PAYPAL HOLDINGS INC (2PP.DE) Fundamental Analysis & Valuation
FRA:2PP • US70450Y1038
Current stock price
42.855 EUR
+0.14 (+0.33%)
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.
- 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's Return On Assets of 6.53% is amongst the best of the industry. 2PP outperforms 90.38% of its industry peers.
- 2PP has a Return On Equity of 25.83%. This is amongst the best in the industry. 2PP outperforms 88.46% of its industry peers.
- With an excellent Return On Invested Capital value of 15.26%, 2PP belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 2PP is above the industry average of 9.16%.
- 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
- The Profit Margin of 2PP (15.78%) is better than 63.46% of its industry peers.
- In the last couple of years the Profit Margin of 2PP has declined.
- Looking at the Operating Margin, with a value of 19.28%, 2PP is in the better half of the industry, outperforming 65.38% of the companies in the same industry.
- 2PP's Operating Margin has improved in the last couple of years.
- The Gross Margin of 2PP (41.48%) 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 | 19.28% | ||
| 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
- 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
- 2PP has an Altman-Z score of 1.90. 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 Altman-Z score (1.90) which is comparable to the rest of the industry.
- The Debt to FCF ratio of 2PP is 2.05, which is a good value as it means it would take 2PP, 2.05 years of fcf income to pay off all of its debts.
- 2PP's Debt to FCF ratio of 2.05 is amongst the best of the industry. 2PP outperforms 80.77% of its industry peers.
- 2PP has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of 2PP (0.49) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 1.9 |
ROIC/WACC2
WACC7.65%
2.3 Liquidity
- A Current Ratio of 1.29 indicates that 2PP should not have too much problems paying its short term obligations.
- 2PP's Current ratio of 1.29 is in line compared to the rest of the industry. 2PP outperforms 51.92% of its industry peers.
- A Quick Ratio of 1.29 indicates that 2PP should not have too much problems paying its short term obligations.
- 2PP has a Quick ratio (1.29) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. 2PP.DE Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 6.43% over the past year.
- Measured over the past 5 years, 2PP shows a small growth in Earnings Per Share. The EPS has been growing by 5.53% on average per year.
- The Revenue has been growing slightly by 4.32% in the past year.
- Measured over the past years, 2PP shows a quite strong growth in Revenue. The Revenue has been growing by 9.11% on average per year.
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
- 2PP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.59% yearly.
- The Revenue is expected to grow by 6.14% on average over the next years.
EPS Next Y2.24%
EPS Next 2Y5.7%
EPS Next 3Y7.37%
EPS Next 5Y11.59%
Revenue Next Year2.37%
Revenue Next 2Y3.3%
Revenue Next 3Y3.84%
Revenue Next 5Y6.14%
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 accelerating.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. 2PP.DE Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 9.46 indicates a reasonable valuation of 2PP.
- 78.85% of the companies in the same industry are more expensive than 2PP, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of 2PP to the average of the S&P500 Index (26.64), we can say 2PP is valued rather cheaply.
- A Price/Forward Earnings ratio of 9.25 indicates a reasonable valuation of 2PP.
- Based on the Price/Forward Earnings ratio, 2PP is valued a bit cheaper than the industry average as 76.92% of the companies are valued more expensively.
- 2PP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 9.25 |
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 73.08% of the companies listed in the same industry.
- 2PP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 2PP is cheaper than 78.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.11 | ||
| EV/EBITDA | 5.94 |
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.
- 2PP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.22
PEG (5Y)1.71
EPS Next 2Y5.7%
EPS Next 3Y7.37%
5. 2PP.DE Dividend Analysis
5.1 Amount
- With a Yearly Dividend Yield of 1.13%, 2PP has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.39, 2PP has a dividend in line with its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, 2PP is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- 2.48% of the earnings are spent on dividend by 2PP. This is a low number and sustainable payout ratio.
DP2.48%
EPS Next 2Y5.7%
EPS Next 3Y7.37%
2PP.DE Fundamentals: All Metrics, Ratios and Statistics
FRA:2PP (4/30/2026, 7:00:00 PM)
42.855
+0.14 (+0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Industry Strength31.06
Industry Growth76.4
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)05-05 2026-05-05/amc
Inst Owners82.21%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap38.56B
Revenue(TTM)33.17B
Net Income(TTM)5.23B
Analysts66.4
Price Target43.52 (1.55%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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)-1.5%
PT rev (3m)-34.2%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-8.03%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-7.93%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-2.69%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-3.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.46 | ||
| Fwd PE | 9.25 | ||
| P/S | 1.36 | ||
| P/FCF | 8.11 | ||
| P/OCF | 7.03 | ||
| P/B | 2.23 | ||
| P/tB | 4.91 | ||
| EV/EBITDA | 5.94 |
EPS(TTM)4.53
EY10.57%
EPS(NY)4.63
Fwd EY10.81%
FCF(TTM)5.28
FCFY12.33%
OCF(TTM)6.09
OCFY14.22%
SpS31.51
BVpS19.24
TBVpS8.72
PEG (NY)4.22
PEG (5Y)1.71
Graham Number44.2839 (3.33%)
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 | 1.9 |
F-Score8
WACC7.65%
ROIC/WACC2
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 Y2.24%
EPS Next 2Y5.7%
EPS Next 3Y7.37%
EPS Next 5Y11.59%
Revenue 1Y (TTM)4.32%
Revenue growth 3Y6.43%
Revenue growth 5Y9.11%
Sales Q2Q%3.71%
Revenue Next Year2.37%
Revenue Next 2Y3.3%
Revenue Next 3Y3.84%
Revenue Next 5Y6.14%
EBIT growth 1Y10.98%
EBIT growth 3Y16.51%
EBIT growth 5Y13.29%
EBIT Next Year4.81%
EBIT Next 3Y1.99%
EBIT Next 5Y5.31%
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 2.24% 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%.