EBAY INC (EBA.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:EBA - US2786421030 - Common Stock
79.38 EUR
-0.45 (-0.56%)
Overall EBA gets a fundamental rating of 5 out of 10. We evaluated EBA against 13 industry peers in the Broadline Retail industry. EBA has an excellent profitability rating, but there are concerns on its financial health. EBA has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year EBA was profitable.
- In the past year EBA had a positive cash flow from operations.
- EBA had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years EBA had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of EBA (12.26%) is better than 76.92% of its industry peers.
- EBA has a better Return On Equity (46.24%) than 100.00% of its industry peers.
- EBA has a better Return On Invested Capital (16.87%) than 92.31% of its industry peers.
- EBA had an Average Return On Invested Capital over the past 3 years of 12.79%. This is above the industry average of 8.68%.
- The 3 year average ROIC (12.79%) for EBA is below the current ROIC(16.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.26% | ||
| ROE | 46.24% | ||
| ROIC | 16.87% |
ROA(3y)5.64%
ROA(5y)19.47%
ROE(3y)18.98%
ROE(5y)71.05%
ROIC(3y)12.79%
ROIC(5y)13.31%
1.3 Margins
- With an excellent Profit Margin value of 20.37%, EBA belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
- In the last couple of years the Profit Margin of EBA has remained more or less at the same level.
- Looking at the Operating Margin, with a value of 23.27%, EBA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- EBA's Operating Margin has been stable in the last couple of years.
- EBA has a Gross Margin of 71.64%. This is amongst the best in the industry. EBA outperforms 92.31% of its industry peers.
- In the last couple of years the Gross Margin of EBA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.27% | ||
| PM (TTM) | 20.37% | ||
| GM | 71.64% |
OM growth 3Y-11.32%
OM growth 5Y0.56%
PM growth 3Y-47.22%
PM growth 5Y-1.47%
GM growth 3Y-1.16%
GM growth 5Y-0.89%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EBA is creating value.
- The number of shares outstanding for EBA has been reduced compared to 1 year ago.
- EBA has less shares outstanding than it did 5 years ago.
- EBA has a worse debt/assets ratio than last year.
2.2 Solvency
- The Debt to FCF ratio of EBA is 4.42, which is a neutral value as it means it would take EBA, 4.42 years of fcf income to pay off all of its debts.
- EBA's Debt to FCF ratio of 4.42 is fine compared to the rest of the industry. EBA outperforms 76.92% of its industry peers.
- EBA has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
- EBA has a worse Debt to Equity ratio (1.06) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 4.42 | ||
| Altman-Z | N/A |
ROIC/WACC1.98
WACC8.51%
2.3 Liquidity
- A Current Ratio of 0.92 indicates that EBA may have some problems paying its short term obligations.
- EBA has a worse Current ratio (0.92) than 76.92% of its industry peers.
- EBA has a Quick Ratio of 0.92. This is a bad value and indicates that EBA is not financially healthy enough and could expect problems in meeting its short term obligations.
- EBA has a Quick ratio (0.92) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
- EBA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.29%, which is quite good.
- EBA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.47% yearly.
- The Revenue has been growing slightly by 4.36% in the past year.
- EBA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.55% yearly.
EPS 1Y (TTM)14.29%
EPS 3Y6.51%
EPS 5Y11.47%
EPS Q2Q%14.29%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y-0.44%
Revenue growth 5Y3.55%
Sales Q2Q%9.47%
3.2 Future
- EBA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.40% yearly.
- Based on estimates for the next years, EBA will show a small growth in Revenue. The Revenue will grow by 5.13% on average per year.
EPS Next Y14.62%
EPS Next 2Y10.74%
EPS Next 3Y10.47%
EPS Next 5Y10.4%
Revenue Next Year7.16%
Revenue Next 2Y5.93%
Revenue Next 3Y5.63%
Revenue Next 5Y5.13%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 17.41, the valuation of EBA can be described as rather expensive.
- Based on the Price/Earnings ratio, EBA is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
- EBA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
- Based on the Price/Forward Earnings ratio of 15.61, the valuation of EBA can be described as correct.
- EBA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EBA is cheaper than 76.92% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. EBA is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.41 | ||
| Fwd PE | 15.61 |
4.2 Price Multiples
- 69.23% of the companies in the same industry are more expensive than EBA, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of EBA indicates a somewhat cheap valuation: EBA is cheaper than 69.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.57 | ||
| EV/EBITDA | 15.55 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- EBA has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.19
PEG (5Y)1.52
EPS Next 2Y10.74%
EPS Next 3Y10.47%
5. Dividend
5.1 Amount
- EBA has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
- EBA's Dividend Yield is rather good when compared to the industry average which is at 0.50. EBA pays more dividend than 92.31% of the companies in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.81, EBA is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
5.2 History
- The dividend of EBA is nicely growing with an annual growth rate of 14.31%!
Dividend Growth(5Y)14.31%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
- EBA pays out 24.20% of its income as dividend. This is a sustainable payout ratio.
- The dividend of EBA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.2%
EPS Next 2Y10.74%
EPS Next 3Y10.47%
EBAY INC / EBA.DE FAQ
Can you provide the ChartMill fundamental rating for EBAY INC?
ChartMill assigns a fundamental rating of 5 / 10 to EBA.DE.
What is the valuation status for EBA stock?
ChartMill assigns a valuation rating of 5 / 10 to EBAY INC (EBA.DE). This can be considered as Fairly Valued.
How profitable is EBAY INC (EBA.DE) stock?
EBAY INC (EBA.DE) has a profitability rating of 8 / 10.
How financially healthy is EBAY INC?
The financial health rating of EBAY INC (EBA.DE) is 3 / 10.
What is the expected EPS growth for EBAY INC (EBA.DE) stock?
The Earnings per Share (EPS) of EBAY INC (EBA.DE) is expected to grow by 14.62% in the next year.