PAYPAL HOLDINGS INC (2PP.DE) Fundamental Analysis & Valuation
FRA:2PP • US70450Y1038
Current stock price
38.6 EUR
-0.16 (-0.4%)
Last:
This 2PP.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. 2PP.DE Profitability Analysis
1.1 Basic Checks
- 2PP had positive earnings in the past year.
- 2PP had a positive operating cash flow in the past year.
- In the past 5 years 2PP has always been profitable.
- In the past 5 years 2PP always reported a positive cash flow from operatings.
1.2 Ratios
- 2PP's Return On Assets of 6.53% is amongst the best of the industry. 2PP outperforms 87.27% of its industry peers.
- With an excellent Return On Equity value of 25.83%, 2PP belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
- 2PP has a better Return On Invested Capital (15.26%) than 89.09% of its industry peers.
- 2PP had an Average Return On Invested Capital over the past 3 years of 13.68%. This is above the industry average of 8.81%.
- The 3 year average ROIC (13.68%) for 2PP is below the current ROIC(15.26%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.53% | ||
| ROE | 25.83% | ||
| ROIC | 15.26% |
ROA(3y)5.59%
ROA(5y)5.07%
ROE(3y)22.11%
ROE(5y)19.49%
ROIC(3y)13.68%
ROIC(5y)12.27%
1.3 Margins
- With a Profit Margin value of 15.78%, 2PP perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- 2PP's Profit Margin has declined in the last couple of years.
- 2PP has a Operating Margin of 19.28%. This is in the better half of the industry: 2PP outperforms 65.45% of its industry peers.
- 2PP's Operating Margin has improved in the last couple of years.
- With a Gross Margin value of 41.48%, 2PP perfoms like the industry average, outperforming 43.64% of the companies in the same industry.
- 2PP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.28% | ||
| PM (TTM) | 15.78% | ||
| GM | 41.48% |
OM growth 3Y9.47%
OM growth 5Y3.83%
PM growth 3Y21.52%
PM growth 5Y-4.24%
GM growth 3Y-0.68%
GM growth 5Y-2.31%
2. 2PP.DE Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 2PP is creating 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.
- 2PP has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.86 indicates that 2PP is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 2PP has a better Altman-Z score (1.86) than 67.27% of its industry peers.
- 2PP has a debt to FCF ratio of 2.05. This is a good value and a sign of high solvency as 2PP would need 2.05 years to pay back of all of its debts.
- The Debt to FCF ratio of 2PP (2.05) is better than 80.00% of its industry peers.
- A Debt/Equity ratio of 0.49 indicates that 2PP is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.49, 2PP is in line with its industry, outperforming 49.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 1.86 |
ROIC/WACC2.04
WACC7.5%
2.3 Liquidity
- 2PP has a Current Ratio of 1.29. This is a normal value and indicates that 2PP is financially healthy and should not expect problems in meeting its short term obligations.
- 2PP has a Current ratio (1.29) which is in line with its industry peers.
- 2PP has a Quick Ratio of 1.29. 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 1.29 is in line compared to the rest of the industry. 2PP outperforms 54.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. 2PP.DE Growth Analysis
3.1 Past
- 2PP shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.43%.
- The Earnings Per Share has been growing slightly by 5.53% on average over the past years.
- 2PP shows a small growth in Revenue. In the last year, the Revenue has grown by 4.32%.
- The Revenue has been growing by 9.11% on average over the past years. This is quite good.
EPS 1Y (TTM)6.43%
EPS 3Y8.67%
EPS 5Y5.53%
EPS Q2Q%3.36%
Revenue 1Y (TTM)4.32%
Revenue growth 3Y6.43%
Revenue growth 5Y9.11%
Sales Q2Q%3.71%
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 12.78% on average per year.
- Based on estimates for the next years, 2PP will show a small growth in Revenue. The Revenue will grow by 6.93% on average per year.
EPS Next Y2.2%
EPS Next 2Y5.68%
EPS Next 3Y7.36%
EPS Next 5Y12.78%
Revenue Next Year2.4%
Revenue Next 2Y3.33%
Revenue Next 3Y3.92%
Revenue Next 5Y6.93%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better 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. 2PP.DE Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.50, which indicates a very decent valuation of 2PP.
- 76.36% of the companies in the same industry are more expensive than 2PP, based on the Price/Earnings ratio.
- The average S&P500 Price/Earnings ratio is at 26.78. 2PP is valued rather cheaply when compared to this.
- Based on the Price/Forward Earnings ratio of 8.33, the valuation of 2PP can be described as reasonable.
- Based on the Price/Forward Earnings ratio, 2PP is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of 2PP to the average of the S&P500 Index (23.54), we can say 2PP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 8.33 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 2PP indicates a somewhat cheap valuation: 2PP is cheaper than 76.36% of the companies listed in the same industry.
- Based on the Price/Free Cash Flow ratio, 2PP is valued a bit cheaper than 76.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.46 | ||
| EV/EBITDA | 5.48 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 2PP does not grow enough to justify the current Price/Earnings ratio.
- The decent profitability rating of 2PP may justify a higher PE ratio.
PEG (NY)3.86
PEG (5Y)1.54
EPS Next 2Y5.68%
EPS Next 3Y7.36%
5. 2PP.DE Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.28%, 2PP has a reasonable but not impressive dividend return.
- In the last 3 months the price of 2PP has falen by -22.12%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- 2PP's Dividend Yield is comparable with the industry average which is at 2.60.
- 2PP's Dividend Yield is slightly below the S&P500 average, which is at 1.89.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- 2PP pays out 2.48% of its income as dividend. This is a sustainable payout ratio.
