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 31 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.
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
Looking at the Return On Assets, with a value of 10.20%, EBAY belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
EBAY has a Return On Equity of 38.29%. This is amongst the best in the industry. EBAY outperforms 93.55% of its industry peers.
EBAY has a Return On Invested Capital of 13.72%. This is amongst the best in the industry. EBAY outperforms 80.65% 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 10.92%.
The 3 year average ROIC (12.79%) for EBAY is below the current ROIC(13.72%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.2% | ||
| ROE | 38.29% | ||
| ROIC | 13.72% |
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 19.21%, EBAY belongs to the top of the industry, outperforming 96.77% 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 has a better Operating Margin (22.62%) than 96.77% of its industry peers.
EBAY's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 71.99%, EBAY belongs to the best of the industry, outperforming 90.32% 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 | 22.62% | ||
| PM (TTM) | 19.21% | ||
| GM | 71.99% |
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.
EBAY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, EBAY has less shares outstanding
EBAY has a worse debt/assets ratio than last year.
2.2 Solvency
EBAY has an Altman-Z score of 5.07. 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 5.07, EBAY belongs to the top of the industry, outperforming 83.87% of the companies in the same industry.
EBAY has a debt to FCF ratio of 3.80. This is a good value and a sign of high solvency as EBAY would need 3.80 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.80, EBAY is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
A Debt/Equity ratio of 1.20 is on the high side and indicates that EBAY has dependencies on debt financing.
The Debt to Equity ratio of EBAY (1.20) is worse than 70.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 3.8 | ||
| Altman-Z | 5.07 |
ROIC/WACC1.49
WACC9.2%
2.3 Liquidity
A Current Ratio of 1.24 indicates that EBAY should not have too much problems paying its short term obligations.
EBAY has a Current ratio of 1.24. This is comparable to the rest of the industry: EBAY outperforms 45.16% of its industry peers.
EBAY has a Quick Ratio of 1.24. 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 (1.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
EBAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.86%, 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.
The Revenue has been growing slightly by 1.69% in the past year.
The Revenue has been growing slightly by 3.55% on average over the past years.
EPS 1Y (TTM)14.86%
EPS 3Y6.51%
EPS 5Y11.47%
EPS Q2Q%16.82%
Revenue 1Y (TTM)1.69%
Revenue growth 3Y-0.44%
Revenue growth 5Y3.55%
Sales Q2Q%0.66%
3.2 Future
The Earnings Per Share is expected to grow by 7.77% on average over the next years.
EBAY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.44% yearly.
EPS Next Y10.75%
EPS Next 2Y9.06%
EPS Next 3Y8.47%
EPS Next 5Y7.77%
Revenue Next Year1.95%
Revenue Next 2Y2.92%
Revenue Next 3Y3.34%
Revenue Next 5Y3.44%
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 13.61, EBAY is valued correctly.
Based on the Price/Earnings ratio, EBAY is valued a bit cheaper than 64.52% of the companies in the same industry.
When comparing the Price/Earnings ratio of EBAY to the average of the S&P500 Index (28.29), we can say EBAY is valued rather cheaply.
With a Price/Forward Earnings ratio of 12.29, EBAY is valued correctly.
70.97% of the companies in the same industry are more expensive than EBAY, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.08. EBAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 12.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EBAY is valued a bit cheaper than 70.97% of the companies in the same industry.
70.97% 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 | 15.79 | ||
| EV/EBITDA | 10.76 |
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)1.27
PEG (5Y)1.19
EPS Next 2Y9.06%
EPS Next 3Y8.47%
5. Dividend
5.1 Amount
EBAY has a Yearly Dividend Yield of 1.75%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.40, EBAY pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.52, EBAY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
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
EBAY pays out 26.99% 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.
DP26.99%
EPS Next 2Y9.06%
EPS Next 3Y8.47%
66.26
+0.79 (+1.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.4%
Inst Owner Change0.55%
Ins Owners0.23%
Ins Owner Change0.43%
Market Cap30.88B
Analysts69
Price Target66.76 (0.75%)
Short Float %3.79%
Short Ratio3.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend1.08
Dividend Growth(5Y)14.31%
DP26.99%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.31%
Min EPS beat(2)-1.24%
Max EPS beat(2)1.86%
EPS beat(4)3
Avg EPS beat(4)1.26%
Min EPS beat(4)-1.24%
Max EPS beat(4)2.71%
EPS beat(8)7
Avg EPS beat(8)1.44%
EPS beat(12)9
Avg EPS beat(12)2.04%
EPS beat(16)11
Avg EPS beat(16)1.88%
Revenue beat(2)0
Avg Revenue beat(2)-1.24%
Min Revenue beat(2)-1.68%
Max Revenue beat(2)-0.81%
Revenue beat(4)0
Avg Revenue beat(4)-0.96%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)-0.27%
Revenue beat(8)0
Avg Revenue beat(8)-0.91%
Revenue beat(12)2
Avg Revenue beat(12)-0.66%
Revenue beat(16)2
Avg Revenue beat(16)-2.23%
PT rev (1m)-0.04%
PT rev (3m)5.6%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-0.07%
EPS NY rev (1m)1.4%
EPS NY rev (3m)1.07%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)-2.22%
Revenue NY rev (1m)-0.28%
Revenue NY rev (3m)-1.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.61 | ||
| Fwd PE | 12.29 | ||
| P/S | 3 | ||
| P/FCF | 15.79 | ||
| P/OCF | 12.79 | ||
| P/B | 5.99 | ||
| P/tB | 40.1 | ||
| EV/EBITDA | 10.76 |
EPS(TTM)4.87
EY7.35%
EPS(NY)5.39
Fwd EY8.14%
FCF(TTM)4.2
FCFY6.33%
OCF(TTM)5.18
OCFY7.82%
SpS22.07
BVpS11.07
TBVpS1.65
PEG (NY)1.27
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.2% | ||
| ROE | 38.29% | ||
| ROCE | 17.53% | ||
| ROIC | 13.72% | ||
| ROICexc | 24.05% | ||
| ROICexgc | 54.76% | ||
| OM | 22.62% | ||
| PM (TTM) | 19.21% | ||
| GM | 71.99% | ||
| FCFM | 19.02% |
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-Score7
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 3.8 | ||
| Debt/EBITDA | 2.34 | ||
| Cap/Depr | 141.36% | ||
| Cap/Sales | 4.45% | ||
| Interest Coverage | 8.81 | ||
| Cash Conversion | 91.09% | ||
| Profit Quality | 99.04% | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 5.07 |
F-Score7
WACC9.2%
ROIC/WACC1.49
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)14.86%
EPS 3Y6.51%
EPS 5Y11.47%
EPS Q2Q%16.82%
EPS Next Y10.75%
EPS Next 2Y9.06%
EPS Next 3Y8.47%
EPS Next 5Y7.77%
Revenue 1Y (TTM)1.69%
Revenue growth 3Y-0.44%
Revenue growth 5Y3.55%
Sales Q2Q%0.66%
Revenue Next Year1.95%
Revenue Next 2Y2.92%
Revenue Next 3Y3.34%
Revenue Next 5Y3.44%
EBIT growth 1Y-4.75%
EBIT growth 3Y-11.51%
EBIT growth 5Y4.13%
EBIT Next Year14%
EBIT Next 3Y7.66%
EBIT Next 5Y6.38%
FCF growth 1Y-0.71%
FCF growth 3Y-4.03%
FCF growth 5Y-5.24%
OCF growth 1Y-0.49%
OCF growth 3Y-3.15%
OCF growth 5Y-4.96%