Latest news with #eBayInc
Yahoo
17 hours ago
- Business
- Yahoo
Is eBay Inc.'s (NASDAQ:EBAY) ROE Of 41% Impressive?
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. By way of learning-by-doing, we'll look at ROE to gain a better understanding of eBay Inc. (NASDAQ:EBAY). Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for eBay is: 41% = US$2.0b ÷ US$5.0b (Based on the trailing twelve months to March 2025). The 'return' is the profit over the last twelve months. So, this means that for every $1 of its shareholder's investments, the company generates a profit of $0.41. View our latest analysis for eBay One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, eBay has a better ROE than the average (16%) in the Multiline Retail industry. That's what we like to see. However, bear in mind that a high ROE doesn't necessarily indicate efficient profit generation. Aside from changes in net income, a high ROE can also be the outcome of high debt relative to equity, which indicates risk. Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. eBay does use a high amount of debt to increase returns. It has a debt to equity ratio of 1.36. There's no doubt the ROE is impressive, but it's worth keeping in mind that the metric could have been lower if the company were to reduce its debt. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it. Return on equity is useful for comparing the quality of different businesses. Companies that can achieve high returns on equity without too much debt are generally of good quality. All else being equal, a higher ROE is better. But ROE is just one piece of a bigger puzzle, since high quality businesses often trade on high multiples of earnings. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to take a peek at this data-rich interactive graph of forecasts for the company. If you would prefer check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
5 days ago
- Business
- Yahoo
Jim Cramer Calls eBay (EBAY) a 'Real Shocker'
We recently published a list of . In this article, we are going to take a look at where eBay Inc. (NASDAQ:EBAY) stands against other stocks that Jim Cramer discusses. While discussing eBay Inc. (NASDAQ:EBAY), Cramer credited the company's partnership with Facebook's Marketplace as a significant reason behind its growth. 'There's no real theme to the other stocks on the list… eBay's a real shocker. It's come a long way to get back on this list. Now, I've watched this stock get carved up for ages, but now it looks like eBay has stopped being a whipping boy, and people are feeling comfortable buying merchandise second-hand. Has a partnership with Facebook's Marketplace, which has spurred real growth for the company. I like that, by the way, that marketplace section.' eBay (NASDAQ:EBAY) operates digital platforms that facilitate buying, selling, and payment of a wide range of products. It also provides users access through its website, mobile apps, and associated services. During an episode of Squawk on the Street in February, Cramer mentioned the company and commented: A close-up view of a customers phone, using the mobile app to buy products. 'And their, that forecast, because if you look at the actual numbers, you might be very impressed. But when you look at the forecast, it was very downbeat. That's like, I think there's a lot, I think that people have to understand that the forecasts have been playing a real havoc here in a lot of names. And there's a lot of people who just say, wait a second I thought my company was doing well. I didn't think Ebay had to be as negative as they were. I think, it's like Sweetgreen.' Overall, EBAY ranks 11th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of EBAY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
6 days ago
- Business
- Yahoo
Jim Cramer Calls eBay (EBAY) a 'Real Shocker'
We recently published a list of . In this article, we are going to take a look at where eBay Inc. (NASDAQ:EBAY) stands against other stocks that Jim Cramer discusses. While discussing eBay Inc. (NASDAQ:EBAY), Cramer credited the company's partnership with Facebook's Marketplace as a significant reason behind its growth. 'There's no real theme to the other stocks on the list… eBay's a real shocker. It's come a long way to get back on this list. Now, I've watched this stock get carved up for ages, but now it looks like eBay has stopped being a whipping boy, and people are feeling comfortable buying merchandise second-hand. Has a partnership with Facebook's Marketplace, which has spurred real growth for the company. I like that, by the way, that marketplace section.' eBay (NASDAQ:EBAY) operates digital platforms that facilitate buying, selling, and payment of a wide range of products. It also provides users access through its website, mobile apps, and associated services. During an episode of Squawk on the Street in February, Cramer mentioned the company and commented: A close-up view of a customers phone, using the mobile app to buy products. 'And their, that forecast, because if you look at the actual numbers, you might be very impressed. But when you look at the forecast, it was very downbeat. That's like, I think there's a lot, I think that people have to understand that the forecasts have been playing a real havoc here in a lot of names. And there's a lot of people who just say, wait a second I thought my company was doing well. I didn't think Ebay had to be as negative as they were. I think, it's like Sweetgreen.' Overall, EBAY ranks 11th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of EBAY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-05-2025
- Business
- Yahoo
Should You Buy eBay Inc. (NASDAQ:EBAY) For Its Upcoming Dividend?
