EBAY INC (EBAY) Stock Fundamental Analysis
USA - NASDAQ:EBAY - US2786421030 - Common Stock
94.98 USD
-0.67 (-0.7%)
95.5 USD
+0.52 (+0.55%)
Taking everything into account, EBAY scores 6 out of 10 in our fundamental rating. EBAY was compared to 30 industry peers in the Broadline Retail industry. EBAY scores excellent on profitability, but there are some minor concerns on its financial health. EBAY is not valued too expensively and it also shows a decent 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.
EBAY had positive earnings in 4 of the past 5 years.
In the past 5 years EBAY always reported a positive cash flow from operatings.
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 has a better Return On Equity (45.99%) than 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 has a Profit Margin of 20.86%. This is amongst the best in the industry. EBAY outperforms 96.67% of its industry peers.
EBAY's Profit Margin has been stable in the last couple of years.
EBAY's Operating Margin of 22.99% is amongst the best of the industry. EBAY outperforms 100.00% of its industry peers.
EBAY's Operating Margin has been stable in the last couple of years.
EBAY has a better Gross Margin (71.88%) than 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), EBAY 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.
Compared to 1 year ago, EBAY has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.00 indicates that EBAY is not in any danger for bankruptcy at the moment.
The Altman-Z score of EBAY (6.00) is better than 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's Debt to FCF ratio of 4.79 is fine compared to the rest of the industry. EBAY outperforms 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.
EBAY has a Debt to Equity ratio of 1.05. This is amonst the worse of the industry: EBAY underperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.79 | ||
| Altman-Z | 6 |
ROIC/WACC1.96
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.00 indicates that EBAY may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.00, EBAY is doing worse than 86.67% of the companies in the same industry.
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.
EBAY's Quick ratio of 1.00 is on the low side compared to the rest of the industry. EBAY is outperformed by 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.
Measured over the past years, EBAY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.47% on average per year.
The Revenue has been growing slightly by 2.75% in the past 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
Based on estimates for the next years, EBAY will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.77% on average per year.
The Revenue is expected to grow by 5.00% on average over the next years.
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 18.30, which indicates a rather expensive current valuation of EBAY.
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.
Compared to an average S&P500 Price/Earnings ratio of 27.77, EBAY is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 15.66, the valuation of EBAY can be described as correct.
Based on the Price/Forward Earnings ratio, EBAY is valued a bit cheaper than 76.67% of the companies in the same industry.
EBAY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.23, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.3 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EBAY.
Based on the Price/Free Cash Flow ratio, EBAY is valued a bit cheaper than the industry average as 63.33% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.81 | ||
| EV/EBITDA | 16.18 |
4.3 Compensation for Growth
EBAY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EBAY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.29
PEG (5Y)1.6
EPS Next 2Y11.59%
EPS Next 3Y11.31%
5. Dividend
5.1 Amount
EBAY has a Yearly Dividend Yield of 1.27%. Purely for dividend investing, there may be better candidates out there.
EBAY's Dividend Yield is rather good when compared to the industry average which is at 9.75. EBAY pays more dividend than 83.33% of the companies 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
EBAY pays out 24.13% of its income as dividend. This is a 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%
94.98
-0.67 (-0.7%)
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 Cap43.41B
Analysts68
Price Target89.28 (-6%)
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 | 18.3 | ||
| Fwd PE | 15.66 | ||
| P/S | 4.15 | ||
| P/FCF | 30.81 | ||
| P/OCF | 22.7 | ||
| P/B | 9.14 | ||
| P/tB | 187.09 | ||
| EV/EBITDA | 16.18 |
EPS(TTM)5.19
EY5.46%
EPS(NY)6.06
Fwd EY6.38%
FCF(TTM)3.08
FCFY3.25%
OCF(TTM)4.18
OCFY4.4%
SpS22.91
BVpS10.39
TBVpS0.51
PEG (NY)1.29
PEG (5Y)1.6
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 | 6 |
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%