EBAY INC (EBAY) Stock Fundamental Analysis
USA - NASDAQ:EBAY - US2786421030 - Common Stock
89.6 USD
-0.36 (-0.4%)
89.6 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to EBAY. EBAY was compared to 28 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 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.
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 12.16%, EBAY belongs to the top of the industry, outperforming 89.29% of the companies in the same industry.
EBAY has a Return On Equity of 45.99%. This is amongst the best in the industry. EBAY outperforms 100.00% of its industry peers.
EBAY has a Return On Invested Capital of 16.20%. This is amongst the best in the industry. EBAY outperforms 85.71% 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 11.01%.
The 3 year average ROIC (12.79%) for EBAY is below the current ROIC(16.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.16% | ||
| ROE | 45.99% | ||
| ROIC | 16.2% |
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
The Profit Margin of EBAY (20.86%) is better than 96.43% 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 22.99%. This is amongst the best in the industry. EBAY outperforms 96.43% of its industry peers.
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 (71.88%) than 89.29% of its industry peers.
EBAY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.99% | ||
| PM (TTM) | 20.86% | ||
| GM | 71.88% |
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
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.
The number of shares outstanding for EBAY has been reduced compared to 5 years ago.
Compared to 1 year ago, EBAY has a worse debt to assets ratio.
2.2 Solvency
EBAY has an Altman-Z score of 5.90. This indicates that EBAY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of EBAY (5.90) is better than 75.00% of its industry peers.
The Debt to FCF ratio of EBAY is 4.79, which is a neutral value as it means it would take EBAY, 4.79 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 4.79, EBAY perfoms like the industry average, outperforming 57.14% of the companies in the same industry.
A Debt/Equity ratio of 1.05 is on the high side and indicates that EBAY has dependencies on debt financing.
EBAY's Debt to Equity ratio of 1.05 is on the low side compared to the rest of the industry. EBAY is outperformed by 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.79 | ||
| Altman-Z | 5.9 |
ROIC/WACC1.87
WACC8.67%
2.3 Liquidity
EBAY has a Current Ratio of 1.00. This is a bad value and indicates that EBAY is not financially healthy enough and could expect problems in meeting its short term obligations.
EBAY has a Current ratio of 1.00. This is amonst the worse of the industry: EBAY underperforms 85.71% of its industry peers.
A Quick Ratio of 1.00 indicates that EBAY may have some problems paying its short term obligations.
With a Quick ratio value of 1.00, EBAY is not doing good in the industry: 60.71% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.57% 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.
The Revenue has been growing slightly by 2.75% in the past year.
The Revenue has been growing slightly by 3.55% on average over the past years.
EPS 1Y (TTM)14.57%
EPS 3Y6.51%
EPS 5Y11.47%
EPS Q2Q%16.1%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y-0.44%
Revenue growth 5Y3.55%
Sales Q2Q%6.14%
3.2 Future
The Earnings Per Share is expected to grow by 10.77% on average over the next years. This is quite good.
Based on estimates for the next years, EBAY will show a small growth in Revenue. The Revenue will grow by 5.00% on average per year.
EPS Next Y14.31%
EPS Next 2Y11.57%
EPS Next 3Y11.28%
EPS Next 5Y10.77%
Revenue Next Year5.49%
Revenue Next 2Y5.26%
Revenue Next 3Y5.11%
Revenue Next 5Y5%
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 17.26.
EBAY's Price/Earnings ratio is a bit cheaper when compared to the industry. EBAY is cheaper than 78.57% of the companies in the same industry.
EBAY is valuated rather cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 14.78, 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 78.57% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.88. EBAY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.26 | ||
| Fwd PE | 14.78 |
4.2 Price Multiples
EBAY's Enterprise Value to EBITDA ratio is in line with the industry average.
60.71% 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 | 29.06 | ||
| EV/EBITDA | 15.35 |
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)1.21
PEG (5Y)1.51
EPS Next 2Y11.57%
EPS Next 3Y11.28%
5. Dividend
5.1 Amount
EBAY has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.95, EBAY pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.25, EBAY pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
The dividend of EBAY is nicely growing with an annual growth rate of 14.31%!
