PAYPAL HOLDINGS INC (2PP.DE) Stock Fundamental Analysis
FRA:2PP - Deutsche Boerse Ag - US70450Y1038 - Common Stock - Currency: EUR
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 only an average score on both its financial health and profitability. 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.
2PP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
2PP has a Return On Assets of 5.87%. This is in the better half of the industry: 2PP outperforms 68.63% of its industry peers.
2PP has a better Return On Equity (23.16%) than 76.47% of its industry peers.
2PP has a better Return On Invested Capital (13.86%) than 78.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 2PP is in line with the industry average of 12.61%.
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
2PP has a Profit Margin of 14.49%. This is comparable to the rest of the industry: 2PP outperforms 54.90% of its industry peers.
2PP's Profit Margin has been stable in the last couple of years.
2PP's Operating Margin of 19.08% is fine compared to the rest of the industry. 2PP outperforms 60.78% of its industry peers.
2PP's Operating Margin has improved in the last couple of years.
2PP has a Gross Margin of 41.68%. This is comparable to the rest of the industry: 2PP outperforms 43.14% of its industry peers.
In the last couple of years the Gross Margin of 2PP has declined.
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 2PP is creating some 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.
Compared to 1 year ago, 2PP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.06 indicates that 2PP is not a great score, but indicates only limited risk for bankruptcy at the moment.
2PP has a Altman-Z score (2.06) which is comparable to the rest of the 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 74.51% 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.
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 | 2.13 | ||
| Altman-Z | 2.06 |
ROIC/WACC1.77
WACC7.84%
2.3 Liquidity
A Current Ratio of 1.33 indicates that 2PP should not have too much problems paying its short term obligations.
2PP has a Current ratio of 1.33. This is in the better half of the industry: 2PP outperforms 60.78% 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.
2PP's Quick ratio of 1.33 is fine compared to the rest of the industry. 2PP outperforms 64.71% of its industry peers.
| 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.
The Earnings Per Share has been growing by 9.87% on average over the past years. This is quite good.
2PP shows a small growth in Revenue. In the last year, the Revenue has grown by 4.07%.
Measured over the past years, 2PP shows a quite strong growth in Revenue. The Revenue has been growing by 12.34% on average per year.
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.
2PP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.57% yearly.
EPS Next Y4.29%
EPS Next 2Y7.57%
EPS Next 3Y9.24%
EPS Next 5Y11.09%
Revenue Next Year3.12%
Revenue Next 2Y4.41%
Revenue Next 3Y5.28%
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 13.42, 2PP is valued correctly.
2PP's Price/Earnings is on the same level as the industry average.
2PP's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.99.
2PP is valuated reasonably with a Price/Forward Earnings ratio of 11.91.
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.
2PP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 11.91 |
4.2 Price Multiples
62.75% 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 70.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.39 | ||
| EV/EBITDA | 8.75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of 2PP may justify a higher PE ratio.
PEG (NY)3.13
PEG (5Y)1.36
EPS Next 2Y7.57%
EPS Next 3Y9.24%
5. Dividend
5.1 Amount
2PP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:2PP (8/6/2025, 7:00:00 PM)
59.43
+0.88 (+1.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners79.32%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap56.78B
Analysts72.69
Price Target72.42 (21.86%)
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)-2.99%
PT rev (3m)-3.82%
EPS NQ rev (1m)0.22%
EPS NQ rev (3m)-5.5%
EPS NY rev (1m)-0.15%
EPS NY rev (3m)1.58%
Revenue NQ rev (1m)0.96%
Revenue NQ rev (3m)0.07%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)-0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.42 | ||
| Fwd PE | 11.91 | ||
| P/S | 2.03 | ||
| P/FCF | 12.39 | ||
| P/OCF | 10.81 | ||
| P/B | 3.25 | ||
| P/tB | 7.32 | ||
| EV/EBITDA | 8.75 |
EPS(TTM)4.43
EY7.45%
EPS(NY)4.99
Fwd EY8.4%
FCF(TTM)4.8
FCFY8.07%
OCF(TTM)5.5
OCFY9.25%
SpS29.27
BVpS18.31
TBVpS8.12
PEG (NY)3.13
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
WACC7.84%
ROIC/WACC1.77
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 Y4.29%
EPS Next 2Y7.57%
EPS Next 3Y9.24%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%5.11%
Revenue Next Year3.12%
Revenue Next 2Y4.41%
Revenue Next 3Y5.28%
Revenue Next 5Y5.57%
EBIT growth 1Y13.21%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.59%
EBIT Next 3Y12.87%
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%