PAYPAL HOLDINGS INC (NASDAQ:PYPL) Exhibits Quality Stock Traits. Here's Why.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PAYPAL HOLDINGS INC (NASDAQ:PYPL) is suited for quality investing. Investors should of course do their own research, but we spotted PAYPAL HOLDINGS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

• The 5-year revenue growth of PYPL has been remarkable, with 12.34% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• PYPL exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 38.19% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a favorable Debt/Free Cash Flow Ratio of 2.12, PYPL showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a robust Profit Quality (5-year) ratio of 144.0%, PYPL highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• The 5-year EBIT growth of PYPL has been remarkable, with 15.61% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, PYPL showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

What else is there to say on the fundamentals of PYPL?

ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.

Overall PYPL gets a fundamental rating of 6 out of 10. We evaluated PYPL against 101 industry peers in the Financial Services industry. While PYPL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PYPL has a correct valuation and a medium growth rate.

For an up to date full fundamental analysis you can check the fundamental report of PYPL

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.