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ETSY Etsy, Inc. - Fundamental Analysis

NEUTRAL
ETSY Stock | Fundamental Analysis & Investment Insights
NYSE Consumer Cyclical Internet Retail
Current Price
$57.28
Analyst Target
$67.26
+17.4% Upside
52W High
$76.52
52W Low
$40.05

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Confidence Score
72%
Analysis Accuracy
Etsy's Advanced Deterministic Scorecard shows a weak Piotroski F-Score of 4/9, indicating borderline financial health, while the Altman Z-Score is astronomically high at 11.1 billion, suggesting no distress risk. The stock trades above its intrinsic value of $43.66 at $57.28, supported by a high forward P/E of 12.23 and trailing P/E of 38.70, reflecting elevated growth expectations. Despite strong gross margins and solid cash flow liquidity, weak recent earnings surprises, declining revenue growth, and negative insider activity offset bullish valuation metrics. Analysts consensus is a hold, aligning with mixed fundamentals and tepid technical trend.

Key Strengths

Exceptionally high Altman Z-Score (>11 billion) indicates virtually no bankruptcy risk
Strong gross margin of 72.04%, reflecting pricing power and low cost of goods sold
Healthy liquidity with current ratio of 3.17 and quick ratio of 2.68
High year-over-year earnings growth of 39.90% despite slowing revenue
Forward P/E of 12.23 suggests reasonable future earnings expectations

Key Risks

Low Piotroski F-Score of 4/9 signals weak financial health and operational inconsistencies
Revenue growth is minimal at 2.40% YoY, below sector average of 15.66%
Insider selling worth $5.72M in last 6 months indicates lack of confidence from executives
Price trades significantly above intrinsic value ($57.28 vs $43.66), implying overvaluation
Recent earnings misses: 1 beat in last 4 quarters with average surprise of -6.22%
AI Fair Value Estimate
Based on comprehensive analysis
$43.66
-23.8% below current price

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