Etsy, Inc. (ETSY): a likely value trap?

Avoid — Etsy looks cheap only because it's steadily losing buyers and market share to Amazon, Walmart, Shein and Temu, a multi-year structural decline, not a one-off dip.

⚠ TRAP Fundamentals57/100

Down 74% from its all-time high of $294.38 — now $76.51

Why ETSY dropped

Etsy's stock has been grinding lower for years because its core marketplace keeps shrinking: active sellers saw an even sharper drop, down 20% to 5.6 million from 7 million the year prior, while active buyers on the Etsy marketplace fell as the ecommerce marketplace continued to face pressure from competitors such as Amazon. Analysts note Amazon, Walmart, Shein and Temu are gobbling up market share, while almost all other players are losing share, meaning Etsy is losing the battle for cheap-goods shoppers to much bigger rivals.

Fwd P/E 11.1Op margin 18.7%Rev growth 6.2%Debt/equity —Analyst upside 13.8%

How this scored 57/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 7.1%

✅ Generates cash Free cash flow $170M

✅ Not drowning in debt Debt/equity unknown (limit 200%)

✅ Can pay its bills Current ratio 1.5 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 12/25

Operating margin 18.7% 7/9

Net profit margin 7.1% 3/8

Return on equity unknown 2/8

Growth Is it getting bigger, or dying? 14/25

Revenue growth 6.2% 3/9

Earnings growth unknown 2/8

Expected profit change 118.1% 8/8

Value Is it cheap right now? 18/25

Forward P/E 11.1 9/10

PEG ratio 0.8 7/8

Analyst target upside 13.8% 2/7

Balance sheet Will it survive? 13/25

Debt / equity unknown 3/10

Current ratio 1.5 3/8

Free cash flow $170M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-08. Research only — not financial advice.