PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe - BIT:1PYPL - US70450Y1038 - Common Stock
59.14 EUR
+2.31 (+4.06%)
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. While 1PYPL has a great profitability rating, 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
1PYPL had positive earnings in the past year.
1PYPL had a positive operating cash flow in the past year.
Each year in the past 5 years 1PYPL has 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 84.31% of the companies in the same industry.
1PYPL has a better Return On Equity (23.16%) than 86.27% of its industry peers.
With an excellent Return On Invested Capital value of 13.86%, 1PYPL belongs to the best of the industry, outperforming 84.31% 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 10.03%.
The last Return On Invested Capital (13.86%) for 1PYPL is above the 3 year average (11.47%), which is a sign of increasing profitability.
| 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 68.63% of its industry peers.
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 70.59% of the companies in the same industry.
In the last couple of years the Operating Margin of 1PYPL has grown nicely.
Looking at the Gross Margin, with a value of 41.68%, 1PYPL is in line with its industry, outperforming 49.02% of the companies in the same 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) well above the Cost of Capital (WACC), 1PYPL is creating 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.
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 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 74.51% 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/WACC1.81
WACC7.67%
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 comparable to the rest of the industry: 1PYPL outperforms 47.06% 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.
Looking at the last year, 1PYPL shows a small growth in Revenue. The Revenue has grown by 4.07% 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)-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 Y7.47%
EPS Next 2Y8.95%
EPS Next 3Y10.22%
EPS Next 5Y11.09%
Revenue Next Year4.42%
Revenue Next 2Y5.16%
Revenue Next 3Y5.72%
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
A Price/Earnings ratio of 13.41 indicates a correct valuation of 1PYPL.
Based on the Price/Earnings ratio, 1PYPL is valued a bit cheaper than 70.59% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.89, 1PYPL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.62, the valuation of 1PYPL can be described as reasonable.
66.67% of the companies in the same industry are more expensive than 1PYPL, based on the Price/Forward Earnings ratio.
1PYPL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 11.62 |
4.2 Price Multiples
1PYPL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 66.67% of the companies in the same industry.
1PYPL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.4 | ||
| EV/EBITDA | 8.89 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1PYPL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.8
PEG (5Y)1.36
EPS Next 2Y8.95%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
No dividends for 1PYPL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1PYPL (10/20/2025, 7:00:00 PM)
59.14
+2.31 (+4.06%)
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 Cap56.50B
Revenue(TTM)32.29B
Net Income(TTM)4.68B
Analysts72.65
Price Target72.27 (22.2%)
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)1.11%
PT rev (3m)0.45%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.23%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.41 | ||
| Fwd PE | 11.62 | ||
| P/S | 2.03 | ||
| P/FCF | 12.4 | ||
| P/OCF | 10.82 | ||
| P/B | 3.25 | ||
| P/tB | 7.33 | ||
| EV/EBITDA | 8.89 |
EPS(TTM)4.41
EY7.46%
EPS(NY)5.09
Fwd EY8.61%
FCF(TTM)4.77
FCFY8.07%
OCF(TTM)5.47
OCFY9.25%
SpS29.11
BVpS18.21
TBVpS8.07
PEG (NY)1.8
PEG (5Y)1.36
Graham Number42.51
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%
ROICexgc growth 3Y7.88%
ROICexgc 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
WACC7.67%
ROIC/WACC1.81
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 Y7.47%
EPS Next 2Y8.95%
EPS Next 3Y10.22%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%5.11%
Revenue Next Year4.42%
Revenue Next 2Y5.16%
Revenue Next 3Y5.72%
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%
PAYPAL HOLDINGS INC / 1PYPL.MI FAQ
Can you provide the ChartMill fundamental rating for PAYPAL HOLDINGS INC?
ChartMill assigns a fundamental rating of 5 / 10 to 1PYPL.MI.
Can you provide the valuation status for PAYPAL HOLDINGS INC?
ChartMill assigns a valuation rating of 6 / 10 to PAYPAL HOLDINGS INC (1PYPL.MI). This can be considered as Fairly Valued.
How profitable is PAYPAL HOLDINGS INC (1PYPL.MI) stock?
PAYPAL HOLDINGS INC (1PYPL.MI) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for 1PYPL stock?
The Earnings per Share (EPS) of PAYPAL HOLDINGS INC (1PYPL.MI) is expected to grow by 7.47% in the next year.