PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
BIT:1PYPL - Euronext Milan - US70450Y1038 - Common Stock - Currency: EUR
Overall 1PYPL gets a fundamental rating of 5 out of 10. We evaluated 1PYPL against 47 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
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.
In the past 5 years 1PYPL always reported a positive cash flow from operatings.
1.2 Ratios
1PYPL's Return On Assets of 5.08% is fine compared to the rest of the industry. 1PYPL outperforms 70.21% of its industry peers.
1PYPL's Return On Equity of 20.31% is fine compared to the rest of the industry. 1PYPL outperforms 74.47% of its industry peers.
The Return On Invested Capital of 1PYPL (13.55%) is better than 85.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1PYPL is in line with the industry average of 10.10%.
The last Return On Invested Capital (13.55%) for 1PYPL is above the 3 year average (11.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 20.31% | ||
| ROIC | 13.55% |
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 13.04% is fine compared to the rest of the industry. 1PYPL outperforms 63.83% of its industry peers.
In the last couple of years the Profit Margin of 1PYPL has remained more or less at the same level.
1PYPL's Operating Margin of 18.12% 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's Gross Margin of 40.54% is in line compared to the rest of the industry. 1PYPL outperforms 46.81% of its industry peers.
1PYPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.12% | ||
| PM (TTM) | 13.04% | ||
| GM | 40.54% |
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) below the Cost of Capital (WACC), 1PYPL is destroying value.
1PYPL has less shares outstanding than it did 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
An Altman-Z score of 1.91 indicates that 1PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
1PYPL has a Altman-Z score (1.91) which is comparable to the rest of the industry.
1PYPL has a debt to FCF ratio of 1.64. This is a very positive value and a sign of high solvency as it would only need 1.64 years to pay back of all of its debts.
1PYPL has a better Debt to FCF ratio (1.64) than 78.72% of its industry peers.
A Debt/Equity ratio of 0.48 indicates that 1PYPL is not too dependend on debt financing.
1PYPL has a Debt to Equity ratio (0.48) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 1.91 |
ROIC/WACC0.97
WACC14%
2.3 Liquidity
A Current Ratio of 1.26 indicates that 1PYPL should not have too much problems paying its short term obligations.
1PYPL's Current ratio of 1.26 is fine compared to the rest of the industry. 1PYPL outperforms 61.70% of its industry peers.
1PYPL has a Quick Ratio of 1.26. 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 better Quick ratio (1.26) than 63.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
1PYPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.54%.
1PYPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.87% yearly.
Looking at the last year, 1PYPL shows a small growth in Revenue. The Revenue has grown by 6.81% in the last year.
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)-2.54%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%-19.59%
Revenue 1Y (TTM)6.81%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%4.24%
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.
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 Y2.67%
EPS Next 2Y6.88%
EPS Next 3Y8.91%
EPS Next 5Y11.09%
Revenue Next Year3.8%
Revenue Next 2Y5.03%
Revenue Next 3Y5.49%
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
With a Price/Earnings ratio of 13.38, 1PYPL is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as 1PYPL.
The average S&P500 Price/Earnings ratio is at 28.22. 1PYPL is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 13.03 indicates a correct valuation of 1PYPL.
1PYPL's Price/Forward Earnings ratio is in line with the industry average.
1PYPL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 13.03 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1PYPL is valued a bit cheaper than the industry average as 63.83% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1PYPL indicates a somewhat cheap valuation: 1PYPL is cheaper than 65.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.62 | ||
| EV/EBITDA | 8.84 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1PYPL does not grow enough to justify the current Price/Earnings ratio.
1PYPL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)5.01
PEG (5Y)1.35
EPS Next 2Y6.88%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
1PYPL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1PYPL (5/2/2025, 7:00:00 PM)
58.59
+0.96 (+1.67%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners77.78%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap57.27B
Analysts74.9
Price Target75.17 (28.3%)
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)6.99%
Min EPS beat(2)3.97%
Max EPS beat(2)10.02%
EPS beat(4)4
Avg EPS beat(4)11.27%
Min EPS beat(4)3.97%
Max EPS beat(4)18.26%
EPS beat(8)7
Avg EPS beat(8)7.19%
EPS beat(12)10
Avg EPS beat(12)6.15%
EPS beat(16)13
Avg EPS beat(16)5.67%
Revenue beat(2)0
Avg Revenue beat(2)-1.56%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)-0.65%
Revenue beat(4)1
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)0.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.02%
Revenue beat(12)1
Avg Revenue beat(12)-1.17%
Revenue beat(16)2
Avg Revenue beat(16)-1.27%
PT rev (1m)-17.91%
PT rev (3m)-18.35%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)3.25%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)2.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.34%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.38 | ||
| Fwd PE | 13.03 | ||
| P/S | 2.05 | ||
| P/FCF | 9.62 | ||
| P/OCF | 8.74 | ||
| P/B | 3.19 | ||
| P/tB | 7.04 | ||
| EV/EBITDA | 8.84 |
EPS(TTM)4.38
EY7.48%
EPS(NY)4.5
Fwd EY7.67%
FCF(TTM)6.09
FCFY10.39%
OCF(TTM)6.7
OCFY11.44%
SpS28.6
BVpS18.37
TBVpS8.32
PEG (NY)5.01
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 20.31% | ||
| ROCE | 17.34% | ||
| ROIC | 13.55% | ||
| ROICexc | 20.09% | ||
| ROICexgc | 40.03% | ||
| OM | 18.12% | ||
| PM (TTM) | 13.04% | ||
| GM | 40.54% | ||
| FCFM | 21.28% |
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-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.64 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 66.18% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 15.75 | ||
| Cash Conversion | 109.64% | ||
| Profit Quality | 163.18% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 1.91 |
F-Score6
WACC14%
ROIC/WACC0.97
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)-2.54%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%-19.59%
EPS Next Y2.67%
EPS Next 2Y6.88%
EPS Next 3Y8.91%
EPS Next 5Y11.09%
Revenue 1Y (TTM)6.81%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%4.24%
Revenue Next Year3.8%
Revenue Next 2Y5.03%
Revenue Next 3Y5.49%
Revenue Next 5Y5.57%
EBIT growth 1Y16.57%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.56%
EBIT Next 3Y13.51%
EBIT Next 5Y10.05%
FCF growth 1Y60.36%
FCF growth 3Y11.44%
FCF growth 5Y14.98%
OCF growth 1Y53.83%
OCF growth 3Y8.72%
OCF growth 5Y12.85%