PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PYPL - US70450Y1038 - Common Stock
51.1 EUR
-1.32 (-2.52%)
1PYPL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 57 industry peers in the Financial Services industry. 1PYPL scores excellent on profitability, but there are some minor concerns on its financial health. 1PYPL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
1PYPL had positive earnings in the past year.
1PYPL had a positive operating cash flow in the past year.
Each year in the past 5 years 1PYPL has been profitable.
1PYPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1PYPL's Return On Assets of 6.16% is fine compared to the rest of the industry. 1PYPL outperforms 78.95% of its industry peers.
1PYPL has a better Return On Equity (24.34%) than 84.21% of its industry peers.
1PYPL's Return On Invested Capital of 14.11% is amongst the best of the industry. 1PYPL outperforms 84.21% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1PYPL is in line with the industry average of 11.23%.
The 3 year average ROIC (11.47%) for 1PYPL is below the current ROIC(14.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 24.34% | ||
| ROIC | 14.11% |
ROA(3y)4.44%
ROA(5y)4.96%
ROE(3y)17.47%
ROE(5y)18.52%
ROIC(3y)11.47%
ROIC(5y)10.62%
1.3 Margins
1PYPL's Profit Margin of 14.96% is in line compared to the rest of the industry. 1PYPL outperforms 59.65% of its industry peers.
In the last couple of years the Profit Margin of 1PYPL has remained more or less at the same level.
1PYPL has a Operating Margin of 19.16%. This is in the better half of the industry: 1PYPL outperforms 64.91% of its industry peers.
1PYPL's Operating Margin has improved in the last couple of years.
1PYPL has a Gross Margin (41.56%) which is comparable to the rest of the industry.
1PYPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.16% | ||
| PM (TTM) | 14.96% | ||
| GM | 41.56% |
OM growth 3Y2.07%
OM growth 5Y2.92%
PM growth 3Y-7.41%
PM growth 5Y-1.18%
GM growth 3Y-4.8%
GM growth 5Y-2.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1PYPL is creating value.
Compared to 1 year ago, 1PYPL has less shares outstanding
1PYPL has less shares outstanding than it did 5 years ago.
1PYPL has a worse debt/assets ratio than last year.
2.2 Solvency
1PYPL has an Altman-Z score of 2.01. This is not the best score and indicates that 1PYPL is in the grey zone with still only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.01, 1PYPL is doing good in the industry, outperforming 61.40% of the companies in the same industry.
1PYPL has a debt to FCF ratio of 2.06. This is a good value and a sign of high solvency as 1PYPL would need 2.06 years to pay back of all of its debts.
1PYPL has a better Debt to FCF ratio (2.06) than 75.44% of its industry peers.
1PYPL has a Debt/Equity ratio of 0.56. This is a neutral value indicating 1PYPL is somewhat dependend on debt financing.
1PYPL's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. 1PYPL outperforms 47.37% of its industry peers.
Although 1PYPL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.06 | ||
| Altman-Z | 2.01 |
ROIC/WACC1.85
WACC7.64%
2.3 Liquidity
A Current Ratio of 1.34 indicates that 1PYPL should not have too much problems paying its short term obligations.
With a Current ratio value of 1.34, 1PYPL perfoms like the industry average, outperforming 52.63% of the companies in the same industry.
1PYPL has a Quick Ratio of 1.34. This is a normal value and indicates that 1PYPL is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1PYPL (1.34) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
1PYPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.19%.
Measured over the past years, 1PYPL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.87% on average per year.
1PYPL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.47%.
1PYPL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.34% yearly.
EPS 1Y (TTM)-0.19%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%11.67%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
3.2 Future
1PYPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.14% yearly.
The Revenue is expected to grow by 6.28% on average over the next years.
EPS Next Y9.85%
EPS Next 2Y9.39%
EPS Next 3Y10.65%
EPS Next 5Y13.14%
Revenue Next Year5.18%
Revenue Next 2Y5.62%
Revenue Next 3Y6%
Revenue Next 5Y6.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
1PYPL is valuated reasonably with a Price/Earnings ratio of 11.38.
Compared to the rest of the industry, the Price/Earnings ratio of 1PYPL indicates a somewhat cheap valuation: 1PYPL is cheaper than 70.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.38, 1PYPL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 10.05, the valuation of 1PYPL can be described as reasonable.
Based on the Price/Forward Earnings ratio, 1PYPL is valued a bit cheaper than 66.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1PYPL to the average of the S&P500 Index (23.83), we can say 1PYPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 10.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1PYPL is valued a bit cheaper than 68.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1PYPL is valued a bit cheaper than 70.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.07 | ||
| EV/EBITDA | 7.56 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1PYPL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.16
PEG (5Y)1.15
EPS Next 2Y9.39%
EPS Next 3Y10.65%
5. Dividend
5.1 Amount
1PYPL has a yearly dividend return of 0.91%, which is pretty low.
1PYPL's Dividend Yield is a higher than the industry average which is at 1.97.
