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EBAY INC (EBAY) Stock Fundamental Analysis

NASDAQ:EBAY - Nasdaq - US2786421030 - Common Stock

63.88  -0.75 (-1.16%)

After market: 63.7251 -0.15 (-0.24%)

Fundamental Rating

6

Taking everything into account, EBAY scores 6 out of 10 in our fundamental rating. EBAY was compared to 32 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.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

EBAY had positive earnings in the past year.
EBAY had a positive operating cash flow in the past year.
Of the past 5 years EBAY 4 years were profitable.
Each year in the past 5 years EBAY had a positive operating cash flow.
EBAY Yearly Net Income VS EBIT VS OCF VS FCFEBAY Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B

1.2 Ratios

The Return On Assets of EBAY (10.14%) is better than 83.87% of its industry peers.
EBAY's Return On Equity of 37.27% is amongst the best of the industry. EBAY outperforms 93.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.01%, EBAY is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
EBAY had an Average Return On Invested Capital over the past 3 years of 11.41%. This is in line with the industry average of 11.22%.
The last Return On Invested Capital (13.01%) for EBAY is above the 3 year average (11.41%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 10.14%
ROE 37.27%
ROIC 13.01%
ROA(3y)19.27%
ROA(5y)19.4%
ROE(3y)52.6%
ROE(5y)75.83%
ROIC(3y)11.41%
ROIC(5y)11.77%
EBAY Yearly ROA, ROE, ROICEBAY Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 100 150

1.3 Margins

EBAY's Profit Margin of 19.68% is amongst the best of the industry. EBAY outperforms 96.77% of its industry peers.
EBAY's Profit Margin has been stable in the last couple of years.
EBAY has a Operating Margin of 24.17%. This is amongst the best in the industry. EBAY outperforms 96.77% of its industry peers.
EBAY's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 72.02%, EBAY belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
In the last couple of years the Gross Margin of EBAY has remained more or less at the same level.
Industry RankSector Rank
OM 24.17%
PM (TTM) 19.68%
GM 72.02%
OM growth 3Y-10.34%
OM growth 5Y2.78%
PM growth 3Y-24.55%
PM growth 5Y-1.32%
GM growth 3Y-3.38%
GM growth 5Y-1.24%
EBAY Yearly Profit, Operating, Gross MarginsEBAY Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 50 100

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6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so EBAY is still creating some value.
Compared to 1 year ago, EBAY has less shares outstanding
Compared to 5 years ago, EBAY has less shares outstanding
EBAY has a better debt/assets ratio than last year.
EBAY Yearly Shares OutstandingEBAY Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B
EBAY Yearly Total Debt VS Total AssetsEBAY Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B 25B

2.2 Solvency

EBAY has an Altman-Z score of 4.92. This indicates that EBAY is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.92, EBAY is in the better half of the industry, outperforming 77.42% of the companies in the same industry.
The Debt to FCF ratio of EBAY is 5.33, which is a neutral value as it means it would take EBAY, 5.33 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.33, EBAY is in the better half of the industry, outperforming 61.29% of the companies in the same industry.
A Debt/Equity ratio of 1.14 is on the high side and indicates that EBAY has dependencies on debt financing.
EBAY has a Debt to Equity ratio of 1.14. This is in the lower half of the industry: EBAY underperforms 67.74% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.14
Debt/FCF 5.33
Altman-Z 4.92
ROIC/WACC1.55
WACC8.39%
EBAY Yearly LT Debt VS Equity VS FCFEBAY Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

2.3 Liquidity

A Current Ratio of 1.25 indicates that EBAY should not have too much problems paying its short term obligations.
With a Current ratio value of 1.25, EBAY perfoms like the industry average, outperforming 48.39% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that EBAY should not have too much problems paying its short term obligations.
The Quick ratio of EBAY (1.25) is better than 61.29% of its industry peers.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 1.25
EBAY Yearly Current Assets VS Current LiabilitesEBAY Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B 10B

