62.69 USD
+0.86 (+1.39%)
62.09 USD
-0.6 (-0.96%)
PYPL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 98 industry peers in the Financial Services industry. While PYPL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PYPL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year PYPL was profitable.
In the past year PYPL had a positive cash flow from operations.
Each year in the past 5 years PYPL has been profitable.
Each year in the past 5 years PYPL had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 6.16%, PYPL is doing good in the industry, outperforming 78.57% of the companies in the same industry.
The Return On Equity of PYPL (24.34%) is better than 88.78% of its industry peers.
PYPL has a Return On Invested Capital of 14.11%. This is amongst the best in the industry. PYPL outperforms 90.82% of its industry peers.
PYPL had an Average Return On Invested Capital over the past 3 years of 11.47%. This is above the industry average of 8.20%.
The last Return On Invested Capital (14.11%) for PYPL is above the 3 year average (11.47%), which is a sign of increasing profitability.
| 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 59.18% of the companies in the same industry.
In the last couple of years the Profit Margin of PYPL has remained more or less at the same level.
PYPL has a Operating Margin of 19.16%. This is in the better half of the industry: PYPL outperforms 66.33% of its industry peers.
PYPL's Operating Margin has improved in the last couple of years.
PYPL has a better Gross Margin (41.56%) than 62.24% 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
PYPL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for PYPL has been reduced compared to 1 year ago.
PYPL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for PYPL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.04 indicates that PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
PYPL's Altman-Z score of 2.04 is fine compared to the rest of the industry. PYPL outperforms 75.51% 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 better Debt to FCF ratio (2.06) than 74.49% of its industry peers.
PYPL has a Debt/Equity ratio of 0.56. This is a neutral value indicating PYPL is somewhat dependend on debt financing.
The Debt to Equity ratio of PYPL (0.56) is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for PYPL, 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 | 2.06 | ||
| Altman-Z | 2.04 |
ROIC/WACC1.83
WACC7.7%
2.3 Liquidity
PYPL has a Current 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.
PYPL has a Current ratio of 1.34. This is in the better half of the industry: PYPL outperforms 63.27% 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.
Looking at the Quick ratio, with a value of 1.34, PYPL is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
| 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.
PYPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.87% yearly.
PYPL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.47%.
The Revenue has been growing by 12.34% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 6.28% on average over the next years.
EPS Next Y9.42%
EPS Next 2Y9.27%
EPS Next 3Y10.66%
EPS Next 5Y13.14%
Revenue Next Year5.07%
Revenue Next 2Y5.54%
Revenue Next 3Y5.96%
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
The Price/Earnings ratio is 11.92, which indicates a very decent valuation of PYPL.
PYPL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. PYPL is valued rather cheaply when compared to this.
PYPL is valuated reasonably with a Price/Forward Earnings ratio of 10.54.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PYPL is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.56. PYPL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.54 |
4.2 Price Multiples
75.51% of the companies in the same industry are more expensive than PYPL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PYPL is valued a bit cheaper than the industry average as 72.45% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.54 | ||
| EV/EBITDA | 7.92 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PYPL may justify a higher PE ratio.
PEG (NY)1.26
PEG (5Y)1.21
EPS Next 2Y9.27%
EPS Next 3Y10.66%
5. Dividend
5.1 Amount
PYPL has a yearly dividend return of 0.91%, which is pretty low.
