eBay Stock Analysis (NASDAQ:EBAY)
eBay Analysis Video
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 Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy EBAY stock?
- eBay's average operating margin of 24.9% was exceptional.
- 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%.
- eBay has a healthy FCF (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.
- eBay has a debt/equity ratio of 0.77, which is worse than the average in the Retail-Wholesale sector.
- The company has an operating cash flow which is 0.6 times the net income. This is not a healthy sign.
- The company is trading at a price to sales multiple of 3.9, which is overvalued in comparison to the Internet Commerce industry average multiple of 0.7.