Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin12.8%
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin5.7%
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Financial Health
D
Years to Pay Off Debt18.9 yrs
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt-$1.7B
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital$597M
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Valuation
N/A
Cash Flow
B
Free Cash Flow$639M
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income33.5%
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings$319M
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Metric Explanations
What each dimension measures and where the thresholds come from.
Gross Profit Margin
Revenue minus cost of goods sold. Graham's ≥40% threshold identifies businesses with durable pricing power. Note: software and financial companies naturally exceed this; retailers and manufacturers rarely reach it due to their cost structures.
Operating Margin
Profit after operating costs before interest and taxes. A consistent ≥15% operating margin signals a business with real competitive advantages. Capital-intensive industries (airlines, auto, commodities) rarely hit this threshold due to their structural cost base — compare within industry for context.
Net Income Margin
Bottom-line profit as a percentage of revenue. The ≥20% target reflects Buffett's preference for highly profitable businesses. Financial engineering (buybacks, tax optimisation) can inflate this temporarily — look for consistency across multiple years rather than a single strong result.
Years to Pay Off Debt
Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.
Working Capital vs Long-Term Debt
Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.
Working Capital
Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.
Free Cash Flow
Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.
CapEx % of Net Income
Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.
Owner Earnings
Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.
Market Data
Key Margins
Gross Profit71.6%
Operating Margin12.8%
Net Margin5.7%
Company Info
Showing Key Metrics
Income Highlights
Metric
2025
2024
2023
2022
Gross Profit %
71.6%▼
72.4%▲
69.8%▼
71.0%
Operating Margin %
12.8%▼
13.5%▲
12.7%▼
15.1%
Net Income %
5.7%▼
10.8%▼
11.2%▲
-27.1%
Diluted EPS
1.39▼
2.35▲
2.24▲
-5.48
Balance Sheet Highlights
Metric
2025
2024
2023
2022
2021
Total Assets
$2.8B
$2.4B
$2.7B
$2.6B
N/A
Total Debt
$3.1B▲
$2.4B▼
$2.4B▼
$2.4B•
N/A
Working Capital
$597M▼
$663M▼
$860M▼
$882M•
N/A
Years to Pay Debt
18.87
7.85
7.77
-3.44
N/A
Cash Flow Highlights
Metric
2025
2024
2023
2022
2021
Free Cash Flow
$639M▼
$709M▲
$666M▲
$646M•
N/A
Owner Earnings
$319M
$455M
$439M
-$560M
N/A
CapEx % of Net Income
33.5%
14.3%
13.0%
N/A
N/A
Income Statement
2025
2024
2023
2022
Tax Effect Of Unusual Items
-49,910
3,504
-16,184
-219,498
Tax Rate For Calcs
0
0
0
0
Normalized EBITDA
514,247
519,264
475,254
494,120
Total Unusual Items
-147,228
13,391
-77,069
-1,045,228
Total Unusual Items Excluding Goodwill
-147,228
13,391
-77,069
-1,045,228
Net Income From Continuing Operation Net Minority Interest
162,982
303,281
307,568
-694,288
Reconciled Depreciation
101,845
108,074
91,323
96,702
Reconciled Cost Of Revenue
817,800
774,554
828,675
744,592
EBITDA
367,019
532,655
398,185
-551,108
EBIT
265,174
424,581
306,862
