EBAY INC (EBAY)
US2786421030 - Common Stock
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 decent growth rate and is not valued too expensively.
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.
EBAY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
EBAY's Return On Assets of 10.14% is amongst the best of the industry. EBAY outperforms 84.38% of its industry peers.
Looking at the Return On Equity, with a value of 37.27%, EBAY belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
EBAY has a better Return On Invested Capital (13.01%) than 78.13% 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 11.71%.
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 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 96.88% of its industry peers.
In the last couple of years the Profit Margin of EBAY has remained more or less at the same level.
EBAY has a Operating Margin of 24.17%. This is amongst the best in the industry. EBAY outperforms 96.88% of its industry peers.
EBAY's Operating Margin has improved in the last couple of years.
The Gross Margin of EBAY (72.02%) is better than 93.75% 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 | 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
EBAY has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for EBAY has been reduced compared to 1 year ago.
Compared to 5 years ago, EBAY has less shares outstanding
The debt/assets ratio for EBAY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.93 indicates that EBAY is not in any danger for bankruptcy at the moment.
EBAY's Altman-Z score of 4.93 is fine compared to the rest of the industry. EBAY outperforms 78.13% 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 62.50% of its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that EBAY has dependencies on debt financing.
EBAY's Debt to Equity ratio of 1.14 is on the low side compared to the rest of the industry. EBAY is outperformed by 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 5.33 | ||
| Altman-Z | 4.93 |
ROIC/WACC1.61
WACC8.08%
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.
EBAY has a Current ratio (1.25) which is comparable to the rest of the industry.
A Quick Ratio of 1.25 indicates that EBAY should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.25, EBAY is in line with its industry, outperforming 56.25% of the companies in the same industry.
| 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.
EBAY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.72% yearly.
EBAY shows a small growth in Revenue. In the last year, the Revenue has grown by 2.05%.
Measured over the past years, EBAY shows a small growth in Revenue. The Revenue has been growing by 3.17% on average per year.
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 8.51% on average over the next years. This is quite good.
The Revenue is expected to grow by 3.57% on average over the next years.
EPS Next Y16.4%
EPS Next 2Y12.18%
EPS Next 3Y10.74%
EPS Next 5Y8.51%
Revenue Next Year2.16%
Revenue Next 2Y2.7%
Revenue Next 3Y3.1%
Revenue Next 5Y3.57%
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
EBAY is valuated correctly with a Price/Earnings ratio of 13.86.
EBAY's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of EBAY to the average of the S&P500 Index (27.73), we can say EBAY is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 12.18, the valuation of EBAY can be described as correct.
Based on the Price/Forward Earnings ratio, EBAY is valued a bit cheaper than 65.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. EBAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 12.18 |
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 62.50% of the companies listed 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 | 22.37 | ||
| EV/EBITDA | 10.75 |
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.
The excellent profitability rating of EBAY may justify a higher PE ratio.
PEG (NY)0.84
PEG (5Y)1.09
EPS Next 2Y12.18%
EPS Next 3Y10.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.69%, EBAY has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.32, EBAY pays a better dividend. On top of this EBAY pays more dividend than 81.25% of the companies listed in the same industry.
Compared to the average S&P500 Dividend Yield of 2.34, EBAY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
5.2 History
On average, the dividend of EBAY grows each year by 16.26%, 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)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 2Y12.18%
EPS Next 3Y10.74%
EBAY INC
NASDAQ:EBAY (12/20/2024, 8:06:23 PM)
After market: 64.99 -0.02 (-0.03%)65.01
+1.06 (+1.66%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners96.79%
Inst Owner Change-3%
Ins Owners0.23%
Ins Owner Change0.05%
Market Cap31.14B
Analysts70
Price Target63.22 (-2.75%)
Short Float %4.67%
Short Ratio5.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Dividend Growth(5Y)16.26%
DP26.44%
Div Incr Years5
Div Non Decr Years5
Ex-Date
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)4.97%
PT rev (3m)8.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.31%
EPS NY rev (1m)0.16%
EPS NY rev (3m)1.84%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.85%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.86 | ||
| Fwd PE | 12.18 | ||
| P/S | 3.03 | ||
| P/FCF | 22.37 | ||
| P/OCF | 16.75 | ||
| P/B | 5.75 | ||
| P/tB | 32.1 | ||
| EV/EBITDA | 10.75 |
EPS(TTM)4.69
EY7.21%
EPS(NY)5.34
Fwd EY8.21%
FCF(TTM)2.91
FCFY4.47%
OCF(TTM)3.88
OCFY5.97%
SpS21.43
BVpS11.32
TBVpS2.03
PEG (NY)0.84
PEG (5Y)1.09
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 | 4.93 |
F-Score5
WACC8.08%
ROIC/WACC1.61
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 Year2.16%
Revenue Next 2Y2.7%
Revenue Next 3Y3.1%
Revenue Next 5Y3.57%
EBIT growth 1Y0.12%
EBIT growth 3Y-6.42%
EBIT growth 5Y6.04%
EBIT Next Year17.17%
EBIT Next 3Y8.56%
EBIT Next 5Y7.89%
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%