Etsy

ETSY

Specialty Retail · Consumer Cyclical

Also trades as: 0IIW.L

Price

$80.05

+0.57 (+0.72%)

Market Cap

$7.60B

Winston Score

Winston is curious

Mixed quality — meaningful strengths and weaknesses.

Data as of Aug 12, 2026 · filings through Jun 30, 2026

Share count falling — buybacks

−15.8% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 146.7M (2021) → 123.5M (2025)

Etsy runs an online marketplace where independent sellers list handmade, vintage, and unique goods for buyers to purchase. Its main products are craft supplies, jewelry, home décor, clothing, and personalized gifts. Etsy connects millions of small sellers — mostly individuals and small businesses — with shoppers looking for items they cannot find at typical retail stores.

Etsy makes money by charging sellers listing fees, transaction fees on each sale, and optional advertising fees to promote their listings. The platform operates globally but generates most of its revenue in the United States and Europe, with over 90 million active buyers on record at its peak. Its main competitive advantage is the large, established network of buyers and sellers that is hard to replicate, but its biggest risk is slowing buyer growth since active buyer counts have declined from pandemic-era highs, putting pressure on the company to re-engage shoppers and grow transaction volume.

Winston Score History

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-0.6% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-275.0% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$450M/ year

→ Flat (+2% vs prior year)

15.6% of revenue

3.9x the sector average (4%)

Steady R&D investment year-over-year

Insider Activity

1.2%ownership

→ Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$1.3B cash & investments

Quarterly Free Cash Flow

↓ Burn rate worsening

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Etsy's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

72.4%

Premium pricing power — 72.4% gross margin

Operating Margin

18.7%

Healthy — 18.7% operating margin

ROCE

7.9%

Weak — 7.9% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+2.1%

Nearly flat sales (+2.1% YoY)

EPS YoY

+44.2%

Earnings growing fast (+44.2% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency

3/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

423%

Turns 423% of profit into real cash

FCF Margin

29.7%

Converts sales into free cash efficiently (29.7%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity

N/A

—

Data not available

Interest Cover

26.96x

Comfortably covers interest (27.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

37.8x

Pricey — P/E 37.8

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward

+20.2

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (37.8 → 17.6)

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Dividends

Not applicable for this business.

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