-647,810
Net Interest Income
25,980
17,176
21,957
-3,212
Interest Expense
18,509
13,806
14,042
14,168
Interest Income
44,489
30,982
35,999
10,956
Normalized Income
260,300
293,394
368,453
131,442
Net Income From Continuing And Discontinued Operation
162,982
303,281
307,568
-694,288
Total Expenses
2,515,588
2,428,124
2,400,445
2,179,649
Total Operating Income As Reported
266,210
380,208
279,841
-658,560
Diluted Average Shares
124,114
131,721
140,145
126,779
Basic Average Shares
102,356
114,944
122,503
126,779
Diluted EPS
0
0
0
0
Basic EPS
0
0
0
0
Diluted NI Availto Com Stockholders
173,107
309,606
313,904
-694,288
Average Dilution Earnings
10,125
6,325
6,336
0
Net Income Common Stockholders
162,982
303,281
307,568
-694,288
Net Income
162,982
303,281
307,568
-694,288
Net Income Including Noncontrolling Interests
162,982
303,281
307,568
-694,288
Net Income Continuous Operations
162,982
303,281
307,568
-694,288
Tax Provision
83,683
107,494
-14,748
32,310
Pretax Income
246,665
410,775
292,820
-661,978
Other Income Expense
-147,228
13,391
-77,069
-1,045,228
Special Income Charges
-106,800
0
-70,721
-1,045,022
Gain On Sale Of Business
-5,097
0
-2,630
0
Impairment Of Capital Assets
101,703
0
68,091
1,045,022
Gain On Sale Of Security
-40,428
13,391
-6,348
-206
Net Non Operating Interest Income Expense
25,980
17,176
21,957
-3,212
Interest Expense Non Operating
18,509
13,806
14,042
14,168
Interest Income Non Operating
44,489
30,982
35,999
10,956
Operating Income
367,913
380,208
347,932
386,462
Operating Expense
1,697,788
1,653,570
1,571,770
1,435,057
Research And Development
450,192
443,056
469,332
412,398
Selling General And Administration
1,247,596
1,210,514
1,102,438
1,022,659
Selling And Marketing Expense
914,830
856,565
759,196
710,399
General And Administrative Expense
332,766
353,949
343,242
312,260
Other Gand A
332,766
353,949
343,242
312,260
Gross Profit
2,065,701
2,033,778
1,919,702
1,821,519
Cost Of Revenue
817,800
774,554
828,675
744,592
Total Revenue
2,883,501
2,808,332
2,748,377
2,566,111
Operating Revenue
2,883,501
2,808,332
2,748,377
2,566,111
Balance Sheet
2025
2024
2023
2022
2021
Ordinary Shares Number
97,031
108,540
119,069
125,054
Share Issued
97,031
108,540
119,069
125,054
Net Debt
1,586,402
1,476,905
1,369,494
1,358,362
Total Debt
3,075,720
2,381,565
2,389,516
2,390,070
Tangible Book Value
-1,562,694
-1,443,914
-1,275,305
-1,220,404
Invested Capital
1,884,143
1,529,217
1,740,102
1,732,366
Working Capital
597,364
662,578
859,665
881,988
Net Tangible Assets
-1,562,694
-1,443,914
-1,275,305
-1,220,404
Capital Lease Obligations
93,482
93,482
105,699
110,430
Common Stock Equity
-1,098,095
-758,866
-543,715
-547,274
Total Capitalization
1,235,135
1,529,217
1,740,102
1,732,366
Total Equity Gross Minority Interest
-1,098,095
-758,866
-543,715
-547,274
Stockholders Equity
-1,098,095
-758,866
-543,715
-547,274
Gains Losses Not Affecting Retained Earnings
-226,376
-297,747
-267,470
-314,217
Other Equity Adjustments
-226,376
-297,747
-267,470
-314,217
Retained Earnings
-2,404,020
-1,784,037
-1,357,390
-1,048,267
Additional Paid In Capital
1,532,204
1,322,809
1,081,026
815,085
Capital Stock
97
109
119
125
Common Stock
97
109
119
125
Total Liabilities Net Minority Interest
3,925,349
3,176,648
3,229,115
3,182,235
Total Non Current Liabilities Net Minority Interest
2,561,730
2,511,535
2,518,334
2,550,480
