Etsy (ETSY) AI Stock Analysis

• Market Cap: $5.62B
• Dividend Yield: N/A
• Average Volume (3M): 5.77M
• Price to Earnings (P/E): 38.7
• Beta (1Y): 0.84
• Revenue Growth: 2.18%
• EPS Growth: -32.87%
• Country: US
• Employees: 2,400
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Specialty Retail
• EPS (TTM): -0.49
• Shares Outstanding: 104,282,260
• 10 Day Avg. Volume: 7,403,876
• 30 Day Avg. Volume: 5,768,526
• PEG Ratio: 0.09
• Price to Book (P/B): -27.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.26
• Enterprise Value/Market Cap: 2.96
• Enterprise Value/Revenue: 1.49
• Enterprise Value/Gross Profit: 8.19
• Enterprise Value/Ebitda: 8.25
• 1Y Price Target: $48.60
• Price Target Upside: -12.12% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 26

• Rating: 68 Neutral
• Price Target: $61.00 ▲(10.31%Upside)

The overall stock score reflects Etsy's robust cash flow and operational strengths, but is tempered by financial leverage risks and high valuation. Technical indicators are favorable, while earnings call insights suggest both potential growth and notable challenges due to economic conditions.

Positive Factors

Debt Management

Etsy's new convertible debt provides the company with an attractive means to refinance and extend debt maturities at relatively low cost and no incremental dilution to equity.

Growth Initiatives

Management reallocated 1/3 of the product team towards near-term growth hacking initiatives, potentially driving growth.

Market Sentiment

ETSY stock is up 32% from May 21, indicating a positive shift in market sentiment.

Negative Factors

GMS Performance

Top-line metrics remained under pressure, with consolidated GMS down in the mid-single-digits year-over-year.

Uncertain Growth

ETSY needs follow-through in Q3 GMS and line of sight to positive growth, indicating uncertainty about sustained growth.

Valuation Concerns

ETSY is not considered cheap on GAAP P/E, suggesting valuation concerns.

Etsy Business Overview & Revenue Model

Company Description

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. 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 to track orders, manage inventory, view metrics and statistics, and have conversations with their customers; and Sell on Etsy, an application to enable enhanced onboarding and video uploading. Additionally, it offers Etsy seller analytics pages that provides insights regarding traffic acquisition for their shops; Targeted Offers, a sales and promotions tool, and social media tool; and accounting and bookkeeping services. The company also provides 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, 2021, it connected a total of 7.5 million active sellers to 96.3 million active buyers; and had 120 million items for sale. 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.

How the Company Makes Money

Etsy makes money primarily through transaction fees, listing fees, and various seller services. The company charges sellers a transaction fee of 6.5% on the sale price of each item sold, which is a significant source of its revenue. Additionally, sellers are required to pay a listing fee for each item listed on the platform, typically $0.20 per item. Etsy also offers optional services that generate revenue, such as Etsy Ads, which allows sellers to advertise their products within the marketplace, and Etsy Payments, a payment processing service that incurs additional fees. Furthermore, Etsy has expanded its revenue streams through partnerships and acquisitions, such as the purchase of Reverb, a marketplace for musical instruments, which contributes to its earnings by diversifying its product categories.

Etsy Financial Statement Overview

Summary

Etsy demonstrates strong operational management and cash flow generation, but faces challenges in profitability and high leverage. The company has a robust revenue growth yet struggles with negative equity and profitability declines.

Income Statement

Etsy has demonstrated consistent revenue growth over the years, with a notable increase from 2020 to 2025. However, the net profit margin has recently declined, primarily due to a significant drop in net income from 2021 onwards, suggesting challenges in maintaining profitability. Gross profit margins remain strong, indicating that Etsy successfully manages its core operations efficiently.

Balance Sheet

The balance sheet indicates a high level of leverage, with negative stockholders' equity, signaling potential risks related to financial stability. The debt-to-equity ratio is not calculable due to negative equity, but the high debt levels could pose a risk. Despite this, the company maintains a reasonable level of cash and cash equivalents, which provides some liquidity buffer.

