EBAY INC (EBAY) Stock Fundamental Analysis
USA - NASDAQ:EBAY - US2786421030 - Common Stock
91.14 USD
-1.97 (-2.12%)
91.14 USD
0 (0%)
We assign a fundamental rating of 6 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 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.
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
EBAY has a Return On Assets of 12.16%. This is amongst the best in the industry. EBAY outperforms 92.86% of its industry peers.
EBAY has a better Return On Equity (45.99%) than 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 16.20%, EBAY belongs to the best of the industry, outperforming 89.29% 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 above the industry average of 10.60%.
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 better Profit Margin (20.86%) than 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.
Looking at the Operating Margin, with a value of 22.99%, EBAY belongs to the top of the industry, outperforming 96.43% of the companies in the same industry.
EBAY's Operating Margin has been stable in the last couple of years.
EBAY has a better Gross Margin (71.88%) than 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.
The number of shares outstanding for EBAY has been reduced compared to 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 5.92 indicates that EBAY is not in any danger for bankruptcy at the moment.
EBAY has a better Altman-Z score (5.92) than 82.14% 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 60.71% 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 worse Debt to Equity ratio (1.05) than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.79 | ||
| Altman-Z | 5.92 |
ROIC/WACC1.84
WACC8.8%
2.3 Liquidity
A Current Ratio of 1.00 indicates that EBAY may have some problems paying its short term obligations.
EBAY has a Current ratio of 1.00. This is amonst the worse of the industry: EBAY underperforms 85.71% of its industry peers.
A Quick Ratio of 1.00 indicates that EBAY may have some problems paying its short term obligations.
EBAY has a worse Quick ratio (1.00) than 60.71% of its industry peers.
| 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.
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.
EBAY shows a small growth in Revenue. In the last year, the Revenue has grown by 2.75%.
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.
EBAY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.00% yearly.
EPS Next Y14.21%
EPS Next 2Y11.59%
EPS Next 3Y11.31%
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 17.56.
EBAY's Price/Earnings ratio is a bit cheaper when compared to the industry. EBAY is cheaper than 78.57% of the companies in the same industry.
When comparing the Price/Earnings ratio of EBAY to the average of the S&P500 Index (27.54), we can say EBAY is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.03 indicates a correct valuation of EBAY.
Based on the Price/Forward Earnings ratio, EBAY is valued a bit cheaper than 78.57% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.05, EBAY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.56 | ||
| Fwd PE | 15.03 |
4.2 Price Multiples
EBAY's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EBAY indicates a somewhat cheap valuation: EBAY is cheaper than 60.71% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.56 | ||
| EV/EBITDA | 15.55 |
4.3 Compensation for Growth
EBAY's 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)1.24
PEG (5Y)1.53
EPS Next 2Y11.59%
EPS Next 3Y11.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.24%, EBAY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 8.13, EBAY pays a bit more dividend than its industry peers.
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 | 1.24% |
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
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%
91.14
-1.97 (-2.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners97.24%
Inst Owner Change-3.49%
Ins Owners0.22%
Ins Owner Change-0.93%
Market Cap41.65B
Analysts68.21
Price Target89.28 (-2.04%)
Short Float %4.05%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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)0.51%
PT rev (3m)29.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.19%
EPS NY rev (1m)-0.09%
EPS NY rev (3m)2.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.56 | ||
| Fwd PE | 15.03 | ||
| P/S | 3.98 | ||
| P/FCF | 29.56 | ||
| P/OCF | 21.78 | ||
| P/B | 8.77 | ||
| P/tB | 179.53 | ||
| EV/EBITDA | 15.55 |
EPS(TTM)5.19
EY5.69%
EPS(NY)6.06
Fwd EY6.65%
FCF(TTM)3.08
FCFY3.38%
OCF(TTM)4.18
OCFY4.59%
SpS22.91
BVpS10.39
TBVpS0.51
PEG (NY)1.24
PEG (5Y)1.53
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 | 5.92 |
F-Score5
WACC8.8%
ROIC/WACC1.84
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 Year5.49%
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 Year17.57%
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%