Compared to an average industry Dividend Yield of 4.97, PYPL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, PYPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
PYPL is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y9.27%
EPS Next 3Y10.66%
62.69
+0.86 (+1.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.2%
Inst Owner Change-1.87%
Ins Owners0.1%
Ins Owner Change0.15%
Market Cap58.66B
Revenue(TTM)32.86B
Net Income(TTM)4.92B
Analysts70.98
Price Target85.25 (35.99%)
Short Float %4.65%
Short Ratio2.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.61%
Min EPS beat(2)5.83%
Max EPS beat(2)9.38%
EPS beat(4)4
Avg EPS beat(4)7.86%
Min EPS beat(4)3.97%
Max EPS beat(4)12.26%
EPS beat(8)8
Avg EPS beat(8)9.88%
EPS beat(12)11
Avg EPS beat(12)7.2%
EPS beat(16)13
Avg EPS beat(16)6.14%
Revenue beat(2)2
Avg Revenue beat(2)0.4%
Min Revenue beat(2)0.26%
Max Revenue beat(2)0.55%
Revenue beat(4)2
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-2.67%
Max Revenue beat(4)0.55%
Revenue beat(8)3
Avg Revenue beat(8)-0.71%
Revenue beat(12)3
Avg Revenue beat(12)-1.01%
Revenue beat(16)3
Avg Revenue beat(16)-1.07%
PT rev (1m)1.39%
PT rev (3m)1.29%
EPS NQ rev (1m)-1.75%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)1.82%
EPS NY rev (3m)1.85%
Revenue NQ rev (1m)0.78%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)0.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.54 | ||
| P/S | 1.78 | ||
| P/FCF | 10.54 | ||
| P/OCF | 9.13 | ||
| P/B | 2.9 | ||
| P/tB | 6.49 | ||
| EV/EBITDA | 7.92 |
EPS(TTM)5.26
EY8.39%
EPS(NY)5.95
Fwd EY9.49%
FCF(TTM)5.95
FCFY9.49%
OCF(TTM)6.87
OCFY10.96%
SpS35.12
BVpS21.59
TBVpS9.65
PEG (NY)1.26
PEG (5Y)1.21
Graham Number50.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 24.34% | ||
| ROCE | 18.05% | ||
| ROIC | 14.11% | ||
| ROICexc | 20.4% | ||
| ROICexgc | 37.98% | ||
| OM | 19.16% | ||
| PM (TTM) | 14.96% | ||
| GM | 41.56% | ||
| FCFM | 16.93% |
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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.06 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 88.04% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 15.43 | ||
| Cash Conversion | 88.34% | ||
| Profit Quality | 113.18% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 2.04 |
F-Score8
WACC7.7%
ROIC/WACC1.83
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)-0.19%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%11.67%
EPS Next Y9.42%
EPS Next 2Y9.27%
EPS Next 3Y10.66%
EPS Next 5Y13.14%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
Revenue Next Year5.07%
Revenue Next 2Y5.54%
Revenue Next 3Y5.96%
Revenue Next 5Y6.28%
EBIT growth 1Y10.67%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.15%
EBIT Next 3Y12.17%
EBIT Next 5Y10.48%
FCF growth 1Y74.78%
FCF growth 3Y11.44%
FCF growth 5Y14.98%
OCF growth 1Y68.22%
OCF growth 3Y8.72%
OCF growth 5Y12.85%
PAYPAL HOLDINGS INC / PYPL FAQ
Can you provide the ChartMill fundamental rating for PAYPAL HOLDINGS INC?
ChartMill assigns a fundamental rating of 6 / 10 to PYPL.
Can you provide the valuation status for PAYPAL HOLDINGS INC?
ChartMill assigns a valuation rating of 6 / 10 to PAYPAL HOLDINGS INC (PYPL). This can be considered as Fairly Valued.
What is the profitability of PYPL stock?
PAYPAL HOLDINGS INC (PYPL) has a profitability rating of 7 / 10.
What are the PE and PB ratios of PAYPAL HOLDINGS INC (PYPL) stock?
The Price/Earnings (PE) ratio for PAYPAL HOLDINGS INC (PYPL) is 11.92 and the Price/Book (PB) ratio is 2.9.
What is the earnings growth outlook for PAYPAL HOLDINGS INC?
The Earnings per Share (EPS) of PAYPAL HOLDINGS INC (PYPL) is expected to grow by 9.42% in the next year.