DP2.48%
EPS Next 2Y5.68%
EPS Next 3Y7.36%
2PP.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:2PP (4/10/2026, 7:00:00 PM)
38.6
-0.16 (-0.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)05-05 2026-05-05/amc
Inst Owners82.1%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap35.54B
Revenue(TTM)33.17B
Net Income(TTM)5.23B
Analysts66.4
Price Target44.19 (14.48%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.28% |
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP2.48%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.63%
Min EPS beat(2)-6.12%
Max EPS beat(2)9.38%
EPS beat(4)3
Avg EPS beat(4)5.34%
Min EPS beat(4)-6.12%
Max EPS beat(4)12.26%
EPS beat(8)7
Avg EPS beat(8)8.3%
EPS beat(12)10
Avg EPS beat(12)6.57%
EPS beat(16)13
Avg EPS beat(16)5.95%
Revenue beat(2)1
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-3.34%
Max Revenue beat(2)0.26%
Revenue beat(4)2
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-3.34%
Max Revenue beat(4)0.55%
Revenue beat(8)3
Avg Revenue beat(8)-1.12%
Revenue beat(12)3
Avg Revenue beat(12)-1.11%
Revenue beat(16)3
Avg Revenue beat(16)-1.21%
PT rev (1m)0%
PT rev (3m)-36.08%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-9.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.95%
Revenue NQ rev (1m)-0.13%
Revenue NQ rev (3m)-3.03%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-3.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.5 | ||
| Fwd PE | 8.33 | ||
| P/S | 1.25 | ||
| P/FCF | 7.46 | ||
| P/OCF | 6.47 | ||
| P/B | 2.05 | ||
| P/tB | 4.52 | ||
| EV/EBITDA | 5.48 |
EPS(TTM)4.54
EY11.76%
EPS(NY)4.64
Fwd EY12.01%
FCF(TTM)5.17
FCFY13.4%
OCF(TTM)5.96
OCFY15.45%
SpS30.83
BVpS18.83
TBVpS8.54
PEG (NY)3.86
PEG (5Y)1.54
Graham Number43.86
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.53% | ||
| ROE | 25.83% | ||
| ROCE | 18.96% | ||
| ROIC | 15.26% | ||
| ROICexc | 22.09% | ||
| ROICexgc | 42.08% | ||
| OM | 19.28% | ||
| PM (TTM) | 15.78% | ||
| GM | 41.48% | ||
| FCFM | 16.77% |
ROA(3y)5.59%
ROA(5y)5.07%
ROE(3y)22.11%
ROE(5y)19.49%
ROIC(3y)13.68%
ROIC(5y)12.27%
ROICexc(3y)21.02%
ROICexc(5y)18.45%
ROICexgc(3y)44.19%
ROICexgc(5y)39.13%
ROCE(3y)16.99%
ROCE(5y)15.24%
ROICexgc growth 3Y11.65%
ROICexgc growth 5Y5.93%
ROICexc growth 3Y15.6%
ROICexc growth 5Y8.67%
OM growth 3Y9.47%
OM growth 5Y3.83%
PM growth 3Y21.52%
PM growth 5Y-4.24%
GM growth 3Y-0.68%
GM growth 5Y-2.31%
F-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.05 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 88.47% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 15.75 | ||
| Cash Conversion | 87.19% | ||
| Profit Quality | 106.33% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 1.86 |
F-Score8
WACC7.5%
ROIC/WACC2.04
Cap/Depr(3y)70.92%
Cap/Depr(5y)67.63%
Cap/Sales(3y)2.27%
Cap/Sales(5y)2.59%
Profit Quality(3y)122.96%
Profit Quality(5y)139.46%
High Growth Momentum
Growth
EPS 1Y (TTM)6.43%
EPS 3Y8.67%
EPS 5Y5.53%
EPS Q2Q%3.36%
EPS Next Y2.2%
EPS Next 2Y5.68%
EPS Next 3Y7.36%
EPS Next 5Y12.78%
Revenue 1Y (TTM)4.32%
Revenue growth 3Y6.43%
Revenue growth 5Y9.11%
Sales Q2Q%3.71%
Revenue Next Year2.4%
Revenue Next 2Y3.33%
Revenue Next 3Y3.92%
Revenue Next 5Y6.93%
EBIT growth 1Y10.98%
EBIT growth 3Y16.51%
EBIT growth 5Y13.29%
EBIT Next Year5.21%
EBIT Next 3Y1.99%
EBIT Next 5Y10.35%
FCF growth 1Y-17.78%
FCF growth 3Y2.9%
FCF growth 5Y0.78%
OCF growth 1Y-13.88%
OCF growth 3Y3.34%
OCF growth 5Y0.63%
PAYPAL HOLDINGS INC / 2PP.DE Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for PAYPAL HOLDINGS INC?
ChartMill assigns a fundamental rating of 6 / 10 to 2PP.DE.
Can you provide the valuation status for PAYPAL HOLDINGS INC?
ChartMill assigns a valuation rating of 6 / 10 to PAYPAL HOLDINGS INC (2PP.DE). This can be considered as Fairly Valued.
What is the profitability of 2PP stock?
PAYPAL HOLDINGS INC (2PP.DE) has a profitability rating of 7 / 10.
What is the earnings growth outlook for PAYPAL HOLDINGS INC?
The Earnings per Share (EPS) of PAYPAL HOLDINGS INC (2PP.DE) is expected to grow by 2.2% in the next year.
Can you provide the dividend sustainability for 2PP stock?
The dividend rating of PAYPAL HOLDINGS INC (2PP.DE) is 3 / 10 and the dividend payout ratio is 2.48%.