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 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.
EBAY had a positive operating cash flow in the past year.
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
EBAY has a Return On Assets of 10.76%. This is amongst the best in the industry. EBAY outperforms 89.29% of its industry peers.
The Return On Equity of EBAY (41.21%) is better than 100.00% of its industry peers.
EBAY has a better Return On Invested Capital (14.75%) than 78.57% 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 11.59%.
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
EBAY has a better Profit Margin (19.78%) 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.
With an excellent Operating Margin value of 23.11%, 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 Operating Margin of EBAY has remained more or less at the same level.
Looking at the Gross Margin, with a value of 71.85%, EBAY belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
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.
Compared to 1 year ago, EBAY has less shares outstanding
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 5.48 indicates that EBAY is not in any danger for bankruptcy at the moment.
EBAY has a Altman-Z score of 5.48. This is in the better half of the industry: EBAY outperforms 78.57% 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 has a better Debt to FCF ratio (3.17) than 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.
The Debt to Equity ratio of EBAY (1.16) is worse than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.16 | ||
| Debt/FCF | 3.17 | ||
| Altman-Z | 5.48 |
ROIC/WACC1.67
WACC8.83%
2.3 Liquidity
A Current Ratio of 1.17 indicates that EBAY should not have too much problems paying its short term obligations.
EBAY's Current ratio of 1.17 is on the low side compared to the rest of the industry. EBAY is outperformed by 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.
The Earnings Per Share has been growing by 11.47% on average over the past years. This is quite good.
EBAY shows a small growth in Revenue. In the last year, the Revenue has grown by 1.52%.
The Revenue has been growing slightly by 3.55% on average over the past years.
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.
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 Year3.3%
Revenue Next 2Y3.56%
Revenue Next 3Y3.64%
Revenue Next 5Y3.71%
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 16.53, EBAY is valued correctly.
71.43% of the companies in the same industry are more expensive than EBAY, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.35. EBAY is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 14.09 indicates a correct valuation of EBAY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EBAY indicates a somewhat cheap valuation: EBAY is cheaper than 67.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.54. EBAY is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 14.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EBAY is valued a bit 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 | 17.91 | ||
| EV/EBITDA | 14.1 |
4.3 Compensation for Growth
EBAY's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
EBAY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.4
PEG (5Y)1.44
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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.51% |
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.
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%
NASDAQ:EBAY (7/25/2025, 12:26:09 PM)
82.665
+0.22 (+0.26%)
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 Cap38.11B
Analysts68.21
Price Target69.61 (-15.79%)
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 | 16.53 | ||
| Fwd PE | 14.09 | ||
| P/S | 3.7 | ||
| P/FCF | 17.91 | ||
| P/OCF | 14.74 | ||
| P/B | 7.7 | ||
| P/tB | 85.25 | ||
| EV/EBITDA | 14.1 |
EPS(TTM)5
EY6.05%
EPS(NY)5.87
Fwd EY7.1%
FCF(TTM)4.62
FCFY5.58%
OCF(TTM)5.61
OCFY6.79%
SpS22.37
BVpS10.74
TBVpS0.97
PEG (NY)1.4
PEG (5Y)1.44
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 | 5.48 |
F-Score5
WACC8.83%
ROIC/WACC1.67
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%