PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
BIT:1PYPL - Euronext Milan - US70450Y1038 - Common Stock - Currency: EUR
Taking everything into account, 1PYPL scores 5 out of 10 in our fundamental rating. 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 correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year 1PYPL was profitable.
1PYPL had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 5.87%, 1PYPL is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
The Return On Equity of 1PYPL (23.16%) is better than 78.43% of its industry peers.
The Return On Invested Capital of 1PYPL (13.86%) is better than 80.39% of its industry peers.
1PYPL had an Average Return On Invested Capital over the past 3 years of 11.47%. This is in line with the industry average of 12.61%.
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 Profit Margin value of 14.49%, 1PYPL perfoms like the industry average, outperforming 56.86% of the companies in the same industry.
1PYPL's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 19.08%, 1PYPL is doing good in the industry, outperforming 62.75% of the companies in the same industry.
In the last couple of years the Operating Margin of 1PYPL has grown nicely.
The Gross Margin of 1PYPL (41.68%) 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.
The number of shares outstanding for 1PYPL has been reduced compared to 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.
The Altman-Z score of 1PYPL (2.07) is comparable to the rest of the industry.
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 better Debt to FCF ratio (2.13) than 76.47% 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 43.14% 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 | 2.13 | ||
| Altman-Z | 2.07 |
ROIC/WACC1.76
WACC7.86%
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 in the better half of the industry: 1PYPL outperforms 62.75% 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 better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for 1PYPL have decreased by -4.66% in the last year.
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
The Earnings Per Share is expected to grow by 11.09% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.57% on average over the next years.
EPS Next Y4.29%
EPS Next 2Y7.57%
EPS Next 3Y9.24%
EPS Next 5Y11.09%
Revenue Next Year3.12%
Revenue Next 2Y4.41%
Revenue Next 3Y5.28%
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.
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 13.15, which indicates a correct valuation of 1PYPL.
The rest of the industry has a similar Price/Earnings ratio as 1PYPL.
When comparing the Price/Earnings ratio of 1PYPL to the average of the S&P500 Index (26.48), we can say 1PYPL is valued rather cheaply.
1PYPL is valuated reasonably with a Price/Forward Earnings ratio of 11.70.
Based on the Price/Forward Earnings ratio, 1PYPL is valued a bit cheaper than 64.71% of the companies in the same industry.
1PYPL is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 11.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1PYPL is valued a bit cheaper than the industry average as 60.78% of the companies are valued more expensively.
74.51% 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 | 12.17 | ||
| EV/EBITDA | 8.86 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1PYPL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.07
PEG (5Y)1.33
EPS Next 2Y7.57%
EPS Next 3Y9.24%
5. Dividend
5.1 Amount
1PYPL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1PYPL (8/8/2025, 7:00:00 PM)
57.88
-0.9 (-1.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners79.32%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap55.30B
Analysts72.69
Price Target71.94 (24.29%)
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)-3.71%
PT rev (3m)-4.29%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-5.5%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)0.96%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.15 | ||
| Fwd PE | 11.7 | ||
| P/S | 1.99 | ||
| P/FCF | 12.17 | ||
| P/OCF | 10.61 | ||
| P/B | 3.19 | ||
| P/tB | 7.19 | ||
| EV/EBITDA | 8.86 |
EPS(TTM)4.4
EY7.6%
EPS(NY)4.95
Fwd EY8.55%
FCF(TTM)4.76
FCFY8.22%
OCF(TTM)5.45
OCFY9.42%
SpS29.03
BVpS18.16
TBVpS8.05
PEG (NY)3.07
PEG (5Y)1.33
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%
ROICexcg growth 3Y7.88%
ROICexcg 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
WACC7.86%
ROIC/WACC1.76
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 Y4.29%
EPS Next 2Y7.57%
EPS Next 3Y9.24%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%5.11%
Revenue Next Year3.12%
Revenue Next 2Y4.41%
Revenue Next 3Y5.28%
Revenue Next 5Y5.57%
EBIT growth 1Y13.21%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.59%
EBIT Next 3Y12.87%
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%