PAYPAL HOLDINGS INC (PYPL) Stock Fundamental Analysis
USA - NASDAQ:PYPL - US70450Y1038 - Common Stock
67.93 USD
-1.75 (-2.51%)
68.6345 USD
+0.7 (+1.04%)
PYPL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 99 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
PYPL had positive earnings in the past year.
In the past year PYPL had a positive cash flow from operations.
In the past 5 years PYPL has always been profitable.
In the past 5 years PYPL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of PYPL (6.16%) is better than 81.82% of its industry peers.
Looking at the Return On Equity, with a value of 24.34%, PYPL belongs to the top of the industry, outperforming 86.87% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.11%, PYPL belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
PYPL had an Average Return On Invested Capital over the past 3 years of 11.47%. This 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
PYPL has a Profit Margin of 14.96%. This is in the better half of the industry: PYPL outperforms 64.65% of its industry peers.
PYPL's Profit Margin has been stable in the last couple of years.
With a decent Operating Margin value of 19.16%, PYPL is doing good in the industry, outperforming 67.68% of the companies in the same industry.
PYPL's Operating Margin has improved in the last couple of years.
The Gross Margin of PYPL (41.56%) is better than 61.62% of its industry peers.
PYPL's Gross Margin has declined in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PYPL is creating value.
PYPL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PYPL has been reduced compared to 5 years ago.
Compared to 1 year ago, PYPL has a worse debt to assets ratio.
2.2 Solvency
PYPL has an Altman-Z score of 2.12. This is not the best score and indicates that PYPL is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.12, PYPL is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
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 in the better half of the industry: PYPL outperforms 74.75% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that PYPL is somewhat dependend on debt financing.
PYPL has a Debt to Equity ratio (0.56) which is in line with its industry peers.
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 | 2.12 |
ROIC/WACC1.8
WACC7.83%
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.
With a decent Current ratio value of 1.34, PYPL is doing good in the industry, outperforming 60.61% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that PYPL should not have too much problems paying its short term obligations.
PYPL's Quick ratio of 1.34 is fine compared to the rest of the industry. PYPL outperforms 62.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
PYPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.19%.
The Earnings Per Share has been growing by 9.87% on average over the past years. This is quite good.
Looking at the last year, PYPL shows a small growth in Revenue. The Revenue has grown by 4.47% in the last year.
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
PYPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.09% yearly.
Based on estimates for the next years, PYPL will show a small growth in Revenue. The Revenue will grow by 5.57% on average per year.
EPS Next Y7.47%
EPS Next 2Y8.95%
EPS Next 3Y10.22%
EPS Next 5Y11.09%
Revenue Next Year4.42%
Revenue Next 2Y5.16%
Revenue Next 3Y5.72%
Revenue Next 5Y5.57%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 12.91, which indicates a correct valuation of PYPL.
PYPL's Price/Earnings is on the same level as the industry average.
PYPL is valuated cheaply when we compare the Price/Earnings ratio to 26.19, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 11.49, the valuation of PYPL can be described as very reasonable.
PYPL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PYPL to the average of the S&P500 Index (22.50), we can say PYPL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.91 | ||
| Fwd PE | 11.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PYPL is valued a bit cheaper than 74.75% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PYPL is valued a bit cheaper than 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.66 | ||
| EV/EBITDA | 9.01 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of PYPL may justify a higher PE ratio.
PEG (NY)1.73
PEG (5Y)1.31
EPS Next 2Y8.95%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
PYPL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
67.93
-1.75 (-2.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.2%
Inst Owner Change-0.58%
Ins Owners0.1%
Ins Owner Change0.2%
Market Cap64.90B
Revenue(TTM)32.86B
Net Income(TTM)4.92B
Analysts72.65
Price Target84.08 (23.77%)
Short Float %4.05%
Short Ratio3.09
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)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)2.26%
EPS NQ rev (1m)-0.61%
EPS NQ rev (3m)-0.02%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)0.12%
Revenue NQ rev (3m)1.23%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.91 | ||
| Fwd PE | 11.49 | ||
| P/S | 1.97 | ||
| P/FCF | 11.66 | ||
| P/OCF | 10.1 | ||
| P/B | 3.21 | ||
| P/tB | 7.19 | ||
| EV/EBITDA | 9.01 |
EPS(TTM)5.26
EY7.74%
EPS(NY)5.91
Fwd EY8.7%
FCF(TTM)5.82
FCFY8.57%
OCF(TTM)6.73
OCFY9.9%
SpS34.4
BVpS21.14
TBVpS9.45
PEG (NY)1.73
PEG (5Y)1.31
Graham Number50.02
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 | 2.12 |
F-Score8
WACC7.83%
ROIC/WACC1.8
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 Y7.47%
EPS Next 2Y8.95%
EPS Next 3Y10.22%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
Revenue Next Year4.42%
Revenue Next 2Y5.16%
Revenue Next 3Y5.72%
Revenue Next 5Y5.57%
EBIT growth 1Y10.67%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.15%
EBIT Next 3Y12.17%
EBIT Next 5Y10.05%
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 5 / 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 8 / 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 12.91 and the Price/Book (PB) ratio is 3.21.
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 7.47% in the next year.