Etsy (ETSY) AI Stock Analysis

• Market Cap: $6.29B
• Dividend Yield: N/A
• Average Volume (3M): 5.07M
• Price to Earnings (P/E): 49.6
• Beta (1Y): 0.73
• Revenue Growth: 2.38%
• EPS Growth: -38.88%
• Country: US
• Employees: 2,400
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Specialty Retail
• EPS (TTM): 0.25
• Shares Outstanding: 104,282,260
• 10 Day Avg. Volume: 5,158,844
• 30 Day Avg. Volume: 5,071,468
• PEG Ratio: -2.81
• Price to Book (P/B): -5.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.52
• Enterprise Value/Market Cap: 0.86
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 2.62
• Enterprise Value/Ebitda: 2.59
• 1Y Price Target: $64.05
• Price Target Upside: 9.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 63 Neutral
• Price Target: $69.00 ▲(18.41%Upside)

Etsy's overall stock score is driven by strong technical indicators and robust cash flow generation, offset by financial risks from a negative equity position and high P/E ratio. Mixed earnings call sentiment highlights strategic initiatives and growth in certain areas, but challenges remain with declining GMS and active buyer metrics.

Positive Factors

GMS Growth

Etsy noted that GMS per buyer strengthened through the second quarter, inflecting to positive year-over-year growth in May and June on an ex-FX basis.

Platform Initiatives

Etsy's Gross Merchandise Sales trends were well above expectations due to platform initiatives and increased brand marketing.

Product Improvements

ETSY is accelerating core GMS growth with idiosyncratic product improvements, assisted by reduced ad competitive intensity.

Negative Factors

Active Buyers

Active buyers continue to decline, which may pose a challenge to Etsy's growth momentum.

De Minimis Exemption

The White House announced de minimis exemption will be closed, which is viewed as a possible near-term headwind.

Marketing Expenditure

Management is guiding Etsy's EBITDA margin to be slightly below expectations as it accelerates investments in its marketplace.

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 payment processing fees charged to sellers using its platform. For each sale completed on the marketplace, Etsy charges a transaction fee, which is a percentage of the final sale price, including shipping costs. Sellers are also required to pay a small fee to list each item on the site, which encourages the creation of a diverse and continually updated inventory of products. Additionally, Etsy offers a range of optional services, such as Etsy Ads and Etsy Payments, which provide further monetization by charging fees for promoted listings and processing payments, respectively. The platform benefits from a vast network effect, where the presence of a large number of buyers attracts more sellers, and a wide variety of products attracts more buyers, thus continually driving growth and revenue. Etsy's partnerships with payment processors and logistics providers also enhance its service offerings, contributing to the company's earnings.

Etsy Financial Statement Overview

Summary

Etsy demonstrates solid revenue growth and strong cash flow generation, key strengths highlighted by a TTM revenue increase of 2.3% and a robust operating cash flow. However, challenges include a declining net profit margin and a concerning negative equity position, which pose significant risks to financial stability.

Income Statement

Etsy's income statement shows a stable revenue growth trajectory with a TTM (Trailing-Twelve-Months) revenue increase of 2.3% compared to the previous year. The gross profit margin remains strong at 72.3%, indicating efficient cost management. However, the net profit margin has decreased to 6.7% in the TTM, reflecting a decline from previous years, which may suggest rising operational costs or other expenses. The EBIT margin is relatively low at 10.3%, indicating potential challenges in operational efficiency.

Balance Sheet

Etsy's balance sheet reveals a concerning negative stockholders' equity position, which has worsened to -910.3 million in the TTM. The debt-to-equity ratio is not calculable due to negative equity, but the high total liabilities compared to assets suggest significant leverage. The equity ratio is negative, highlighting financial instability. Despite these challenges, the company maintains a substantial cash position, which provides some liquidity buffer.

Cash Flow

The cash flow statement is a strong point for Etsy, with a robust operating cash flow of 732.6 million in the TTM and a healthy free cash flow to net income ratio of 3.8. The free cash flow growth rate is positive, indicating efficient cash management. However, the operating cash flow to net income ratio of 3.9 suggests that cash generation is significantly higher than accounting profits, which may warrant further investigation into non-cash expenses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.84B	2.81B	2.75B	2.57B	2.33B	1.73B
Gross Profit	2.05B	2.03B	1.92B	1.82B	1.67B	1.26B
EBITDA	523.56M	532.65M	398.19M	-551.11M	555.81M	465.92M
Net Income	208.63M	303.28M	307.57M	-694.29M	493.51M	349.25M
Balance Sheet
Total Assets	2.56B	2.42B	2.69B	2.63B	3.83B	2.40B
Cash, Cash Equivalents and Short-Term Investments	1.41B	1.04B	1.15B	1.17B	984.61M	1.67B
Total Debt	96.60M	2.39B	2.39B	2.39B	2.39B	1.12B
Total Liabilities	3.68B	3.18B	3.23B	3.18B	3.20B	1.66B
Stockholders Equity	-1.12B	-758.87M	-543.72M	-547.27M	628.62M	742.42M
Cash Flow
Free Cash Flow	678.95M	738.26M	665.61M	652.87M	623.38M	671.85M
Operating Cash Flow	689.70M	752.47M	705.51M	683.61M	651.55M	678.96M
Investing Cash Flow	30.19M	-53.10M	-73.31M	-30.02M	-1.56B	-11.38M
Financing Cash Flow	-326.83M	-787.17M	-656.53M	-506.48M	452.75M	119.28M

Etsy Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 58.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 58.27 is below the 20-day moving average (MA) of 58.77, above the 50-day MA of 56.38, and above the 200-day MA of 52.19, indicating a neutral trend. The MACD of 1.82 indicates Positive momentum. The RSI at 49.77 is Neutral, neither overbought nor oversold. The STOCH value of 29.25 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	80 Outperform	$36.19B	18.76	42.63%	1.22%	2.93%	-10.82%
CHWY	74 Outperform	$15.04B	40.27	76.24%	―	7.64%	369.79%
GLBE	63 Neutral	$5.79B	―	-6.93%	―	33.20%	50.84%
ETSY	63 Neutral	$6.29B	49.57	-39.97%	―	2.38%	-38.88%
Sector *	62 Neutral	$16.51B	10.46	-8.28%	3.32%	1.44%	-22.58%
TDUP	62 Neutral	$888.04M	―	-69.51%	―	-10.55%	9.27%
DIBS	49 Neutral	$95.28M	―	-17.72%	―	4.93%	-22.08%

Etsy Corporate Events

Etsy Stockholders Approve Key Proposals at Annual Meeting

At Etsy‘s 2025 Annual Meeting of Stockholders held on June 17, 2025, several key proposals were voted on. The election of Class I directors to the Board was confirmed, with directors set to serve until the 2028 meeting. Additionally, stockholders approved the compensation of named executive officers, ratified the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved an amendment to Etsy’s certificate of incorporation.

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 $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.