EBAY Investors, You Need to Know These Facts Today.

Now trading at a price of $39.47, eBay has moved -1.7% so far today.

eBay returned losses of -11.0% last year, with its stock price reaching a high of $52.23 and a low of $37.17. Over the same period, the stock underperformed the S&P 500 index by -27.0%. As of April 2023, the company's 50-day average price was $41.75. eBay Inc. operates marketplace platforms that connect buyers and sellers in the United States and internationally. Based in San Jose, CA, the large-cap Consumer Discretionary company has 11,600 full time employees. eBay has offered a 2.4% dividend yield over the last 12 months.

Overview of the Company's Finances:

2018 2019 2020 2021 2022 2023
Revenue (MM) $8,650 $7,429 $8,894 $10,420 $9,795 $9,940
Gross Margins 77% 79% 80% 75% 73% 72%
Operating Margins 31.0% 30.0% 38.0% 28.0% 24.0% 22.0%
Net Margins 28.0% 24.0% 64.0% 131.0% -13.0% 14.0%
Net Income (MM) $2,530 $1,786 $5,667 $13,608 -$1,269 $1,342
Earnings Per Share $2.55 $2.09 $7.89 $20.54 -$2.27 $2.33
Diluted Shares (MM) 991 856 718 663 558 493
Free Cash Flow (MM) $2,035 $2,606 $2,541 $2,649 $168 $1,479
Capital Expenditures (MM) $623 $508 $463 $444 $2,459 $1,388
Net Current Assets (MM) -$9,412 -$10,598 -$8,559 -$7,737 -$6,407 -$5,971
Long Term Debt (MM) $7,685 $6,738 $7,740 $7,727 $7,721 $7,721
Net Debt / EBITDA 1.72 2.18 1.69 2.24 2.36 2.36

eBay has weak revenue growth and increasing reinvestment in the business and wider gross margins than its peer group. Additionally, the company's financial statements display decent operating margins with a negative growth trend and healthy leverage. Furthermore, eBay has flat EPS growth and irregular cash flows.

A Very Low P/E Ratio but Trades Above Its Graham Number:

eBay has a trailing twelve month P/E ratio of 8.4, compared to an average of 22.33 for the Consumer Discretionary sector. Based on its EPS guidance of $4.44, the company has a forward P/E ratio of 9.4. The company doesn't issue forward earnings guidance, and the compound average growth rate of its last 6 years of reported EPS is -1.5%. On this basis, the company's PEG ratio is -5.62, which indicates that its shares are overpriced. Furthermore, eBay is likely overvalued compared to the book value of its equity, since its P/B ratio of 3.48 is higher than the sector average of 3.12. The company's shares are currently trading 66.4% above their Graham number.

eBay Has an Average Rating of Hold:

The 24 analysts following eBay have set target prices ranging from $32.0 to $56.0 per share, for an average of $45.34 with a hold rating. As of April 2023, the company is trading -7.9% away from its average target price, indicating that there is an analyst consensus of some upside potential.

eBay has an average amount of shares sold short because 3.5% of the company's shares are sold short. Institutions own 91.2% of the company's shares, and the insider ownership rate stands at 0.23%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 11% stake in the company is worth $2,365,872,415.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.