PAYPAL HOLDINGS INC (PYPL) Stock Fundamental Analysis
USA - NASDAQ:PYPL - US70450Y1038 - Common Stock
75.705 USD
+1.09 (+1.47%)
Overall PYPL gets a fundamental rating of 5 out of 10. We evaluated PYPL against 99 industry peers in the Financial Services industry. PYPL scores excellent on profitability, but there are some minor concerns on its financial health. PYPL has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years PYPL has been profitable.
In the past 5 years PYPL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.87%, PYPL is in the better half of the industry, outperforming 78.79% of the companies in the same industry.
With an excellent Return On Equity value of 23.16%, PYPL belongs to the best of the industry, outperforming 86.87% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.86%, PYPL belongs to the top of the industry, outperforming 89.90% 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 7.66%.
The last Return On Invested Capital (13.86%) for PYPL is above the 3 year average (11.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 23.16% | ||
| ROIC | 13.86% |
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's Profit Margin of 14.49% is fine compared to the rest of the industry. PYPL outperforms 61.62% of its industry peers.
In the last couple of years the Profit Margin of PYPL has remained more or less at the same level.
PYPL has a better Operating Margin (19.08%) than 65.66% of its industry peers.
In the last couple of years the Operating Margin of PYPL has grown nicely.
With a Gross Margin value of 41.68%, PYPL perfoms like the industry average, outperforming 59.60% of the companies in the same industry.
PYPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.08% | ||
| PM (TTM) | 14.49% | ||
| GM | 41.68% |
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) just above the Cost of Capital (WACC), PYPL is creating some value.
Compared to 1 year ago, PYPL has less shares outstanding
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 2.13. 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.
PYPL's Altman-Z score of 2.13 is fine compared to the rest of the industry. PYPL outperforms 79.80% of its industry peers.
The Debt to FCF ratio of PYPL is 2.13, which is a good value as it means it would take PYPL, 2.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PYPL (2.13) is better than 75.76% 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.
Looking at the Debt to Equity ratio, with a value of 0.56, PYPL is in line with its industry, outperforming 58.59% of the companies in the same industry.
Although PYPL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.13 | ||
| Altman-Z | 2.13 |
ROIC/WACC1.74
WACC7.99%
2.3 Liquidity
PYPL has a Current Ratio of 1.33. 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 better Current ratio (1.33) than 61.62% of its industry peers.
PYPL has a Quick Ratio of 1.33. 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 Quick ratio value of 1.33, PYPL is doing good in the industry, outperforming 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The earnings per share for PYPL have decreased by -4.66% in the last year.
The Earnings Per Share has been growing by 9.87% on average over the past years. This is quite good.
The Revenue has been growing slightly by 4.07% in the past year.
The Revenue has been growing by 12.34% on average over the past years. This is quite good.
EPS 1Y (TTM)-4.66%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%17.65%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%5.11%
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 11.09% on average per year.
The Revenue is expected to grow by 5.57% on average over the next years.
EPS Next Y7.6%
EPS Next 2Y9.1%
EPS Next 3Y10.5%
EPS Next 5Y11.09%
Revenue Next Year4.36%
Revenue Next 2Y5.15%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.79, PYPL is valued correctly.
PYPL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.76, PYPL is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.77, which indicates a correct valuation of PYPL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PYPL is on the same level as its industry peers.
PYPL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.79 | ||
| Fwd PE | 12.77 |
4.2 Price Multiples
PYPL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PYPL is cheaper than 73.74% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PYPL is valued a bit cheaper than the industry average as 69.70% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.67 | ||
| EV/EBITDA | 9.69 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PYPL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.94
PEG (5Y)1.5
EPS Next 2Y9.1%
EPS Next 3Y10.5%
5. Dividend
5.1 Amount
PYPL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:PYPL (10/8/2025, 2:56:08 PM)
75.705
+1.09 (+1.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.2%
Inst Owner Change0%
Ins Owners0.1%
Ins Owner Change0.19%
Market Cap72.33B
Analysts72.65
Price Target85.18 (12.52%)
Short Float %3.13%
Short Ratio2.53
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)9.05%
Min EPS beat(2)5.83%
Max EPS beat(2)12.26%
EPS beat(4)4
Avg EPS beat(4)8.02%
Min EPS beat(4)3.97%
Max EPS beat(4)12.26%
EPS beat(8)8
Avg EPS beat(8)9.18%
EPS beat(12)11
Avg EPS beat(12)7.29%
EPS beat(16)13
Avg EPS beat(16)5.65%
Revenue beat(2)1
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-2.67%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-2.67%
Max Revenue beat(4)0.55%
Revenue beat(8)2
Avg Revenue beat(8)-0.93%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)2
Avg Revenue beat(16)-1.26%
PT rev (1m)1.2%
PT rev (3m)2.32%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)0.31%
EPS NY rev (1m)0.16%
EPS NY rev (3m)3.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.99%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.79 | ||
| Fwd PE | 12.77 | ||
| P/S | 2.24 | ||
| P/FCF | 13.67 | ||
| P/OCF | 11.92 | ||
| P/B | 3.58 | ||
| P/tB | 8.08 | ||
| EV/EBITDA | 9.69 |
EPS(TTM)5.12
EY6.76%
EPS(NY)5.93
Fwd EY7.83%
FCF(TTM)5.54
FCFY7.32%
OCF(TTM)6.35
OCFY8.39%
SpS33.8
BVpS21.14
TBVpS9.37
PEG (NY)1.94
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 23.16% | ||
| ROCE | 17.74% | ||
| ROIC | 13.86% | ||
| ROICexc | 19.48% | ||
| ROICexgc | 35.74% | ||
| OM | 19.08% | ||
| PM (TTM) | 14.49% | ||
| GM | 41.68% | ||
| FCFM | 16.39% |
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%
ROICexcg growth 3Y7.88%
ROICexcg 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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 78.34% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 15.76 | ||
| Cash Conversion | 84.85% | ||
| Profit Quality | 113.1% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 2.13 |
F-Score8
WACC7.99%
ROIC/WACC1.74
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)-4.66%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%17.65%
EPS Next Y7.6%
EPS Next 2Y9.1%
EPS Next 3Y10.5%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%5.11%
Revenue Next Year4.36%
Revenue Next 2Y5.15%
Revenue Next 3Y5.72%
Revenue Next 5Y5.57%
EBIT growth 1Y13.21%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.15%
EBIT Next 3Y12.17%
EBIT Next 5Y10.05%
FCF growth 1Y44.75%
FCF growth 3Y11.44%
FCF growth 5Y14.98%
OCF growth 1Y40.55%
OCF growth 3Y8.72%
OCF growth 5Y12.85%