Why the quality investor may take a look at 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.

Looking into the quality metrics of PAYPAL HOLDINGS INC

• 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 robust ROIC excluding cash and goodwill at 43.04%, PAYPAL HOLDINGS INC showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• The Debt/Free Cash Flow Ratio of PAYPAL HOLDINGS INC stands at 1.77, 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.
• The Profit Quality (5-year) of PAYPAL HOLDINGS INC stands at 138.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• PAYPAL HOLDINGS INC has experienced impressive EBIT growth over the past 5 years, with 14.58% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• With EBIT 5-year growth outpacing its Revenue 5-year growth, PAYPAL HOLDINGS INC showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

A complete fundamental analysis of NASDAQ:PYPL

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.

PYPL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. PYPL has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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 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.