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EBAY eBay Inc. - Fundamental Analysis

NEUTRAL
EBAY Stock | Fundamental Analysis & Investment Insights
NYSE Consumer Cyclical Internet Retail
Current Price
$87.06
Analyst Target
$93.97
+7.9% Upside
52W High
$101.15
52W Low
$58.71

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AI Analysis

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Confidence Score
75%
Analysis Accuracy
EBAY's Advanced Deterministic Scorecard shows a stable financial health with a Piotroski F-Score of 5/9 and an exceptionally high Altman Z-Score of 67.49 billion, indicating negligible bankruptcy risk. The company demonstrates strong profitability, including a 21.42% operating margin and 42.43% ROE, while trading below analyst target price of $93.97 but above the Graham Number of $32.48. Despite solid historical earnings performance and consistent estimate beats, recent insider selling, weakening Q/Q earnings growth, and a bearish technical trend weigh on near-term momentum. Valuation appears reasonable relative to peers given growth and return metrics, but lacks a margin of safety for defensive investors.

Key Strengths

Exceptionally high Altman Z-Score indicates virtually no financial distress risk
Strong profitability with ROE of 42.43% and operating margin of 21.42%
Consistent earnings beat record: 3 out of last 4 quarters, with long-term positive surprises
Attractive forward P/E of 14.92 compared to sector average of 43.51
Healthy dividend payout ratio of 25.28% supports sustainability

Key Risks

Piotroski F-Score of 5 indicates only stable, not strong, financial health
Current and quick ratios below 1.0 signal potential short-term liquidity pressure
Debt/Equity ratio of 1.51 is above sector average and may constrain flexibility
Insider sentiment is bearish with $6.17M in net sales over last 6 months
Q/Q earnings growth declined by 0.3%, signaling possible near-term stagnation
AI Fair Value Estimate
Based on comprehensive analysis
$68.1
-21.8% below current price

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