PAYPAL HOLDINGS INC (2PP.DE) Stock Fundamental Analysis
Europe - FRA:2PP - US70450Y1038 - Common Stock
58.59 EUR
+0.68 (+1.17%)
Overall 2PP gets a fundamental rating of 6 out of 10. We evaluated 2PP against 50 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 decent growth rate and is not valued too expensively.
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 6.16% is amongst the best of the industry. 2PP outperforms 82.00% of its industry peers.
The Return On Equity of 2PP (24.34%) is better than 88.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.11%, 2PP belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
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 9.85%.
The 3 year average ROIC (11.47%) for 2PP is below the current ROIC(14.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 24.34% | ||
| ROIC | 14.11% |
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 better Profit Margin (14.96%) than 68.00% of its industry peers.
2PP's Profit Margin has been stable in the last couple of years.
2PP's Operating Margin of 19.16% is fine compared to the rest of the industry. 2PP outperforms 72.00% of its industry peers.
2PP's Operating Margin has improved in the last couple of years.
2PP has a Gross Margin (41.56%) which 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 | 19.16% | ||
| PM (TTM) | 14.96% | ||
| GM | 41.56% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 2PP is creating value.
The number of shares outstanding for 2PP has been reduced compared to 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
An Altman-Z score of 2.09 indicates that 2PP is not a great score, but indicates only limited risk for bankruptcy at the moment.
2PP's Altman-Z score of 2.09 is in line compared to the rest of the industry. 2PP outperforms 58.00% of its industry peers.
2PP has a debt to FCF ratio of 2.06. This is a good value and a sign of high solvency as 2PP would need 2.06 years to pay back of all of its debts.
2PP has a Debt to FCF ratio of 2.06. This is in the better half of the industry: 2PP outperforms 74.00% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that 2PP is somewhat dependend on debt financing.
2PP has a Debt to Equity ratio (0.56) which is comparable to the rest of the 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 | 2.06 | ||
| Altman-Z | 2.09 |
ROIC/WACC1.82
WACC7.75%
2.3 Liquidity
A Current Ratio of 1.34 indicates that 2PP should not have too much problems paying its short term obligations.
2PP has a Current ratio (1.34) which is comparable to the rest of the industry.
A Quick Ratio of 1.34 indicates that 2PP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.34, 2PP perfoms like the industry average, outperforming 52.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
2PP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.19%.
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.
The Revenue has been growing slightly by 4.47% in the past year.
The Revenue has been growing by 12.34% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.19%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%11.67%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
3.2 Future
The Earnings Per Share is expected to grow by 11.09% on average over the next years. This is quite good.
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
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
Based on the Price/Earnings ratio of 12.79, 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 72.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. 2PP is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 11.39, which indicates a very decent valuation of 2PP.
Based on the Price/Forward Earnings ratio, 2PP is valued a bit cheaper than 68.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.27. 2PP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 11.39 |
4.2 Price Multiples
2PP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 2PP is cheaper than 70.00% of the companies in the same industry.
2PP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 2PP is cheaper than 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.56 | ||
| EV/EBITDA | 8.59 |
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)1.71
PEG (5Y)1.3
EPS Next 2Y8.95%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
With a yearly dividend of 0.82%, 2PP is not a good candidate for dividend investing.
2PP's Dividend Yield is comparable with the industry average which is at 3.30.
With a Dividend Yield of 0.82, 2PP pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y8.95%
EPS Next 3Y10.22%
FRA:2PP (11/5/2025, 5:15:54 PM)
58.59
+0.68 (+1.17%)
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 Cap55.98B
Revenue(TTM)32.86B
Net Income(TTM)4.92B
Analysts72.65
Price Target75.71 (29.22%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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)7.61%
Min EPS beat(2)5.83%
Max EPS beat(2)9.38%
EPS beat(4)4
Avg EPS beat(4)7.86%
Min EPS beat(4)3.97%
Max EPS beat(4)12.26%
EPS beat(8)8
Avg EPS beat(8)9.88%
EPS beat(12)11
Avg EPS beat(12)7.2%
EPS beat(16)13
Avg EPS beat(16)6.14%
Revenue beat(2)2
Avg Revenue beat(2)0.4%
Min Revenue beat(2)0.26%
Max Revenue beat(2)0.55%
Revenue beat(4)2
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-2.67%
Max Revenue beat(4)0.55%
Revenue beat(8)3
Avg Revenue beat(8)-0.71%
Revenue beat(12)3
Avg Revenue beat(12)-1.01%
Revenue beat(16)3
Avg Revenue beat(16)-1.07%
PT rev (1m)5.91%
PT rev (3m)4.54%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)0.87%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.19%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.79 | ||
| Fwd PE | 11.39 | ||
| P/S | 1.96 | ||
| P/FCF | 11.56 | ||
| P/OCF | 10.01 | ||
| P/B | 3.18 | ||
| P/tB | 7.12 | ||
| EV/EBITDA | 8.59 |
EPS(TTM)4.58
EY7.82%
EPS(NY)5.14
Fwd EY8.78%
FCF(TTM)5.07
FCFY8.65%
OCF(TTM)5.85
OCFY9.99%
SpS29.93
BVpS18.4
TBVpS8.23
PEG (NY)1.71
PEG (5Y)1.3
Graham Number43.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 24.34% | ||
| ROCE | 18.05% | ||
| ROIC | 14.11% | ||
| ROICexc | 20.4% | ||
| ROICexgc | 37.98% | ||
| OM | 19.16% | ||
| PM (TTM) | 14.96% | ||
| GM | 41.56% | ||
| FCFM | 16.93% |
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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.06 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 88.04% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 15.43 | ||
| Cash Conversion | 88.34% | ||
| Profit Quality | 113.18% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 2.09 |
F-Score8
WACC7.75%
ROIC/WACC1.82
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)-0.19%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%11.67%
EPS Next Y7.47%
EPS Next 2Y8.95%
EPS Next 3Y10.22%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
Revenue Next Year4.42%
Revenue Next 2Y5.16%
Revenue Next 3Y5.72%
Revenue Next 5Y5.57%
EBIT growth 1Y10.67%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.15%
EBIT Next 3Y12.17%
EBIT Next 5Y10.05%
FCF growth 1Y74.78%
FCF growth 3Y11.44%
FCF growth 5Y14.98%
OCF growth 1Y68.22%
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 6 / 10 to 2PP.DE.
What is the valuation status for 2PP stock?
ChartMill assigns a valuation rating of 6 / 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 12.79 and the Price/Book (PB) ratio is 3.18.