Why PAYPAL HOLDINGS INC (NASDAQ:PYPL) should be investigated by quality investors.

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.

Looking into the quality metrics of PAYPAL HOLDINGS INC

• 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.
• 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.
• PAYPAL HOLDINGS INC demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.77, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
• 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.
• With a robust 5-year EBIT growth of 14.58%, PAYPAL HOLDINGS INC showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
• 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.

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.

Taking everything into account, PYPL scores 5 out of 10 in our fundamental rating. PYPL was compared to 99 industry peers in the Financial Services industry. PYPL scores excellent on profitability, but there are some minor concerns on its financial health. PYPL is not valued too expensively and it also shows a decent growth rate.

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

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

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.