PAYPAL HOLDINGS INC (2PP.DE) Stock Fundamental Analysis
Europe - FRA:2PP - US70450Y1038 - Common Stock
58.44 EUR
+0.78 (+1.35%)
2PP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 49 industry peers in the Financial Services industry. 2PP scores excellent on profitability, but there are some minor concerns on its financial health. 2PP has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year 2PP was profitable.
2PP had a positive operating cash flow in the past year.
2PP had positive earnings in each of the past 5 years.
2PP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 5.87%, 2PP is doing good in the industry, outperforming 77.55% of the companies in the same industry.
2PP has a Return On Equity of 23.16%. This is amongst the best in the industry. 2PP outperforms 81.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.86%, 2PP belongs to the top of the industry, outperforming 81.63% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 2PP is in line with the industry average of 11.58%.
The 3 year average ROIC (11.47%) for 2PP 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
2PP has a Profit Margin (14.49%) which is comparable to the rest of the industry.
In the last couple of years the Profit Margin of 2PP has remained more or less at the same level.
The Operating Margin of 2PP (19.08%) is better than 65.31% of its industry peers.
In the last couple of years the Operating Margin of 2PP has grown nicely.
2PP has a Gross Margin of 41.68%. This is comparable to the rest of the industry: 2PP outperforms 44.90% of its industry peers.
2PP'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
2PP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
2PP has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 2PP has been reduced compared to 5 years ago.
2PP has a worse debt/assets ratio than last year.
2.2 Solvency
2PP has an Altman-Z score of 2.06. This is not the best score and indicates that 2PP is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.06, 2PP perfoms like the industry average, outperforming 55.10% of the companies in the same industry.
2PP has a debt to FCF ratio of 2.13. This is a good value and a sign of high solvency as 2PP would need 2.13 years to pay back of all of its debts.
2PP has a Debt to FCF ratio of 2.13. This is in the better half of the industry: 2PP outperforms 75.51% of its industry peers.
2PP has a Debt/Equity ratio of 0.56. This is a neutral value indicating 2PP is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, 2PP perfoms like the industry average, outperforming 42.86% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for 2PP, 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 | 2.06 |
ROIC/WACC1.79
WACC7.73%
2.3 Liquidity
A Current Ratio of 1.33 indicates that 2PP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.33, 2PP is in line with its industry, outperforming 53.06% of the companies in the same industry.
2PP has a Quick Ratio of 1.33. This is a normal value and indicates that 2PP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 2PP (1.33) 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 2PP have decreased by -4.66% in the last year.
2PP shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.87% yearly.
2PP shows a small growth in Revenue. In the last year, the Revenue has grown by 4.07%.
2PP 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
2PP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.09% yearly.
Based on estimates for the next years, 2PP will show a small growth in Revenue. The Revenue will grow by 5.57% on average per year.
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.
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 13.40, 2PP is valued correctly.
71.43% of the companies in the same industry are more expensive than 2PP, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.86. 2PP is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.59 indicates a reasonable valuation of 2PP.
67.35% of the companies in the same industry are more expensive than 2PP, based on the Price/Forward Earnings ratio.
2PP is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.32, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.4 | ||
| Fwd PE | 11.59 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 2PP is valued a bit cheaper than the industry average as 65.31% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, 2PP is valued a bit cheaper than the industry average as 71.43% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.4 | ||
| EV/EBITDA | 8.77 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 2PP may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)1.36
EPS Next 2Y9.1%
EPS Next 3Y10.5%
5. Dividend
5.1 Amount
No dividends for 2PP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:2PP (10/3/2025, 7:00:00 PM)
58.44
+0.78 (+1.35%)
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 Cap55.83B
Analysts72.65
Price Target71.48 (22.31%)
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)-1.16%
PT rev (3m)-4.24%
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 | 13.4 | ||
| Fwd PE | 11.59 | ||
| P/S | 2.03 | ||
| P/FCF | 12.4 | ||
| P/OCF | 10.82 | ||
| P/B | 3.25 | ||
| P/tB | 7.33 | ||
| EV/EBITDA | 8.77 |
EPS(TTM)4.36
EY7.46%
EPS(NY)5.04
Fwd EY8.63%
FCF(TTM)4.71
FCFY8.06%
OCF(TTM)5.4
OCFY9.24%
SpS28.76
BVpS17.99
TBVpS7.97
PEG (NY)1.76
PEG (5Y)1.36
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 | 2.06 |
F-Score8
WACC7.73%
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 Y7.6%
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%