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 32 industry peers in the Broadline Retail industry. EBAY scores excellent on profitability, but 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.
Of the past 5 years EBAY 4 years were profitable.
Each year in the past 5 years EBAY had a positive operating cash flow.
1.2 Ratios
EBAY has a Return On Assets of 10.14%. This is amongst the best in the industry. EBAY outperforms 83.87% of its industry peers.
With an excellent Return On Equity value of 37.27%, EBAY belongs to the best of the industry, outperforming 93.55% of the companies in the same industry.
EBAY has a Return On Invested Capital of 13.01%. This is in the better half of the industry: EBAY outperforms 77.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for EBAY is in line with the industry average of 11.29%.
The 3 year average ROIC (11.41%) for EBAY is below the current ROIC(13.01%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
EBAY has a better Profit Margin (19.68%) than 96.77% of its industry peers.
EBAY's Profit Margin has been stable in the last couple of years.
The Operating Margin of EBAY (24.17%) is better than 96.77% of its industry peers.
In the last couple of years the Operating Margin of EBAY has grown nicely.
EBAY's Gross Margin of 72.02% is amongst the best of the industry. EBAY outperforms 93.55% of its industry peers.
EBAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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.
EBAY has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, EBAY has an improved debt to assets ratio.
2.2 Solvency
EBAY has an Altman-Z score of 5.02. This indicates that EBAY is financially healthy and has little risk of bankruptcy at the moment.
EBAY has a better Altman-Z score (5.02) than 77.42% of its industry peers.
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.
EBAY has a Debt to FCF ratio of 5.33. This is in the better half of the industry: EBAY outperforms 61.29% of its industry peers.
EBAY has a Debt/Equity ratio of 1.14. This is a high value indicating a heavy dependency on external 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 5.02 |
ROIC/WACC1.31
WACC9.94%
2.3 Liquidity
EBAY has a Current Ratio of 1.25. This is a normal value and indicates that EBAY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.25, EBAY is in line with its industry, outperforming 48.39% of the companies in the same industry.
EBAY has a Quick Ratio of 1.25. 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 of 1.25. This is in the better half of the industry: EBAY outperforms 61.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 10.61% over the past year.
The Earnings Per Share has been growing by 12.72% on average over the past years. This is quite good.
Looking at the last year, EBAY shows a small growth in Revenue. The Revenue has grown by 2.05% in the last year.
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
The Earnings Per Share is expected to grow by 8.96% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.54% on average over the next years.
EPS Next Y16.38%
EPS Next 2Y12.02%
EPS Next 3Y10.75%
EPS Next 5Y8.96%
Revenue Next Year2.14%
Revenue Next 2Y2.66%
Revenue Next 3Y3.03%
Revenue Next 5Y3.54%
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.
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
Based on the Price/Earnings ratio of 14.80, the valuation of EBAY can be described as correct.
EBAY's Price/Earnings ratio is a bit cheaper when compared to the industry. EBAY is cheaper than 67.74% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.63, EBAY is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.04, EBAY is valued correctly.
EBAY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. EBAY is cheaper than 70.97% of the companies in the same industry.
EBAY's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.8 | ||
| Fwd PE | 13.04 |
4.2 Price Multiples
EBAY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. EBAY is cheaper than 67.74% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of EBAY is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.88 | ||
| EV/EBITDA | 11.51 |
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)0.9
PEG (5Y)1.16
EPS Next 2Y12.02%
EPS Next 3Y10.75%
5. Dividend
5.1 Amount
EBAY has a Yearly Dividend Yield of 1.55%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 5.54, EBAY pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.29, EBAY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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
5.3 Sustainability
EBAY pays out 26.44% of its income as dividend. This is a 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 2Y12.02%
EPS Next 3Y10.75%
69.39
-0.07 (-0.1%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.4%
Inst Owner Change1.41%
Ins Owners0.23%
Ins Owner Change-0.09%
Market Cap33.24B
Analysts69
Price Target64.8 (-6.61%)
Short Float %3.64%
Short Ratio4.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.55% |
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)2.11%
PT rev (3m)7.19%
EPS NQ rev (1m)-0.11%
EPS NQ rev (3m)-0.15%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.13%
Revenue NQ rev (1m)-0.15%
Revenue NQ rev (3m)-0.19%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.8 | ||
| Fwd PE | 13.04 | ||
| P/S | 3.24 | ||
| P/FCF | 23.88 | ||
| P/OCF | 17.88 | ||
| P/B | 6.13 | ||
| P/tB | 34.27 | ||
| EV/EBITDA | 11.51 |
EPS(TTM)4.69
EY6.76%
EPS(NY)5.32
Fwd EY7.67%
FCF(TTM)2.91
FCFY4.19%
OCF(TTM)3.88
OCFY5.59%
SpS21.43
BVpS11.32
TBVpS2.03
PEG (NY)0.9
PEG (5Y)1.16
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.02 |
F-Score5
WACC9.94%
ROIC/WACC1.31
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 Y16.38%
EPS Next 2Y12.02%
EPS Next 3Y10.75%
EPS Next 5Y8.96%
Revenue 1Y (TTM)2.05%
Revenue growth 3Y4.37%
Revenue growth 5Y3.17%
Sales Q2Q%3.04%
Revenue Next Year2.14%
Revenue Next 2Y2.66%
Revenue Next 3Y3.03%
Revenue Next 5Y3.54%
EBIT growth 1Y0.12%
EBIT growth 3Y-6.42%
EBIT growth 5Y6.04%
EBIT Next Year17.06%
EBIT Next 3Y8.32%
EBIT Next 5Y7.29%
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%