Is NASDAQ:PYPL suited 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.

Key Considerations for Quality Investors.

• PAYPAL HOLDINGS INC has achieved substantial revenue growth over the past 5 years, with a 14.02% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• With a notable ROIC excluding cash and goodwill at 43.04%, PAYPAL HOLDINGS INC demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
• With a favorable Debt/Free Cash Flow Ratio of 1.77, PAYPAL HOLDINGS INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a favorable Profit Quality (5-year) ratio of 138.0%, PAYPAL HOLDINGS INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• 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.
• PAYPAL HOLDINGS INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

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

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Overall PYPL gets a fundamental rating of 5 out of 10. We evaluated PYPL 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.

Our latest full fundamental report of PYPL contains the most current fundamental analsysis.

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

Keep in mind

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.