With a Dividend Yield of 0.91, 1PYPL pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y9.39%
EPS Next 3Y10.65%
BIT:1PYPL (12/18/2025, 7:00:00 PM)
51.1
-1.32 (-2.52%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.82%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap47.81B
Revenue(TTM)32.86B
Net Income(TTM)4.92B
Analysts71.2
Price Target71.82 (40.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.61%
Min EPS beat(2)5.83%
Max EPS beat(2)9.38%
EPS beat(4)4
Avg EPS beat(4)7.86%
Min EPS beat(4)3.97%
Max EPS beat(4)12.26%
EPS beat(8)8
Avg EPS beat(8)9.88%
EPS beat(12)11
Avg EPS beat(12)7.2%
EPS beat(16)13
Avg EPS beat(16)6.14%
Revenue beat(2)2
Avg Revenue beat(2)0.4%
Min Revenue beat(2)0.26%
Max Revenue beat(2)0.55%
Revenue beat(4)2
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-2.67%
Max Revenue beat(4)0.55%
Revenue beat(8)3
Avg Revenue beat(8)-0.71%
Revenue beat(12)3
Avg Revenue beat(12)-1.01%
Revenue beat(16)3
Avg Revenue beat(16)-1.07%
PT rev (1m)-4.9%
PT rev (3m)0.49%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-1.33%
EPS NY rev (1m)0.39%
EPS NY rev (3m)2.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.38 | ||
| Fwd PE | 10.05 | ||
| P/S | 1.71 | ||
| P/FCF | 10.07 | ||
| P/OCF | 8.72 | ||
| P/B | 2.77 | ||
| P/tB | 6.2 | ||
| EV/EBITDA | 7.56 |
EPS(TTM)4.49
EY8.79%
EPS(NY)5.09
Fwd EY9.95%
FCF(TTM)5.08
FCFY9.93%
OCF(TTM)5.86
OCFY11.47%
SpS29.97
BVpS18.42
TBVpS8.24
PEG (NY)1.16
PEG (5Y)1.15
Graham Number43.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 24.34% | ||
| ROCE | 18.05% | ||
| ROIC | 14.11% | ||
| ROICexc | 20.4% | ||
| ROICexgc | 37.98% | ||
| OM | 19.16% | ||
| PM (TTM) | 14.96% | ||
| GM | 41.56% | ||
| FCFM | 16.93% |
ROA(3y)4.44%
ROA(5y)4.96%
ROE(3y)17.47%
ROE(5y)18.52%
ROIC(3y)11.47%
ROIC(5y)10.62%
ROICexc(3y)17.88%
ROICexc(5y)16.45%
ROICexgc(3y)39.06%
ROICexgc(5y)35.94%
ROCE(3y)14.68%
ROCE(5y)13.59%
ROICexgc growth 3Y7.88%
ROICexgc growth 5Y4.11%
ROICexc growth 3Y11.61%
ROICexc growth 5Y4.7%
OM growth 3Y2.07%
OM growth 5Y2.92%
PM growth 3Y-7.41%
PM growth 5Y-1.18%
GM growth 3Y-4.8%
GM growth 5Y-2.04%
F-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.06 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 88.04% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 15.43 | ||
| Cash Conversion | 88.34% | ||
| Profit Quality | 113.18% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 2.01 |
F-Score8
WACC7.64%
ROIC/WACC1.85
Cap/Depr(3y)59.3%
Cap/Depr(5y)64.5%
Cap/Sales(3y)2.27%
Cap/Sales(5y)2.88%
Profit Quality(3y)157.9%
Profit Quality(5y)143.67%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.19%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%11.67%
EPS Next Y9.85%
EPS Next 2Y9.39%
EPS Next 3Y10.65%
EPS Next 5Y13.14%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
Revenue Next Year5.18%
Revenue Next 2Y5.62%
Revenue Next 3Y6%
Revenue Next 5Y6.28%
EBIT growth 1Y10.67%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year26.64%
EBIT Next 3Y11.45%
EBIT Next 5Y10.48%
FCF growth 1Y74.78%
FCF growth 3Y11.44%
FCF growth 5Y14.98%
OCF growth 1Y68.22%
OCF growth 3Y8.72%
OCF growth 5Y12.85%
PAYPAL HOLDINGS INC / 1PYPL.MI FAQ
Can you provide the ChartMill fundamental rating for PAYPAL HOLDINGS INC?
ChartMill assigns a fundamental rating of 6 / 10 to 1PYPL.MI.
Can you provide the valuation status for PAYPAL HOLDINGS INC?
ChartMill assigns a valuation rating of 6 / 10 to PAYPAL HOLDINGS INC (1PYPL.MI). This can be considered as Fairly Valued.
How profitable is PAYPAL HOLDINGS INC (1PYPL.MI) stock?
PAYPAL HOLDINGS INC (1PYPL.MI) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for 1PYPL stock?
The Earnings per Share (EPS) of PAYPAL HOLDINGS INC (1PYPL.MI) is expected to grow by 9.85% in the next year.