Etsy (ETSY) AI Stock Analysis

• Market Cap: $5.36B
• Dividend Yield: N/A
• Average Volume (3M): 3.52M
• Price to Earnings (P/E): 38.0
• Beta (1Y): 0.72
• Revenue Growth: 1.98%
• EPS Growth: -20.98%
• Country: US
• Employees: 2,400
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.63
• Shares Outstanding: 98,706,010
• 10 Day Avg. Volume: 3,283,990
• 30 Day Avg. Volume: 3,521,731
• PEG Ratio: 6.41
• Price to Book (P/B): -8.01
• Price to Sales (P/S): 2.16
• P/FCF Ratio: 8.23
• Enterprise Value/Market Cap: 1.84
• Enterprise Value/Revenue: 3.46
• Enterprise Value/Gross Profit: 4.80
• Enterprise Value/Ebitda: 18.44
• 1Y Price Target: $68.57
• Price Target Upside: 26.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 25
• EPS Forecast (FY): 1.31
• Revenue Forecast (FY): $2.88B

• Rating: 57 Neutral
• Price Target: $55.00 ▲(1.23% Upside)

Etsy's overall stock score reflects strong revenue growth and strategic initiatives like share buybacks and leadership transition. However, financial instability due to negative equity and declining profitability, coupled with bearish technical indicators, weigh heavily on the score. The company's valuation suggests potential overvaluation, and challenges like declining active buyers and marketplace GMS need to be addressed for long-term growth.

Positive Factors

Revenue Growth

Etsy's strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion.

Leadership Transition

The leadership transition to Kruti Patel Goyal is expected to guide Etsy's future growth, leveraging her experience to maintain strategic direction.

Share Buyback Program

The significant share buyback program reflects confidence in cash generation and aims to enhance shareholder value over the long term.

Negative Factors

Negative Equity

Negative equity indicates financial instability, posing risks to long-term sustainability and limiting financial flexibility.

Declining Profitability

Declining profitability suggests challenges in cost management and could pressure future earnings, impacting long-term financial health.

Active Buyer Count Decline

A decline in active buyers may indicate reduced platform engagement, potentially affecting future revenue growth and market position.

Etsy Business Overview & Revenue Model

Company Description

Etsy, Inc. is an e-commerce platform focused on handmade, vintage items, and unique factory-manufactured products. Founded in 2005, Etsy connects millions of buyers and sellers from around the world, primarily in the crafts and creative sectors. The marketplace offers a wide range of products including jewelry, home decor, clothing, and craft supplies, fostering a community of artisans and small businesses.

How the Company Makes Money

Etsy generates revenue primarily through transaction fees, listing fees, and payment processing fees. Sellers are charged a listing fee for each item they post on the platform, and Etsy takes a percentage of each sale made, known as the transaction fee. Additionally, Etsy provides optional advertising services for sellers, where they can pay to promote their listings on the platform. The company also earns money from payment processing fees when transactions are completed through Etsy Payments. Significant partnerships with shipping providers enhance its shipping capabilities, which can indirectly contribute to revenue by improving seller satisfaction and retention.

Etsy Financial Statement Overview

Summary

Etsy shows strong revenue growth and gross profit margins, but declining net profitability and negative equity pose significant financial risks. Cash flow generation is solid, yet free cash flow growth is a concern. The company needs to address its leverage and equity issues to stabilize its financial position.

Income Statement

Etsy's income statement shows a strong gross profit margin of 72% TTM, indicating efficient cost management. However, the net profit margin has decreased to 6.38% TTM from 10.80% in 2024, suggesting declining profitability. Revenue growth is robust at 55% TTM, but the EBIT margin remains stable around 15%, showing limited operational efficiency improvements.

Balance Sheet

The balance sheet reveals a concerning negative stockholders' equity, leading to a negative debt-to-equity ratio, which indicates financial instability. The return on equity is negative, reflecting losses relative to equity. Despite these issues, the equity ratio is not available due to negative equity, highlighting potential risks.

