93.88 USD
+1.06 (+1.14%)
93.4747 USD
-0.41 (-0.43%)
We assign a fundamental rating of 5 out of 10 to EBAY. EBAY was compared to 30 industry peers in the Broadline Retail industry. EBAY has an excellent profitability rating, but there are 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
- EBAY has a better Return On Assets (12.26%) than 93.33% of its industry peers.
- EBAY's Return On Equity of 46.24% is amongst the best of the industry. EBAY outperforms 100.00% of its industry peers.
- The Return On Invested Capital of EBAY (16.87%) is better than 90.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for EBAY is above the industry average of 9.29%.
- The 3 year average ROIC (12.79%) for EBAY is below the current ROIC(16.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.26% | ||
| ROE | 46.24% | ||
| ROIC | 16.87% |
ROA(3y)5.64%
ROA(5y)19.47%
ROE(3y)18.98%
ROE(5y)71.05%
ROIC(3y)12.79%
ROIC(5y)13.31%
1.3 Margins
- EBAY has a better Profit Margin (20.37%) than 96.67% of its industry peers.
- EBAY's Profit Margin has been stable in the last couple of years.
- With an excellent Operating Margin value of 23.27%, EBAY belongs to the best of the industry, outperforming 100.00% 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.
- EBAY has a better Gross Margin (71.64%) than 86.67% of its industry peers.
- EBAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.27% | ||
| PM (TTM) | 20.37% | ||
| GM | 71.64% |
OM growth 3Y-11.32%
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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so EBAY is creating value.
- The number of shares outstanding for EBAY has been reduced compared to 1 year ago.
- 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
- The Debt to FCF ratio of EBAY is 4.42, which is a neutral value as it means it would take EBAY, 4.42 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of EBAY (4.42) is better than 63.33% of its industry peers.
- EBAY has a Debt/Equity ratio of 1.06. This is a high value indicating a heavy dependency on external financing.
- EBAY's Debt to Equity ratio of 1.06 is on the low side compared to the rest of the industry. EBAY is outperformed by 76.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.06 | ||
| Debt/FCF | 4.42 | ||
| Altman-Z | N/A |
ROIC/WACC1.97
WACC8.54%
2.3 Liquidity
- EBAY has a Current Ratio of 0.92. This is a bad value and indicates that EBAY is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.92, EBAY is doing worse than 90.00% of the companies in the same industry.
- EBAY has a Quick Ratio of 0.92. This is a bad value and indicates that EBAY is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Quick ratio of EBAY (0.92) is worse than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.92 | ||
| Quick Ratio | 0.92 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 14.29% 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 11.47% yearly.
- EBAY shows a small growth in Revenue. In the last year, the Revenue has grown by 4.36%.
- The Revenue has been growing slightly by 3.55% on average over the past years.
EPS 1Y (TTM)14.29%
EPS 3Y6.51%
EPS 5Y11.47%
EPS Q2Q%14.29%
Revenue 1Y (TTM)4.36%
Revenue growth 3Y-0.44%
Revenue growth 5Y3.55%
Sales Q2Q%9.47%
3.2 Future
- The Earnings Per Share is expected to grow by 10.40% 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 5.13% yearly.
EPS Next Y14.56%
EPS Next 2Y10.54%
EPS Next 3Y10.32%
EPS Next 5Y10.4%
Revenue Next Year7.15%
Revenue Next 2Y5.93%
Revenue Next 3Y5.58%
Revenue Next 5Y5.13%
3.3 Evolution
- The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- EBAY is valuated rather expensively with a Price/Earnings ratio of 17.51.
- Based on the Price/Earnings ratio, EBAY is valued a bit cheaper than 80.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of EBAY to the average of the S&P500 Index (27.32), we can say EBAY is valued slightly cheaper.
- A Price/Forward Earnings ratio of 15.78 indicates a correct valuation of EBAY.
- Based on the Price/Forward Earnings ratio, EBAY is valued a bit cheaper than 73.33% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of EBAY to the average of the S&P500 Index (24.32), we can say EBAY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.51 | ||
| Fwd PE | 15.78 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EBAY is on the same level as its industry peers.
- EBAY's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.77 | ||
| EV/EBITDA | 15.49 |
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)1.2
PEG (5Y)1.53
EPS Next 2Y10.54%
EPS Next 3Y10.32%
5. Dividend
5.1 Amount
- EBAY has a Yearly Dividend Yield of 1.21%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.19, EBAY pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.83, EBAY is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.21% |
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
- 24.20% of the earnings are spent on dividend by EBAY. This is a low number and sustainable payout ratio.
- EBAY's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP24.2%
EPS Next 2Y10.54%
EPS Next 3Y10.32%
EBAY INC / EBAY FAQ
Can you provide the ChartMill fundamental rating for EBAY INC?
ChartMill assigns a fundamental rating of 5 / 10 to EBAY.
What is the valuation status for EBAY stock?
ChartMill assigns a valuation rating of 5 / 10 to EBAY INC (EBAY). This can be considered as Fairly Valued.
What is the profitability of EBAY stock?
EBAY INC (EBAY) has a profitability rating of 8 / 10.
What are the PE and PB ratios of EBAY INC (EBAY) stock?
The Price/Earnings (PE) ratio for EBAY INC (EBAY) is 17.51 and the Price/Book (PB) ratio is 8.99.
Can you provide the financial health for EBAY stock?
The financial health rating of EBAY INC (EBAY) is 3 / 10.