PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
BIT:1PYPL - Euronext Milan - US70450Y1038 - Common Stock - Currency: EUR
1PYPL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 47 industry peers in the Financial Services industry. 1PYPL scores excellent on profitability, but 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
In the past year 1PYPL was profitable.
In the past year 1PYPL had a positive cash flow from operations.
In the past 5 years 1PYPL has always been profitable.
Each year in the past 5 years 1PYPL had a positive operating cash flow.
1.2 Ratios
1PYPL has a Return On Assets of 5.59%. This is in the better half of the industry: 1PYPL outperforms 72.34% of its industry peers.
1PYPL has a better Return On Equity (22.44%) than 80.85% of its industry peers.
With an excellent Return On Invested Capital value of 13.48%, 1PYPL belongs to the best of the industry, outperforming 82.98% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1PYPL is in line with the industry average of 11.50%.
The 3 year average ROIC (11.47%) for 1PYPL is below the current ROIC(13.48%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 22.44% | ||
| ROIC | 13.48% |
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 Profit Margin of 14.26%. This is in the better half of the industry: 1PYPL outperforms 61.70% of its industry peers.
1PYPL's Profit Margin has been stable in the last couple of years.
1PYPL has a Operating Margin of 18.75%. This is in the better half of the industry: 1PYPL outperforms 65.96% of its industry peers.
1PYPL's Operating Margin has improved in the last couple of years.
1PYPL has a Gross Margin of 41.40%. This is comparable to the rest of the industry: 1PYPL outperforms 48.94% of its industry peers.
In the last couple of years the Gross Margin of 1PYPL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.75% | ||
| PM (TTM) | 14.26% | ||
| GM | 41.4% |
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
1PYPL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for 1PYPL has been reduced compared to 1 year ago.
Compared to 5 years ago, 1PYPL has less shares outstanding
Compared to 1 year ago, 1PYPL has a worse debt to assets ratio.
2.2 Solvency
1PYPL has an Altman-Z score of 1.98. 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.
The Altman-Z score of 1PYPL (1.98) is comparable to the rest of the industry.
The Debt to FCF ratio of 1PYPL is 2.12, which is a good value as it means it would take 1PYPL, 2.12 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.12, 1PYPL is doing good in the industry, outperforming 78.72% of the companies in the same industry.
1PYPL has a Debt/Equity ratio of 0.56. This is a neutral value indicating 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 44.68% 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 | 2.12 | ||
| Altman-Z | 1.98 |
ROIC/WACC1.69
WACC7.99%
2.3 Liquidity
A Current Ratio of 1.30 indicates that 1PYPL should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.30, 1PYPL is doing good in the industry, outperforming 63.83% of the companies in the same industry.
1PYPL has a Quick Ratio of 1.30. This is a normal value and indicates that 1PYPL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.30, 1PYPL is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
1PYPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.05%.
1PYPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.87% yearly.
The Revenue has been growing slightly by 4.79% in the past year.
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)-8.05%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%-5%
Revenue 1Y (TTM)4.79%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%1.19%
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.
1PYPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.57% yearly.
EPS Next Y4.33%
EPS Next 2Y7.51%
EPS Next 3Y9.52%
EPS Next 5Y11.09%
Revenue Next Year3.21%
Revenue Next 2Y4.47%
Revenue Next 3Y5.39%
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
With a Price/Earnings ratio of 13.79, 1PYPL is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as 1PYPL.
Compared to an average S&P500 Price/Earnings ratio of 26.34, 1PYPL is valued a bit cheaper.
With a Price/Forward Earnings ratio of 11.76, the valuation of 1PYPL can be described as very reasonable.
The rest of the industry has a similar Price/Forward Earnings ratio as 1PYPL.
1PYPL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 11.76 |
4.2 Price Multiples
1PYPL's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, 1PYPL is valued a bit cheaper than 70.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.04 | ||
| EV/EBITDA | 9.09 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 1PYPL may justify a higher PE ratio.
PEG (NY)3.18
PEG (5Y)1.4
EPS Next 2Y7.51%
EPS Next 3Y9.52%
5. Dividend
5.1 Amount
1PYPL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1PYPL (6/19/2025, 7:00:00 PM)
59
-2.9 (-4.68%)
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 Cap57.38B
Analysts72.94
Price Target73.62 (24.78%)
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)8.11%
Min EPS beat(2)3.97%
Max EPS beat(2)12.26%
EPS beat(4)4
Avg EPS beat(4)11.13%
Min EPS beat(4)3.97%
Max EPS beat(4)18.26%
EPS beat(8)7
Avg EPS beat(8)8.17%
EPS beat(12)11
Avg EPS beat(12)7.31%
EPS beat(16)13
Avg EPS beat(16)5.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.66%
Min Revenue beat(2)-2.67%
Max Revenue beat(2)-0.65%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-2.67%
Max Revenue beat(4)-0.65%
Revenue beat(8)1
Avg Revenue beat(8)-1.22%
Revenue beat(12)1
Avg Revenue beat(12)-1.34%
Revenue beat(16)1
Avg Revenue beat(16)-1.45%
PT rev (1m)-1.3%
PT rev (3m)-19.6%
EPS NQ rev (1m)0.68%
EPS NQ rev (3m)6.35%
EPS NY rev (1m)0%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.79 | ||
| Fwd PE | 11.76 | ||
| P/S | 2.07 | ||
| P/FCF | 11.04 | ||
| P/OCF | 9.84 | ||
| P/B | 3.25 | ||
| P/tB | 7.28 | ||
| EV/EBITDA | 9.09 |
EPS(TTM)4.28
EY7.25%
EPS(NY)5.01
Fwd EY8.5%
FCF(TTM)5.35
FCFY9.06%
OCF(TTM)6
OCFY10.16%
SpS28.57
BVpS18.14
TBVpS8.11
PEG (NY)3.18
PEG (5Y)1.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 22.44% | ||
| ROCE | 17.25% | ||
| ROIC | 13.48% | ||
| ROICexc | 19.93% | ||
| ROICexgc | 38.19% | ||
| OM | 18.75% | ||
| PM (TTM) | 14.26% | ||
| GM | 41.4% | ||
| FCFM | 18.71% |
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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.12 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 71.64% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 16.34 | ||
| Cash Conversion | 95.74% | ||
| Profit Quality | 131.28% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 1.98 |
F-Score8
WACC7.99%
ROIC/WACC1.69
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)-8.05%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%-5%
EPS Next Y4.33%
EPS Next 2Y7.51%
EPS Next 3Y9.52%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.79%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%1.19%
Revenue Next Year3.21%
Revenue Next 2Y4.47%
Revenue Next 3Y5.39%
Revenue Next 5Y5.57%
EBIT growth 1Y15.85%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.59%
EBIT Next 3Y12.87%
EBIT Next 5Y10.05%
FCF growth 1Y17.46%
FCF growth 3Y11.44%
FCF growth 5Y14.98%
OCF growth 1Y16.08%
OCF growth 3Y8.72%
OCF growth 5Y12.85%