Other Non Current Liabilities
126,210
122,013
121,705
120,406
Non Current Deferred Liabilities
8,808
7,957
13,192
44,735
Non Current Deferred Taxes Liabilities
8,808
7,957
13,192
44,735
Long Term Debt And Capital Lease Obligation
2,426,712
2,381,565
2,383,437
2,385,339
Long Term Capital Lease Obligation
93,482
93,482
99,620
105,699
Long Term Debt
2,333,230
2,288,083
2,283,817
2,279,640
Current Liabilities
1,363,619
665,113
710,781
631,755
Other Current Liabilities
60,735
55,416
41,207
19,064
Current Deferred Liabilities
27,049
19,213
14,635
14,008
Current Deferred Revenue
27,049
19,213
14,635
14,008
Current Debt And Capital Lease Obligation
649,008
6,148
6,079
4,731
Current Capital Lease Obligation
6,148
6,079
4,731
2,418
Current Debt
649,008
Other Current Borrowings
649,008
Pensionand Other Post Retirement Benefit Plans Current
81,099
75,676
95,842
63,718
Payables And Accrued Expenses
545,728
514,808
553,018
530,234
Current Accrued Expenses
157,529
148,714
120,804
127,791
Payables
388,199
366,094
432,214
402,443
Total Tax Payable
154,387
150,557
136,907
139,725
Accounts Payable
233,812
215,537
295,307
262,718
Total Assets
2,827,254
2,417,782
2,685,400
2,634,961
Total Non Current Assets
866,271
1,090,091
1,114,954
1,121,218
Other Non Current Assets
47,969
45,043
45,191
47,701
Non Current Deferred Assets
119,310
145,630
137,776
121,506
Non Current Deferred Taxes Assets
119,310
145,630
137,776
121,506
Investments And Advances
134,376
111,725
86,676
29,137
Investmentin Financial Assets
29,137
85,034
Available For Sale Securities
29,137
85,034
Goodwill And Other Intangible Assets
464,599
685,048
731,590
673,130
Other Intangible Assets
426,532
547,959
593,213
535,406
Goodwill
38,067
137,089
138,377
137,724
Net PPE
100,017
102,645
113,721
249,744
Accumulated Depreciation
-141,515
-131,279
-111,107
-204,189
Gross PPE
241,532
233,924
224,828
453,933
Leases
72,820
65,510
62,220
56,095
Construction In Progress
0
3,872
0
419
Machinery Furniture Equipment
35,649
31,479
29,545
264,356
Buildings And Improvements
133,063
133,063
133,063
133,063
Current Assets
1,960,983
1,327,691
1,570,446
1,513,743
Other Current Assets
127,367
89,931
129,884
80,203
Prepaid Assets
109,417
Receivables
213,692
198,260
290,121
261,849
Accounts Receivable
213,692
198,260
290,121
261,849
Allowance For Doubtful Accounts Receivable
-6,089
-10,149
-8,303
-7,730
Gross Accounts Receivable
204,349
300,270
270,152
255,202
Cash Cash Equivalents And Short Term Investments
1,619,924
1,039,500
1,150,441
1,171,691
Other Short Term Investments
224,088
228,322
236,118
250,413
Cash And Cash Equivalents
1,395,836
811,178
914,323
921,278
Cash Equivalents
388,446
565,425
Cash Financial
532,832
214,771
Cash Flow
2025
2024
2023
2022
2021
Free Cash Flow
638,750
708,971
665,605
646,413
Repurchase Of Capital Stock
-776,899
-723,899
-576,968
-425,727
Repayment Of Debt
-6,162
-6,091
-6,278
-6,307
Issuance Of Debt
700,000
0
0
0
Capital Expenditure
-54,664
-43,498
-39,908
-37,199
Interest Paid Supplemental Data
12,235
9,052
9,315
9,534
Income Tax Paid Supplemental Data
89,579
42,676
41,679
94,160
End Cash Position
1,404,360
811,178
914,323
926,619
Beginning Cash Position
811,178
914,323
926,619
785,537
Effect Of Exchange Rate Changes
37,562
-15,345
12,031
-6,022
Changes In Cash
555,620
-87,800
-24,327
147,104
Financing Cash Flow
-169,875
-787,168
-656,533
-506,484
