PAYPAL HOLDINGS INC (2PP.DE) Stock Fundamental Analysis
Europe - FRA:2PP - US70450Y1038 - Common Stock
61.37 EUR
-4.38 (-6.66%)
2PP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 industry peers in the Financial Services industry. 2PP has an excellent profitability rating, 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.
In the past 5 years 2PP always reported a positive cash flow from operatings.
1.2 Ratios
2PP's Return On Assets of 5.87% is amongst the best of the industry. 2PP outperforms 84.31% of its industry peers.
The Return On Equity of 2PP (23.16%) is better than 86.27% of its industry peers.
2PP's Return On Invested Capital of 13.86% is amongst the best of the industry. 2PP outperforms 84.31% of its industry peers.
2PP 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 2PP 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
Looking at the Profit Margin, with a value of 14.49%, 2PP is in the better half of the industry, outperforming 68.63% of the companies in the same industry.
In the last couple of years the Profit Margin of 2PP has remained more or less at the same level.
2PP's Operating Margin of 19.08% is fine compared to the rest of the industry. 2PP outperforms 70.59% of its industry peers.
2PP's Operating Margin has improved in the last couple of years.
The Gross Margin of 2PP (41.68%) is comparable to the rest of the industry.
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.
2PP has less shares outstanding than it did 5 years ago.
2PP has a worse debt/assets ratio than last year.
2.2 Solvency
2PP has an Altman-Z score of 2.14. 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.
Looking at the Altman-Z score, with a value of 2.14, 2PP is in the better half of the industry, outperforming 60.78% 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.
With a decent Debt to FCF ratio value of 2.13, 2PP is doing good in the industry, outperforming 74.51% of the companies in the same industry.
2PP has a Debt/Equity ratio of 0.56. This is a neutral value indicating 2PP is somewhat dependend on debt financing.
2PP has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: 2PP outperforms 43.14% of its industry peers.
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 | 2.14 |
ROIC/WACC1.79
WACC7.75%
2.3 Liquidity
A Current Ratio of 1.33 indicates that 2PP should not have too much problems paying its short term obligations.
2PP's Current ratio of 1.33 is in line compared to the rest of the industry. 2PP outperforms 47.06% of its industry peers.
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.
With a Quick ratio value of 1.33, 2PP perfoms like the industry average, outperforming 52.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
2PP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.66%.
Measured over the past years, 2PP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.87% on average per year.
Looking at the last year, 2PP shows a small growth in Revenue. The Revenue has grown by 4.07% in the last year.
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
Based on estimates for the next years, 2PP will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.09% on average per year.
The Revenue is expected to grow by 5.57% on average over the next years.
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.
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
Based on the Price/Earnings ratio of 13.95, the valuation of 2PP can be described as correct.
Compared to the rest of the industry, the Price/Earnings ratio of 2PP indicates a somewhat cheap valuation: 2PP is cheaper than 70.59% of the companies listed in the same industry.
2PP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.00.
With a Price/Forward Earnings ratio of 12.07, 2PP is valued correctly.
60.78% of the companies in the same industry are more expensive than 2PP, based on the Price/Forward Earnings ratio.
2PP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.95 | ||
| Fwd PE | 12.07 |
4.2 Price Multiples
64.71% of the companies in the same industry are more expensive than 2PP, based on the Enterprise Value to EBITDA ratio.
2PP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 2PP is cheaper than 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.89 | ||
| EV/EBITDA | 9.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
2PP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.87
PEG (5Y)1.41
EPS Next 2Y8.95%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
2PP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:2PP (10/29/2025, 5:14:18 PM)
61.37
-4.38 (-6.66%)
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 Cap58.63B
Revenue(TTM)32.29B
Net Income(TTM)4.68B
Analysts72.65
Price Target72.56 (18.23%)
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)1.5%
PT rev (3m)0.19%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-0.34%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.13%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.95 | ||
| Fwd PE | 12.07 | ||
| P/S | 2.11 | ||
| P/FCF | 12.89 | ||
| P/OCF | 11.24 | ||
| P/B | 3.38 | ||
| P/tB | 7.62 | ||
| EV/EBITDA | 9.93 |
EPS(TTM)4.4
EY7.17%
EPS(NY)5.08
Fwd EY8.28%
FCF(TTM)4.76
FCFY7.76%
OCF(TTM)5.46
OCFY8.9%
SpS29.06
BVpS18.18
TBVpS8.06
PEG (NY)1.87
PEG (5Y)1.41
Graham Number42.43
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 | 2.14 |
F-Score8
WACC7.75%
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 Y7.47%
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 / 2PP.DE FAQ
Can you provide the ChartMill fundamental rating for PAYPAL HOLDINGS INC?
ChartMill assigns a fundamental rating of 5 / 10 to 2PP.DE.
What is the valuation status for 2PP stock?
ChartMill assigns a valuation rating of 5 / 10 to PAYPAL HOLDINGS INC (2PP.DE). This can be considered as Fairly Valued.
Can you provide the profitability details for PAYPAL HOLDINGS INC?
PAYPAL HOLDINGS INC (2PP.DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of PAYPAL HOLDINGS INC (2PP.DE) stock?
The Price/Earnings (PE) ratio for PAYPAL HOLDINGS INC (2PP.DE) is 13.95 and the Price/Book (PB) ratio is 3.38.