eBay Stock Analysis (NASDAQ:EBAY)

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$37.18 $0.1 (0.27%) EBAY stock closing price Jul 20, 2017 (Closing)
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eBay
Updated on : Jul 20, 2017
previous close
EBAY 37.2 (0%)
S&P 500 2473.5 (0%)
Closing Price On: Jul 20, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Commerce
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2017-Q1
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-6.1%
Operating Profit
Operating Margin:
24.9%
Sector Average:
5.7%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
8.97B
Debt/Equity Ratio:
 0.77
Compared to the industry
Cash Flow
Operating cash flow:
$582M
Net Income:
$1.04B
PROS      CONS
Operating Margins
Net Margins
ROIC
ROE
FCF Margin
Long Term Growth
High Debt Burden
Cash Flow
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
EBAY PS :
4.4
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
15%
Return on Equity:
93.7%
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 (3.8/5)

Our eBay stock opinion is based on fundamentals of the company. This eBay stock analysis is based on latest Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy EBAY stock?

  • eBay had a healthy average operating margin of 24.9% over the last 4 quarters.
  • Net margins stood at a healthy 86.3% (average) for eBay in the Trailing Twelve Months.
  • eBay has an attractive ROIC (Return on Invested Capital) of 15%
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for eBay at 93.7%.
  • The company has a healthy free cash flow margin of 20.2%.

Should you sell EBAY stock?

  • The company saw an average annual sales decline of -6.1% in sales over the last 5 years.
  • With a debt/equity ratio of  0.77, eBay is highly leveraged in comparison to Retail-Wholesale peers.
  • Cash flow from operations is low at 0.6 times the net income.
  • Trading at a PE ratio of 23.1, EBAY stock is overvalued in comparison to industry average multiple of 17.2.
  • The company is trading at a price to sales multiple of 4.4, 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!
https://amigobulls.com/articles/ebay-q1-...
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