EBAY INC (EBAY) Stock Fundamental Analysis
USA - NASDAQ:EBAY - US2786421030 - Common Stock
92.01 USD
+0.83 (+0.91%)
92 USD
-0.01 (-0.01%)
EBAY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 30 industry peers in the Broadline Retail industry. While EBAY has a great profitability rating, there are some minor concerns on its financial health. EBAY has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year EBAY was profitable.
In the past year EBAY had a positive cash flow from operations.
Of the past 5 years EBAY 4 years were profitable.
EBAY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EBAY has a Return On Assets of 12.16%. This is amongst the best in the industry. EBAY outperforms 93.33% of its industry peers.
EBAY's Return On Equity of 45.99% is amongst the best of the industry. EBAY outperforms 100.00% of its industry peers.
The Return On Invested Capital of EBAY (16.20%) is better than 90.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EBAY is above the industry average of 10.42%.
The 3 year average ROIC (12.79%) for EBAY is below the current ROIC(16.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.16% | ||
| ROE | 45.99% | ||
| ROIC | 16.2% |
ROA(3y)5.64%
ROA(5y)19.47%
ROE(3y)18.98%
ROE(5y)71.05%
ROIC(3y)12.79%
ROIC(5y)13.29%
1.3 Margins
EBAY's Profit Margin of 20.86% is amongst the best of the industry. EBAY outperforms 96.67% of its industry peers.
In the last couple of years the Profit Margin of EBAY has remained more or less at the same level.
EBAY has a better Operating Margin (22.99%) than 100.00% of its industry peers.
EBAY's Operating Margin has been stable in the last couple of years.
EBAY has a Gross Margin of 71.88%. This is amongst the best in the industry. EBAY outperforms 90.00% of its industry peers.
EBAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.99% | ||
| PM (TTM) | 20.86% | ||
| GM | 71.88% |
OM growth 3Y-11.12%
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
EBAY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
EBAY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for EBAY has been reduced compared to 5 years ago.
EBAY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.94 indicates that EBAY is not in any danger for bankruptcy at the moment.
EBAY has a Altman-Z score of 5.94. This is in the better half of the industry: EBAY outperforms 80.00% of its industry peers.
The Debt to FCF ratio of EBAY is 4.79, which is a neutral value as it means it would take EBAY, 4.79 years of fcf income to pay off all of its debts.
EBAY has a better Debt to FCF ratio (4.79) than 63.33% of its industry peers.
EBAY has a Debt/Equity ratio of 1.05. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.05, EBAY is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.79 | ||
| Altman-Z | 5.94 |
ROIC/WACC1.96
WACC8.26%
2.3 Liquidity
EBAY has a Current Ratio of 1.00. This is a bad value and indicates that EBAY is not financially healthy enough and could expect problems in meeting its short term obligations.
EBAY has a Current ratio of 1.00. This is amonst the worse of the industry: EBAY underperforms 86.67% of its industry peers.
EBAY has a Quick Ratio of 1.00. This is a bad value and indicates that EBAY is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of EBAY (1.00) is worse than 63.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.57% over the past year.
The Earnings Per Share has been growing by 11.47% on average over the past years. This is quite good.
Looking at the last year, EBAY shows a small growth in Revenue. The Revenue has grown by 2.75% in the last year.
EBAY shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 3.55% yearly.
EPS 1Y (TTM)14.57%
EPS 3Y6.51%
EPS 5Y11.47%
EPS Q2Q%16.1%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y-0.44%
Revenue growth 5Y3.55%
Sales Q2Q%6.14%
3.2 Future
EBAY is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.77% yearly.
Based on estimates for the next years, EBAY will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
EPS Next Y14.21%
EPS Next 2Y11.59%
EPS Next 3Y11.31%
EPS Next 5Y10.77%
Revenue Next Year5.47%
Revenue Next 2Y5.27%
Revenue Next 3Y5.11%
Revenue Next 5Y5%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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 17.73, the valuation of EBAY can be described as rather expensive.
EBAY's Price/Earnings ratio is a bit cheaper when compared to the industry. EBAY is cheaper than 76.67% of the companies in the same industry.
When comparing the Price/Earnings ratio of EBAY to the average of the S&P500 Index (27.42), we can say EBAY is valued slightly cheaper.
With a Price/Forward Earnings ratio of 15.17, EBAY is valued correctly.
76.67% of the companies in the same industry are more expensive than EBAY, based on the Price/Forward Earnings ratio.
EBAY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.73 | ||
| Fwd PE | 15.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EBAY is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, EBAY is valued a bit cheaper than 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.84 | ||
| EV/EBITDA | 15.69 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of EBAY may justify a higher PE ratio.
