ETSY INC Receives Mixed Review from Growth Investor Model

A new report outlines the performance of ETSY INC according to a growth investment strategy. Despite some positive indicators, significant weaknesses in earnings growth and debt levels could influence investor sentiment moving forward.

Date: 21-12-2024

AI Rating: 5

The report presents a mixed picture for ETSY INC under the Growth Investor strategy developed by Martin Zweig. The company has a decent score of 54% based on its fundamentals and valuation, but it has failed to meet some key performance indicators.

Notable points include:

P/E Ratio: PASS - This indicates that the stock is reasonably valued relative to its earnings.
Revenue Growth in Relation to EPS Growth: PASS - Suggests that revenue is growing at a rate that is keeping pace with earnings per share.
Sales Growth Rate: PASS - Indicates effective sales performance.
Current Quarter Earnings: PASS - Current earnings are performing well.
Quarterly Earnings One Year Ago: PASS - Strong comparison to last year's earnings.
Long-Term EPS Growth: PASS - Suggests positive long-term outlook.

However, there are critical areas of concern:

Positive Earnings Growth Rate for Current Quarter: FAIL - This could deter investors as it raises concerns about immediate growth potential.
Earnings Growth Rate for the Past Several Quarters: FAIL - This trend could be a warning sign for potential stagnation.
EPS Growth for Current Quarter Must Be Greater Than Prior 3 Quarters: FAIL - Another indicator of potential issues in growth.
EPS Growth for Current Quarter Must Be Greater Than the Historical Growth Rate: FAIL - Questions the company's sustainability in growth.
Earnings Persistence: FAIL - Raises further concerns about long-term growth reliability.
Total Debt/Equity Ratio: FAIL - Indicates potential financial risk that could affect investment decisions.

Overall, while the P/E ratio, revenue growth, sales growth rate, and long-term EPS growth are favorable, the lack of positive earnings growth and high debt levels pose significant risks to investors. Caution may be warranted as these issues might negatively influence stock prices.

Stocks: ETSY