NEW YORK (TheStreet) -- Shares of eBay (EBAY) - Get eBay Inc. Report were gaining 1.6% to $53.79 Wednesday following a ChannelAdvisor (ECOM) - Get Channeladvisor Corporation Report report on same-store sales in September.
The online retailer's same-store sales increased 8.9% year over year in the month of September, according to the report. The number is higher than the 5.9% increase eBay saw in August, but still below industry growth, according to ChannelAdvisor.
Sam-store sales for auctions fell 4.1% in September while fixed-price sales grew 7.6% and motors grew 14.7% in the month.
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Recent Amazon (AMZN) - Get Amazon.com, Inc. Report market share gains and changes to Google's (GOOGL) - Get Alphabet Inc. Class A Report Search algorithms are continuing to take a toll on eBay, according to ChannelAdvisor.
TheStreet Ratings team rates EBAY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate EBAY INC (EBAY) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- EBAY INC has improved earnings per share by 8.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, EBAY INC increased its bottom line by earning $2.18 versus $1.99 in the prior year. This year, the market expects an improvement in earnings ($2.97 versus $2.18).
- EBAY's revenue growth trails the industry average of 28.0%. Since the same quarter one year prior, revenues rose by 12.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Although EBAY's debt-to-equity ratio of 0.28 is very low, it is currently higher than that of the industry average. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.20, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has increased to $1,494.00 million or 47.77% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 25.70%.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Internet Software & Services industry average. The net income increased by 5.6% when compared to the same quarter one year prior, going from $640.00 million to $676.00 million.
- You can view the full analysis from the report here: EBAY Ratings Report