Cash Flow From Continuing Financing Activities
-169,875
-787,168
-656,533
-506,484
Net Other Financing Charges
-104,481
-61,085
-87,515
-89,474
Proceeds From Stock Option Exercised
17,667
3,907
14,228
15,024
Net Common Stock Issuance
-776,899
-723,899
-576,968
-425,727
Common Stock Payments
-776,899
-723,899
-576,968
-425,727
Net Issuance Payments Of Debt
693,838
-6,091
-6,278
-6,307
Net Long Term Debt Issuance
693,838
-6,091
-6,278
-6,307
Long Term Debt Payments
-6,162
-6,091
-6,278
-6,307
Long Term Debt Issuance
700,000
0
0
0
Investing Cash Flow
32,081
-53,101
-73,307
-30,024
Cash Flow From Continuing Investing Activities
32,081
-53,101
-73,307
-30,024
Net Other Investing Changes
-6,456
-1,937
Net Investment Purchase And Sale
-13,740
-9,603
-33,399
7,175
Sale Of Investment
312,842
321,160
309,451
277,520
Purchase Of Investment
-326,582
-330,763
-342,850
-270,345
Net Business Purchase And Sale
100,485
0
0
0
Sale Of Business
100,485
0
0
Purchase Of Business
0
0
-1,699,974
Net Intangibles Purchase And Sale
-39,278
-29,290
-26,958
-26,962
Purchase Of Intangibles
-39,278
-29,290
-26,958
-26,962
Net PPE Purchase And Sale
-15,386
-14,208
-12,950
-10,237
Purchase Of PPE
-15,386
-14,208
-12,950
-10,237
Operating Cash Flow
693,414
752,469
705,513
683,612
Cash Flow From Continuing Operating Activities
693,414
752,469
705,513
683,612
Change In Working Capital
-692
79,724
-23,704
40,466
Change In Other Working Capital
6,975
4,945
457
1,905
Change In Other Current Liabilities
1,465
2,541
4,783
14,416
Change In Other Current Assets
4,560
-1,381
-2,409
7,390
Change In Payables And Accrued Expense
53,191
-38,364
66,349
27,541
Change In Accrued Expense
27,660
34,240
34,439
6,439
Change In Payable
25,531
-72,604
31,910
21,102
Change In Account Payable
25,531
-72,604
31,910
21,102
Change In Prepaid Assets
-33,814
39,317
-47,490
23,840
Change In Receivables
-33,069
72,666
-45,394
-34,626
Changes In Account Receivables
-33,069
72,666
-45,394
-34,626
Other Non Cash Items
34,610
-18,962
8,129
7,661
Stock Based Compensation
244,745
282,847
284,558
230,888
Provisionand Write Offof Assets
9,006
11,950
19,634
12,464
Asset Impairment Charge
101,703
0
68,091
1,045,022
Deferred Tax
39,215
-14,445
-50,086
-55,303
Deferred Income Tax
39,215
-14,445
-50,086
-55,303
Depreciation Amortization Depletion
101,845
108,074
91,323
96,702
Depreciation And Amortization
101,845
108,074
91,323
96,702
Operating Gains Losses
10,030
1,238
-14,071
Net Foreign Currency Exchange Gain Loss
7,400
1,238
-14,071
Gain Loss On Sale Of Business
0
2,630
0
0
Net Income From Continuing Operations
162,982
303,281
307,568
-694,288
1/5
Graham Score
Speculative Investor
Fails most of Graham's safety criteria. Treat with caution.
Graham's Fair Value
N/A
Negative book value — Graham's formula requires positive equity (BVPS). Common in companies with heavy buybacks (MCD, AAPL). Not a flaw in the business, but the formula cannot produce a fair value.
Margin of Safety
—
Market Cap / Net Assets
⚠ Negative Net Assets
Net Assets: -$1.1B
⚠ Negative Net Assets — total liabilities exceed total assets on paper. This is common in companies that aggressively return capital via buybacks and dividends (Apple, McDonald's, Domino's). It does not indicate insolvency if the business generates strong, consistent free cash flow. Focus on FCF and earnings power rather than balance sheet book value for these companies.
