Etsy Inc Stock Return On Equity

ETSY Stock

USD 66.73 0.32 0.48%

Etsy Inc fundamentals help investors to digest information that contributes to Etsy's financial success or failures. It also enables traders to predict the movement of Etsy Stock. The fundamental analysis module provides a way to measure Etsy's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Etsy stock.

		Last Reported	Projected for Next Year
	Return On Equity	(0.57)	(0.54)

Return On Equity is likely to rise to -0.54 in 2024.

This module does not cover all equities due to inconsistencies in global equity categorizations. Continue to Equity Screeners to view more equity screening tools.

Etsy Inc Company Return On Equity Analysis

Etsy's Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.

Return On Equity

Net Income

Total Equity

More About Return On Equity | All Equity Analysis

Current Etsy Return On Equity

-12.24

Most of Etsy's fundamental indicators, such as Return On Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Etsy Inc is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Etsy Return On Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for Etsy is extremely important. It helps to project a fair market value of Etsy Stock properly, considering its historical fundamentals such as Return On Equity. Since Etsy's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Etsy's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Etsy's interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Current Deferred Revenue	Net Debt	Retained Earnings	Accounts Payable	Long Term Debt	Net Receivables	Good Will	Short Term Investments	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Common Stock	Property Plant Equipment	Net Tangible Assets	Deferred Long Term Liab	Short Long Term Debt	Long Term Debt Total	Capital Surpluse	Net Invested Capital	Net Working Capital	Capital Stock	Long Term Investments
Total Assets		-0.01	0.94	0.79	-0.46	0.87	0.89	0.86	0.73	0.72	0.89	0.92	0.43	0.91	0.66	0.8	-0.72	0.74	0.52	0.86	0.83	0.97	0.76	0.5	-0.52
Total Stockholder Equity	-0.01		-0.19	-0.53	0.79	-0.4	-0.42	-0.42	0.28	0.16	-0.41	-0.02	0.21	-0.36	0.18	-0.43	0.58	0.24	0.1	-0.46	-0.22	-0.11	0.01	-0.21	0.27
Current Deferred Revenue	0.94	-0.19		0.77	-0.66	0.91	0.89	0.89	0.48	0.75	0.9	0.95	0.55	0.87	0.73	0.86	-0.68	0.7	0.61	0.87	0.93	0.89	0.79	0.44	-0.6
Net Debt	0.79	-0.53	0.77		-0.74	0.9	0.96	0.9	0.59	0.41	0.95	0.63	0.12	0.97	0.41	0.91	-0.97	0.48	0.33	0.96	0.65	0.85	0.49	0.61	-0.43
Retained Earnings	-0.46	0.79	-0.66	-0.74		-0.79	-0.77	-0.8	0.06	-0.37	-0.77	-0.55	-0.36	-0.68	-0.4	-0.82	0.67	-0.3	-0.42	-0.8	-0.7	-0.49	-0.49	-0.46	0.53
Accounts Payable	0.87	-0.4	0.91	0.9	-0.79		0.98	1.0	0.49	0.6	0.99	0.85	0.41	0.95	0.6	0.94	-0.82	0.61	0.52	0.98	0.86	0.9	0.76	0.71	-0.65
Long Term Debt	0.89	-0.42	0.89	0.96	-0.77	0.98		0.98	0.56	0.59	1.0	0.82	0.33	0.99	0.56	0.94	-0.89	0.6	0.46	1.0	0.81	0.93	0.71	0.69	-0.6
Net Receivables	0.86	-0.42	0.89	0.9	-0.8	1.0	0.98		0.5	0.55	0.98	0.82	0.39	0.94	0.6	0.95	-0.84	0.6	0.52	0.98	0.83	0.88	0.72	0.71	-0.64
Good Will	0.73	0.28	0.48	0.59	0.06	0.49	0.56	0.5		0.26	0.56	0.43	-0.04	0.66	0.34	0.47	-0.6	0.53	0.21	0.52	0.25	0.74	0.28	0.44	-0.05
Short Term Investments	0.72	0.16	0.75	0.41	-0.37	0.6	0.59	0.55	0.26		0.6	0.86	0.7	0.56	0.64	0.49	-0.23	0.65	0.48	0.57	0.83	0.68	0.89	0.35	-0.55
