PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
BIT:1PYPL - Euronext Milan - US70450Y1038 - Common Stock - Currency: EUR
Taking everything into account, 1PYPL scores 5 out of 10 in our fundamental rating. 1PYPL was compared to 51 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 decent growth rate and is not valued too expensively.
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.
1PYPL had positive earnings in each of the past 5 years.
1PYPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1PYPL has a better Return On Assets (5.08%) than 70.59% of its industry peers.
1PYPL's Return On Equity of 20.31% is fine compared to the rest of the industry. 1PYPL outperforms 74.51% of its industry peers.
The Return On Invested Capital of 1PYPL (13.55%) is better than 86.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1PYPL is in line with the industry average of 10.89%.
The 3 year average ROIC (11.47%) for 1PYPL is below the current ROIC(13.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 20.31% | ||
| ROIC | 13.55% |
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 13.04% is fine compared to the rest of the industry. 1PYPL outperforms 62.75% of its industry peers.
In the last couple of years the Profit Margin of 1PYPL has remained more or less at the same level.
Looking at the Operating Margin, with a value of 18.12%, 1PYPL is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
In the last couple of years the Operating Margin of 1PYPL has grown nicely.
1PYPL has a Gross Margin (40.54%) which is in line with its industry peers.
1PYPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.12% | ||
| PM (TTM) | 13.04% | ||
| GM | 40.54% |
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 below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, 1PYPL has less shares outstanding
The number of shares outstanding for 1PYPL has been reduced compared to 5 years ago.
Compared to 1 year ago, 1PYPL has a worse debt to assets ratio.
2.2 Solvency
1PYPL has an Altman-Z score of 1.89. 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.
Looking at the Altman-Z score, with a value of 1.89, 1PYPL is in line with its industry, outperforming 58.82% of the companies in the same industry.
1PYPL has a debt to FCF ratio of 1.64. This is a very positive value and a sign of high solvency as it would only need 1.64 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.64, 1PYPL is doing good in the industry, outperforming 78.43% of the companies in the same industry.
A Debt/Equity ratio of 0.48 indicates that 1PYPL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.48, 1PYPL is in line with its industry, outperforming 49.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 1.89 |
ROIC/WACC0.97
WACC13.95%
2.3 Liquidity
A Current Ratio of 1.26 indicates that 1PYPL should not have too much problems paying its short term obligations.
1PYPL's Current ratio of 1.26 is fine compared to the rest of the industry. 1PYPL outperforms 64.71% of its industry peers.
A Quick Ratio of 1.26 indicates that 1PYPL should not have too much problems paying its short term obligations.
1PYPL has a better Quick ratio (1.26) than 68.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
1PYPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.54%.
1PYPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.87% yearly.
The Revenue has been growing slightly by 6.81% in the past year.
The Revenue has been growing by 12.34% on average over the past years. This is quite good.
EPS 1Y (TTM)-2.54%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%-19.59%
Revenue 1Y (TTM)6.81%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%4.24%
3.2 Future
1PYPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.09% yearly.
1PYPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.57% yearly.
EPS Next Y2.67%
EPS Next 2Y6.88%
EPS Next 3Y8.91%
EPS Next 5Y11.09%
Revenue Next Year4.03%
Revenue Next 2Y5.21%
Revenue Next 3Y5.7%
Revenue Next 5Y5.57%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
The Price/Earnings ratio is 13.08, which indicates a correct valuation of 1PYPL.
1PYPL's Price/Earnings ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 60.78% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.79. 1PYPL is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.74 indicates a correct valuation of 1PYPL.
1PYPL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 62.75% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. 1PYPL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 12.74 |
4.2 Price Multiples
1PYPL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 66.67% 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 74.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.52 | ||
| EV/EBITDA | 8.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1PYPL does not grow enough to justify the current Price/Earnings ratio.
1PYPL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)4.9
PEG (5Y)1.32
EPS Next 2Y6.88%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
1PYPL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1PYPL (4/25/2025, 7:00:00 PM)
57.27
+1.85 (+3.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners77.78%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap55.98B
Analysts74.9
Price Target75.17 (31.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)6.99%
Min EPS beat(2)3.97%
Max EPS beat(2)10.02%
EPS beat(4)4
Avg EPS beat(4)11.27%
Min EPS beat(4)3.97%
Max EPS beat(4)18.26%
EPS beat(8)7
Avg EPS beat(8)7.19%
EPS beat(12)10
Avg EPS beat(12)6.15%
EPS beat(16)13
Avg EPS beat(16)5.67%
Revenue beat(2)0
Avg Revenue beat(2)-1.56%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)-0.65%
Revenue beat(4)1
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)0.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.02%
Revenue beat(12)1
Avg Revenue beat(12)-1.17%
Revenue beat(16)2
Avg Revenue beat(16)-1.27%
PT rev (1m)-5.45%
PT rev (3m)-5.95%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)3.25%
EPS NY rev (1m)-0.59%
EPS NY rev (3m)2.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.34%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-1.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.08 | ||
| Fwd PE | 12.74 | ||
| P/S | 2.03 | ||
| P/FCF | 9.52 | ||
| P/OCF | 8.65 | ||
| P/B | 3.16 | ||
| P/tB | 6.96 | ||
| EV/EBITDA | 8.59 |
EPS(TTM)4.38
EY7.65%
EPS(NY)4.49
Fwd EY7.85%
FCF(TTM)6.01
FCFY10.5%
OCF(TTM)6.62
OCFY11.56%
SpS28.25
BVpS18.14
TBVpS8.22
PEG (NY)4.9
PEG (5Y)1.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 20.31% | ||
| ROCE | 17.34% | ||
| ROIC | 13.55% | ||
| ROICexc | 20.09% | ||
| ROICexgc | 40.03% | ||
| OM | 18.12% | ||
| PM (TTM) | 13.04% | ||
| GM | 40.54% | ||
| FCFM | 21.28% |
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%
ROICexcg growth 3Y7.88%
ROICexcg 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-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.64 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 66.18% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 15.75 | ||
| Cash Conversion | 109.64% | ||
| Profit Quality | 163.18% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 1.89 |
F-Score6
WACC13.95%
ROIC/WACC0.97
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)-2.54%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%-19.59%
EPS Next Y2.67%
EPS Next 2Y6.88%
EPS Next 3Y8.91%
EPS Next 5Y11.09%
Revenue 1Y (TTM)6.81%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%4.24%
Revenue Next Year4.03%
Revenue Next 2Y5.21%
Revenue Next 3Y5.7%
Revenue Next 5Y5.57%
EBIT growth 1Y16.57%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.56%
EBIT Next 3Y13.51%
EBIT Next 5Y10.05%
FCF growth 1Y60.36%
FCF growth 3Y11.44%
FCF growth 5Y14.98%
OCF growth 1Y53.83%
OCF growth 3Y8.72%
OCF growth 5Y12.85%