EBAY INC (EBAY)
US2786421030 - Common Stock
Overall EBAY gets a fundamental rating of 7 out of 10. We evaluated EBAY against 34 industry peers in the Broadline Retail industry. EBAY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. A decent growth rate in combination with a cheap valuation! Better keep an eye on EBAY. These ratings would make EBAY suitable for value investing!
1. Profitability
1.1 Basic Checks
EBAY had positive earnings in the past year.
EBAY had a positive operating cash flow in the past year.
Of the past 5 years EBAY 4 years were profitable.
In the past 5 years EBAY always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.80%, EBAY belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
Looking at the Return On Equity, with a value of 43.26%, EBAY belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
EBAY has a better Return On Invested Capital (10.69%) than 78.79% of its industry peers.
EBAY had an Average Return On Invested Capital over the past 3 years of 11.41%. This is in line with the industry average of 11.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.8% | ||
| ROE | 43.26% | ||
| ROIC | 10.69% |
ROA(3y)19.27%
ROA(5y)19.4%
ROE(3y)52.6%
ROE(5y)75.83%
ROIC(3y)11.41%
ROIC(5y)11.77%
1.3 Margins
EBAY has a Profit Margin of 27.36%. This is amongst the best in the industry. EBAY outperforms 100.00% of its industry peers.
EBAY's Profit Margin has been stable in the last couple of years.
EBAY has a better Operating Margin (24.15%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of EBAY has grown nicely.
With an excellent Gross Margin value of 71.98%, EBAY belongs to the best of the industry, outperforming 93.94% of the companies in the same industry.
EBAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.15% | ||
| PM (TTM) | 27.36% | ||
| GM | 71.98% |
OM growth 3Y-10.34%
OM growth 5Y2.78%
PM growth 3Y-24.55%
PM growth 5Y-1.32%
GM growth 3Y-3.38%
GM growth 5Y-1.24%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EBAY is still creating some value.
EBAY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EBAY has less shares outstanding
Compared to 1 year ago, EBAY has an improved debt to assets ratio.
2.2 Solvency
EBAY has an Altman-Z score of 4.61. This indicates that EBAY is financially healthy and has little risk of bankruptcy at the moment.
EBAY has a better Altman-Z score (4.61) than 75.76% of its industry peers.
The Debt to FCF ratio of EBAY is 3.92, which is a good value as it means it would take EBAY, 3.92 years of fcf income to pay off all of its debts.
EBAY's Debt to FCF ratio of 3.92 is fine compared to the rest of the industry. EBAY outperforms 63.64% of its industry peers.
A Debt/Equity ratio of 1.09 is on the high side and indicates that EBAY has dependencies on debt financing.
EBAY has a worse Debt to Equity ratio (1.09) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | 3.92 | ||
| Altman-Z | 4.61 |
ROIC/WACC1.14
WACC9.34%
2.3 Liquidity
A Current Ratio of 2.44 indicates that EBAY has no problem at all paying its short term obligations.
EBAY's Current ratio of 2.44 is amongst the best of the industry. EBAY outperforms 87.88% of its industry peers.
A Quick Ratio of 2.44 indicates that EBAY has no problem at all paying its short term obligations.
EBAY has a Quick ratio of 2.44. This is amongst the best in the industry. EBAY outperforms 93.94% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.44 | ||
| Quick Ratio | 2.44 |
3. Growth
3.1 Past
EBAY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.16%.
EBAY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.72% yearly.
Looking at the last year, EBAY shows a small growth in Revenue. The Revenue has grown by 3.24% in the last year.
Measured over the past years, EBAY shows a small growth in Revenue. The Revenue has been growing by 3.17% on average per year.
EPS 1Y (TTM)3.16%
EPS 3Y6%
EPS 5Y12.72%
EPS growth Q2Q0%
Revenue 1Y (TTM)3.24%
Revenue growth 3Y4.37%
Revenue growth 5Y3.17%
Revenue growth Q2Q2.07%
3.2 Future
EBAY is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.75% yearly.
The Revenue is expected to grow by 3.87% on average over the next years.
EPS Next Y12.36%
EPS Next 2Y9.73%
EPS Next 3Y8.56%
EPS Next 5Y6.75%
Revenue Next Year2.16%
Revenue Next 2Y2.84%
Revenue Next 3Y2.93%
Revenue Next 5Y3.87%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
A Price/Earnings ratio of 11.65 indicates a reasonable valuation of EBAY.
75.76% of the companies in the same industry are more expensive than EBAY, based on the Price/Earnings ratio.
EBAY is valuated cheaply when we compare the Price/Earnings ratio to 24.55, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.37 indicates a reasonable valuation of EBAY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EBAY indicates a somewhat cheap valuation: EBAY is cheaper than 69.70% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.92, EBAY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EBAY is valued a bit cheaper than 78.79% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EBAY is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.99 | ||
| EV/EBITDA | 6.39 |
4.3 Compensation for Growth
EBAY's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of EBAY may justify a higher PE ratio.
PEG (NY)0.94
PEG (5Y)0.92
EPS Next 2Y9.73%
EPS Next 3Y8.56%
5. Dividend
5.1 Amount
EBAY has a Yearly Dividend Yield of 2.10%. 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 4.27. EBAY pays more dividend than 81.82% of the companies in the same industry.
EBAY's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
On average, the dividend of EBAY grows each year by 16.26%, which is quite nice.
EBAY has been paying a dividend for over 5 years, so it has already some track record.
EBAY has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)16.26%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
EBAY pays out 19.08% 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.
DP19.08%
EPS Next 2Y9.73%
EPS Next 3Y8.56%
EBAY INC
NASDAQ:EBAY (5/2/2024, 3:53:21 PM)
After market: 49.11 -0.28 (-0.57%)49.39
-1.67 (-3.27%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap25.58B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS NQ rev (1m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.65 | ||
| Fwd PE | 10.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.94
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.8% | ||
| ROE | 43.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 24.15% | ||
| PM (TTM) | 27.36% | ||
| GM | 71.98% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.09 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.44 | ||
| Quick Ratio | 2.44 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)3.16%
EPS 3Y6%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.36%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.24%
Revenue growth 3Y4.37%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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OCF growth 3Y
OCF growth 5Y