EBAY INC (EBAY) Stock Fundamental Analysis
NASDAQ:EBAY - US2786421030 - Common Stock
92.66 USD
-0.37 (-0.4%)
92.79 USD
+0.13 (+0.14%)
We assign a fundamental rating of 5 out of 10 to EBAY. EBAY was compared to 28 industry peers in the Broadline Retail industry. While EBAY belongs to the best of the industry regarding profitability, there are 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.
EBAY had a positive operating cash flow in the past year.
EBAY had positive earnings in 4 of the past 5 years.
Each year in the past 5 years EBAY had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.16%, EBAY belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
EBAY's Return On Equity of 45.99% is amongst the best of the industry. EBAY outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.20%, EBAY belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
EBAY had an Average Return On Invested Capital over the past 3 years of 12.79%. This is in line with the industry average of 11.00%.
The last Return On Invested Capital (16.20%) for EBAY is above the 3 year average (12.79%), which is a sign of increasing profitability.
| 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 96.43% 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 96.43% of its industry peers.
In the last couple of years the Operating Margin of EBAY has remained more or less at the same level.
EBAY's Gross Margin of 71.88% is amongst the best of the industry. EBAY outperforms 89.29% 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.
Compared to 5 years ago, EBAY has less shares outstanding
Compared to 1 year ago, EBAY has a worse debt to assets ratio.
2.2 Solvency
EBAY has an Altman-Z score of 5.95. This indicates that EBAY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.95, EBAY is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
EBAY has a debt to FCF ratio of 4.79. This is a neutral value as EBAY would need 4.79 years to pay back of all of its debts.
EBAY has a Debt to FCF ratio (4.79) which is comparable to the rest of the industry.
A Debt/Equity ratio of 1.05 is on the high side and indicates that EBAY has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.05, EBAY is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.79 | ||
| Altman-Z | 5.95 |
ROIC/WACC1.89
WACC8.55%
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.
With a Current ratio value of 1.00, EBAY is not doing good in the industry: 85.71% of the companies in the same industry are doing better.
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.
Looking at the Quick ratio, with a value of 1.00, EBAY is doing worse than 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
EBAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.57%, which is quite good.
The Earnings Per Share has been growing by 11.47% on average over the past years. This is quite good.
The Revenue has been growing slightly by 2.75% in the past year.
Measured over the past years, EBAY shows a small growth in Revenue. The Revenue has been growing by 3.55% on average per year.
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
The Earnings Per Share is expected to grow by 10.77% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.00% on average over the next years.
EPS Next Y14.31%
EPS Next 2Y11.57%
EPS Next 3Y11.28%
EPS Next 5Y10.77%
Revenue Next Year5.49%
Revenue Next 2Y5.26%
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
EBAY is valuated rather expensively with a Price/Earnings ratio of 17.85.
Compared to the rest of the industry, the Price/Earnings ratio of EBAY indicates a somewhat cheap valuation: EBAY is cheaper than 75.00% of the companies listed in the same industry.
EBAY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 15.29, the valuation of EBAY can be described as correct.
67.86% of the companies in the same industry are more expensive than EBAY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.69. EBAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.85 | ||
| Fwd PE | 15.29 |
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 the industry average as 60.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.05 | ||
| EV/EBITDA | 15.8 |
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)1.56
EPS Next 2Y11.57%
EPS Next 3Y11.28%
5. Dividend
5.1 Amount
EBAY has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
EBAY's Dividend Yield is a higher than the industry average which is at 8.53.
Compared to an average S&P500 Dividend Yield of 2.41, EBAY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
On average, the dividend of EBAY grows each year by 14.31%, 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 past 5 years, so it has a somewhat stable track record.
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 2Y11.57%
EPS Next 3Y11.28%
92.66
-0.37 (-0.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.87%
Inst Owner Change-3.49%
Ins Owners0.25%
Ins Owner Change-0.38%
Market Cap42.35B
Analysts68.21
Price Target89.28 (-3.65%)
Short Float %4.02%
Short Ratio3.04
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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)2.36%
Min EPS beat(2)1.07%
Max EPS beat(2)3.64%
EPS beat(4)3
Avg EPS beat(4)1.33%
Min EPS beat(4)-1.24%
Max EPS beat(4)3.64%
EPS beat(8)7
Avg EPS beat(8)1.65%
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)5.62%
PT rev (3m)29.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.69%
EPS NY rev (1m)2.27%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)3.3%
Revenue NY rev (1m)2%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.85 | ||
| Fwd PE | 15.29 | ||
| P/S | 4.04 | ||
| P/FCF | 30.05 | ||
| P/OCF | 22.15 | ||
| P/B | 8.92 | ||
| P/tB | 182.52 | ||
| EV/EBITDA | 15.8 |
EPS(TTM)5.19
EY5.6%
EPS(NY)6.06
Fwd EY6.54%
FCF(TTM)3.08
FCFY3.33%
OCF(TTM)4.18
OCFY4.52%
SpS22.91
BVpS10.39
TBVpS0.51
PEG (NY)1.25
PEG (5Y)1.56
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 | 5.95 |
F-Score5
WACC8.55%
ROIC/WACC1.89
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 Y14.31%
EPS Next 2Y11.57%
EPS Next 3Y11.28%
EPS Next 5Y10.77%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y-0.44%
Revenue growth 5Y3.55%
Sales Q2Q%6.14%
Revenue Next Year5.49%
Revenue Next 2Y5.26%
Revenue Next 3Y5.11%
Revenue Next 5Y5%
EBIT growth 1Y3.04%
EBIT growth 3Y-11.51%
EBIT growth 5Y4.13%
EBIT Next Year17.4%
EBIT Next 3Y9.9%
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%