Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Etsy. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Etsy position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Etsy's important profitability drivers and their relationship over time.

Etsy Profitability Trends

Etsy profitability trend refers to the progression of profit or loss within a business. An upward trend means that Etsy's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Etsy's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Etsy Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Etsy different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Etsy in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Etsy's future profitability.

Use Etsy in pair-trading

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 Trading

Etsy Inc Pair Trading Analysis

Correlation analysis and pair trading evaluation for Etsy and Imedia Brands. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
Run Pair Correlation  

Use Investing Themes to Complement your Etsy position

In addition to having Etsy in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Technology Theme
Companies that are involved in development or distribution of technologically based goods and services such as software, IT or electronics. Technology theme has 30 constituents.
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Continue to Investing Opportunities. 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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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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To fully project Etsy's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Etsy Inc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Etsy's income statement, its balance sheet, and the statement of cash flows.
Potential Etsy investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Etsy investors may work on each financial statement separately, they are all related. The changes in Etsy's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Etsy's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.