PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PYPL - US70450Y1038 - Common Stock
52.78 EUR
-0.84 (-1.57%)
We assign a fundamental rating of 6 out of 10 to 1PYPL. 1PYPL was compared to 54 industry peers in the Financial Services industry. While 1PYPL belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. 1PYPL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
1PYPL had positive earnings in the past year.
In the past year 1PYPL had a positive cash flow from operations.
In the past 5 years 1PYPL has always been profitable.
Each year in the past 5 years 1PYPL had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.16%, 1PYPL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
1PYPL has a Return On Equity of 24.34%. This is amongst the best in the industry. 1PYPL outperforms 87.04% of its industry peers.
1PYPL's Return On Invested Capital of 14.11% is amongst the best of the industry. 1PYPL outperforms 87.04% of its industry peers.
1PYPL had an Average Return On Invested Capital over the past 3 years of 11.47%. This is in line with the industry average of 10.39%.
The 3 year average ROIC (11.47%) for 1PYPL is below the current ROIC(14.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 24.34% | ||
| ROIC | 14.11% |
ROA(3y)4.44%
ROA(5y)4.96%
ROE(3y)17.47%
ROE(5y)18.52%
ROIC(3y)11.47%
ROIC(5y)10.62%
1.3 Margins
1PYPL's Profit Margin of 14.96% is fine compared to the rest of the industry. 1PYPL outperforms 62.96% of its industry peers.
In the last couple of years the Profit Margin of 1PYPL has remained more or less at the same level.
1PYPL's Operating Margin of 19.16% is fine compared to the rest of the industry. 1PYPL outperforms 68.52% of its industry peers.
In the last couple of years the Operating Margin of 1PYPL has grown nicely.
With a Gross Margin value of 41.56%, 1PYPL perfoms like the industry average, outperforming 48.15% of the companies in the same industry.
1PYPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.16% | ||
| PM (TTM) | 14.96% | ||
| GM | 41.56% |
OM growth 3Y2.07%
OM growth 5Y2.92%
PM growth 3Y-7.41%
PM growth 5Y-1.18%
GM growth 3Y-4.8%
GM growth 5Y-2.04%
2. Health
2.1 Basic Checks
1PYPL has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1PYPL has less shares outstanding than it did 1 year ago.
1PYPL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1PYPL is higher compared to a year ago.
2.2 Solvency
1PYPL has an Altman-Z score of 2.03. This is not the best score and indicates that 1PYPL is in the grey zone with still only limited risk for bankruptcy at the moment.
1PYPL has a better Altman-Z score (2.03) than 61.11% of its industry peers.
The Debt to FCF ratio of 1PYPL is 2.06, which is a good value as it means it would take 1PYPL, 2.06 years of fcf income to pay off all of its debts.
1PYPL has a Debt to FCF ratio of 2.06. This is in the better half of the industry: 1PYPL outperforms 75.93% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that 1PYPL is somewhat dependend on debt financing.
1PYPL has a Debt to Equity ratio (0.56) which is comparable to the rest of the industry.
Even though the debt/equity ratio score it not favorable for 1PYPL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.06 | ||
| Altman-Z | 2.03 |
ROIC/WACC1.84
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.34 indicates that 1PYPL should not have too much problems paying its short term obligations.
1PYPL has a Current ratio of 1.34. This is comparable to the rest of the industry: 1PYPL outperforms 55.56% of its industry peers.
1PYPL has a Quick Ratio of 1.34. This is a normal value and indicates that 1PYPL is financially healthy and should not expect problems in meeting its short term obligations.
1PYPL has a Quick ratio of 1.34. This is in the better half of the industry: 1PYPL outperforms 61.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
1PYPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.19%.
The Earnings Per Share has been growing by 9.87% on average over the past years. This is quite good.
Looking at the last year, 1PYPL shows a small growth in Revenue. The Revenue has grown by 4.47% in the last year.
Measured over the past years, 1PYPL shows a quite strong growth in Revenue. The Revenue has been growing by 12.34% on average per year.
EPS 1Y (TTM)-0.19%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%11.67%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
3.2 Future
Based on estimates for the next years, 1PYPL will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.14% on average per year.
Based on estimates for the next years, 1PYPL will show a small growth in Revenue. The Revenue will grow by 6.28% on average per year.
EPS Next Y9.85%
EPS Next 2Y9.39%
EPS Next 3Y10.65%
EPS Next 5Y13.14%
Revenue Next Year5.18%
Revenue Next 2Y5.62%
Revenue Next 3Y6%
Revenue Next 5Y6.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.68 indicates a reasonable valuation of 1PYPL.
Based on the Price/Earnings ratio, 1PYPL is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.28. 1PYPL is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.31, the valuation of 1PYPL can be described as reasonable.
Based on the Price/Forward Earnings ratio, 1PYPL is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.52, 1PYPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 10.31 |
4.2 Price Multiples
1PYPL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 70.37% of the companies in the same industry.
1PYPL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.33 | ||
| EV/EBITDA | 7.75 |
4.3 Compensation for Growth
1PYPL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of 1PYPL may justify a higher PE ratio.
