NasdaqGS:EBAY

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Mediocre balance sheet and slightly overvalued.


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

-6.3%

EBAY

-1.5%

US Online Retail

-0.8%

US Market


1 Year Return

45.9%

EBAY

75.7%

US Online Retail

18.0%

US Market

Return vs Industry: EBAY underperformed the US Online Retail industry which returned 76.6% over the past year.

Return vs Market: EBAY exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

EBAYIndustryMarket
7 Day-6.3%-1.5%-0.8%
30 Day3.2%8.8%6.8%
90 Day-5.1%12.4%8.9%
1 Year48.1%45.9%75.8%75.7%20.7%18.0%
3 Year45.9%42.1%118.7%118.5%41.5%32.1%
5 Year92.4%87.4%278.1%277.4%84.6%63.8%

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?

9.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EBAY ($52.29) is trading below our estimate of fair value ($57.77)

Significantly Below Fair Value: EBAY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: EBAY is good value based on its PE Ratio (19.2x) compared to the US Online Retail industry average (29.4x).

PE vs Market: EBAY is poor value based on its PE Ratio (19.2x) compared to the US market (18.9x).


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 (12.7x) compared to the US Online Retail industry average (4.5x).


Next Steps

Future Growth

How is eBay forecast to perform in the next 1 to 3 years based on estimates from 28 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EBAY's forecast earnings growth (5.5% per year) is above the savings rate (2.2%).

Earnings vs Market: EBAY's earnings (5.5% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: EBAY's revenue (5.6% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: EBAY's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EBAY's Return on Equity is forecast to be very high in 3 years time (102.7%).


Next Steps

Past Performance

How has eBay performed over the past 5 years?

-12.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EBAY has high quality earnings.

Growing Profit Margin: EBAY's current net profit margins (18.8%) are lower than last year (23.1%).


Past Earnings Growth Analysis

Earnings Trend: EBAY's earnings have declined by 12.3% per year over the past 5 years.

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 (-12.3%) over the past year, making it difficult to compare to the Online Retail industry average (19.2%).


Return on Equity

High ROE: Whilst EBAY's Return on Equity (72.4%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is eBay's financial position?


Financial Position Analysis

Short Term Liabilities: EBAY's short term assets ($7.4B) exceed its short term liabilities ($4.7B).

Long Term Liabilities: EBAY's short term assets ($7.4B) do not cover its long term liabilities ($12.4B).


Debt to Equity History and Analysis

Debt Level: EBAY's debt to equity ratio (292.9%) is considered high.

Reducing Debt: EBAY's debt to equity ratio has increased from 39% to 292.9% over the past 5 years.

Debt Coverage: EBAY's debt is well covered by operating cash flow (39.7%).

Interest Coverage: EBAY's interest payments on its debt are well covered by EBIT (10.8x coverage).


Balance Sheet


Next Steps

Dividend

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

1.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: EBAY's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: EBAY's dividend (1.22%) is low compared to the top 25% of dividend payers in the US market (4.67%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, EBAY has been paying a dividend for less than 10 years.

Growing Dividend: EBAY's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (22.1%), 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 thoroughly covered by earnings (14.5% payout ratio).


Next Steps

Management

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

4.6yrs

Average management tenure


CEO

Jamie Iannone (47 yo)

0.50

Tenure

Mr. Jamie Iannone serves as Chief Executive Officer and Director of eBay Inc. since April 27, 2020. Mr. Iannone had been chief operating officer of U.S. e-commerce business at Walmart Inc. since March 03, ...


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Cring
Interim Chief Financial Officer1.08yrsUS$5.92m0.017%
$ 6.4m
Kristin Yetto
Senior VP & Chief People Officer5.25yrsUS$8.57m0.00095%
$ 347.7k
Jae Lee
Senior Vice President of International5.25yrsUS$8.50m0.040%
$ 14.7m
Peter Thompson
Senior VP & Chief Product Officer1.17yrsUS$11.78m0.0016%
$ 585.5k
Jamie Iannone
CEO, President & Director0.50yrno data0.000030%
$ 11.0k
Wendy Jones
Senior Vice President of Global Customer Experience & Operations4yrsUS$11.79m0.00095%
$ 347.7k
Brian Doerger
VP & Chief Accounting Officer8.42yrsno data0.0033%
$ 1.2m
Mazen Al-Rawashdeh
Senior VP & CTO1.25yrsno datano data
Joe Billante
Vice President of Investor Relationsno datano datano data
Marie Huber
Senior VP of Legal Affairs5.25yrsUS$7.75m0.0088%
$ 3.2m
Suzy Deering
VP & Global Chief Marketing Officerno datano datano data
Vladimir Dolgov
Head of Russian Marketplaces Business8.33yrsno datano data

4.6yrs

Average Tenure

53yo

Average Age

Experienced Management: EBAY's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jamie Iannone
CEO, President & Director0.50yrno data0.000030%
$ 11.0k
Robert Swan
Independent Director5.25yrsUS$348.75k0.044%
$ 16.1m
Paul Pressler
Independent Chairman of the Board0.33yrUS$370.00k0.0075%
$ 2.7m
Perry Traquina
Independent Director5.75yrsUS$358.00k0.0070%
$ 2.6m
Anthony Bates
Independent Director5.58yrsUS$352.50k0.0050%
$ 1.8m
Adriane Brown
Independent Director3.08yrsUS$355.50k0.0021%
$ 764.9k
Bonnie Hammer
Independent Director5.75yrsUS$345.00k0.0046%
$ 1.7m
Matthew Murphy
Independent Director1.58yrsUS$296.77k0.0018%
$ 673.4k
Kathleen Mitic
Independent Director9.08yrsUS$370.00k0.0045%
$ 1.6m
E. Hayles
Independent Director0.083yrno data0.000010%
$ 3.7k
Logan Green
Independent Director4.33yrsUS$340.00k0.0030%
$ 1.1m
Diana Farrell
Independent Director3.08yrsUS$337.50k0.0019%
$ 706.3k

3.7yrs

Average Tenure

57yo

Average Age

Experienced Board: EBAY's board of directors are considered experienced (3.7 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$36.597b
  • Shares outstanding: 699.88m
  • 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 2 REPR 1 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 app ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 00:04
End of Day Share Price2020/10/22 00:00
Earnings2020/06/30
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.