Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model. NEW YORK ( TheStreet) -- eBay (Nasdaq: EBAY) has been reiterated by TheStreet Ratings as a buy with a ratings score of A . The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
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- Compared to its closing price of one year ago, EBAY's share price has jumped by 72.73%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, EBAY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- EBAY's revenue growth trails the industry average of 32.7%. Since the same quarter one year prior, revenues rose by 18.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Although EBAY's debt-to-equity ratio of 0.22 is very low, it is currently higher than that of the industry average. To add to this, EBAY has a quick ratio of 1.85, which demonstrates the ability of the company to cover short-term liquidity needs.
- Net operating cash flow has increased to $1,385.00 million or 41.00% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 16.08%.
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