PEG (NY)1.19
PEG (5Y)1.18
EPS Next 2Y9.39%
EPS Next 3Y10.65%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, 1PYPL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.26, 1PYPL has a dividend in line with its industry peers.
With a Dividend Yield of 0.91, 1PYPL pays less dividend than the S&P500 average, which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y9.39%
EPS Next 3Y10.65%
BIT:1PYPL (12/8/2025, 7:00:00 PM)
52.78
-0.84 (-1.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.82%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap49.38B
Revenue(TTM)32.86B
Net Income(TTM)4.92B
Analysts71.2
Price Target71.82 (36.07%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.61%
Min EPS beat(2)5.83%
Max EPS beat(2)9.38%
EPS beat(4)4
Avg EPS beat(4)7.86%
Min EPS beat(4)3.97%
Max EPS beat(4)12.26%
EPS beat(8)8
Avg EPS beat(8)9.88%
EPS beat(12)11
Avg EPS beat(12)7.2%
EPS beat(16)13
Avg EPS beat(16)6.14%
Revenue beat(2)2
Avg Revenue beat(2)0.4%
Min Revenue beat(2)0.26%
Max Revenue beat(2)0.55%
Revenue beat(4)2
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-2.67%
Max Revenue beat(4)0.55%
Revenue beat(8)3
Avg Revenue beat(8)-0.71%
Revenue beat(12)3
Avg Revenue beat(12)-1.01%
Revenue beat(16)3
Avg Revenue beat(16)-1.07%
PT rev (1m)-4.9%
PT rev (3m)-0.77%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-1.31%
EPS NY rev (1m)0.39%
EPS NY rev (3m)2.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.68 | ||
| Fwd PE | 10.31 | ||
| P/S | 1.75 | ||
| P/FCF | 10.33 | ||
| P/OCF | 8.94 | ||
| P/B | 2.85 | ||
| P/tB | 6.36 | ||
| EV/EBITDA | 7.75 |
EPS(TTM)4.52
EY8.56%
EPS(NY)5.12
Fwd EY9.7%
FCF(TTM)5.11
FCFY9.68%
OCF(TTM)5.9
OCFY11.18%
SpS30.18
BVpS18.55
TBVpS8.29
PEG (NY)1.19
PEG (5Y)1.18
Graham Number43.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 24.34% | ||
| ROCE | 18.05% | ||
| ROIC | 14.11% | ||
| ROICexc | 20.4% | ||
| ROICexgc | 37.98% | ||
| OM | 19.16% | ||
| PM (TTM) | 14.96% | ||
| GM | 41.56% | ||
| FCFM | 16.93% |
ROA(3y)4.44%
ROA(5y)4.96%
ROE(3y)17.47%
ROE(5y)18.52%
ROIC(3y)11.47%
ROIC(5y)10.62%
ROICexc(3y)17.88%
ROICexc(5y)16.45%
ROICexgc(3y)39.06%
ROICexgc(5y)35.94%
ROCE(3y)14.68%
ROCE(5y)13.59%
ROICexgc growth 3Y7.88%
ROICexgc growth 5Y4.11%
ROICexc growth 3Y11.61%
ROICexc growth 5Y4.7%
OM growth 3Y2.07%
OM growth 5Y2.92%
PM growth 3Y-7.41%
PM growth 5Y-1.18%
GM growth 3Y-4.8%
GM growth 5Y-2.04%
F-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.06 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 88.04% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 15.43 | ||
| Cash Conversion | 88.34% | ||
| Profit Quality | 113.18% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 2.03 |
F-Score8
WACC7.68%
ROIC/WACC1.84
Cap/Depr(3y)59.3%
Cap/Depr(5y)64.5%
Cap/Sales(3y)2.27%
Cap/Sales(5y)2.88%
Profit Quality(3y)157.9%
Profit Quality(5y)143.67%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.19%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%11.67%
EPS Next Y9.85%
EPS Next 2Y9.39%
EPS Next 3Y10.65%
EPS Next 5Y13.14%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
Revenue Next Year5.18%
Revenue Next 2Y5.62%
Revenue Next 3Y6%
Revenue Next 5Y6.28%
EBIT growth 1Y10.67%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year26.64%
EBIT Next 3Y11.45%
EBIT Next 5Y10.48%
FCF growth 1Y74.78%
FCF growth 3Y11.44%
FCF growth 5Y14.98%
OCF growth 1Y68.22%
OCF growth 3Y8.72%
OCF growth 5Y12.85%
PAYPAL HOLDINGS INC / 1PYPL.MI FAQ
Can you provide the ChartMill fundamental rating for PAYPAL HOLDINGS INC?
ChartMill assigns a fundamental rating of 6 / 10 to 1PYPL.MI.
Can you provide the valuation status for PAYPAL HOLDINGS INC?
ChartMill assigns a valuation rating of 6 / 10 to PAYPAL HOLDINGS INC (1PYPL.MI). This can be considered as Fairly Valued.
How profitable is PAYPAL HOLDINGS INC (1PYPL.MI) stock?
PAYPAL HOLDINGS INC (1PYPL.MI) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for 1PYPL stock?
The Earnings per Share (EPS) of PAYPAL HOLDINGS INC (1PYPL.MI) is expected to grow by 9.85% in the next year.