Total Liab	0.89	-0.41	0.9	0.95	-0.77	0.99	1.0	0.98	0.56	0.6		0.83	0.34	0.98	0.56	0.94	-0.88	0.61	0.47	1.0	0.82	0.93	0.72	0.69	-0.61
Total Current Assets	0.92	-0.02	0.95	0.63	-0.55	0.85	0.82	0.82	0.43	0.86	0.83		0.63	0.79	0.7	0.73	-0.52	0.7	0.57	0.79	0.96	0.87	0.93	0.47	-0.68
Short Term Debt	0.43	0.21	0.55	0.12	-0.36	0.41	0.33	0.39	-0.04	0.7	0.34	0.63		0.26	0.79	0.43	0.07	0.76	0.81	0.32	0.61	0.31	0.6	0.18	-0.37
Intangible Assets	0.91	-0.36	0.87	0.97	-0.68	0.95	0.99	0.94	0.66	0.56	0.98	0.79	0.26		0.53	0.91	-0.92	0.6	0.42	0.97	0.76	0.95	0.65	0.66	-0.56
Common Stock	0.66	0.18	0.73	0.41	-0.4	0.6	0.56	0.6	0.34	0.64	0.56	0.7	0.79	0.53		0.7	-0.26	0.82	0.85	0.53	0.62	0.56	0.56	0.36	-0.38
Property Plant Equipment	0.8	-0.43	0.86	0.91	-0.82	0.94	0.94	0.95	0.47	0.49	0.94	0.73	0.43	0.91	0.7		-0.83	0.65	0.64	0.94	0.74	0.8	0.57	0.63	-0.49
Net Tangible Assets	-0.72	0.58	-0.68	-0.97	0.67	-0.82	-0.89	-0.84	-0.6	-0.23	-0.88	-0.52	0.07	-0.92	-0.26	-0.83		-0.33	-0.18	-0.89	-0.53	-0.8	-0.36	-0.55	0.38
Deferred Long Term Liab	0.74	0.24	0.7	0.48	-0.3	0.61	0.6	0.6	0.53	0.65	0.61	0.7	0.76	0.6	0.82	0.65	-0.33		0.88	0.57	0.57	0.65	0.56	0.39	-0.3
Short Long Term Debt	0.52	0.1	0.61	0.33	-0.42	0.52	0.46	0.52	0.21	0.48	0.47	0.57	0.81	0.42	0.85	0.64	-0.18	0.88		0.45	0.5	0.4	0.41	0.27	-0.25
Long Term Debt Total	0.86	-0.46	0.87	0.96	-0.8	0.98	1.0	0.98	0.52	0.57	1.0	0.79	0.32	0.97	0.53	0.94	-0.89	0.57	0.45		0.81	0.9	0.7	0.69	-0.58
Capital Surpluse	0.83	-0.22	0.93	0.65	-0.7	0.86	0.81	0.83	0.25	0.83	0.82	0.96	0.61	0.76	0.62	0.74	-0.53	0.57	0.5	0.81		0.79	0.91	0.4	-0.66
Net Invested Capital	0.97	-0.11	0.89	0.85	-0.49	0.9	0.93	0.88	0.74	0.68	0.93	0.87	0.31	0.95	0.56	0.8	-0.8	0.65	0.4	0.9	0.79		0.77	0.64	-0.61
Net Working Capital	0.76	0.01	0.79	0.49	-0.49	0.76	0.71	0.72	0.28	0.89	0.72	0.93	0.6	0.65	0.56	0.57	-0.36	0.56	0.41	0.7	0.91	0.77		0.57	-0.77
Capital Stock	0.5	-0.21	0.44	0.61	-0.46	0.71	0.69	0.71	0.44	0.35	0.69	0.47	0.18	0.66	0.36	0.63	-0.55	0.39	0.27	0.69	0.4	0.64	0.57		-0.68
Long Term Investments	-0.52	0.27	-0.6	-0.43	0.53	-0.65	-0.6	-0.64	-0.05	-0.55	-0.61	-0.68	-0.37	-0.56	-0.38	-0.49	0.38	-0.3	-0.25	-0.58	-0.66	-0.61	-0.77	-0.68

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For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

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Return On Equity Over Time

Etsy Total Stockholder Equity

Total Stockholder Equity

(516.53 Million)

Etsy reported Total Stockholder Equity of (543.72 Million) in 2023

Based on the latest financial disclosure, Etsy Inc has a Return On Equity of -12.245. This is 440.14% lower than that of the Internet & Direct Marketing Retail sector and significantly lower than that of the Consumer Discretionary industry. The return on equity for all United States stocks is notably higher than that of the company.

Etsy Return On Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Etsy's direct or indirect competition against its Return On Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Etsy could also be used in its relative valuation, which is a method of valuing Etsy by comparing valuation metrics of similar companies.

Etsy is currently under evaluation in return on equity category among related companies.

