PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe - BIT:1PYPL - US70450Y1038 - Common Stock
59.14 EUR
+2.31 (+4.06%)
Overall 1PYPL gets a fundamental rating of 5 out of 10. We evaluated 1PYPL against 50 industry peers in the Financial Services industry. While 1PYPL has a great profitability rating, there are some minor concerns on its financial health. 1PYPL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
1PYPL had positive earnings in the past year.
In the past year 1PYPL had a positive cash flow from operations.
In the past 5 years 1PYPL has always been profitable.
1PYPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1PYPL (5.87%) is better than 82.00% of its industry peers.
1PYPL's Return On Equity of 23.16% is amongst the best of the industry. 1PYPL outperforms 88.00% of its industry peers.
1PYPL has a Return On Invested Capital of 13.86%. This is amongst the best in the industry. 1PYPL outperforms 88.00% of its industry peers.
1PYPL had an Average Return On Invested Capital over the past 3 years of 11.47%. This is above the industry average of 8.73%.
The 3 year average ROIC (11.47%) for 1PYPL is below the current ROIC(13.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 23.16% | ||
| ROIC | 13.86% |
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
With a decent Profit Margin value of 14.49%, 1PYPL is doing good in the industry, outperforming 68.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 1PYPL has remained more or less at the same level.
1PYPL has a better Operating Margin (19.08%) than 72.00% of its industry peers.
1PYPL's Operating Margin has improved in the last couple of years.
1PYPL has a Gross Margin (41.68%) which is in line with its industry peers.
1PYPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.08% | ||
| PM (TTM) | 14.49% | ||
| GM | 41.68% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1PYPL is creating value.
The number of shares outstanding for 1PYPL has been reduced compared to 1 year ago.
1PYPL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1PYPL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.07 indicates that 1PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of 1PYPL (2.07) is comparable to the rest of the industry.
The Debt to FCF ratio of 1PYPL is 2.13, which is a good value as it means it would take 1PYPL, 2.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1PYPL (2.13) is better than 74.00% 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.
Looking at the Debt to Equity ratio, with a value of 0.56, 1PYPL is doing worse than 60.00% of the companies in the same industry.
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 | 2.13 | ||
| Altman-Z | 2.07 |
ROIC/WACC1.82
WACC7.63%
2.3 Liquidity
1PYPL has a Current Ratio of 1.33. This is a normal value and indicates that 1PYPL is financially healthy and should not expect problems in meeting its short term obligations.
1PYPL has a Current ratio of 1.33. This is comparable to the rest of the industry: 1PYPL outperforms 44.00% of its industry peers.
A Quick Ratio of 1.33 indicates that 1PYPL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.33, 1PYPL perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
1PYPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.66%.
1PYPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.87% yearly.
1PYPL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.07%.
Measured over the past years, 1PYPL shows a quite strong growth in Revenue. The Revenue has been growing by 12.34% on average per year.
EPS 1Y (TTM)-4.66%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%17.65%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%5.11%
3.2 Future
Based on estimates for the next years, 1PYPL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.09% on average per year.
Based on estimates for the next years, 1PYPL will show a small growth in Revenue. The Revenue will grow by 5.57% on average per year.
EPS Next Y7.6%
EPS Next 2Y9.1%
EPS Next 3Y10.5%
EPS Next 5Y11.09%
Revenue Next Year4.36%
Revenue Next 2Y5.15%
Revenue Next 3Y5.72%
Revenue Next 5Y5.57%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 13.38, which indicates a correct valuation of 1PYPL.
Based on the Price/Earnings ratio, 1PYPL is valued a bit cheaper than the industry average as 70.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.67, 1PYPL is valued rather cheaply.
The Price/Forward Earnings ratio is 11.57, which indicates a very decent valuation of 1PYPL.
1PYPL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 66.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.33, 1PYPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 11.57 |
4.2 Price Multiples
68.00% of the companies in the same industry are more expensive than 1PYPL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1PYPL is valued a bit cheaper than 66.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.38 | ||
| EV/EBITDA | 8.88 |
4.3 Compensation for Growth
1PYPL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of 1PYPL may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)1.36
EPS Next 2Y9.1%
EPS Next 3Y10.5%
5. Dividend
5.1 Amount
No dividends for 1PYPL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1PYPL (10/20/2025, 7:00:00 PM)
59.14
+2.31 (+4.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.2%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap56.50B
Revenue(TTM)32.29B
Net Income(TTM)4.68B
Analysts72.65
Price Target72.27 (22.2%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)9.05%
Min EPS beat(2)5.83%
Max EPS beat(2)12.26%
EPS beat(4)4
Avg EPS beat(4)8.02%
Min EPS beat(4)3.97%
Max EPS beat(4)12.26%
EPS beat(8)8
Avg EPS beat(8)9.18%
EPS beat(12)11
Avg EPS beat(12)7.29%
EPS beat(16)13
Avg EPS beat(16)5.65%
Revenue beat(2)1
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-2.67%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-2.67%
Max Revenue beat(4)0.55%
Revenue beat(8)2
Avg Revenue beat(8)-0.93%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)2
Avg Revenue beat(16)-1.26%
PT rev (1m)1.11%
PT rev (3m)-3.27%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)0.21%
EPS NY rev (1m)0.16%
EPS NY rev (3m)3.18%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 11.57 | ||
| P/S | 2.03 | ||
| P/FCF | 12.38 | ||
| P/OCF | 10.8 | ||
| P/B | 3.24 | ||
| P/tB | 7.32 | ||
| EV/EBITDA | 8.88 |
EPS(TTM)4.42
EY7.47%
EPS(NY)5.11
Fwd EY8.65%
FCF(TTM)4.78
FCFY8.08%
OCF(TTM)5.48
OCFY9.26%
SpS29.16
BVpS18.24
TBVpS8.08
PEG (NY)1.76
PEG (5Y)1.36
Graham Number42.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 23.16% | ||
| ROCE | 17.74% | ||
| ROIC | 13.86% | ||
| ROICexc | 19.48% | ||
| ROICexgc | 35.74% | ||
| OM | 19.08% | ||
| PM (TTM) | 14.49% | ||
| GM | 41.68% | ||
| FCFM | 16.39% |
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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 78.34% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 15.76 | ||
| Cash Conversion | 84.85% | ||
| Profit Quality | 113.1% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 2.07 |
F-Score8
WACC7.63%
ROIC/WACC1.82
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)-4.66%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%17.65%
EPS Next Y7.6%
EPS Next 2Y9.1%
EPS Next 3Y10.5%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%5.11%
Revenue Next Year4.36%
Revenue Next 2Y5.15%
Revenue Next 3Y5.72%
Revenue Next 5Y5.57%
EBIT growth 1Y13.21%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.15%
EBIT Next 3Y12.17%
EBIT Next 5Y10.05%
FCF growth 1Y44.75%
FCF growth 3Y11.44%
FCF growth 5Y14.98%
OCF growth 1Y40.55%
OCF growth 3Y8.72%
OCF growth 5Y12.85%