ETSY Inc (ETSY) Stock Analysis
Verdict: HOLD
Robust 8.8% FCF yield is undercut by negative equity, weak top-line growth (0.73%), insider selling, and a severe Q2 2026 earnings miss.
Investment score: 43/100
Analysis as of
Is ETSY Inc stock worth reviewing? AI model thesis
The model rates ETSY as a HOLD. Strong capital generation (8.8% FCF yield) is balanced by negative book value, slow top-line growth, and execution volatility demonstrated by the Q2 2026 earnings collapse.
7-factor investment score
- Valuation: 40/100 (weight 20%)
- Financial Health: 55/100 (weight 15%)
- Technical Momentum: 50/100 (weight 15%)
- Earnings Quality: 30/100 (weight 15%)
- Insider Sentiment: 15/100 (weight 10%)
- Analyst Consensus: 65/100 (weight 10%)
- Risk-Adjusted Return: 45/100 (weight 15%)
ETSY Inc opportunities and risks
What speaks for ETSY
- Capital-efficient cash flow generation yielding 8.8% FCF
What speaks against ETSY
- Execution and earnings volatility threatening 2027 analyst EPS consensus
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| ETSY | 34.7x | 2.4x | 16.4x | 72.3% | 7.3% | 8.8% |
| AMZN | 19.5x | 3.4x | 11.0x | 50.8% | 17.4% | -0.4% |
| EBAY | 22.1x | 4.0x | 17.6x | 72.5% | 18.5% | 5.0% |
| CPNG | n/a | 0.7x | 794.0x | 28.4% | -2.2% | 0.4% |
| DDS | 14.8x | 1.5x | 10.1x | 39.2% | 10.3% | 6.2% |
| M | 7.8x | 0.3x | 4.7x | 36.0% | 3.3% | 26.0% |
| Peer median | 14.8x | 1.5x | 11.0x | 39.2% | 10.3% | 5.0% |
Frequently asked questions about ETSY Inc (ETSY)
Is ETSY stock a good investment?
The cached TradeMates AI model rates ETSY Inc as HOLD with an investment score of 43/100. The model rates ETSY as a HOLD. Strong capital generation (8.8% FCF yield) is balanced by negative book value, slow top-line growth, and execution volatility demonstrated by the Q2 2026 earnings collapse. This is algorithmic model output, not personal investment advice.
Is ETSY stock a buy?
The TradeMates model verdict for ETSY is HOLD with an investment score of 43/100. Treat this as a model signal to review, not a personal buy recommendation.