PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe - BIT:1PYPL - US70450Y1038 - Common Stock
57.27 EUR
-0.52 (-0.9%)
Overall 1PYPL gets a fundamental rating of 5 out of 10. We evaluated 1PYPL against 47 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 has a correct valuation and a medium 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.
Each year in the past 5 years 1PYPL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.87%, 1PYPL belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
With an excellent Return On Equity value of 23.16%, 1PYPL belongs to the best of the industry, outperforming 85.11% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.86%, 1PYPL belongs to the best of the industry, outperforming 85.11% of the companies in the same industry.
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 9.94%.
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
The Profit Margin of 1PYPL (14.49%) is better than 61.70% of its industry peers.
1PYPL's Profit Margin has been stable in the last couple of years.
1PYPL's Operating Margin of 19.08% is fine compared to the rest of the industry. 1PYPL outperforms 68.09% 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 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 just above the Cost of Capital (WACC), so 1PYPL is still creating some 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.
Compared to 1 year ago, 1PYPL has a worse debt to assets ratio.
2.2 Solvency
1PYPL has an Altman-Z score of 2.05. 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.
1PYPL has a better Altman-Z score (2.05) than 61.70% 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 amongst the best in the industry. 1PYPL outperforms 80.85% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that 1PYPL is somewhat dependend on debt financing.
The Debt to Equity ratio of 1PYPL (0.56) is comparable to the rest of the 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 | 2.05 |
ROIC/WACC1.78
WACC7.79%
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 55.32% of its industry peers.
1PYPL has a Quick 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 Quick ratio of 1.33. This is in the better half of the industry: 1PYPL outperforms 61.70% of its industry peers.
| 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%.
The Earnings Per Share has been growing by 9.87% on average over the past years. This is quite good.
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
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 Y7.6%
EPS Next 2Y9.1%
EPS Next 3Y10.5%
EPS Next 5Y11.09%
Revenue Next Year4.43%
Revenue Next 2Y5.21%
Revenue Next 3Y5.81%
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 13.05, which indicates a correct valuation of 1PYPL.
Compared to the rest of the industry, the Price/Earnings ratio of 1PYPL indicates a somewhat cheap valuation: 1PYPL is cheaper than 72.34% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.32, 1PYPL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.28, the valuation of 1PYPL can be described as reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1PYPL indicates a somewhat cheap valuation: 1PYPL is cheaper than 65.96% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.89. 1PYPL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 11.28 |
4.2 Price Multiples
1PYPL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 65.96% of the companies in the same industry.
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 | 12.07 | ||
| EV/EBITDA | 8.65 |
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 decent profitability rating of 1PYPL may justify a higher PE ratio.
PEG (NY)1.72
PEG (5Y)1.32
EPS Next 2Y9.1%
EPS Next 3Y10.5%
5. Dividend
5.1 Amount
1PYPL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1PYPL (9/25/2025, 7:00:00 PM)
57.27
-0.52 (-0.9%)
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 Cap54.71B
Analysts72.65
Price Target71.47 (24.79%)
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)-1.26%
PT rev (3m)-4.34%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.31%
EPS NY rev (1m)0.16%
EPS NY rev (3m)3.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.05 | ||
| Fwd PE | 11.28 | ||
| P/S | 1.98 | ||
| P/FCF | 12.07 | ||
| P/OCF | 10.53 | ||
| P/B | 3.16 | ||
| P/tB | 7.13 | ||
| EV/EBITDA | 8.65 |
EPS(TTM)4.39
EY7.67%
EPS(NY)5.08
Fwd EY8.87%
FCF(TTM)4.75
FCFY8.29%
OCF(TTM)5.44
OCFY9.5%
SpS28.96
BVpS18.12
TBVpS8.03
PEG (NY)1.72
PEG (5Y)1.32
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 | 2.05 |
F-Score8
WACC7.79%
ROIC/WACC1.78
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 Year4.43%
Revenue Next 2Y5.21%
Revenue Next 3Y5.81%
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%