PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe - BIT:1PYPL - US70450Y1038 - Common Stock
59.68 EUR
+0.68 (+1.15%)
Overall 1PYPL gets a fundamental rating of 6 out of 10. We evaluated 1PYPL against 50 industry peers in the Financial Services industry. 1PYPL scores excellent on profitability, but there are some minor concerns on its financial health. 1PYPL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
1PYPL had positive earnings in the past year.
1PYPL had a positive operating cash flow in the past year.
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
1PYPL's Return On Assets of 6.16% is amongst the best of the industry. 1PYPL outperforms 82.00% of its industry peers.
Looking at the Return On Equity, with a value of 24.34%, 1PYPL belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
1PYPL's Return On Invested Capital of 14.11% is amongst the best of the industry. 1PYPL outperforms 88.00% 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 9.85%.
The last Return On Invested Capital (14.11%) for 1PYPL is above the 3 year average (11.47%), which is a sign of increasing profitability.
| 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 has a Profit Margin of 14.96%. This is in the better half of the industry: 1PYPL outperforms 68.00% 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 72.00% of its industry peers.
In the last couple of years the Operating Margin of 1PYPL has grown nicely.
1PYPL has a Gross Margin (41.56%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of 1PYPL has declined.
| 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.
The number of shares outstanding for 1PYPL has been reduced compared to 1 year ago.
The number of shares outstanding for 1PYPL has been reduced compared to 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 2.10. 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.
With a Altman-Z score value of 2.10, 1PYPL perfoms like the industry average, outperforming 58.00% of the companies in the same industry.
1PYPL has a debt to FCF ratio of 2.06. This is a good value and a sign of high solvency as 1PYPL would need 2.06 years to pay back of 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 74.00% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that 1PYPL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, 1PYPL is in line with its industry, outperforming 42.00% of the companies in the same industry.
Although 1PYPL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.06 | ||
| Altman-Z | 2.1 |
ROIC/WACC1.82
WACC7.75%
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 (1.34) which is in line with 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.
The Quick ratio of 1PYPL (1.34) is comparable to the rest of the industry.
| 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%.
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 4.47% 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)-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 11.09% on average per year.
1PYPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.57% yearly.
EPS Next Y7.47%
EPS Next 2Y8.95%
EPS Next 3Y10.22%
EPS Next 5Y11.09%
Revenue Next Year4.42%
Revenue Next 2Y5.16%
Revenue Next 3Y5.72%
Revenue Next 5Y5.57%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 13.12, 1PYPL is valued correctly.
Based on the Price/Earnings ratio, 1PYPL is valued a bit cheaper than the industry average as 72.00% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1PYPL to the average of the S&P500 Index (26.51), we can say 1PYPL is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.66, the valuation of 1PYPL can be described as very reasonable.
1PYPL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 68.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1PYPL to the average of the S&P500 Index (22.53), we can say 1PYPL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 11.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1PYPL is valued a bit cheaper than 70.00% 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 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.84 | ||
| EV/EBITDA | 8.81 |
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)1.76
PEG (5Y)1.33
EPS Next 2Y8.95%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
1PYPL has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 3.30, 1PYPL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, 1PYPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y8.95%
EPS Next 3Y10.22%
BIT:1PYPL (11/3/2025, 7:00:00 PM)
59.68
+0.68 (+1.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.2%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap57.02B
Revenue(TTM)32.86B
Net Income(TTM)4.92B
Analysts72.65
Price Target75.53 (26.56%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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)5.67%
PT rev (3m)4.98%
EPS NQ rev (1m)0.46%
EPS NQ rev (3m)3.21%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.31%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.12 | ||
| Fwd PE | 11.66 | ||
| P/S | 2 | ||
| P/FCF | 11.84 | ||
| P/OCF | 10.25 | ||
| P/B | 3.26 | ||
| P/tB | 7.29 | ||
| EV/EBITDA | 8.81 |
EPS(TTM)4.55
EY7.62%
EPS(NY)5.12
Fwd EY8.57%
FCF(TTM)5.04
FCFY8.45%
OCF(TTM)5.82
OCFY9.75%
SpS29.77
BVpS18.3
TBVpS8.18
PEG (NY)1.76
PEG (5Y)1.33
Graham Number43.28
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 | 2.1 |
F-Score8
WACC7.75%
ROIC/WACC1.82
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 Y7.47%
EPS Next 2Y8.95%
EPS Next 3Y10.22%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
Revenue Next Year4.42%
Revenue Next 2Y5.16%
Revenue Next 3Y5.72%
Revenue Next 5Y5.57%
EBIT growth 1Y10.67%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.15%
EBIT Next 3Y12.17%
EBIT Next 5Y10.05%
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 7.47% in the next year.