PAYPAL HOLDINGS INC (2PP.DE) Stock Fundamental Analysis
Europe - FRA:2PP - US70450Y1038 - Common Stock
59.11 EUR
-0.76 (-1.27%)
Overall 2PP gets a fundamental rating of 5 out of 10. We evaluated 2PP against 51 industry peers in the Financial Services industry. While 2PP belongs to the best of the industry regarding profitability, 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.
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
The Return On Assets of 2PP (5.87%) is better than 84.31% of its industry peers.
With an excellent Return On Equity value of 23.16%, 2PP belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
2PP has a better Return On Invested Capital (13.86%) than 84.31% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 2PP is in line with the industry average of 10.03%.
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 better Profit Margin (14.49%) than 68.63% of its industry peers.
In the last couple of years the Profit Margin of 2PP has remained more or less at the same level.
2PP has a Operating Margin of 19.08%. This is in the better half of the industry: 2PP outperforms 70.59% of its industry peers.
In the last couple of years the Operating Margin of 2PP has grown nicely.
Looking at the Gross Margin, with a value of 41.68%, 2PP is in line with its industry, outperforming 49.02% of the companies in the same 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.
Compared to 1 year ago, 2PP has less shares outstanding
The number of shares outstanding for 2PP has been reduced compared to 5 years ago.
The debt/assets ratio for 2PP is higher compared to a year ago.
2.2 Solvency
2PP has an Altman-Z score of 2.07. 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.
2PP has a better Altman-Z score (2.07) than 60.78% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 2.13, 2PP is in the better half of 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.
Although 2PP 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 | 2.13 | ||
| Altman-Z | 2.07 |
ROIC/WACC1.79
WACC7.75%
2.3 Liquidity
2PP has a Current 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 Current ratio of 2PP (1.33) is comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 1.33, 2PP is in line with its industry, 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
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 Y7.47%
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
2PP is valuated correctly with a Price/Earnings ratio of 13.34.
Based on the Price/Earnings ratio, 2PP is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
2PP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.10.
A Price/Forward Earnings ratio of 11.55 indicates a reasonable valuation of 2PP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 2PP indicates a somewhat cheap valuation: 2PP is cheaper than 62.75% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.52. 2PP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.34 | ||
| Fwd PE | 11.55 |
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.
Based on the Price/Free Cash Flow ratio, 2PP is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.33 | ||
| EV/EBITDA | 8.96 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
2PP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.79
PEG (5Y)1.35
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 (10/31/2025, 7:00:00 PM)
59.11
-0.76 (-1.27%)
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 Cap56.47B
Revenue(TTM)32.29B
Net Income(TTM)4.68B
Analysts72.65
Price Target72.56 (22.75%)
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 | 13.34 | ||
| Fwd PE | 11.55 | ||
| P/S | 2.02 | ||
| P/FCF | 12.33 | ||
| P/OCF | 10.75 | ||
| P/B | 3.23 | ||
| P/tB | 7.28 | ||
| EV/EBITDA | 8.96 |
EPS(TTM)4.43
EY7.49%
EPS(NY)5.12
Fwd EY8.66%
FCF(TTM)4.8
FCFY8.11%
OCF(TTM)5.5
OCFY9.3%
SpS29.26
BVpS18.31
TBVpS8.11
PEG (NY)1.79
PEG (5Y)1.35
Graham Number42.72
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 | 2.07 |
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 13.34 and the Price/Book (PB) ratio is 3.23.