PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe - BIT:1PYPL - US70450Y1038 - Common Stock
59 EUR
-0.83 (-1.39%)
We assign a fundamental rating of 5 out of 10 to 1PYPL. 1PYPL was compared to 51 industry peers in the Financial Services industry. 1PYPL has an excellent profitability rating, 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 has a Return On Assets of 5.87%. This is amongst the best in the industry. 1PYPL outperforms 82.35% of its industry peers.
1PYPL's Return On Equity of 23.16% is amongst the best of the industry. 1PYPL outperforms 84.31% of its industry peers.
1PYPL has a Return On Invested Capital of 13.86%. This is amongst the best in the industry. 1PYPL outperforms 82.35% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1PYPL is in line with the industry average of 10.03%.
The last Return On Invested Capital (13.86%) for 1PYPL is above the 3 year average (11.47%), which is a sign of increasing profitability.
| 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 66.67% 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.
The Operating Margin of 1PYPL (19.08%) is better than 68.63% of its industry peers.
In the last couple of years the Operating Margin of 1PYPL has grown nicely.
1PYPL has a Gross Margin (41.68%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1PYPL has declined.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1PYPL is creating some 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.
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.
1PYPL has a Altman-Z score of 2.07. This is comparable to the rest of the industry: 1PYPL outperforms 58.82% of its industry peers.
1PYPL has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as 1PYPL would need 2.13 years to pay back of all of its debts.
1PYPL has a Debt to FCF ratio of 2.13. This is in the better half of the industry: 1PYPL outperforms 72.55% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that 1PYPL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, 1PYPL is in line with its industry, outperforming 41.18% of the companies in the same industry.
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 | 2.13 | ||
| Altman-Z | 2.07 |
ROIC/WACC1.79
WACC7.74%
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's Current ratio of 1.33 is in line compared to the rest of the industry. 1PYPL outperforms 45.10% of its industry peers.
A Quick Ratio of 1.33 indicates that 1PYPL should not have too much problems paying its short term obligations.
The Quick ratio of 1PYPL (1.33) is comparable to the rest of the 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%.
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 4.07%.
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)-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
1PYPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.09% yearly.
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 Y7.47%
EPS Next 2Y8.95%
EPS Next 3Y10.22%
EPS Next 5Y11.09%
Revenue Next Year4.42%
Revenue Next 2Y5.16%
Revenue Next 3Y5.72%
Revenue Next 5Y5.57%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
The Price/Earnings ratio is 13.32, which indicates a correct valuation of 1PYPL.
1PYPL's Price/Earnings ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 68.63% of the companies in the same industry.
1PYPL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.10.
Based on the Price/Forward Earnings ratio of 11.53, the valuation of 1PYPL can be described as reasonable.
1PYPL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 60.78% of the companies in the same industry.
1PYPL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.32 | ||
| Fwd PE | 11.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1PYPL indicates a somewhat cheap valuation: 1PYPL is cheaper than 66.67% of the companies listed in the same industry.
64.71% of the companies in the same industry are more expensive than 1PYPL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.3 | ||
| EV/EBITDA | 8.95 |
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)1.78
PEG (5Y)1.35
EPS Next 2Y8.95%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
No dividends for 1PYPL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1PYPL (10/31/2025, 7:00:00 PM)
59
-0.83 (-1.39%)
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 Cap56.37B
Revenue(TTM)32.29B
Net Income(TTM)4.68B
Analysts72.65
Price Target72.27 (22.49%)
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)0.45%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.23%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.32 | ||
| Fwd PE | 11.53 | ||
| P/S | 2.02 | ||
| P/FCF | 12.3 | ||
| P/OCF | 10.73 | ||
| P/B | 3.22 | ||
| P/tB | 7.27 | ||
| EV/EBITDA | 8.95 |
EPS(TTM)4.43
EY7.51%
EPS(NY)5.12
Fwd EY8.67%
FCF(TTM)4.8
FCFY8.13%
OCF(TTM)5.5
OCFY9.32%
SpS29.26
BVpS18.31
TBVpS8.11
PEG (NY)1.78
PEG (5Y)1.35
Graham Number42.72
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
WACC7.74%
ROIC/WACC1.79
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 Y7.47%
EPS Next 2Y8.95%
EPS Next 3Y10.22%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%5.11%
Revenue Next Year4.42%
Revenue Next 2Y5.16%
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%
PAYPAL HOLDINGS INC / 1PYPL.MI FAQ
Can you provide the ChartMill fundamental rating for PAYPAL HOLDINGS INC?
ChartMill assigns a fundamental rating of 5 / 10 to 1PYPL.MI.
Can you provide the valuation status for PAYPAL HOLDINGS INC?
ChartMill assigns a valuation rating of 5 / 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 7.47% in the next year.