PAYPAL HOLDINGS INC (2PP.DE) Stock Fundamental Analysis
FRA:2PP - Deutsche Boerse Ag - US70450Y1038 - Common Stock - Currency: EUR
Taking everything into account, 2PP scores 5 out of 10 in our fundamental rating. 2PP was compared to 50 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
2PP had positive earnings in the past year.
In the past year 2PP had a positive cash flow from operations.
2PP had positive earnings in each of the past 5 years.
Each year in the past 5 years 2PP had a positive operating cash flow.
1.2 Ratios
2PP has a Return On Assets of 5.59%. This is in the better half of the industry: 2PP outperforms 74.00% of its industry peers.
With an excellent Return On Equity value of 22.44%, 2PP belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
2PP's Return On Invested Capital of 13.48% is amongst the best of the industry. 2PP outperforms 88.00% 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 10.20%.
The last Return On Invested Capital (13.48%) for 2PP 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
2PP has a better Profit Margin (14.26%) than 70.00% of its industry peers.
In the last couple of years the Profit Margin of 2PP has remained more or less at the same level.
With a decent Operating Margin value of 18.75%, 2PP is doing good in the industry, outperforming 72.00% of the companies in the same industry.
In the last couple of years the Operating Margin of 2PP has grown nicely.
With a Gross Margin value of 41.40%, 2PP perfoms like the industry average, outperforming 54.00% of the companies in the same industry.
2PP's Gross Margin has declined in the last couple of years.
| 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
2PP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, 2PP has less shares outstanding
2PP has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 2PP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.00 indicates that 2PP is not a great score, but indicates only limited risk for bankruptcy at the moment.
2PP has a Altman-Z score of 2.00. This is comparable to the rest of the industry: 2PP outperforms 58.00% of its industry peers.
2PP has a debt to FCF ratio of 2.12. This is a good value and a sign of high solvency as 2PP would need 2.12 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.12, 2PP is doing good in the industry, outperforming 80.00% 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.
The Debt to Equity ratio of 2PP (0.56) 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 | 2.12 | ||
| Altman-Z | 2 |
ROIC/WACC1.64
WACC8.23%
2.3 Liquidity
A Current Ratio of 1.30 indicates that 2PP should not have too much problems paying its short term obligations.
The Current ratio of 2PP (1.30) is better than 64.00% of its industry peers.
A Quick Ratio of 1.30 indicates that 2PP should not have too much problems paying its short term obligations.
2PP has a Quick ratio of 1.30. This is in the better half of the industry: 2PP outperforms 68.00% 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 2PP have decreased by -8.05% in the last year.
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 4.79% 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)-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
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 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.
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
With a Price/Earnings ratio of 14.21, 2PP is valued correctly.
2PP's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.82. 2PP is valued slightly cheaper when compared to this.
2PP is valuated correctly with a Price/Forward Earnings ratio of 12.11.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 2PP indicates a somewhat cheap valuation: 2PP is cheaper than 62.00% of the companies listed in the same industry.
2PP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.21 | ||
| Fwd PE | 12.11 |
4.2 Price Multiples
2PP's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 2PP is cheaper than 64.00% of the companies in the same industry.
68.00% of the companies in the same industry are more expensive than 2PP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.36 | ||
| EV/EBITDA | 9.36 |
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)3.28
PEG (5Y)1.44
EPS Next 2Y7.51%
EPS Next 3Y9.52%
5. Dividend
5.1 Amount
2PP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:2PP (5/23/2025, 7:00:00 PM)
61.68
-1.67 (-2.64%)
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 Cap59.99B
Analysts73.21
Price Target74.21 (20.31%)
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)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)-14.25%
PT rev (3m)-19.31%
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 | 14.21 | ||
| 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 | 9.36 |
EPS(TTM)4.34
EY7.04%
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%