Quality score · ETSY · Consumer Discretionary

Is Etsy Inc. a quality business?

Etsy Inc. (ETSY) scored on five pillars from its reported financial statements, and ranked against 179 Consumer Discretionary companies.

5.9/ 10
Solid quality
as of October 18, 2026
Profitability
8.6 Strong
Solvency
5.6 Average
Growth
2.2 Weak
Efficiency
7.5 Strong
Predictability
5.3 Average
Strongest pillar: Profitability · Weakest: Growth

Etsy Inc. (ETSY) scores 5.9 out of 10 as of , computed from its reported financial statements. That reads as solid quality. The reading rests on profitability, and growth is what holds it back.

Data provided by Twelve Data. Scores are computed by Lemma Analysis from reported financials.

Does Etsy Inc. have an economic moat?

Not enough data

We cannot judge Etsy Inc. yet, because fewer than five years had both a return on capital and a cost of capital we could measure. This is not a “no”.

Quantitative signs of a moat, read from the filed statements. This is not a judgement of where it comes from (brand, network effects, switching costs). How Lemma measures a moat →

How Etsy Inc. scores

As of October 18, 2026, Etsy Inc. scores 5.9 out of 10 on the Lemma Quality Score, a reading of solid quality. This band covers companies that do several things well but not everything, so the pillar detail below matters more than the headline. Nothing in it comes from the share price or from forecasts: it is Etsy Inc.’s own reported numbers, scored pillar by pillar.

Ranked with the 179 Consumer Discretionary companies Lemma publishes, the score sits at the 68th percentile, in the upper half of the group, short of the top quarter. For reference, the middle of the group scores 5.0 and a company needs 6.1 to reach its top quarter, which leaves Etsy Inc. above the median.

Pillar by pillar

Profitability

Profitability scores 8.6 out of 10, which reads as strong. The median across 178 Consumer Discretionary companies is 5.1, so Etsy Inc. is well above its peers on this pillar and ranks at the 90th percentile. Returns and margins at this level leave room to reinvest, absorb a bad year or return cash to shareholders without straining the business.

Solvency

Solvency scores 5.6 out of 10, which reads as average. The median across 141 Consumer Discretionary companies is 5.9, so Etsy Inc. is in line with its peers on this pillar and ranks at the 46th percentile. An average solvency reading suggests debt is present but manageable, the normal state for a company that borrows to fund its operations.

Growth

Etsy Inc.’s growth score is 2.2 out of 10 (weak). Against a median of 4.0 among 149 Consumer Discretionary companies, that is well below the group and the 26th percentile. Weak growth means revenue and earnings have been flat or shrinking against peers, which can be cyclical or a sign of a market that is maturing.

Efficiency

Efficiency scores 7.5 out of 10, which reads as strong. The median across 170 Consumer Discretionary companies is 6.2, so Etsy Inc. is above its peers on this pillar and ranks at the 88th percentile. Efficiency at this level means the company needs comparatively little capital to produce what it sells.

Predictability

On predictability, Etsy Inc. scores 5.3, an average reading. Its peers have a median of 5.0 across 178 Consumer Discretionary companies, which places it in line with them, at the 55th percentile. Consistency near the median is typical, and it is worth checking whether the swings came from the business itself or from one-off items.

Strongest and weakest pillar

The gap between Etsy Inc.’s best and worst pillar is wide: profitability at 8.6 against growth at 2.2, 6.4 points apart. An average of two readings this different deserves a closer look than the headline number. A profitability lead usually reflects something durable in the business model rather than a good year. Slow growth limits how fast the business can compound, even when everything else is in order.

What would move the score

Closing the gap on growth would do the most for the overall. At the median of Consumer Discretionary companies, 4.0, Etsy Inc. would score about 6.3 instead of 5.9. The weights add up to 100 points (profitability 25, solvency 20, growth 20, efficiency 15, predictability 20), and Etsy Inc. has a reading on every pillar.

Etsy Inc. and similar companies

For a fair comparison, start with companies of a similar size: the Consumer Discretionary companies below are nearest to Etsy Inc. by market value, each scored on the same pillars.

What each pillar measures

Profitability

8.6 / 10

How much profit the company generates from its capital and sales.

Solvency

5.6 / 10

The company’s ability to service debt and meet its obligations.

Growth

2.2 / 10

How fast revenue, earnings and cash flow are compounding.

Efficiency

7.5 / 10

How well assets and earnings convert into cash and output.

Predictability

5.3 / 10

How stable and consistent results have been over time.

How this score is calculated

Each metric is scored from 0 to 10 against sector-aware benchmarks, where higher is better. Metrics roll up into five pillars, and the pillars combine into the overall score using the weights shown. Sector-sensitive metrics are judged relative to peers in the same sector.

Limitations

This score is a systematic, backward-looking read of reported fundamentals. It does not judge valuation, management quality, competitive moat, or future prospects, and can be distorted by one-off items or unusual accounting. Treat it as a starting point, not a recommendation.

Educational only. Not investment advice.

FAQ

Is Etsy Inc. a quality business?

On this reading Etsy Inc. scores 5.9 out of 10, which reads as solid quality. Its strongest pillar is profitability, its weakest is growth. Quality is not the same as a good investment: the score says nothing about the price you would pay.

How does Etsy Inc. compare with other Consumer Discretionary companies?

Etsy Inc. ranks at the 68th percentile of the 179 Consumer Discretionary companies Lemma publishes a score for. The median there is 5.0 and the top quarter starts at 6.1, against Etsy Inc.’s 5.9.

What does the ETSY quality score measure?

Five pillars, each scored from 0 to 10 against sector-aware benchmarks and then weighted into one overall reading: profitability, solvency, growth, efficiency and predictability. Everything comes from reported financials, and nothing comes from price, sentiment or forecasts.

How current is this score?

This page last changed on October 18, 2026. The score moves with the financial statements, so the page changes when a new filing moves the reading rather than on a schedule. Live figures for ETSY are in the app.

Does a high score mean the stock is cheap?

No. Quality and valuation are separate questions, and a good business at the wrong price is still a bad purchase. Score the business here, then price it with a DCF you control.

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