EBAY INC (EBAY) Stock Fundamental Analysis
NASDAQ:EBAY - Nasdaq - US2786421030 - Common Stock - Currency: USD
EBAY gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 31 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
EBAY had positive earnings in the past year.
In the past year EBAY had a positive cash flow from operations.
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's Return On Assets of 10.76% is amongst the best of the industry. EBAY outperforms 90.32% of its industry peers.
EBAY has a Return On Equity of 41.21%. This is amongst the best in the industry. EBAY outperforms 100.00% of its industry peers.
EBAY has a better Return On Invested Capital (14.75%) than 80.65% of its industry peers.
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 11.52%.
The 3 year average ROIC (12.79%) for EBAY is below the current ROIC(14.75%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.76% | ||
| ROE | 41.21% | ||
| ROIC | 14.75% |
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
With an excellent Profit Margin value of 19.78%, EBAY belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
EBAY's Profit Margin has been stable in the last couple of years.
The Operating Margin of EBAY (23.11%) is better than 96.77% 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 has a better Gross Margin (71.85%) than 87.10% of its industry peers.
EBAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.11% | ||
| PM (TTM) | 19.78% | ||
| GM | 71.85% |
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) just above the Cost of Capital (WACC), EBAY is creating some 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 5.30 indicates that EBAY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.30, EBAY belongs to the top of the industry, outperforming 80.65% of the companies in the same industry.
EBAY has a debt to FCF ratio of 3.17. This is a good value and a sign of high solvency as EBAY would need 3.17 years to pay back of all of its debts.
With a Debt to FCF ratio value of 3.17, EBAY perfoms like the industry average, outperforming 58.06% of the companies in the same industry.
A Debt/Equity ratio of 1.16 is on the high side and indicates that EBAY has dependencies on debt financing.
With a Debt to Equity ratio value of 1.16, EBAY is not doing good in the industry: 70.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 5.3 |
ROIC/WACC1.52
WACC9.71%
2.3 Liquidity
A Current Ratio of 1.17 indicates that EBAY should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, EBAY is doing worse than 74.19% of the companies in the same industry.
EBAY has a Quick Ratio of 1.17. This is a normal value and indicates that EBAY is financially healthy and should not expect problems in meeting its short term obligations.
EBAY has a Quick ratio (1.17) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
EBAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.16%, which is quite good.
EBAY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.47% yearly.
Looking at the last year, EBAY shows a small growth in Revenue. The Revenue has grown by 1.52% 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)14.16%
EPS 3Y6.51%
EPS 5Y11.47%
EPS Q2Q%10.4%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y-0.44%
Revenue growth 5Y3.55%
Sales Q2Q%1.13%
3.2 Future
The Earnings Per Share is expected to grow by 7.77% on average over the next years.
Based on estimates for the next years, EBAY will show a small growth in Revenue. The Revenue will grow by 3.44% on average per year.
EPS Next Y11.67%
EPS Next 2Y9.86%
EPS Next 3Y9.31%
EPS Next 5Y7.77%
Revenue Next Year3.23%
Revenue Next 2Y3.52%
Revenue Next 3Y3.62%
Revenue Next 5Y3.44%
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 decreasing.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.52, EBAY is valued correctly.
74.19% of the companies in the same industry are more expensive than EBAY, based on the Price/Earnings ratio.
EBAY is valuated rather cheaply when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.35, which indicates a correct valuation of EBAY.
74.19% of the companies in the same industry are more expensive than EBAY, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of EBAY to the average of the S&P500 Index (22.43), we can say EBAY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 12.35 |
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 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.9 | ||
| EV/EBITDA | 12.55 |
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)1.24
PEG (5Y)1.27
EPS Next 2Y9.86%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
EBAY has a Yearly Dividend Yield of 1.64%.
Compared to an average industry Dividend Yield of 7.41, EBAY pays a bit more dividend than its industry peers.
EBAY's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
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.
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
25.88% 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.
DP25.88%
EPS Next 2Y9.86%
EPS Next 3Y9.31%
72.59
+0.16 (+0.22%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.4%
Inst Owner Change0.41%
Ins Owners0.23%
Ins Owner Change0.36%
Market Cap33.83B
Analysts69.23
Price Target68.81 (-5.21%)
Short Float %4.53%
Short Ratio3.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.64% |
Yearly Dividend1.08
Dividend Growth(5Y)14.31%
DP25.88%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.47%
Min EPS beat(2)1.07%
Max EPS beat(2)1.86%
EPS beat(4)3
Avg EPS beat(4)1.1%
Min EPS beat(4)-1.24%
Max EPS beat(4)2.71%
EPS beat(8)7
Avg EPS beat(8)1.38%
EPS beat(12)10
Avg EPS beat(12)2.15%
EPS beat(16)12
Avg EPS beat(16)1.95%
Revenue beat(2)0
Avg Revenue beat(2)-1.09%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)-0.5%
Revenue beat(4)0
Avg Revenue beat(4)-0.81%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)-0.27%
Revenue beat(8)0
Avg Revenue beat(8)-0.88%
Revenue beat(12)2
Avg Revenue beat(12)-0.61%
Revenue beat(16)2
Avg Revenue beat(16)-1.45%
PT rev (1m)3.08%
PT rev (3m)6.6%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)0.69%
EPS NY rev (1m)0.83%
EPS NY rev (3m)2.22%
Revenue NQ rev (1m)1.39%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)1.25%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.52 | ||
| Fwd PE | 12.35 | ||
| P/S | 3.28 | ||
| P/FCF | 15.9 | ||
| P/OCF | 13.08 | ||
| P/B | 6.83 | ||
| P/tB | 75.68 | ||
| EV/EBITDA | 12.55 |
EPS(TTM)5
EY6.89%
EPS(NY)5.88
Fwd EY8.1%
FCF(TTM)4.57
FCFY6.29%
OCF(TTM)5.55
OCFY7.64%
SpS22.13
BVpS10.62
TBVpS0.96
PEG (NY)1.24
PEG (5Y)1.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.76% | ||
| ROE | 41.21% | ||
| ROCE | 18.23% | ||
| ROIC | 14.75% | ||
| ROICexc | 23.28% | ||
| ROICexgc | 51.01% | ||
| OM | 23.11% | ||
| PM (TTM) | 19.78% | ||
| GM | 71.85% | ||
| FCFM | 20.64% |
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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 3.17 | ||
| Debt/EBITDA | 2.12 | ||
| Cap/Depr | 140.06% | ||
| Cap/Sales | 4.44% | ||
| Interest Coverage | 9.13 | ||
| Cash Conversion | 95.42% | ||
| Profit Quality | 104.31% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z | 5.3 |
F-Score5
WACC9.71%
ROIC/WACC1.52
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)14.16%
EPS 3Y6.51%
EPS 5Y11.47%
EPS Q2Q%10.4%
EPS Next Y11.67%
EPS Next 2Y9.86%
EPS Next 3Y9.31%
EPS Next 5Y7.77%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y-0.44%
Revenue growth 5Y3.55%
Sales Q2Q%1.13%
Revenue Next Year3.23%
Revenue Next 2Y3.52%
Revenue Next 3Y3.62%
Revenue Next 5Y3.44%
EBIT growth 1Y-0.63%
EBIT growth 3Y-11.51%
EBIT growth 5Y4.13%
EBIT Next Year14%
EBIT Next 3Y7.66%
EBIT Next 5Y6.38%
FCF growth 1Y7.26%
FCF growth 3Y-4.03%
FCF growth 5Y-5.24%
OCF growth 1Y4.19%
OCF growth 3Y-3.15%
OCF growth 5Y-4.96%