Ebay Is an Environment That Allows the Smallest Business to Make Money

eBay is a company and website where people and bring their goods and sell them in the market place. This allows people to flip items for profits or sell their homemade items to will buyers. Similar companies in this space are Etsy and Facebook Marketplace, which provide the space to match buyers and sellers. eBay charges fees as a way to earn money, but this type of environment is the current and future market space as people are going to brick and mortar stores less and the online space more. Now, let us take a look at the recent numbers to get a view of their fundamental health.

Published over a year ago
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Reviewed by Vlad Skutelnik

These numbers can be found on the company’s 8-K SEC filing. The company reported gross merchandise volume for the quarter ended December 31, 2016 at $22.3 billion, increasing 5% on a foreign exchange neutral basis and 2% on an as-reported basis. Revenue for the quarter was $2.4 billion, up 6% on an FX-Neutral basis and 3% on an as-reported basis. For current and potential investors, these are numbers you want to see as they are increasing.

Now, taking a look at the chart using the monthly time frame, we can see that price is increasing and is doing so quickly the past few candles. Creating higher highs and higher lows is what we want to see with an up trending stock price. Now, you can get a sense of where price wants to go and use that with the fundamental data to formulate a well-rounded opinion. Overall, the chart appears healthy and nothing stands out as a red flag to do more research on the chart as the movements appear normal.

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include EBay income statement, its balance sheet, and the statement of cash flows. Potential EBay investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although EBay investors may use each financial statement separately, they are all related. The changes in EBay's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on EBay's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of EBay fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of EBay performance into the future periods or doing a reasonable stock valuation. The intrinsic value of EBay shares is the value that is considered the true value of the share. If the intrinsic value of EBay is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares EBay. Please read more on our fundamental analysis page.

How effective is EBay in utilizing its assets?

eBay Inc reports assets on its Balance Sheet. It represents the amount of EBay resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, EBay aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Internet & Direct Marketing Retail space. To get a better handle on how balance sheet or income statements item affect EBay volatility, please check the breakdown of all its fundamentals.

Are EBay Earnings Expected to grow?

The future earnings power of EBay involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of EBay factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. EBay stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of EBay expected earnings.

And What about dividends?

A dividend is the distribution of a portion of EBay earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. EBay dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. EBay one year expected dividend income is about USD0.64 per share.
At this time, EBay's Dividend Payout Ratio is fairly stable compared to the past year. Dividend Paid And Capex Coverage Ratio is likely to rise to 35.38 in 2024, despite the fact that Dividends Paid is likely to grow to (501.6 M).
Last ReportedProjected for Next Year
Dividends Paid-528 M-501.6 M
Dividend Yield 0.02  0.02 
Dividend Payout Ratio 0.19  0.32 
Dividend Paid And Capex Coverage Ratio 33.69  35.38 
Investing in dividend-paying stocks, such as eBay Inc is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in EBay must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for EBay. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

EBay Gross Profit

EBay Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing EBay previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show EBay Gross Profit growth over the last 10 years. Please check EBay's gross profit and other fundamental indicators for more details.

Breaking down EBay Indicators

Risks

For a full list of risks, take a look at the most recent 10-K report as this will have risks as well as details on each risk. For now, here are a couple risks to keep in mind while completing your research. First, this is still a retail space where people purchase goods, which means if the overall economy slows, people are going to stop buying less, in turn hurting sales. Secondly, the online market space is only going to get more intense as people and companies turn to online sales more and more. The company has to maintain brand image if they want to be relevant in the coming years.

Conclusion

Overall, eBay is a great company and will continue to be in the leaders group if they can maintain their current dominance. Be sure to compare this company with the others in the space as there could be better deals out there. If you still have questions after your research, consult an investing professional as they can help to point you in the right direction.

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Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of eBay Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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