PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PYPL - US70450Y1038 - Common Stock
53.27 EUR
+0.93 (+1.78%)
Taking everything into account, 1PYPL scores 6 out of 10 in our fundamental rating. 1PYPL was compared to 53 industry peers in the Financial Services industry. While 1PYPL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1PYPL is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings would make 1PYPL suitable for value investing!
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.
1PYPL had positive earnings in each of the past 5 years.
In the past 5 years 1PYPL always reported a positive cash flow from operatings.
1.2 Ratios
1PYPL has a better Return On Assets (6.16%) than 86.79% of its industry peers.
With an excellent Return On Equity value of 24.34%, 1PYPL belongs to the best of the industry, outperforming 88.68% of the companies in the same industry.
The Return On Invested Capital of 1PYPL (14.11%) is better than 90.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1PYPL is above the industry average of 8.74%.
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 has a better Profit Margin (14.96%) than 69.81% of its industry peers.
1PYPL's Profit Margin has been stable in the last couple of years.
1PYPL has a Operating Margin of 19.16%. This is in the better half of the industry: 1PYPL outperforms 73.58% of its industry peers.
In the last couple of years the Operating Margin of 1PYPL has grown nicely.
1PYPL has a Gross Margin (41.56%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 1PYPL has declined.
| 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.
1PYPL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1PYPL has been reduced compared to 5 years ago.
Compared to 1 year ago, 1PYPL has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.03 indicates that 1PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
1PYPL has a Altman-Z score of 2.03. This is in the better half of the industry: 1PYPL outperforms 66.04% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2.06, 1PYPL is in the better half of the industry, outperforming 79.25% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that 1PYPL is somewhat dependend on debt financing.
1PYPL has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: 1PYPL outperforms 47.17% of its industry peers.
Even though the debt/equity ratio score it not favorable for 1PYPL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.06 | ||
| Altman-Z | 2.03 |
ROIC/WACC1.87
WACC7.55%
2.3 Liquidity
1PYPL has a Current 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 Current ratio of 1PYPL (1.34) is comparable to the rest of the industry.
A Quick Ratio of 1.34 indicates that 1PYPL should not have too much problems paying its short term obligations.
1PYPL has a better Quick ratio (1.34) than 60.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The earnings per share for 1PYPL have decreased by -0.19% in the last year.
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.
1PYPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y9.42%
EPS Next 2Y9.27%
EPS Next 3Y10.66%
EPS Next 5Y13.14%
Revenue Next Year5.07%
Revenue Next 2Y5.54%
Revenue Next 3Y5.96%
Revenue Next 5Y6.28%
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 accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.73, the valuation of 1PYPL can be described as reasonable.
Based on the Price/Earnings ratio, 1PYPL is valued a bit cheaper than the industry average as 73.58% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1PYPL to the average of the S&P500 Index (26.15), we can say 1PYPL is valued rather cheaply.
1PYPL is valuated reasonably with a Price/Forward Earnings ratio of 10.37.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1PYPL indicates a somewhat cheap valuation: 1PYPL is cheaper than 67.92% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.12. 1PYPL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.73 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
1PYPL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 69.81% of the companies in the same industry.
1PYPL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 73.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.37 | ||
| EV/EBITDA | 7.79 |
4.3 Compensation for Growth
1PYPL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1PYPL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.24
PEG (5Y)1.19
EPS Next 2Y9.27%
EPS Next 3Y10.66%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, 1PYPL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.54, 1PYPL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, 1PYPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y9.27%
EPS Next 3Y10.66%
BIT:1PYPL (11/26/2025, 7:00:00 PM)
53.27
+0.93 (+1.78%)
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 Cap49.84B
Revenue(TTM)32.86B
Net Income(TTM)4.92B
Analysts70.98
Price Target75.41 (41.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)4.35%
PT rev (3m)4.18%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)1.82%
EPS NY rev (3m)1.85%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.73 | ||
| Fwd PE | 10.37 | ||
| P/S | 1.76 | ||
| P/FCF | 10.37 | ||
| P/OCF | 8.98 | ||
| P/B | 2.86 | ||
| P/tB | 6.39 | ||
| EV/EBITDA | 7.79 |
EPS(TTM)4.54
EY8.52%
EPS(NY)5.14
Fwd EY9.64%
FCF(TTM)5.14
FCFY9.64%
OCF(TTM)5.93
OCFY11.14%
SpS30.34
BVpS18.65
TBVpS8.34
PEG (NY)1.24
PEG (5Y)1.19
Graham Number43.64
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 | 2.03 |
F-Score8
WACC7.55%
ROIC/WACC1.87
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 Y9.42%
EPS Next 2Y9.27%
EPS Next 3Y10.66%
EPS Next 5Y13.14%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
Revenue Next Year5.07%
Revenue Next 2Y5.54%
Revenue Next 3Y5.96%
Revenue Next 5Y6.28%
EBIT growth 1Y10.67%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.15%
EBIT Next 3Y12.17%
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 7 / 10 to PAYPAL HOLDINGS INC (1PYPL.MI). This can be considered as Undervalued.
How profitable is PAYPAL HOLDINGS INC (1PYPL.MI) stock?
PAYPAL HOLDINGS INC (1PYPL.MI) has a profitability rating of 8 / 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 9.42% in the next year.