EBAY INC (EBAY) Stock Fundamental Analysis
NASDAQ:EBAY - Nasdaq - US2786421030 - Common Stock - Currency: USD
Taking everything into account, EBAY scores 5 out of 10 in our fundamental rating. EBAY was compared to 28 industry peers in the Broadline Retail industry. EBAY has an excellent profitability rating, 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.
Of the past 5 years EBAY 4 years were profitable.
Each year in the past 5 years EBAY had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.16%, EBAY belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
Looking at the Return On Equity, with a value of 45.99%, EBAY belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.20%, EBAY belongs to the best 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 11.32%.
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 96.43% 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 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EBAY is creating value.
The number of shares outstanding for EBAY has been reduced compared to 1 year ago.
EBAY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for EBAY is higher compared to a year ago.
2.2 Solvency
EBAY has an Altman-Z score of 6.09. This indicates that EBAY is financially healthy and has little risk of bankruptcy at the moment.
EBAY has a better Altman-Z score (6.09) than 85.71% 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 Debt to FCF ratio of 4.79. This is comparable to the rest of the industry: EBAY outperforms 57.14% 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 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.79 | ||
| Altman-Z | 6.09 |
ROIC/WACC1.84
WACC8.82%
2.3 Liquidity
A Current Ratio of 1.00 indicates that EBAY may have some problems paying its short term obligations.
EBAY has a worse Current ratio (1.00) than 85.71% 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 64.29% 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.
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 8.49% yearly.
The Revenue is expected to grow by 3.71% on average over the next years.
EPS Next Y11.77%
EPS Next 2Y9.75%
EPS Next 3Y9.31%
EPS Next 5Y8.49%
Revenue Next Year3.42%
Revenue Next 2Y3.65%
Revenue Next 3Y3.75%
Revenue Next 5Y3.71%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.40, which indicates a rather expensive current valuation of EBAY.
Based on the Price/Earnings ratio, EBAY is valued a bit cheaper than the industry average as 64.29% of the companies are valued more expensively.
EBAY's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.87.
Based on the Price/Forward Earnings ratio of 17.17, the valuation of EBAY can be described as rather expensive.
67.86% of the companies in the same industry are more expensive than EBAY, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.34, EBAY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 17.17 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as EBAY.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EBAY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.95 | ||
| EV/EBITDA | 16.9 |
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)1.65
PEG (5Y)1.69
EPS Next 2Y9.75%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
EBAY has a Yearly Dividend Yield of 1.18%.
EBAY's Dividend Yield is a higher than the industry average which is at 15.06.
Compared to an average S&P500 Dividend Yield of 2.39, EBAY's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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.
EBAY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.13%
EPS Next 2Y9.75%
EPS Next 3Y9.31%
100.7
+2.22 (+2.25%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.87%
Inst Owner Change-0.04%
Ins Owners0.25%
Ins Owner Change-0.41%
Market Cap46.42B
Analysts68.72
Price Target84.53 (-16.06%)
Short Float %4.51%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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)22.77%
PT rev (3m)22.84%
EPS NQ rev (1m)2.3%
EPS NQ rev (3m)1.69%
EPS NY rev (1m)0%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)2.85%
Revenue NQ rev (3m)3.04%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.4 | ||
| Fwd PE | 17.17 | ||
| P/S | 4.43 | ||
| P/FCF | 32.95 | ||
| P/OCF | 24.28 | ||
| P/B | 9.78 | ||
| P/tB | 200.1 | ||
| EV/EBITDA | 16.9 |
EPS(TTM)5.19
EY5.15%
EPS(NY)5.87
Fwd EY5.82%
FCF(TTM)3.06
FCFY3.04%
OCF(TTM)4.15
OCFY4.12%
SpS22.71
BVpS10.3
TBVpS0.5
PEG (NY)1.65
PEG (5Y)1.69
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 | 6.09 |
F-Score5
WACC8.82%
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 Y11.77%
EPS Next 2Y9.75%
EPS Next 3Y9.31%
EPS Next 5Y8.49%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y-0.44%
Revenue growth 5Y3.55%
Sales Q2Q%6.14%
Revenue Next Year3.42%
Revenue Next 2Y3.65%
Revenue Next 3Y3.75%
Revenue Next 5Y3.71%
EBIT growth 1Y3.04%
EBIT growth 3Y-11.51%
EBIT growth 5Y4.13%
EBIT Next Year17.4%
EBIT Next 3Y9.9%
EBIT Next 5Y6.99%
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%