94.42 USD
+0.81 (+0.87%)
94.43 USD
+0.01 (+0.01%)
Taking everything into account, EBAY scores 5 out of 10 in our fundamental rating. EBAY was compared to 30 industry peers in the Broadline Retail industry. While EBAY has a great profitability rating, there are quite some 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.
- EBAY had a positive operating cash flow in the past year.
- EBAY had positive earnings in 4 of the past 5 years.
- In the past 5 years EBAY always reported a positive cash flow from operatings.
1.2 Ratios
- EBAY has a Return On Assets of 12.26%. This is amongst the best in the industry. EBAY outperforms 93.33% of its industry peers.
- EBAY has a better Return On Equity (46.24%) than 100.00% of its industry peers.
- EBAY has a better Return On Invested Capital (16.87%) than 90.00% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for EBAY is above the industry average of 9.28%.
- 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
- The Profit Margin of EBAY (20.37%) is better than 96.67% 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 23.27%. This is amongst the best in the industry. EBAY outperforms 100.00% of its industry peers.
- EBAY's Operating Margin has been stable in the last couple of years.
- EBAY has a Gross Margin of 71.64%. This is amongst the best in the industry. EBAY outperforms 86.67% 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 | 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
- EBAY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating 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 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.
- EBAY has a Debt to FCF ratio of 4.42. This is in the better half of the industry: EBAY outperforms 63.33% of its industry peers.
- A Debt/Equity ratio of 1.06 is on the high side and indicates that EBAY has dependencies on debt 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
WACC8.56%
2.3 Liquidity
- A Current Ratio of 0.92 indicates that EBAY may have some problems paying 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
- EBAY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.29%, 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 11.47% on average per year.
- Looking at the last year, EBAY shows a small growth in Revenue. The Revenue has grown by 4.36% in the last year.
- 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
- Based on estimates for the next years, EBAY will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.40% on average per year.
- The Revenue is expected to grow by 5.13% on average over the next years.
EPS Next Y14.62%
EPS Next 2Y10.74%
EPS Next 3Y10.47%
EPS Next 5Y10.4%
Revenue Next Year7.16%
Revenue Next 2Y5.93%
Revenue Next 3Y5.63%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 17.62, the valuation of EBAY can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of EBAY indicates a somewhat cheap valuation: EBAY is cheaper than 76.67% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.25. EBAY is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 15.81, EBAY is valued correctly.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of EBAY indicates a somewhat cheap valuation: EBAY is cheaper than 70.00% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of EBAY to the average of the S&P500 Index (25.98), we can say EBAY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.62 | ||
| Fwd PE | 15.81 |
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.
- The rest of the industry has a similar Price/Free Cash Flow ratio as EBAY.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.93 | ||
| EV/EBITDA | 15.62 |
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)1.54
EPS Next 2Y10.74%
EPS Next 3Y10.47%
5. Dividend
5.1 Amount
- EBAY has a Yearly Dividend Yield of 1.24%. Purely for dividend investing, there may be better candidates out there.
- EBAY's Dividend Yield is a higher than the industry average which is at 2.35.
- EBAY's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.24% |
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.
- EBAY has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 2Y10.74%
EPS Next 3Y10.47%
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 17.62 and the Price/Book (PB) ratio is 9.04.
Can you provide the financial health for EBAY stock?
The financial health rating of EBAY INC (EBAY) is 3 / 10.