PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
BIT:1PYPL - Euronext Milan - US70450Y1038 - Common Stock - Currency: EUR
Taking everything into account, 1PYPL scores 5 out of 10 in our fundamental rating. 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.
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
1PYPL has a better Return On Assets (5.59%) than 72.00% of its industry peers.
The Return On Equity of 1PYPL (22.44%) is better than 80.00% of its industry peers.
The Return On Invested Capital of 1PYPL (13.48%) is better than 86.00% of its industry peers.
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 10.20%.
The last Return On Invested Capital (13.48%) for 1PYPL is above the 3 year average (11.47%), which is a sign of increasing profitability.
| 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
With a decent Profit Margin value of 14.26%, 1PYPL is doing good in the industry, outperforming 68.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 1PYPL has remained more or less at the same level.
The Operating Margin of 1PYPL (18.75%) is better than 70.00% of its industry peers.
In the last couple of years the Operating Margin of 1PYPL has grown nicely.
1PYPL has a Gross Margin of 41.40%. This is comparable to the rest of the industry: 1PYPL outperforms 52.00% 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.
1PYPL has less shares outstanding than it did 1 year ago.
1PYPL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1PYPL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.00 indicates that 1PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of 1PYPL (2.00) 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.
1PYPL's Debt to FCF ratio of 2.12 is fine compared to the rest of the industry. 1PYPL outperforms 78.00% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that 1PYPL is somewhat dependend on debt financing.
1PYPL has a Debt to Equity ratio (0.56) which 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 | 2.12 | ||
| Altman-Z | 2 |
ROIC/WACC1.64
WACC8.23%
2.3 Liquidity
1PYPL has a Current 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.
1PYPL has a Current ratio of 1.30. This is in the better half of the industry: 1PYPL outperforms 62.00% of its industry peers.
A Quick Ratio of 1.30 indicates that 1PYPL should not have too much problems paying its short term obligations.
1PYPL has a Quick ratio of 1.30. This is in the better half of the industry: 1PYPL outperforms 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
The earnings per share for 1PYPL have decreased by -8.05% in the last year.
Measured over the past years, 1PYPL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.87% on average per year.
The Revenue has been growing slightly by 4.79% in the past 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)-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.
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 Y4.33%
EPS Next 2Y7.51%
EPS Next 3Y9.52%
EPS Next 5Y11.09%
Revenue Next Year3.2%
Revenue Next 2Y4.47%
Revenue Next 3Y5.39%
Revenue Next 5Y5.57%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 14.22 indicates a correct valuation of 1PYPL.
The rest of the industry has a similar Price/Earnings ratio as 1PYPL.
1PYPL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.82.
A Price/Forward Earnings ratio of 12.11 indicates a correct valuation of 1PYPL.
1PYPL's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, 1PYPL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 12.11 |
4.2 Price Multiples
62.00% of the companies in the same industry are more expensive than 1PYPL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, 1PYPL is valued a bit cheaper than 66.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.36 | ||
| EV/EBITDA | 9.37 |
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)3.28
PEG (5Y)1.44
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 (5/23/2025, 7:00:00 PM)
61.7
-2.83 (-4.39%)
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 Cap60.01B
Analysts73.21
Price Target74.59 (20.89%)
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)-13.85%
PT rev (3m)-18.93%
EPS NQ rev (1m)5.81%
EPS NQ rev (3m)5.82%
EPS NY rev (1m)1.62%
EPS NY rev (3m)1.02%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-0.3%
Revenue NY rev (1m)-0.58%
Revenue NY rev (3m)-1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.22 | ||
| Fwd PE | 12.11 | ||
| P/S | 2.13 | ||
| P/FCF | 11.36 | ||
| P/OCF | 10.13 | ||
| P/B | 3.35 | ||
| P/tB | 7.49 | ||
| EV/EBITDA | 9.37 |
EPS(TTM)4.34
EY7.03%
EPS(NY)5.09
Fwd EY8.26%
FCF(TTM)5.43
FCFY8.8%
OCF(TTM)6.09
OCFY9.87%
SpS29.01
BVpS18.43
TBVpS8.23
PEG (NY)3.28
PEG (5Y)1.44
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 | 2 |
F-Score8
WACC8.23%
ROIC/WACC1.64
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 Year3.2%
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%