PEG (NY)1.25
PEG (5Y)1.55
EPS Next 2Y11.59%
EPS Next 3Y11.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.27%, EBAY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 9.75, EBAY pays a better dividend. On top of this EBAY pays more dividend than 83.33% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, EBAY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
5.2 History
The dividend of EBAY is nicely growing with an annual growth rate of 14.31%!
EBAY has been paying a dividend for over 5 years, so it has already some track record.
As EBAY did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)14.31%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
24.13% of the earnings are spent on dividend by EBAY. This is a low number and sustainable payout ratio.
The dividend of EBAY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.13%
EPS Next 2Y11.59%
EPS Next 3Y11.31%
92.01
+0.83 (+0.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.24%
Inst Owner Change-0.43%
Ins Owners0.22%
Ins Owner Change-0.86%
Market Cap42.05B
Analysts68
Price Target89.28 (-2.97%)
Short Float %3.83%
Short Ratio2.82
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.27% |
Yearly Dividend1.08
Dividend Growth(5Y)14.31%
DP24.13%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.32%
Min EPS beat(2)1.07%
Max EPS beat(2)3.56%
EPS beat(4)3
Avg EPS beat(4)1.31%
Min EPS beat(4)-1.24%
Max EPS beat(4)3.56%
EPS beat(8)7
Avg EPS beat(8)1.64%
EPS beat(12)10
Avg EPS beat(12)1.72%
EPS beat(16)12
Avg EPS beat(16)2.02%
Revenue beat(2)1
Avg Revenue beat(2)0.36%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)1.22%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)1.22%
Revenue beat(8)1
Avg Revenue beat(8)-0.64%
Revenue beat(12)2
Avg Revenue beat(12)-0.54%
Revenue beat(16)3
Avg Revenue beat(16)-0.56%
PT rev (1m)0%
PT rev (3m)28.26%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)2.34%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)2.18%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)3.15%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.73 | ||
| Fwd PE | 15.17 | ||
| P/S | 4.02 | ||
| P/FCF | 29.84 | ||
| P/OCF | 21.99 | ||
| P/B | 8.85 | ||
| P/tB | 181.24 | ||
| EV/EBITDA | 15.69 |
EPS(TTM)5.19
EY5.64%
EPS(NY)6.06
Fwd EY6.59%
FCF(TTM)3.08
FCFY3.35%
OCF(TTM)4.18
OCFY4.55%
SpS22.91
BVpS10.39
TBVpS0.51
PEG (NY)1.25
PEG (5Y)1.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.16% | ||
| ROE | 45.99% | ||
| ROCE | 20.02% | ||
| ROIC | 16.2% | ||
| ROICexc | 23.55% | ||
| ROICexgc | 51.88% | ||
| OM | 22.99% | ||
| PM (TTM) | 20.86% | ||
| GM | 71.88% | ||
| FCFM | 13.46% |
ROA(3y)5.64%
ROA(5y)19.47%
ROE(3y)18.98%
ROE(5y)71.05%
ROIC(3y)12.79%
ROIC(5y)13.29%
ROICexc(3y)24.05%
ROICexc(5y)22.27%
ROICexgc(3y)50.74%
ROICexgc(5y)42.55%
ROCE(3y)16%
ROCE(5y)16.54%
ROICexcg growth 3Y28.47%
ROICexcg growth 5Y16.77%
ROICexc growth 3Y9.19%
ROICexc growth 5Y12.1%
OM growth 3Y-11.12%
OM growth 5Y0.56%
PM growth 3Y-47.22%
PM growth 5Y-1.47%
GM growth 3Y-1.16%
GM growth 5Y-0.89%
F-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.79 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 140.9% | ||
| Cap/Sales | 4.8% | ||
| Interest Coverage | 9.08 | ||
| Cash Conversion | 69.18% | ||
| Profit Quality | 64.51% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 5.94 |
F-Score5
WACC8.26%
ROIC/WACC1.96
Cap/Depr(3y)118.7%
Cap/Depr(5y)105.13%
Cap/Sales(3y)4.52%
Cap/Sales(5y)4.67%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)14.57%
EPS 3Y6.51%
EPS 5Y11.47%
EPS Q2Q%16.1%
EPS Next Y14.21%
EPS Next 2Y11.59%
EPS Next 3Y11.31%
EPS Next 5Y10.77%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y-0.44%
Revenue growth 5Y3.55%
Sales Q2Q%6.14%
Revenue Next Year5.47%
Revenue Next 2Y5.27%
Revenue Next 3Y5.11%
Revenue Next 5Y5%
EBIT growth 1Y3.04%
EBIT growth 3Y-11.51%
EBIT growth 5Y4.13%
EBIT Next Year17.57%
EBIT Next 3Y9.7%
EBIT Next 5Y8.06%
FCF growth 1Y-40.17%
FCF growth 3Y-4.03%
FCF growth 5Y-5.24%
OCF growth 1Y-33.03%
OCF growth 3Y-3.15%
OCF growth 5Y-4.96%