Cash Flow

Etsy's cash flow statement shows a strong operating cash flow to net income ratio of 1.22 TTM, indicating good cash generation relative to earnings. However, free cash flow growth is negative, and the free cash flow to net income ratio is slightly below 1, suggesting challenges in maintaining cash flow levels.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.85B	2.81B	2.75B	2.57B	2.33B	1.73B
Gross Profit	2.06B	2.03B	1.92B	1.82B	1.67B	1.26B
EBITDA	534.92M	532.65M	398.19M	-551.11M	555.81M	465.92M
Net Income	182.15M	303.28M	307.57M	-694.29M	493.51M	349.25M
Balance Sheet
Total Assets	2.65B	2.42B	2.69B	2.63B	3.83B	2.40B
Cash, Cash Equivalents and Short-Term Investments	1.51B	1.04B	1.15B	1.17B	984.61M	1.67B
Total Debt	3.08B	2.39B	2.39B	2.39B	2.39B	1.12B
Total Liabilities	3.77B	3.18B	3.23B	3.18B	3.20B	1.66B
Stockholders Equity	-1.11B	-758.87M	-543.72M	-547.27M	628.62M	742.42M
Cash Flow
Free Cash Flow	656.82M	738.26M	665.61M	652.87M	623.38M	671.85M
Operating Cash Flow	691.25M	752.47M	705.51M	683.61M	651.55M	678.96M
Investing Cash Flow	15.19M	-53.10M	-73.31M	-30.02M	-1.56B	-11.38M
Financing Cash Flow	-286.96M	-787.17M	-656.53M	-506.48M	452.75M	119.28M

Etsy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 54.33
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETSY, the sentiment is Neutral. The current price of 54.33 is above the 20-day moving average (MA) of 53.78, below the 50-day MA of 60.32, and below the 200-day MA of 56.03, indicating a neutral trend. The MACD of -1.46 indicates Negative momentum. The RSI at 45.81 is Neutral, neither overbought nor oversold. The STOCH value of 26.57 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ETSY.

Etsy Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBAY	70 Outperform	$38.27B	18.42	42.43%	1.37%	4.89%	17.30%
GLBE	70 Outperform	$6.81B	1,007.27	0.81%	―	31.57%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DIBS	61 Neutral	$216.76M	-11.95	-17.73%	―	3.49%	-16.10%
ETSY	57 Neutral	$5.36B	37.98	―	―	1.98%	-20.98%
TDUP	55 Neutral	$936.06M	-24.03	-35.37%	―	-4.90%	50.77%
CHWY	54 Neutral	$13.47B	67.02	59.58%	―	9.80%	-46.84%

Etsy Corporate Events

Etsy Expands Share Buybacks Amid Governance and Leadership Shift

On December 16, 2025, Etsy’s board amended and restated the company’s bylaws to tighten and clarify procedures and disclosure rules for shareholder director nominations in line with U.S. securities regulations, and to refine governance around shareholder and board meetings. That same day, the board approved a new share repurchase authorization of up to $750 million of common stock, with no expiration date and flexibility in execution methods, bolstering Etsy’s capacity for buybacks to nearly $1 billion when combined with remaining authorization under an existing program and signaling confidence in the company’s cash generation and growth strategy. Also on December 16, 2025, the board named current chair Fred Wilson as Lead Independent Director effective January 1, 2026, coinciding with a leadership transition in which Kruti Patel Goyal becomes chief executive and Josh Silverman moves to executive chair, a move presented as strengthening corporate governance and continuity as Etsy enters its next phase of growth.

Etsy Announces Leadership Transition with New CEO

On October 29, 2025, Etsy announced a leadership transition effective January 1, 2026, with Kruti Patel Goyal appointed as the new CEO and President, succeeding Josh Silverman who will transition to Executive Chair. This change is part of a strategic succession plan, with Goyal bringing extensive experience from her previous roles at Etsy and Depop, and is expected to guide Etsy’s future growth while maintaining its mission of ‘Keeping Commerce Human.’

Etsy Moves Stock Listing to NYSE

On September 29, 2025, Etsy announced its decision to transfer the listing of its Common Stock from the Nasdaq to the New York Stock Exchange (NYSE), with the transition expected to complete by October 13, 2025. This move is seen as a strategic alignment with Etsy’s commitment to transparency and excellence, and it positions the company alongside other respected and innovative firms, potentially enhancing its market presence and shareholder value.