Cash Flow

Etsy's cash flow position appears robust, with strong operating cash flows consistently exceeding net income, indicating good cash generation from operations. Free cash flow has grown over the period, showing effective cash management. However, fluctuations in financing cash flow suggest some instability in financial strategy.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.81B	2.81B	2.75B	2.57B	2.33B	1.73B
	Gross Profit
2.03B	2.03B	1.92B	1.82B	1.67B	1.26B
	EBIT
289.95M	380.21M	279.84M	-658.56M	465.73M	424.01M
	EBITDA
544.38M	532.65M	398.19M	-551.11M	555.81M	465.92M
	Net Income Common Stockholders
188.18M	303.28M	307.57M	-694.29M	493.51M	349.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
867.70M	1.04B	1.15B	1.17B	984.61M	1.67B
	Total Assets
2.12B	2.42B	2.69B	2.63B	3.83B	2.40B
	Total Debt
98.12M	2.39B	2.39B	2.39B	2.39B	1.12B
	Net Debt
-551.07M	1.58B	1.48B	1.47B	1.61B	-128.28M
	Total Liabilities
3.03B	3.18B	3.23B	3.18B	3.20B	1.66B
	Stockholders Equity
-910.30M	-758.87M	-543.72M	-547.27M	628.62M	742.42M
Cash Flow		Free Cash Flow
718.45M	738.26M	665.61M	652.87M	623.38M	671.85M
	Operating Cash Flow
732.62M	752.47M	705.51M	683.61M	651.55M	678.96M
	Investing Cash Flow
-48.67M	-53.10M	-73.31M	-30.02M	-1.56B	-11.38M
	Financing Cash Flow
-828.94M	-787.17M	-656.53M	-506.48M	452.75M	119.28M

Etsy Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 55.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETSY, the sentiment is Positive. The current price of 55.3 is below the 20-day moving average (MA) of 56.21, above the 50-day MA of 49.61, and above the 200-day MA of 51.71, indicating a neutral trend. The MACD of 2.10 indicates Positive momentum. The RSI at 51.99 is Neutral, neither overbought nor oversold. The STOCH value of 6.96 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ETSY.

Etsy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URBN	79 Outperform	$6.35B	14.57	19.55%	―	8.38%	52.18%
M	73 Outperform	$3.23B	6.01	12.92%	6.44%	-3.77%	4607.98%
ETSY	68 Neutral	$5.62B	38.74	-39.97%	―	2.18%	-32.87%
ANF	67 Neutral	$3.57B	7.39	46.98%	―	12.54%	25.47%
Sector *	62 Neutral	$6.86B	11.07	2.77%	4.27%	2.66%	-24.95%
JWN	60 Neutral	$4.12B	14.17	29.58%	3.08%	2.20%	120.00%
W	44 Neutral	$6.21B	―	17.86%	―	-0.89%	46.62%

Etsy Corporate Events

Etsy Completes $700 Million Convertible Notes Offering

On June 16, 2025, Etsy completed a private offering of $700 million in 1.00% Convertible Senior Notes due 2030, aimed at institutional buyers. The proceeds, approximately $688.5 million after expenses, are intended for general corporate purposes, including debt repayment and stock repurchase. This move is part of Etsy’s strategic financial management, potentially impacting its market positioning and shareholder value.

The most recent analyst rating on (ETSY) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Etsy stock, see the ETSY Stock Forecast page.

Etsy Completes Sale of Reverb Holdings Subsidiary

On June 2, 2025, Etsy, Inc. completed the sale of its subsidiary, Reverb Holdings, Inc., a musical instrument marketplace, to Reverb IntermediateCo LLC. This transaction signifies a strategic move by Etsy to streamline its operations and focus more on its core business, potentially impacting its market positioning and stakeholder interests.

The most recent analyst rating on (ETSY) stock is a Hold with a $65.00 price target. To see the full list of analyst forecasts on Etsy stock, see the ETSY Stock Forecast page.

Etsy Agrees to Sell Reverb Holdings, Inc.

On April 21, 2025, Etsy announced its agreement to sell Reverb Holdings, Inc., a musical instrument marketplace, to Reverb IntermediateCo LLC, a subsidiary of Reverb Partners LLC. This decision aligns with Etsy’s strategy to concentrate on expanding its core marketplace and subsidiary Depop. The transaction is expected to close in the coming months, potentially impacting Etsy’s operational focus and market positioning by allowing it to streamline its business efforts.