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
24.13% of the earnings are spent on dividend by EBAY. This is a low number and sustainable payout ratio.
The dividend of EBAY is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP24.13%
EPS Next 2Y11.57%
EPS Next 3Y11.28%
89.6
-0.36 (-0.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustryBroadline Retail
Earnings (Last)
Earnings (Next)
Inst Owners99.87%
Inst Owner Change-3.49%
Ins Owners0.25%
Ins Owner Change-0.43%
Market Cap40.95B
Analysts68.21
Price Target89.28 (-0.36%)
Short Float %4.05%
Short Ratio3.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend1.08
Dividend Growth(5Y)14.31%
DP24.13%
Div Incr Years5
Div Non Decr Years5
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.36%
Min EPS beat(2)1.07%
Max EPS beat(2)3.64%
EPS beat(4)3
Avg EPS beat(4)1.33%
Min EPS beat(4)-1.24%
Max EPS beat(4)3.64%
EPS beat(8)7
Avg EPS beat(8)1.65%
EPS beat(12)10
Avg EPS beat(12)1.72%
EPS beat(16)12
Avg EPS beat(16)2.02%
Revenue beat(2)1
Avg Revenue beat(2)0.36%
Min Revenue beat(2)-0.5%
Max Revenue beat(2)1.22%
Revenue beat(4)1
Avg Revenue beat(4)-0.44%
Min Revenue beat(4)-1.68%
Max Revenue beat(4)1.22%
Revenue beat(8)1
Avg Revenue beat(8)-0.64%
Revenue beat(12)2
Avg Revenue beat(12)-0.54%
Revenue beat(16)3
Avg Revenue beat(16)-0.56%
PT rev (1m)5.62%
PT rev (3m)29.67%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)2.19%
EPS NY rev (1m)2.27%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)3.15%
Revenue NY rev (1m)2%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.26 | ||
| Fwd PE | 14.78 | ||
| P/S | 3.91 | ||
| P/FCF | 29.06 | ||
| P/OCF | 21.42 | ||
| P/B | 8.62 | ||
| P/tB | 176.5 | ||
| EV/EBITDA | 15.35 |
EPS(TTM)5.19
EY5.79%
EPS(NY)6.06
Fwd EY6.77%
FCF(TTM)3.08
FCFY3.44%
OCF(TTM)4.18
OCFY4.67%
SpS22.91
BVpS10.39
TBVpS0.51
PEG (NY)1.21
PEG (5Y)1.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.16% | ||
| ROE | 45.99% | ||
| ROCE | 20.02% | ||
| ROIC | 16.2% | ||
| ROICexc | 23.55% | ||
| ROICexgc | 51.88% | ||
| OM | 22.99% | ||
| PM (TTM) | 20.86% | ||
| GM | 71.88% | ||
| FCFM | 13.46% |
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-Score5
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.05 | ||
| Debt/FCF | 4.79 | ||
| Debt/EBITDA | 1.81 | ||
| Cap/Depr | 140.9% | ||
| Cap/Sales | 4.8% | ||
| Interest Coverage | 9.08 | ||
| Cash Conversion | 69.18% | ||
| Profit Quality | 64.51% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 5.9 |
F-Score5
WACC8.67%
ROIC/WACC1.87
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)14.57%
EPS 3Y6.51%
EPS 5Y11.47%
EPS Q2Q%16.1%
EPS Next Y14.31%
EPS Next 2Y11.57%
EPS Next 3Y11.28%
EPS Next 5Y10.77%
Revenue 1Y (TTM)2.75%
Revenue growth 3Y-0.44%
Revenue growth 5Y3.55%
Sales Q2Q%6.14%
Revenue Next Year5.49%
Revenue Next 2Y5.26%
Revenue Next 3Y5.11%
Revenue Next 5Y5%
EBIT growth 1Y3.04%
EBIT growth 3Y-11.51%
EBIT growth 5Y4.13%
EBIT Next Year17.4%
EBIT Next 3Y9.9%
EBIT Next 5Y8.06%
FCF growth 1Y-40.17%
FCF growth 3Y-4.03%
FCF growth 5Y-5.24%
OCF growth 1Y-33.03%
OCF growth 3Y-3.15%
OCF growth 5Y-4.96%