eBay Stock Analysis (NASDAQ:EBAY)

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$33.52 $0.01 (0.03%) EBAY stock closing price Mar 23, 2017 (Closing)
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eBay
Updated on : Mar 23, 2017
previous close
EBAY 33.5 (0%)
S&P 500 2346 (0%)
Closing Price On: Mar 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Commerce
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-5.1%
Operating Profit
Operating Margin:
25.9%
Sector Average:
7.3%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
8.96B
Debt/Equity Ratio:
 0.85
Compared to the industry
Cash Flow
Operating cash flow:
$620M
Net Income:
$5.94B
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
Long Term Growth
High Debt Burden
Cash Flow
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
EBAY PS :
4.1
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
17.8%
Return on Equity:
99%
Free Cash Flow Margin:
20.2%
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eBay Analysis Video

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View eBay stock analysis video. This is our EBAY analyst opinion covering the buy and sell arguments for EBAY stock.

eBay Inc Stock Rating (4/5)

Our eBay stock opinion is based on fundamentals of the company. This eBay stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy EBAY stock?

  • eBay's average operating margin of 25.9% was exceptional.
  • Net margins stood at a healthy 80.9% (average) for eBay in the Trailing Twelve Months.
  • eBay generates a high return on invested capital of 17.8%.
  • eBay has a good Return On Equity (ROE) of 99%.
  • eBay has a healthy FCF (Free Cash Flow) margin of 20.2%.

Should you sell EBAY stock?

  • Sales declined by -5.1% annually over the last 5 years.
  • eBay has a debt/equity ratio of  0.85, which is worse than the average in the Retail-Wholesale sector.
  • Cash flow from operations is low at 0.1 times the net income.
  • The company is trading at a price to sales multiple of 4.1, which is overvalued in comparison to the Internet Commerce industry average multiple of 0.7.

Comments on this video and eBay stock

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GrowthInvestor on eBay stock analysis ($51.03)
bearish
In eBay CFO Bob Swan's words "The combination of the cyberattack and the Google SEO had an immediate and dramatic impact on GMV growth. June GMV growth was 7% driven by slower active buyer growth and lower conversion." which means earnings was not good enough. Also eBay was not hit by Google Panda but by a manual update... Is payapal growth alone good enough for ebay??
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user profile picture
virendra on eBay stock analysis ($52.37)
bullish
It was business as usual at EBAY in Q1 2014. Here's our Q1 review including the $3 billion tax charge and more!
http://amigobulls.com/articles/ebay-q1-2...
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