eBay Inc. (NASDAQ:EBAY) is about to trade ex-dividend in the next four days. The ex-dividend date is usually set to be one business day before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important as the process of settlement involves a full business day. So if you miss that date, you would not show up on the company's books on the record date. Therefore, if you purchase eBay's shares on or after the 30th of May, you won't be eligible to receive the dividend, when it is paid on the 13th of June. The company's next dividend payment will be US$0.29 per share, and in the last 12 months, the company paid a total of US$1.16 per share. Based on the last year's worth of payments, eBay stock has a trailing yield of around 1.6% on the current share price of US$71.92. If you buy this business for its dividend, you should have an idea of whether eBay's dividend is reliable and sustainable. We need to see whether the dividend is covered by earnings and if it's growing. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. Fortunately eBay's payout ratio is modest, at just 26% of profit. Yet cash flows are even more important than profits for assessing a dividend, so we need to see if the company generated enough cash to pay its distribution. It paid out 25% of its free cash flow as dividends last year, which is conservatively low. It's encouraging to see that the dividend is covered by both profit and cash flow. This generally suggests the dividend is sustainable, as long as earnings don't drop precipitously. View our latest analysis for eBay Click here to see the company's payout ratio, plus analyst estimates of its future dividends. Companies with consistently growing earnings per share generally make the best dividend stocks, as they usually find it easier to grow dividends per share. If earnings fall far enough, the company could be forced to cut its dividend. That's why it's comforting to see eBay's earnings have been skyrocketing, up 21% per annum for the past five years. eBay is paying out less than half its earnings and cash flow, while simultaneously growing earnings per share at a rapid clip. Companies with growing earnings and low payout ratios are often the best long-term dividend stocks, as the company can both grow its earnings and increase the percentage of earnings that it pays out, essentially multiplying the dividend. Many investors will assess a company's dividend performance by evaluating how much the dividend payments have changed over time. eBay has delivered 13% dividend growth per year on average over the past six years. It's great to see earnings per share growing rapidly over several years, and dividends per share growing right along with it. Should investors buy eBay for the upcoming dividend? We love that eBay is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow. These characteristics suggest the company is reinvesting in growing its business, while the conservative payout ratio also implies a reduced risk of the dividend being cut in the future. It's a promising combination that should mark this company worthy of closer attention. So while eBay looks good from a dividend perspective, it's always worthwhile being up to date with the risks involved in this stock. For example - eBay has 1 warning sign we think you should be aware of. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
01-05-2025
- Business
- Yahoo
eBay Inc (EBAY) Q1 2025 Earnings Call Highlights: Strong Growth in GMV and Earnings Amid Market ...
Revenue: Increased over 1% to $2.58 billion. Gross Merchandise Volume (GMV): Grew nearly 2% to $18.8 billion. Non-GAAP Earnings Per Share: Grew by 10% to $1.38. Non-GAAP Operating Income: $771 million. Capital Returned to Shareholders: Approximately $760 million through repurchases and cash dividends. First Party Advertising Revenue: Grew 14% to $418 million. Free Cash Flow: $644 million. Cash and Non-Equity Investments: $6.2 billion at the end of the quarter. Gross Debt: $6.7 billion after paying down $800 million of senior notes. Equity Investments: Valued at over $1.1 billion, with a significant stake in Narulia valued at nearly $900 million. Take Rate: Approximately 13.8%, increasing nearly 10 basis points year over year. Active Buyers: Grew over 1% to 134 million. Dividend: Quarterly cash dividend of $0.29 per share. Warning! GuruFocus has detected 9 Warning Signs with EBAY. Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. eBay Inc (NASDAQ:EBAY) reported its fourth consecutive quarter of positive gross merchandise volume (GMV) growth, with a nearly 2% increase to $18.8 billion. Revenue increased over 1% to $2.58 billion, and non-GAAP earnings per share grew by 10% to $1.38. The company returned approximately $760 million to shareholders through repurchases and cash dividends. Focus category GMV grew by over 6%, with collectibles being a significant contributor, particularly in trading cards. eBay Inc (NASDAQ:EBAY) continues to innovate with AI-powered shopping experiences and strategic partnerships, enhancing customer experience and marketplace efficiency. Tariffs and changes to customs requirements in the US have created uncertainty for small businesses and weighed on consumer confidence. The macro environment remains uncertain, with uneven demand and potential impacts from trade policy changes. International markets, particularly Germany and the UK, are experiencing weaker macroeconomic conditions compared to the US. Non-GAAP gross margin declined due to headwinds from depreciation expense and traffic acquisition costs. The UK C2C initiative pressured overall take rate by approximately 30 basis points in Q1. Q: How is eBay addressing demand elasticity in an environment where pricing might increase significantly? A: Jamie Iannone, CEO, explained that eBay is in a strong position due to its vast global seller base and CBT shipping solutions. The platform's inventory of used and refurbished goods, which is growing faster than new goods, provides value to consumers during uncertain times. eBay also attracts new sellers looking to generate income, enhancing its resilience. Q: What is the impact of China tariffs on eBay's business, particularly for China-based exporters? A: Jamie Iannone noted that the Greater China to US corridor accounts for about 5% of eBay's total GMV. Most of this is already subject to tariffs, and eBay's Speed pack shipping solution helps manage tariff complexities. The platform's global inventory allows for substitution, mitigating potential impacts. Q: How is eBay's advertising revenue affected by tariffs, especially from China-based merchants? A: Jamie Iannone stated that there has been no material impact on advertising revenue from tariffs. eBay's advertising demand is distributed across a large seller base, and the platform continues to see strong adoption of its ad products, with over 3.7 million sellers using at least one promoted listing product. Q: How does eBay view the potential impact of agentic commerce on consumer shopping behavior? A: Jamie Iannone highlighted eBay's use of agent technology across various functions, including marketing and customer support. The company is exploring partnerships and internal developments to leverage AI and agentic commerce, enhancing customer experience and operational efficiency. Q: What is eBay's strategy for leveraging its inventory of pre-owned and refurbished goods? A: Jamie Iannone emphasized eBay's focus on marketing the value proposition of pre-owned goods, both for buyers and sellers. The company is investing in AI-powered tools like magical listing to simplify the selling process and unlock more inventory, aiming to capitalize on the significant C2C market opportunity. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
