EBAY INC (EBAY) Stock Fundamental Analysis
NASDAQ:EBAY - Nasdaq - US2786421030 - Common Stock - Currency: USD
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.
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 89.29% of its industry peers.
EBAY has a better Return On Equity (41.21%) than 100.00% of its industry peers.
EBAY has a better Return On Invested Capital (14.75%) than 78.57% of its industry peers.
The Average Return On Invested Capital over the past 3 years 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
Looking at the Profit Margin, with a value of 19.78%, EBAY belongs to the top 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.
Looking at the Operating Margin, with a value of 23.11%, EBAY belongs to the top 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.
The Gross Margin of EBAY (71.85%) is better than 85.71% of its industry peers.
In the last couple of years the Gross Margin of EBAY has remained more or less at the same level.
| 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
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
An Altman-Z score of 5.31 indicates that EBAY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.31, EBAY is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
The Debt to FCF ratio of EBAY is 3.17, which is a good value as it means it would take EBAY, 3.17 years of fcf income to pay off all of its debts.
EBAY has a Debt to FCF ratio of 3.17. This is in the better half 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.
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 | 5.31 |
ROIC/WACC1.68
WACC8.8%
2.3 Liquidity
A Current Ratio of 1.17 indicates that EBAY should not have too much problems paying its short term obligations.
EBAY has a worse Current ratio (1.17) than 75.00% of its industry peers.
A Quick Ratio of 1.17 indicates that EBAY should not have too much problems paying its short term obligations.
EBAY's Quick ratio of 1.17 is in line compared to the rest of the industry. EBAY outperforms 50.00% of its industry peers.
| 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.
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.
The Revenue has been growing slightly by 1.52% in the past 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 8.49% 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 3.71% yearly.
EPS Next Y11.74%
EPS Next 2Y9.87%
EPS Next 3Y9.31%
EPS Next 5Y8.49%
Revenue Next Year3.26%
Revenue Next 2Y3.53%
Revenue Next 3Y3.62%
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
A Price/Earnings ratio of 14.89 indicates a correct valuation of EBAY.
Based on the Price/Earnings ratio, EBAY is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of EBAY to the average of the S&P500 Index (27.15), we can say EBAY is valued slightly cheaper.
With a Price/Forward Earnings ratio of 12.67, EBAY is valued correctly.
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.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.60, EBAY is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 12.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EBAY is valued a bit cheaper than the industry average as 60.71% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, EBAY is valued a bit cheaper than the industry average as 67.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.13 | ||
| EV/EBITDA | 12.62 |
4.3 Compensation for Growth
The 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)1.27
PEG (5Y)1.3
EPS Next 2Y9.87%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.57%, EBAY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 11.83, EBAY pays a bit more dividend than its industry peers.
EBAY's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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.
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
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 2Y9.87%
EPS Next 3Y9.31%
74.46
+0.7 (+0.95%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners100.03%
Inst Owner Change0.67%
Ins Owners0.24%
Ins Owner Change0.23%
Market Cap34.33B
Analysts68.21
Price Target68.85 (-7.53%)
Short Float %6.36%
Short Ratio5.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.57% |
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)0.06%
PT rev (3m)3.14%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.16%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.28%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.28%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.89 | ||
| Fwd PE | 12.67 | ||
| P/S | 3.33 | ||
| P/FCF | 16.13 | ||
| P/OCF | 13.27 | ||
| P/B | 6.93 | ||
| P/tB | 76.79 | ||
| EV/EBITDA | 12.62 |
EPS(TTM)5
EY6.72%
EPS(NY)5.88
Fwd EY7.89%
FCF(TTM)4.62
FCFY6.2%
OCF(TTM)5.61
OCFY7.53%
SpS22.37
BVpS10.74
TBVpS0.97
PEG (NY)1.27
PEG (5Y)1.3
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 | 5.31 |
F-Score5
WACC8.8%
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 Y11.74%
EPS Next 2Y9.87%
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 Year3.26%
Revenue Next 2Y3.53%
Revenue Next 3Y3.62%
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%