Paypal CDR CAD Hedged (PYPL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:PYPL -
4.12 CAD
+0.02 (+0.49%)
Overall PYPL gets a fundamental rating of 6 out of 10. We evaluated PYPL against 28 industry peers in the Financial Services industry. PYPL has an excellent profitability rating, but there are some minor concerns on its financial health. PYPL scores decently on growth, while it is valued quite cheap. This could make an interesting combination. These ratings could make PYPL a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- PYPL had positive earnings in the past year.
- In the past year PYPL had a positive cash flow from operations.
- PYPL had positive earnings in each of the past 5 years.
- PYPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PYPL has a better Return On Assets (6.16%) than 75.00% of its industry peers.
- The Return On Equity of PYPL (24.34%) is better than 89.29% of its industry peers.
- With an excellent Return On Invested Capital value of 14.11%, PYPL belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for PYPL is above the industry average of 7.80%.
- The 3 year average ROIC (11.47%) for PYPL is below the current ROIC(14.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 24.34% | ||
| ROIC | 14.11% |
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
- Looking at the Profit Margin, with a value of 14.96%, PYPL is in line with its industry, outperforming 46.43% of the companies in the same industry.
- PYPL's Profit Margin has been stable in the last couple of years.
- Looking at the Operating Margin, with a value of 19.16%, PYPL is doing worse than 75.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of PYPL has grown nicely.
- PYPL's Gross Margin of 41.56% is fine compared to the rest of the industry. PYPL outperforms 64.29% of its industry peers.
- In the last couple of years the Gross Margin of PYPL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.16% | ||
| PM (TTM) | 14.96% | ||
| GM | 41.56% |
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) well above the Cost of Capital (WACC), PYPL is creating value.
- The number of shares outstanding for PYPL has been reduced compared to 1 year ago.
- The number of shares outstanding for PYPL has been reduced compared to 5 years ago.
- PYPL has a worse debt/assets ratio than last year.
2.2 Solvency
- PYPL has an Altman-Z score of 1.48. This is a bad value and indicates that PYPL is not financially healthy and even has some risk of bankruptcy.
- PYPL's Altman-Z score of 1.48 is on the low side compared to the rest of the industry. PYPL is outperformed by 60.71% of its industry peers.
- The Debt to FCF ratio of PYPL is 2.06, which is a good value as it means it would take PYPL, 2.06 years of fcf income to pay off all of its debts.
- PYPL has a Debt to FCF ratio of 2.06. This is amongst the best in the industry. PYPL outperforms 85.71% of its industry peers.
- A Debt/Equity ratio of 0.56 indicates that PYPL is somewhat dependend on debt financing.
- PYPL's Debt to Equity ratio of 0.56 is fine compared to the rest of the industry. PYPL outperforms 67.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.06 | ||
| Altman-Z | 1.48 |
ROIC/WACC2.34
WACC6.03%
2.3 Liquidity
- A Current Ratio of 1.34 indicates that PYPL should not have too much problems paying its short term obligations.
- PYPL's Current ratio of 1.34 is fine compared to the rest of the industry. PYPL outperforms 78.57% of its industry peers.
- PYPL has a Quick Ratio of 1.34. This is a normal value and indicates that PYPL is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of PYPL (1.34) is better than 78.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
- The earnings per share for PYPL have decreased by -0.19% in the last year.
- The Earnings Per Share has been growing by 9.87% on average over the past years. This is quite good.
- PYPL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.47%.
- PYPL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.34% yearly.
EPS 1Y (TTM)-0.19%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%11.67%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
3.2 Future
- Based on estimates for the next years, PYPL will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.14% on average per year.
- Based on estimates for the next years, PYPL will show a small growth in Revenue. The Revenue will grow by 6.28% on average per year.
EPS Next Y9.71%
EPS Next 2Y8.71%
EPS Next 3Y9.86%
EPS Next 5Y13.14%
Revenue Next Year5.07%
Revenue Next 2Y5.38%
Revenue Next 3Y5.72%
Revenue Next 5Y6.28%
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.
- 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
- PYPL is valuated cheaply with a Price/Earnings ratio of 0.57.
- PYPL's Price/Earnings ratio is rather cheap when compared to the industry. PYPL is cheaper than 100.00% of the companies in the same industry.
- When comparing the Price/Earnings ratio of PYPL to the average of the S&P500 Index (27.25), we can say PYPL is valued rather cheaply.
- A Price/Forward Earnings ratio of 0.51 indicates a rather cheap valuation of PYPL.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PYPL indicates a rather cheap valuation: PYPL is cheaper than 100.00% of the companies listed in the same industry.
- PYPL is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.57 | ||
| Fwd PE | 0.51 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PYPL is valued cheaper than 100.00% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, PYPL is valued cheaper than 92.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.51 | ||
| EV/EBITDA | 0.24 |
4.3 Compensation for Growth
- PYPL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- PYPL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.06
PEG (5Y)0.06
EPS Next 2Y8.71%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
- PYPL has a yearly dividend return of 0.98%, which is pretty low.
- Compared to an average industry Dividend Yield of 5.64, PYPL's dividend is way lower than its industry peers. On top of this 85.71% of the companies listed in the same industry pay a better dividend than PYPL!
- With a Dividend Yield of 0.98, PYPL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
- PYPL does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
DPN/A
EPS Next 2Y8.71%
EPS Next 3Y9.86%
Paypal CDR CAD Hedged / PYPL.CA FAQ
Can you provide the ChartMill fundamental rating for Paypal CDR CAD Hedged?
ChartMill assigns a fundamental rating of 6 / 10 to PYPL.CA.
What is the valuation status of Paypal CDR CAD Hedged (PYPL.CA) stock?
ChartMill assigns a valuation rating of 9 / 10 to Paypal CDR CAD Hedged (PYPL.CA). This can be considered as Undervalued.
Can you provide the profitability details for Paypal CDR CAD Hedged?
Paypal CDR CAD Hedged (PYPL.CA) has a profitability rating of 7 / 10.
What is the financial health of Paypal CDR CAD Hedged (PYPL.CA) stock?
The financial health rating of Paypal CDR CAD Hedged (PYPL.CA) is 6 / 10.
Can you provide the expected EPS growth for PYPL stock?
The Earnings per Share (EPS) of Paypal CDR CAD Hedged (PYPL.CA) is expected to grow by 9.71% in the next year.