Etsy Current Valuation Drivers

We derive many important indicators used in calculating different scores of Etsy from analyzing Etsy's financial statements. These drivers represent accounts that assess Etsy's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Etsy's important valuation drivers and their relationship over time.

	2019	2020	2021	2022	2023	2024 (projected)
Market Cap	5.3B	21.6B	27.9B	15.2B	9.9B	8.0B
Enterprise Value	5.7B	21.4B	29.5B	16.7B	11.4B	8.4B

Etsy Fundamentals

	Return On Equity	-12.24
	Return On Asset	0.0883
	Profit Margin	0.11 %
	Operating Margin	0.17 %
	Current Valuation	9.23 B
	Shares Outstanding	118.49 M
	Shares Owned By Insiders	0.91 %
	Shares Owned By Institutions	99.09 %
	Number Of Shares Shorted	15.28 M
	Price To Earning	44.71 X
	Price To Book	21.42 X
	Price To Sales	2.89 X
	Revenue	2.75 B
	Gross Profit	1.82 B
	EBITDA	475.25 M
	Net Income	307.57 M
	Cash And Equivalents	1.01 B
	Cash Per Share	7.95 X
	Total Debt	2.39 B
	Debt To Equity	4.11 %
	Current Ratio	2.93 X
	Book Value Per Share	(4.57) X
	Cash Flow From Operations	705.51 M
	Short Ratio	4.55 X
	Earnings Per Share	2.24 X
	Price To Earnings To Growth	1.11 X
	Target Price	79.75
	Number Of Employees	2.42 K
	Beta	2.03
	Market Capitalization	7.94 B
	Total Asset	2.69 B
	Retained Earnings	(1.36 B)
	Working Capital	859.66 M
	Current Asset	359.05 M
	Current Liabilities	80.12 M
	Net Asset	2.69 B

About Etsy Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Etsy Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Etsy using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Etsy Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

Pair Trading with Etsy

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Etsy position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Etsy will appreciate offsetting losses from the drop in the long position's value.

Moving against Etsy Stock

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0.66	W	Wayfair Financial Report 2nd of May 2024	Pair Corr
0.66	AZO	AutoZone Financial Report 28th of May 2024	Pair Corr
0.64	WSM	Williams Sonoma Sell-off Trend	Pair Corr

The ability to find closely correlated positions to Etsy could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Etsy when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Etsy - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Etsy Inc to buy it.

The correlation of Etsy is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Etsy moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Etsy Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Etsy can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

When determining whether Etsy Inc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Etsy's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Etsy Inc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Etsy Inc Stock:

How To Invest In Etsy

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Is Etsy Stock a good investment?

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What is Etsy's Net Worth?

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Largest Internet & Direct Marketing Retail Companies

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Largest Consumer Discretionary Distribution & Retail Companies

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Check out Etsy Piotroski F Score and Etsy Altman Z Score analysis.

You can also try the Equity Valuation module to check real value of public entities based on technical and fundamental data.

Complementary Tools for Etsy Stock analysis

When running Etsy's price analysis, check to measure Etsy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Etsy is operating at the current time. Most of Etsy's value examination focuses on studying past and present price action to predict the probability of Etsy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Etsy's price. Additionally, you may evaluate how the addition of Etsy to your portfolios can decrease your overall portfolio volatility.

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	Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum

Is Etsy's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Etsy. If investors know Etsy will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Etsy listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.

Quarterly Earnings Growth

(0.18)

Earnings Share

2.24

Revenue Per Share

22.435

Quarterly Revenue Growth

0.043

Return On Assets

0.0883

The market value of Etsy Inc is measured differently than its book value, which is the value of Etsy that is recorded on the company's balance sheet. Investors also form their own opinion of Etsy's value that differs from its market value or its book value, called intrinsic value, which is Etsy's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Etsy's market value can be influenced by many factors that don't directly affect Etsy's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.

Please note, there is a significant difference between Etsy's value and its price as these two are different measures arrived at by different means. Investors typically determine if Etsy is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Etsy's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

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Etsy Inc Stock Return On Equity

Etsy Inc Company Return On Equity Analysis

Return On Equity

Net Income

Total Equity

Current Etsy Return On Equity

Etsy Return On Equity Driver Correlations

Etsy Total Stockholder Equity

Total Stockholder Equity

(516.53 Million)

Etsy Return On Equity Peer Comparison

Etsy Current Valuation Drivers

Etsy Fundamentals

About Etsy Fundamental Analysis

Pair Trading with Etsy

Moving against Etsy Stock

Complementary Tools for Etsy Stock analysis

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