ETSYETSY
US • —
$75.33
P/E
34.63
PEG
0.59
FCF Yield
—
Rev Growth YoY
+1.8% YoY
Gross Margin
72.0%
Health Score
5/10
D/E Ratio
3.80
Confidence
LOW
Business Snapshot
Etsy operates a global e-commerce platform focused on handmade, vintage, and unique goods, connecting artisans and sellers with buyers seeking non-mass-produced items. It competes in the niche peer-to-peer marketplace space, holding a differentiated position against broader platforms like Amazon or eBay due to its curated, community-driven model. The company is a mid-cap player in financial scale, with a specific focus on a differentiated consumer niche that offers both resilience and exposure to discretionary spending shifts. Its defining characteristic is a strong brand identity built around creativity and customization, which creates a defensible customer base but also ties performance closely to consumer sentiment and online shopping trends.
Financial Health
Gross margin is strong at 72.0%, but with no prior-year comparison available it is not possible to confirm whether profitability on sales is improving. Net margin stands at 9.9%, indicating the company converts roughly 10 cents of every revenue dollar into net profit...
Risk Assessment
- DEBT — Debt/equity of 3.8x indicates a highly leveraged capital structure that may constrain financial flexibility and increase vulnerability to rising interest rates.
- VALUATION — P/E of 34.63x is significantly above the sector average of 22x, suggesting the stock is priced for above-average growth that may not materialize.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER — Insiders have executed 4 sells versus 0 buys in the last 90 days, a net selling pattern that often signals caution from those closest to the business....
Gross margin is strong at 72.0%, but with no prior-year comparison available it is not possible to confirm whether profitability on sales is improving. Net margin stands at 9.9%, indicating the company converts roughly 10 cents of every revenue dollar into net profit. The balance sheet is stretched, with a debt/equity ratio of 3.8x, reflecting high leverage that could restrict financial flexibility, though a current ratio of 1.44x provides adequate short-term liquidity coverage. Free cash flow and FCF yield are not available, making it impossible to assess cash generation or self-funding capacity. Return on equity is very high at 67.9%, which can signal efficient use of equity capital, but this metric is amplified by the high leverage ratio. Overall, the company shows healthy margins but carries concerning debt levels, and the lack of cash flow data limits a full assessment of financial stability.
- DEBT — Debt/equity of 3.8x indicates a highly leveraged capital structure that may constrain financial flexibility and increase vulnerability to rising interest rates. - VALUATION — P/E of 34.63x is significantly above the sector average of 22x, suggesting the stock is priced for above-average growth that may not materialize. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER — Insiders have executed 4 sells versus 0 buys in the last 90 days, a net selling pattern that often signals caution from those closest to the business.
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