At the moment, the debt-to-equity of eBay Inc. (NASDAQ:EBAY) is high, standing at 146.97, a figure that is higher than the 34.18 average recorded by the industry. This means that the company is currently holding a debt level at 9.23 B. EBAY shares have a strong debt-to-equity ratio but their quick ratio which reads 1.60 is strong and might cause problems for them later in the future.
Even though there was a rise of +8.12% in revenue, the company failed to succeed in outperforming the industry average of 19.08%. The 4.39% yoy growth of EBAY’s revenue has gone up that of the industry average by 0.19%. For the past 12 months, eBay Inc. revenue has gone up by 4.20%. The sustained growth in their revenue has helped boost their earnings per share.
eBay Inc. (EBAY) has seen their earnings per share increased to $0.80 during the last quarter in comparison to the same quarter last year. They have recorded a 9.07% growing earnings per share earnings. They have recorded a 9.07% growing earnings per share earnings. Analysts expect increase in earnings is also on the cards next quarter with an average estimate at $0.68.
The 12-month return on equity has significantly fallen to 82.87 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Services sector, the industry average is 17.87 while 13.93 is of the sector.
EBAY total operating cash flow had jumped to $1.23 billion compared to $558 million in the same quarter last year. Also, looking at the price to cash flow of the company and the industry average, the 5.12 ratio of the stock is lower than the industry’s 30.44.
eBay Inc. (NASDAQ:EBAY) has a price-to-earnings ratio of 5.83 which is lower than the 41.41 industry average at the moment. In addition to their unfavorable P/E ratio, eBay Inc. has maintained a gross margin of 76.92. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is 31.29 when compared to 10.50 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, eBay Inc. ROE is above 13.93 that of both the sector average.
The operating profit margin for eBay Inc. (EBAY) is 24.07%, a figure which is considered to be weak. It has gone 10.47 from the 25.34 over the past 5 years. In addition to this, their operating margin is 13.6 higher than the industry average.
The net profit margin which stood at 26.79 on average in the past 5 years has jumped to 81.12 in the last 12 months. Added to that, this ratio has surpassed the industry net margin that stands at 3.43.
Analysts meanwhile rate eBay Inc. (NASDAQ:EBAY) as a buy. Still some above discussed indicators of the $34.57B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the EBAY shares to either perform positively or negatively when compared to other stocks. The primary strengths of eBay Inc. can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.