June 03, 2025 a 03:31 am
EBAY: Dividend Analysis - eBay Inc.
eBay Inc., a cornerstone of the e-commerce sector, stands out with its commitment to consistent dividend payouts, showcasing a respectable yield alongside a strategic balance in financial and operational management.
📊 Overview
The e-commerce giant, eBay Inc., operates primarily in the Technology sector. With a dividend yield of approximately 1.53%, the current dividend per share is $1.07 USD, reflecting 7 years of dividend history. The last cut or suspension was reported as None, indicating sustained financial health.
| Sector | Dividend Yield | Current Dividend per Share | Dividend History | Last Cut or Suspension |
|---|---|---|---|---|
| Technology | 1.53% | $1.07 | 7 years | None |
📈 Dividend History
eBay Inc. has proven to be a reliable dividend payer over recent years, with a solid track record of payouts that stakeholders rely on for predictable income.
| Year | Dividend per Share |
|---|---|
| 2025 | $0.58 |
| 2024 | $1.08 |
| 2023 | $1.00 |
| 2022 | $0.88 |
| 2021 | $0.72 |
🚀 Dividend Growth
Understanding dividend growth is critical, as it signifies the company’s ability to increase dividend payouts while maintaining financial health—indicative of prosperity and efficiency.
| Time | Growth |
|---|---|
| 3 years | 14.47% |
| 5 years | 14.04% |
The average dividend growth is 14.04% over 5 years. This shows moderate but steady dividend growth.
💡 Payout Ratio
The payout ratio is a critical metric that indicates how much of the company's earnings are being returned to shareholders as dividends, thus assessing sustainability.
| Key Figure | Ratio |
|---|---|
| EPS-based | 24.60% |
| Free cash flow-based | 23.27% |
The payout ratios of 24.60% (EPS) and 23.27% (FCF) suggest a disciplined approach, allowing FOR ample reinvestment into the business while rewarding shareholders.
📈 Cashflow & Capital Efficiency
Cash flow and capital efficiency metrics are vital as they emphasize how well the company converts its investments back into profit.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Free Cash Flow Yield | 6.37% | 8.52% | 7.80% |
| Earnings Yield | 6.43% | 11.97% | -5.48% |
| CAPEX to Operating Cash Flow | 18.97% | 18.80% | 19.92% |
| Stock-based Compensation to Revenue | 5.72% | 5.69% | 5.04% |
| Free Cash Flow / Operating Cash Flow Ratio | 81.03% | 81.20% | 80.08% |
These metrics underscore a robust cash flow capacity, efficiently translating revenue into profit and indicating sound capital management.
📊 Balance Sheet & Leverage Analysis
The analysis of the balance sheet and leverage is critical to understanding financial risk and the company's long-term viability.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Debt-to-Equity | 152.44% | 128.64% | 180.26% |
| Debt-to-Assets | 40.60% | 38.06% | 44.55% |
| Debt-to-Capital | 60.39% | 56.26% | 64.32% |
| Net Debt to EBITDA | 1.90 | 1.43 | -7.72 |
| Current Ratio | 1.24 | 2.44 | 2.18 |
| Quick Ratio | 1.24 | 2.44 | 2.18 |
| Financial Leverage | 3.75 | 3.38 | 4.05 |
eBay's leverage ratios reflect controlled use of debt, providing reasonable coverage and indicating effective financial management strategies.
🏦 Fundamental Strength & Profitability
A glance at fundamental strength and profitability highlights eBay's effectiveness in creating value and its competitive standing.
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Return on Equity | 38.29% | 43.26% | -24.63% |
| Return on Assets | 10.20% | 12.80% | -6.09% |
| Margins: Net | 19.21% | 27.36% | -12.96% |
| EBIT Margin | 24.67% | 39.26% | -13.95% |
| EBITDA Margin | 27.82% | 43.25% | -9.43% |
| Research & Development to Revenue | 14.38% | 15.27% | 13.58% |
Despite challenges in 2022, eBay's continued focus on R&D and profit margins showcases its dedication to innovation and maintaining competitive edges.
📉 Price Development
🔍 Dividend Scoring System
| Category | Score | Indicator |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 4 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 3 | |
| Dividend Continuity | 4 | |
| Cashflow Coverage | 3 | |
| Balance Sheet Quality | 3 |
Total Score: 27/40
✅ Rating
eBay Inc. is recommended as a moderately attractive dividend stock, showcasing stable growth potential and prudent financial management. However, the company faces financial challenges ahead, warranting close monitoring of its financial metrics and industry conditions.