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4

3. Growth

3.1 Past

EBAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.61%, 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 12.72% on average per year.
EBAY shows a small growth in Revenue. In the last year, the Revenue has grown by 2.05%.
The Revenue has been growing slightly by 3.17% on average over the past years.
EPS 1Y (TTM)10.61%
EPS 3Y6%
EPS 5Y12.72%
EPS Q2Q%15.53%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y4.37%
Revenue growth 5Y3.17%
Sales Q2Q%3.04%

3.2 Future

Based on estimates for the next years, EBAY will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.51% on average per year.
EBAY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.49% yearly.
EPS Next Y16.4%
EPS Next 2Y12.18%
EPS Next 3Y10.74%
EPS Next 5Y8.51%
Revenue Next Year2.15%
Revenue Next 2Y2.65%
Revenue Next 3Y3.08%
Revenue Next 5Y3.49%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
EBAY Yearly Revenue VS EstimatesEBAY Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 5B 10B 15B
EBAY Yearly EPS VS EstimatesEBAY Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8

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6

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.62, which indicates a correct valuation of EBAY.
EBAY's Price/Earnings ratio is a bit cheaper when compared to the industry. EBAY is cheaper than 61.29% of the companies in the same industry.
EBAY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.19.
Based on the Price/Forward Earnings ratio of 11.97, the valuation of EBAY can be described as reasonable.
67.74% 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 (24.37), we can say EBAY is valued rather cheaply.
Industry RankSector Rank
PE 13.62
Fwd PE 11.97
EBAY Price Earnings VS Forward Price EarningsEBAY Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EBAY indicates a somewhat cheap valuation: EBAY is cheaper than 64.52% of the companies listed in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as EBAY.
Industry RankSector Rank
P/FCF 21.98
EV/EBITDA 10.69
EBAY Per share dataEBAY EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
EBAY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)0.83
PEG (5Y)1.07
EPS Next 2Y12.18%
EPS Next 3Y10.74%

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5

5. Dividend

5.1 Amount

EBAY has a Yearly Dividend Yield of 1.66%.
EBAY's Dividend Yield is rather good when compared to the industry average which is at 5.56. EBAY pays more dividend than 80.65% of the companies in the same industry.
EBAY's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
Industry RankSector Rank
Dividend Yield 1.66%

5.2 History

The dividend of EBAY is nicely growing with an annual growth rate of 16.26%!
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)16.26%
Div Incr Years5
Div Non Decr Years5
EBAY Yearly Dividends per shareEBAY Yearly Dividends per shareYearly Dividends per share 2019 2020 2021 2022 2023 2024 0.2 0.4 0.6 0.8 1

5.3 Sustainability

26.44% 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.
DP26.44%
EPS Next 2Y12.18%
EPS Next 3Y10.74%
EBAY Yearly Income VS Free CF VS DividendEBAY Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5B 10B
EBAY Dividend Payout.EBAY Dividend Payout, showing the Payout Ratio.EBAY Dividend Payout.PayoutRetained Earnings

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EBAY INC

NASDAQ:EBAY (1/22/2025, 6:18:30 PM)

After market: 63.7251 -0.15 (-0.24%)

63.88

-0.75 (-1.16%)

Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)10-30 2024-10-30/amc
Earnings (Next)N/A N/A
Inst Owners96.79%
Inst Owner Change-0.01%
Ins Owners0.23%
Ins Owner Change-0.03%
Market Cap30.60B
Analysts68.78
Price Target63.22 (-1.03%)
Short Float %3.95%
Short Ratio3.85
Dividend
Industry RankSector Rank
Dividend Yield 1.66%
Yearly Dividend1
Dividend Growth(5Y)16.26%
DP26.44%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.74%
Min EPS beat(2)-1.24%
Max EPS beat(2)2.71%
EPS beat(4)3
Avg EPS beat(4)1.35%
Min EPS beat(4)-1.24%
Max EPS beat(4)2.71%
EPS beat(8)6
Avg EPS beat(8)1.05%
EPS beat(12)9
Avg EPS beat(12)2.19%
EPS beat(16)11
Avg EPS beat(16)1.86%
Revenue beat(2)0
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-0.81%
Max Revenue beat(2)-0.27%
Revenue beat(4)0
Avg Revenue beat(4)-0.54%
Min Revenue beat(4)-1.08%
Max Revenue beat(4)0%
Revenue beat(8)0
Avg Revenue beat(8)-0.75%
Revenue beat(12)2
Avg Revenue beat(12)-0.66%
Revenue beat(16)2
Avg Revenue beat(16)-2.76%
PT rev (1m)0%
PT rev (3m)6.64%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)0%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.85%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.29%
Valuation
Industry RankSector Rank
PE 13.62
Fwd PE 11.97
P/S 2.98
P/FCF 21.98
P/OCF 16.46
P/B 5.65
P/tB 31.54
EV/EBITDA 10.69
EPS(TTM)4.69
EY7.34%
EPS(NY)5.34
Fwd EY8.35%
FCF(TTM)2.91
FCFY4.55%
OCF(TTM)3.88
OCFY6.08%
SpS21.43
BVpS11.32
TBVpS2.03
PEG (NY)0.83
PEG (5Y)1.07
Profitability
Industry RankSector Rank
ROA 10.14%
ROE 37.27%
ROCE 17.38%
ROIC 13.01%
ROICexc 19.79%
ROICexgc 37.63%
OM 24.17%
PM (TTM) 19.68%
GM 72.02%
FCFM 13.56%
ROA(3y)19.27%
ROA(5y)19.4%
ROE(3y)52.6%
ROE(5y)75.83%
ROIC(3y)11.41%
ROIC(5y)11.77%
ROICexc(3y)20.53%
ROICexc(5y)18.67%
ROICexgc(3y)38.02%
ROICexgc(5y)33.91%
ROCE(3y)15.24%
ROCE(5y)15.73%
ROICexcg growth 3Y15.14%
ROICexcg growth 5Y24.22%
ROICexc growth 3Y5.54%
ROICexc growth 5Y17.38%
OM growth 3Y-10.34%
OM growth 5Y2.78%
PM growth 3Y-24.55%
PM growth 5Y-1.32%
GM growth 3Y-3.38%
GM growth 5Y-1.24%
F-Score5
Asset Turnover0.52
Health
Industry RankSector Rank
Debt/Equity 1.14
Debt/FCF 5.33
Debt/EBITDA 2.19
Cap/Depr 136.15%
Cap/Sales 4.55%
Interest Coverage 9.47
Cash Conversion 65.83%
Profit Quality 68.91%
Current Ratio 1.25
Quick Ratio 1.25
Altman-Z 4.92
F-Score5
WACC8.39%
ROIC/WACC1.55
Cap/Depr(3y)101.06%
Cap/Depr(5y)93.13%
Cap/Sales(3y)4.45%
Cap/Sales(5y)5.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.61%
EPS 3Y6%
EPS 5Y12.72%
EPS Q2Q%15.53%
EPS Next Y16.4%
EPS Next 2Y12.18%
EPS Next 3Y10.74%
EPS Next 5Y8.51%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y4.37%
Revenue growth 5Y3.17%
Sales Q2Q%3.04%
Revenue Next Year2.15%
Revenue Next 2Y2.65%
Revenue Next 3Y3.08%
Revenue Next 5Y3.49%
EBIT growth 1Y0.12%
EBIT growth 3Y-6.42%
EBIT growth 5Y6.04%
EBIT Next Year17.17%
EBIT Next 3Y8.44%
EBIT Next 5Y7.54%
FCF growth 1Y-4.92%
FCF growth 3Y0.77%
FCF growth 5Y-0.37%
OCF growth 1Y-0.21%
OCF growth 3Y0.1%
OCF growth 5Y-1.81%