NasdaqGS:EBAY

Stock Analysis Report

Executive Summary

eBay Inc. operates the marketplace and classifieds platforms that connect buyers and sellers worldwide.


Snowflake Analysis

Mediocre balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has eBay's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EBAY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.2%

EBAY

0.3%

US Online Retail

0.06%

US Market


1 Year Return

1.9%

EBAY

25.8%

US Online Retail

19.3%

US Market

Return vs Industry: EBAY underperformed the US Online Retail industry which returned 25.8% over the past year.

Return vs Market: EBAY underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

EBAYIndustryMarket
7 Day0.2%0.3%0.06%
30 Day7.3%6.7%1.7%
90 Day8.8%19.7%9.0%
1 Year3.4%1.9%25.9%25.8%21.8%19.3%
3 Year13.8%12.2%110.0%109.7%49.5%39.9%
5 Year59.1%-34.0%220.4%206.3%73.1%54.1%

Price Volatility Vs. Market

How volatile is eBay's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is eBay undervalued compared to its fair value and its price relative to the market?

18.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: EBAY ($37.69) is trading above our estimate of fair value ($28.57)

Significantly Below Fair Value: EBAY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: EBAY is good value based on its PE Ratio (17.9x) compared to the Online Retail industry average (33.2x).

PE vs Market: EBAY is good value based on its PE Ratio (17.9x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: EBAY is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: EBAY is overvalued based on its PB Ratio (10.5x) compared to the US Online Retail industry average (3.1x).


Next Steps

Future Growth

How is eBay forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

5.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EBAY's forecast earnings growth (5.1% per year) is above the savings rate (1.7%).

Earnings vs Market: EBAY's earnings (5.1% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: EBAY's earnings are forecast to grow, but not significantly.

Revenue vs Market: EBAY's revenue (0.09% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: EBAY's revenue (0.09% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EBAY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has eBay performed over the past 5 years?

-3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EBAY has high quality earnings.

Growing Profit Margin: EBAY's current net profit margins (16.6%) are lower than last year (23.5%).


Past Earnings Growth Analysis

Earnings Trend: EBAY has become profitable over the past 5 years, growing earnings by -3% per year.

Accelerating Growth: EBAY's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: EBAY had negative earnings growth (-29.1%) over the past year, making it difficult to compare to the Online Retail industry average (15%).


Return on Equity

High ROE: Whilst EBAY's Return on Equity (62.44%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is eBay's financial position?


Financial Position Analysis

Short Term Liabilities: EBAY's short term assets ($4.7B) exceed its short term liabilities ($4.1B).

Long Term Liabilities: EBAY's short term assets ($4.7B) do not cover its long term liabilities ($11.2B).


Debt to Equity History and Analysis

Debt Level: EBAY's debt to equity ratio (269.4%) is considered high.

Reducing Debt: EBAY's debt to equity ratio has increased from 37.2% to 269.4% over the past 5 years.

Debt Coverage: EBAY's debt is well covered by operating cash flow (40.3%).

Interest Coverage: EBAY's interest payments on its debt are well covered by EBIT (12.6x coverage).


Balance Sheet

Inventory Level: EBAY has a low level of unsold assets or inventory.

Debt Coverage by Assets: EBAY's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is eBay's current dividend yield, its reliability and sustainability?

1.68%

Current Dividend Yield


Upcoming Dividend Payment

TodayFeb 22 2020Ex Dividend DateFeb 28 2020Dividend Pay DateMar 20 202021 days from Ex DividendBuy in the next 6 days to receive upcoming dividend

Dividend Yield vs Market

Notable Dividend: EBAY's dividend (1.7%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: EBAY's dividend (1.7%) is low compared to the top 25% of dividend payers in the US market (3.71%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether EBAY's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if EBAY's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.5%), EBAY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EBAY's dividends in 3 years are forecast to be well covered by earnings (17.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Scott Schenkel (51yo)

0.4yrs

Tenure

US$8,573,568

Compensation

Mr. Scott F. Schenkel is Interim Chief Executive Officer of eBay Inc. since September 2019. Mr. Schenkel served as the Chief Financial Officer and Senior Vice President at eBay Inc. since July 17, 2015 unt ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD8.57M) is about average for companies of similar size in the US market ($USD10.79M).

Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Scott Schenkel
Interim Chief Executive Officer0.4yrsUS$8.57m0.039% $11.6m
Wendy Jones
Senior Vice President of Global Operations3.3yrsUS$11.79m0.0060% $1.8m
Jae Lee
Senior VP & GM of Markets4.6yrsUS$6.03m0.029% $8.6m
Andrew Cring
Interim Chief Financial Officer0.4yrsno data0.014% $4.3m
Brian Doerger
VP & Chief Accounting Officer7.8yrsno data0.0045% $1.4m
Mazen Al-Rawashdeh
Senior VP & CTO0.6yrsno datano data
Joe Billante
Vice President of Investor Relations0yrsno datano data
Marie Huber
Senior VP of Legal Affairs0yrsUS$7.75m0.013% $4.0m
Suzy Deering
VP & Global Chief Marketing Officer0yrsno datano data
Kristin Yetto
Senior VP & Chief People Officer4.6yrsno data0.0070% $2.1m

3.3yrs

Average Tenure

53yo

Average Age

Experienced Management: EBAY's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fred Anderson
Independent Director16.6yrsUS$371.75k0.0045% $1.4m
Pierre Omidyar
Founder & Independent Director23.8yrsUS$24.00k4.14% $1.2b
Robert Swan
Independent Director4.6yrsUS$330.00k0.038% $11.3m
Paul Pressler
Independent Director4.4yrsUS$359.32k0.0057% $1.7m
Perry Traquina
Independent Director5.1yrsUS$358.00k0.0051% $1.5m
Thomas Tierney
Non Executive Chairman of the Board4.6yrsUS$554.25k0.0089% $2.7m
Anthony Bates
Independent Director4.9yrsUS$344.25k0.0035% $1.0m
Bonnie Hammer
Independent Director5.1yrsUS$344.25k0.0032% $963.1k
Kathleen Mitic
Independent Director8.4yrsUS$369.25k0.0031% $927.1k
Logan Green
Independent Director3.7yrsUS$340.00k0.0018% $531.1k

5.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: EBAY's board of directors are considered experienced (5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EBAY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

eBay Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: eBay Inc.
  • Ticker: EBAY
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Internet and Direct Marketing Retail
  • Sector: Retail
  • Market Cap: US$30.004b
  • Shares outstanding: 796.08m
  • Website: https://www.ebayinc.com

Number of Employees


Location

  • eBay Inc.
  • 2025 Hamilton Avenue
  • San Jose
  • California
  • 95125
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EBAYNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 1998
EBAY *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 1998
EBADB (Deutsche Boerse AG)YesCommon StockDEEURSep 1998
EBAYSWX (SIX Swiss Exchange)YesCommon StockCHCHFSep 1998
EBAXTRA (XETRA Trading Platform)YesCommon StockDEEURSep 1998
EBAYSNSE (Santiago Stock Exchange)YesCommon StockCLUSDSep 1998
EBAY-UETLX (Eurotlx)YesCommon StockITEURSep 1998
EBAYWBAG (Wiener Boerse AG)YesCommon StockATEURSep 1998
EBAY34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 0.5 COM USD0.001BRBRLMar 2012
EBAYBASE (Buenos Aires Stock Exchange)CEDEAR EA REP 1 SHRARARSJan 2014

Biography

eBay Inc. operates the marketplace and classifieds platforms that connect buyers and sellers worldwide. Its Marketplace platform includes its online marketplace at ebay.com and the eBay suite of mobile apps; and Classifieds platform comprises a collection of brands, such as Mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen, and others that offer online classifieds to help people find what they are looking for in their local communities. Its platforms enable users to list, buy, sell, and pay for items through various online, mobile, and offline channels that include retailers, distributors, liquidators, import and export companies, auctioneers, catalog and mail-order companies, classifieds, directories, search engines, commerce participants, shopping channels, and networks. The company was founded in 1995 and is headquartered in San Jose, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 00:22
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.