EBAY INC (EBAY) Stock Fundamental Analysis
NASDAQ:EBAY - Nasdaq - US2786421030 - Common Stock - Currency: USD
Overall EBAY gets a fundamental rating of 6 out of 10. We evaluated EBAY against 28 industry peers in the Broadline Retail industry. While EBAY has a great profitability rating, 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
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.
In the past 5 years EBAY always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.76%, EBAY belongs to the best of the industry, outperforming 89.29% of the companies in the same industry.
With an excellent Return On Equity value of 41.21%, EBAY belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.75%, EBAY is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for EBAY is in line with the industry average of 11.59%.
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 96.43% of the companies in the same industry.
In the last couple of years the Profit Margin of EBAY has remained more or less at the same level.
EBAY's Operating Margin of 23.11% is amongst the best of the industry. EBAY outperforms 96.43% of its industry peers.
EBAY's Operating Margin has been stable in the last couple of years.
EBAY has a better Gross Margin (71.85%) than 85.71% 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
EBAY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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.
EBAY has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.41 indicates that EBAY is not in any danger for bankruptcy at the moment.
EBAY's Altman-Z score of 5.41 is amongst the best of the industry. EBAY outperforms 82.14% of its industry peers.
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.
EBAY's Debt to FCF ratio of 3.17 is fine compared to the rest of the industry. EBAY outperforms 60.71% of its industry peers.
EBAY has a Debt/Equity ratio of 1.16. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 1.16, EBAY is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 5.41 |
ROIC/WACC1.68
WACC8.78%
2.3 Liquidity
A Current Ratio of 1.17 indicates that EBAY should not have too much problems paying its short term obligations.
The Current ratio of EBAY (1.17) is worse than 75.00% of its industry peers.
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.
EBAY shows a small growth in Revenue. In the last year, the Revenue has grown by 1.52%.
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
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.
EBAY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.71% yearly.
EPS Next Y11.77%
EPS Next 2Y9.75%
EPS Next 3Y9.31%
EPS Next 5Y8.49%
Revenue Next Year3.3%
Revenue Next 2Y3.56%
Revenue Next 3Y3.64%
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
EBAY is valuated correctly with a Price/Earnings ratio of 16.35.
EBAY's Price/Earnings ratio is a bit cheaper when compared to the industry. EBAY is cheaper than 71.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.53, EBAY is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.94, which indicates a correct valuation of EBAY.
EBAY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EBAY is cheaper than 67.86% of the companies in the same industry.
EBAY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 13.94 |
4.2 Price Multiples
EBAY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EBAY is cheaper than 60.71% of the companies in the same industry.
67.86% of the companies in the same industry are more expensive than EBAY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.71 | ||
| EV/EBITDA | 13.52 |
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)1.39
PEG (5Y)1.43
EPS Next 2Y9.75%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
EBAY has a Yearly Dividend Yield of 1.51%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 14.55, EBAY pays a bit more dividend than its industry peers.
EBAY's Dividend Yield is slightly below the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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 25.88% of its income as dividend. This is a sustainable payout ratio.
EBAY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP25.88%
EPS Next 2Y9.75%
EPS Next 3Y9.31%
81.76
+2.73 (+3.45%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.03%
Inst Owner Change0.22%
Ins Owners0.24%
Ins Owner Change0.02%
Market Cap37.69B
Analysts68.21
Price Target69.61 (-14.86%)
Short Float %4.5%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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)1.1%
PT rev (3m)4.28%
EPS NQ rev (1m)-0.18%
EPS NQ rev (3m)0.15%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)1.43%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.35 | ||
| Fwd PE | 13.94 | ||
| P/S | 3.66 | ||
| P/FCF | 17.71 | ||
| P/OCF | 14.58 | ||
| P/B | 7.61 | ||
| P/tB | 84.32 | ||
| EV/EBITDA | 13.52 |
EPS(TTM)5
EY6.12%
EPS(NY)5.87
Fwd EY7.17%
FCF(TTM)4.62
FCFY5.65%
OCF(TTM)5.61
OCFY6.86%
SpS22.37
BVpS10.74
TBVpS0.97
PEG (NY)1.39
PEG (5Y)1.43
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 | 5.41 |
F-Score5
WACC8.78%
ROIC/WACC1.68
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 Y11.77%
EPS Next 2Y9.75%
EPS Next 3Y9.31%
EPS Next 5Y8.49%
Revenue 1Y (TTM)1.52%
Revenue growth 3Y-0.44%
Revenue growth 5Y3.55%
Sales Q2Q%1.13%
Revenue Next Year3.3%
Revenue Next 2Y3.56%
Revenue Next 3Y3.64%
Revenue Next 5Y3.71%
EBIT growth 1Y-0.63%
EBIT growth 3Y-11.51%
EBIT growth 5Y4.13%
EBIT Next Year13.97%
EBIT Next 3Y7.47%
EBIT Next 5Y6.99%
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%