ETSY - Etsy: Competition Concerns Already Priced In
2024-04-18 15:54:50 ET
Summary
- Despite fluctuations, Etsy, Inc. revenue growth rates have stabilized, with Q1 2024 likely representing the low point.
- The company's net debt position, while noteworthy, doesn't pose a significant obstacle to value creation, especially given its projected improvement in EBITDA margins.
- With the stock priced at an attractive 11x forward free cash flow, there's potential for upside once Etsy demonstrates sustained growth and effectively leverages its financial strength.
Investment Thesis
Etsy, Inc. ( ETSY ), the marketplace for connecting buyers with sellers offering unique supplies, is cheaply valued. That's the bull case. Meanwhile, the bear case declares that this business today operates as a shadow of its former self....
Etsy: Competition Concerns Already Priced In