Warren's Owner Earnings
$319M
Latest fiscal year
Graham's 7 Criteria
Defensive Investor Checklist
1/5 — Speculative Investor
✅
Adequate Size
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
$2.9B
vs > $1.5B revenue
❌
Strong Financial Condition
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
1.44x
vs Current Ratio > 2.0x
❌
Earnings Stability
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
1 loss years (4 yrs data)
vs No negative EPS years
❌
Dividend Record
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
No dividend
vs Uninterrupted dividends
❌
Earnings Growth
EPS grew from $2.24 to $1.39 over 2 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
-37.9% EPS growth
vs > 33% EPS growth
Graham's 7 Criteria — Explained
What each criterion measures and why it matters.
✅ Adequate Size — $2.9Bvs > $1.5B revenue
Graham required companies large enough to withstand economic downturns. This threshold ($1.5B) is inflation-adjusted from Graham's original $100M — virtually all S&P 500 companies pass this today.
"The minimum size of an enterprise should be not less than $100 million of annual sales."
❌ Strong Financial Condition — 1.44xvs Current Ratio > 2.0x
Current assets must be at least twice current liabilities. Note: highly profitable companies (Apple, Domino's) often run negative or low working capital deliberately — they collect cash fast and stretch payables. A failing score here is not always a warning sign.
"For industrial companies, current assets should be at least twice current liabilities."
❌ Earnings Stability — 1 loss years (4 yrs data)vs No negative EPS years
Graham required uninterrupted positive earnings. Any loss year is a red flag for defensive investors. Growth companies and cyclicals may show occasional losses during investment cycles or downturns without being fundamentally unsound.
"The company should have shown no deficit in the past ten years."
❌ Dividend Record — No dividendvs Uninterrupted dividends
Graham valued dividends as evidence of financial discipline and shareholder alignment. Many excellent modern businesses (Alphabet, Amazon, Berkshire Hathaway) pay no dividend, preferring to reinvest cash at high rates of return. Failing this criterion does not indicate a poor business — it may indicate a high-growth one.
"Some current dividend payments — for at least the past 20 years."
EPS grew from $2.24 to $1.39 over 2 years. Graham's 33% threshold was set over a 10-year period. Measured over fewer years (as here), the bar is proportionally lower. Share buybacks can also inflate EPS growth without reflecting underlying business improvement.
"A minimum increase of at least one-third in per-share earnings over ten years."
These metrics estimate what ETSY is worth based on fundamentals — independent of what the market prices it at.
Graham's Fair Value and NCAV are conservative floors.
EPV assumes zero growth. These are reference points, not price targets.
Net Current Asset Value
N/A
"Buy at two-thirds of net current assets." — Graham
Earnings Power Value
N/A
Per share, no-growth floor. Compare to current price.
ROIC — Return on Invested Capital
19.9%
Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.
Cash Flow Analysis
Metric
2025
2024
2023
2022
2021
Capital Expenditure % of Net Income
33.5%
14.3%
13.0%
N/A
N/A
Repurchase of Capital Stock
-$777M
-$724M
-$577M
-$426M
N/A
Free Cash Flow
$639M▼
$709M▲
$666M▲
$646M•
N/A•
Warren's Owner Earnings
$319M
$455M
$439M
-$560M
N/A
Peers & Industry
No auto-detected peers for this industry. You can manually compare ETSY against any stock using the Compare tool.
"The management of a business is its most important single factor — more important than market position, patents, or financial structure."
— Benjamin Graham
No management data available.
Risk Analysis
ETSY (ETSY) fundamental analysis — Overall grade C based on profitability, financial health, valuation and cash flow. Graham's
Fair Value: N/A. Gross profit margin: 71.6%. Operating margin: 12.8%. Net margin: 5.7%. Analysis powered by 360investing — free fundamental stock analysis based on Benjamin Graham and Warren Buffett
principles.
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