52.33 USD
-0.36 (-0.68%)
At close: Feb 2, 2026
52.977 USD
+0.65 (+1.24%)
After Hours: 2/2/2026, 8:00:01 PM
We assign a fundamental rating of 6 out of 10 to PYPL. PYPL was compared to 97 industry peers in the Financial Services industry. PYPL has an excellent profitability rating, but 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.
- 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's Return On Assets of 6.16% is fine compared to the rest of the industry. PYPL outperforms 78.35% of its industry peers.
- PYPL has a Return On Equity of 24.34%. This is amongst the best in the industry. PYPL outperforms 89.69% of its industry peers.
- The Return On Invested Capital of PYPL (14.11%) is better than 90.72% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PYPL is above the industry average of 8.50%.
- 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 (14.96%) which is comparable to the rest of the industry.
- In the last couple of years the Profit Margin of PYPL has remained more or less at the same level.
- PYPL's Operating Margin of 19.16% is fine compared to the rest of the industry. PYPL outperforms 67.01% of its industry peers.
- In the last couple of years the Operating Margin of PYPL has grown nicely.
- PYPL has a better Gross Margin (41.56%) than 60.82% 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
- 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
- Compared to 5 years ago, PYPL has less shares outstanding
- PYPL has a worse debt/assets ratio than last year.
2.2 Solvency
- PYPL has an Altman-Z score of 1.94. 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 has a better Altman-Z score (1.94) than 76.29% of its industry peers.
- PYPL has a debt to FCF ratio of 2.06. This is a good value and a sign of high solvency as PYPL would need 2.06 years to pay back of all of its debts.
- PYPL has a better Debt to FCF ratio (2.06) than 73.20% 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 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 | 1.94 |
ROIC/WACC1.78
WACC7.92%
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 better Current ratio (1.34) than 63.92% of its industry peers.
- A Quick Ratio of 1.34 indicates that PYPL should not have too much problems paying its short term obligations.
- The Quick ratio of PYPL (1.34) is better than 64.95% 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%.
- Measured over the past years, PYPL shows a quite strong growth in Revenue. The Revenue has been growing by 12.34% on average per year.
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
- The Earnings Per Share is expected to grow by 13.14% on average over the next years. This is quite good.
- 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
- The EPS growth rate is accelerating: in the next years the growth will be better 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
- PYPL is valuated reasonably with a Price/Earnings ratio of 9.95.
- Based on the Price/Earnings ratio, PYPL is valued a bit cheaper than 60.82% of the companies in the same industry.
- PYPL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.41.
- With a Price/Forward Earnings ratio of 8.89, the valuation of PYPL can be described as very reasonable.
- PYPL's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.64, PYPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 8.89 |
4.2 Price Multiples
- PYPL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. PYPL is cheaper than 85.57% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PYPL indicates a somewhat cheap valuation: PYPL is cheaper than 78.35% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.8 | ||
| EV/EBITDA | 6.63 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- PYPL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.02
PEG (5Y)1.01
EPS Next 2Y8.71%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
- PYPL has a Yearly Dividend Yield of 1.05%.
- The stock price of PYPL dropped by -20.98% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 1.99, PYPL has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, PYPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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 2Y8.71%
EPS Next 3Y9.86%
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.
What is the valuation status of PAYPAL HOLDINGS INC (PYPL) stock?
ChartMill assigns a valuation rating of 6 / 10 to PAYPAL HOLDINGS INC (PYPL). This can be considered as Fairly Valued.
Can you provide the profitability details for PAYPAL HOLDINGS INC?
PAYPAL HOLDINGS INC (PYPL) has a profitability rating of 7 / 10.
What is the financial health of PAYPAL HOLDINGS INC (PYPL) stock?
The financial health rating of PAYPAL HOLDINGS INC (PYPL) is 6 / 10.
Can you provide the expected EPS growth for PYPL stock?
The Earnings per Share (EPS) of PAYPAL HOLDINGS INC (PYPL) is expected to grow by 9.71% in the next year.