Should you consider PAYPAL HOLDINGS INC (NASDAQ:PYPL) for quality investing?

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.

A Deep Dive into PAYPAL HOLDINGS INC's Quality Metrics.

• Over the past 5 years, PAYPAL HOLDINGS INC has experienced impressive revenue growth, with 14.02% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• 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.
• The Debt/Free Cash Flow Ratio of PAYPAL HOLDINGS INC stands at 1.82, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
• With a robust Profit Quality (5-year) ratio of 138.0%, PAYPAL HOLDINGS INC highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• PAYPAL HOLDINGS INC has consistently achieved strong EBIT growth over the past 5 years, with a 14.58% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
• The EBIT 5-year growth of PAYPAL HOLDINGS INC has outpaced its Revenue 5-year growth, reflecting the company's focus on optimizing its profitability and generating sustainable earnings. This trend underscores its strong financial management.

What else is there to say on the fundamentals of NASDAQ:PYPL?

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Taking everything into account, PYPL scores 6 out of 10 in our fundamental rating. PYPL was compared to 101 industry peers in the Financial Services industry. PYPL gets an excellent profitability rating and is at the same time showing great financial health properties. PYPL has a correct valuation and a medium growth rate. 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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.