Why Quality-Oriented Investors Should Consider NASDAQ:PYPL.

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if PAYPAL HOLDINGS INC (NASDAQ:PYPL) is suited for quality investing. Investors should of course do their own research, but we spotted PAYPAL HOLDINGS INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of PAYPAL HOLDINGS INC

• PAYPAL HOLDINGS INC has shown strong performance in revenue growth over the past 5 years, with a 14.02% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
• The ROIC excluding cash and goodwill of PAYPAL HOLDINGS INC stands at 48.29%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
• With a Debt/Free Cash Flow Ratio of 1.82, PAYPAL HOLDINGS INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• PAYPAL HOLDINGS INC demonstrates consistent Profit Quality over the past 5 years, with a strong 138.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
• PAYPAL HOLDINGS INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 14.58%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• PAYPAL HOLDINGS INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

What is the full fundamental picture of NASDAQ:PYPL telling us.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall PYPL gets a fundamental rating of 6 out of 10. We evaluated PYPL against 103 industry peers in the Financial Services industry. PYPL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PYPL has a decent growth rate and is not valued too expensively. These ratings would make PYPL suitable for quality investing!

For an up to date full fundamental analysis you can check the fundamental report of PYPL

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.