PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
BIT:1PYPL - US70450Y1038 - Common Stock
59.15 EUR
+0.3 (+0.51%)
We assign a fundamental rating of 5 out of 10 to 1PYPL. 1PYPL was compared to 50 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.
1PYPL had positive earnings in each of the past 5 years.
Each year in the past 5 years 1PYPL had a positive operating cash flow.
1.2 Ratios
1PYPL has a better Return On Assets (5.87%) than 74.00% of its industry peers.
1PYPL has a Return On Equity of 23.16%. This is amongst the best in the industry. 1PYPL outperforms 82.00% of its industry peers.
1PYPL's Return On Invested Capital of 13.86% is amongst the best of the industry. 1PYPL outperforms 82.00% 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 10.94%.
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
1PYPL's Profit Margin of 14.49% is in line compared to the rest of the industry. 1PYPL outperforms 58.00% of its industry peers.
In the last couple of years the Profit Margin of 1PYPL has remained more or less at the same level.
With a decent Operating Margin value of 19.08%, 1PYPL is doing good in the industry, outperforming 64.00% 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.
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.
1PYPL has a worse debt/assets ratio than last year.
2.2 Solvency
1PYPL has an Altman-Z score of 2.07. 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 Altman-Z score (2.07) which is in line with 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.
With a decent Debt to FCF ratio value of 2.13, 1PYPL is doing good in the industry, outperforming 74.00% of the companies in the same industry.
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 42.00% of the companies in the same 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 | 2.07 |
ROIC/WACC1.79
WACC7.74%
2.3 Liquidity
A Current Ratio of 1.33 indicates that 1PYPL should not have too much problems paying its short term obligations.
1PYPL's Current ratio of 1.33 is in line compared to the rest of the industry. 1PYPL outperforms 52.00% 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 (1.33) which 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
The earnings per share for 1PYPL have decreased by -4.66% in the last year.
The Earnings Per Share has been growing by 9.87% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.07% in the past year.
The Revenue has been growing by 12.34% on average over the past years. This is quite good.
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.
1PYPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.57% yearly.
EPS Next Y7.44%
EPS Next 2Y9.04%
EPS Next 3Y10.45%
EPS Next 5Y11.09%
Revenue Next Year4.3%
Revenue Next 2Y5.13%
Revenue Next 3Y5.76%
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
1PYPL is valuated correctly with a Price/Earnings ratio of 13.50.
Compared to the rest of the industry, the Price/Earnings ratio of 1PYPL is on the same level as its industry peers.
1PYPL is valuated cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 11.68 indicates a reasonable valuation of 1PYPL.
Based on the Price/Forward Earnings ratio, 1PYPL is valued a bit cheaper than 66.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.69, 1PYPL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 11.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1PYPL is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1PYPL indicates a somewhat cheap valuation: 1PYPL is cheaper than 66.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.49 | ||
| EV/EBITDA | 8.96 |
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)1.82
PEG (5Y)1.37
EPS Next 2Y9.04%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
No dividends for 1PYPL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1PYPL (9/3/2025, 7:00:00 PM)
59.15
+0.3 (+0.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.95%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap56.51B
Analysts72.65
Price Target72.38 (22.37%)
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)0.61%
PT rev (3m)-2.95%
EPS NQ rev (1m)0.15%
EPS NQ rev (3m)-5.36%
EPS NY rev (1m)3.02%
EPS NY rev (3m)2.97%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)1.15%
Revenue NY rev (3m)1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.5 | ||
| Fwd PE | 11.68 | ||
| P/S | 2.05 | ||
| P/FCF | 12.49 | ||
| P/OCF | 10.9 | ||
| P/B | 3.27 | ||
| P/tB | 7.38 | ||
| EV/EBITDA | 8.96 |
EPS(TTM)4.38
EY7.4%
EPS(NY)5.06
Fwd EY8.56%
FCF(TTM)4.74
FCFY8.01%
OCF(TTM)5.43
OCFY9.18%
SpS28.9
BVpS18.08
TBVpS8.01
PEG (NY)1.82
PEG (5Y)1.37
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
WACC7.74%
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 Y7.44%
EPS Next 2Y9.04%
EPS Next 3Y10.45%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%5.11%
Revenue Next Year4.3%
Revenue Next 2Y5.13%
Revenue Next 3Y5.76%
Revenue Next 5Y5.57%
EBIT growth 1Y13.21%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.08%
EBIT Next 3Y12.19%
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%