Why is eBay, Inc. ?
1
High Management Efficiency with a high ROCE of 35.58%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 2.50 times
3
Poor long term growth as Net Sales has grown by an annual rate of 0.87% and Operating profit at -3.55% over the last 5 years
4
With a growth in Operating Profit of 13.09%, the company declared Very Positive results in Mar 26
- OPERATING CASH FLOW(Y) Highest at USD 2,562 MM
- DIVIDEND PER SHARE(HY) Highest at USD 9.03
- NET SALES(Q) Highest at USD 3,115 MM
5
With ROCE of 29.11%, it has a expensive valuation with a 17.20 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 35.20%, its profits have fallen by -10.9%
6
High Institutional Holdings at 97.16%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
- Their stake has increased by 1.43% over the previous quarter.
7
Market Beating performance in long term as well as near term
- Along with generating 35.20% returns in the last 1 year, the stock has outperformed S&P 500 in the last 3 years, 1 year and 3 months
How much should you hold?
- Overall Portfolio exposure to eBay, Inc. should be less than 10%
- Overall Portfolio exposure to E-Retail/ E-Commerce should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in E-Retail/ E-Commerce)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is eBay, Inc. for you?
High Risk, High Return
Absolute
Risk Adjusted
Volatility
eBay, Inc.
35.2%
2.45
39.85%
S&P 500
22.24%
1.67
13.28%
Quality key factors
Factor
Value
Sales Growth (5y)
0.87%
EBIT Growth (5y)
-3.55%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0.57
Net Debt to Equity (avg)
0.32
Sales to Capital Employed (avg)
0.82
Tax Ratio
13.85%
Dividend Payout Ratio
26.73%
Pledged Shares
0
Institutional Holding
97.16%
ROCE (avg)
35.58%
ROE (avg)
52.24%
Valuation Key Factors 
Factor
Value
P/E Ratio
67
Industry P/E
Price to Book Value
29.15
EV to EBIT
59.09
EV to EBITDA
50.32
EV to Capital Employed
17.20
EV to Sales
12.35
PEG Ratio
NA
Dividend Yield
0.42%
ROCE (Latest)
29.11%
ROE (Latest)
43.39%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Bullish
Technical Movement
13What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 2,562 MM
DIVIDEND PER SHARE(HY)
Highest at USD 9.03
NET SALES(Q)
Highest at USD 3,115 MM
INTEREST COVERAGE RATIO(Q)
Highest at 1,323.81
RAW MATERIAL COST(Y)
Fallen by -2.02% (YoY
OPERATING PROFIT(Q)
Highest at USD 834 MM
OPERATING PROFIT MARGIN(Q)
Highest at 26.77 %
PRE-TAX PROFIT(Q)
Highest at USD 734 MM
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for eBay, Inc.
Operating Cash Flow
Highest at USD 2,562 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 3,115 MM and Grown
In each period in the last five periodsMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Interest Coverage Ratio
Highest at 1,323.81
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Dividend per share
Highest at USD 9.03 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Profit
Highest at USD 834 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 26.77 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 734 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Raw Material Cost
Fallen by -2.02% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales






