PAYPAL HOLDINGS INC (PYPL)
US70450Y1038 - Common Stock
PYPL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. While PYPL has a great profitability rating, there are some minor concerns on its financial health. PYPL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PYPL was profitable.
PYPL had a positive operating cash flow in the past year.
PYPL had positive earnings in each of the past 5 years.
Each year in the past 5 years PYPL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.28%, PYPL is in the better half of the industry, outperforming 79.00% of the companies in the same industry.
PYPL's Return On Equity of 21.52% is amongst the best of the industry. PYPL outperforms 86.00% of its industry peers.
The Return On Invested Capital of PYPL (12.28%) is better than 88.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PYPL is above the industry average of 7.37%.
The 3 year average ROIC (10.00%) for PYPL is below the current ROIC(12.28%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.28% | ||
| ROE | 21.52% | ||
| ROIC | 12.28% |
ROA(3y)4.58%
ROA(5y)4.9%
ROE(3y)17.1%
ROE(5y)17.37%
ROIC(3y)10%
ROIC(5y)9.33%
1.3 Margins
PYPL has a Profit Margin of 14.30%. This is in the better half of the industry: PYPL outperforms 61.00% of its industry peers.
In the last couple of years the Profit Margin of PYPL has remained more or less at the same level.
The Operating Margin of PYPL (17.54%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of PYPL has remained more or less at the same level.
PYPL's Gross Margin of 39.58% is in line compared to the rest of the industry. PYPL outperforms 60.00% of its industry peers.
PYPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.54% | ||
| PM (TTM) | 14.3% | ||
| GM | 39.58% |
OM growth 3Y1.29%
OM growth 5Y0.5%
PM growth 3Y-10.03%
PM growth 5Y1.39%
GM growth 3Y-5.3%
GM growth 5Y-2.98%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PYPL is still creating some value.
PYPL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, PYPL has less shares outstanding
The debt/assets ratio for PYPL has been reduced compared to a year ago.
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 Altman-Z score of 1.94. This is in the better half of the industry: PYPL outperforms 73.00% of its industry peers.
The Debt to FCF ratio of PYPL is 1.82, which is an excellent value as it means it would take PYPL, only 1.82 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PYPL (1.82) is better than 76.00% of its industry peers.
PYPL has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
PYPL has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: PYPL outperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 1.94 |
ROIC/WACC1.51
WACC8.14%
2.3 Liquidity
PYPL has a Current Ratio of 1.24. This is a normal value and indicates that PYPL is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of PYPL (1.24) is comparable to the rest of the industry.
PYPL has a Quick Ratio of 1.24. 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 Quick ratio (1.24) than 61.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.21% over the past year.
Measured over the past years, PYPL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.12% on average per year.
The Revenue has grown by 8.19% in the past year. This is quite good.
Measured over the past years, PYPL shows a quite strong growth in Revenue. The Revenue has been growing by 14.02% on average per year.
EPS 1Y (TTM)8.21%
EPS 3Y8.06%
EPS 5Y16.12%
EPS Q2Q%-7.69%
Revenue 1Y (TTM)8.19%
Revenue growth 3Y11.54%
Revenue growth 5Y14.02%
Sales Q2Q%5.78%
3.2 Future
PYPL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.21% yearly.
PYPL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.36% yearly.
EPS Next Y-8.8%
EPS Next 2Y-0.94%
EPS Next 3Y3.17%
EPS Next 5Y6.21%
Revenue Next Year7.33%
Revenue Next 2Y6.74%
Revenue Next 3Y6.85%
Revenue Next 5Y8.36%
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 decreasing.
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
Based on the Price/Earnings ratio of 15.05, the valuation of PYPL can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as PYPL.
PYPL is valuated cheaply when we compare the Price/Earnings ratio to 30.16, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 15.81 indicates a correct valuation of PYPL.
The rest of the industry has a similar Price/Forward Earnings ratio as PYPL.
PYPL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.06, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 15.81 |
4.2 Price Multiples
PYPL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PYPL is cheaper than 70.00% of the companies in the same industry.
PYPL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PYPL is cheaper than 71.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.1 | ||
| EV/EBITDA | 11.17 |
4.3 Compensation for Growth
The decent profitability rating of PYPL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y-0.94%
EPS Next 3Y3.17%
5. Dividend
5.1 Amount
PYPL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PAYPAL HOLDINGS INC
NASDAQ:PYPL (10/31/2024, 7:36:13 PM)
After market: 79.0449 -0.26 (-0.32%)79.3
+1.08 (+1.38%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap81.07B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.05 | ||
| Fwd PE | 15.81 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.28% | ||
| ROE | 21.52% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 17.54% | ||
| PM (TTM) | 14.3% | ||
| GM | 39.58% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.24 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.21%
EPS 3Y8.06%
EPS 5Y
EPS Q2Q%
EPS Next Y-8.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.19%
Revenue growth 3Y11.54%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y