Should Quality-Oriented Investors Explore PAYPAL HOLDINGS INC (NASDAQ:PYPL)?

In this article we will dive into PAYPAL HOLDINGS INC (NASDAQ:PYPL) as a possible candidate for quality investing. Investors should always do their own research, but we noticed PAYPAL HOLDINGS INC showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

Some of the quality metrics of NASDAQ:PYPL highlighted

• 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 Debt/Free Cash Flow Ratio of 1.77, 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 exhibits impressive Profit Quality (5-year) with a 138.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
• 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?

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

PYPL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 98 industry peers in the Financial Services industry. While PYPL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. PYPL is not valued too expensively and it also shows a decent growth rate.

Check the latest full fundamental report of PYPL for a complete fundamental analysis.

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.