PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe - BIT:1PYPL - US70450Y1038 - Common Stock
56.99 EUR
-0.15 (-0.26%)
Overall 1PYPL gets a fundamental rating of 5 out of 10. We evaluated 1PYPL against 46 industry peers in the Financial Services industry. 1PYPL scores excellent on profitability, but 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.
1PYPL had a positive operating cash flow in the past year.
Each year in the past 5 years 1PYPL has been profitable.
Each year in the past 5 years 1PYPL had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.87%, 1PYPL is doing good in the industry, outperforming 78.26% of the companies in the same industry.
1PYPL's Return On Equity of 23.16% is amongst the best of the industry. 1PYPL outperforms 84.78% of its industry peers.
1PYPL's Return On Invested Capital of 13.86% is amongst the best of the industry. 1PYPL outperforms 84.78% 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 10.06%.
The last Return On Invested Capital (13.86%) for 1PYPL is above the 3 year average (11.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 23.16% | ||
| ROIC | 13.86% |
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
With a decent Profit Margin value of 14.49%, 1PYPL is doing good in the industry, outperforming 60.87% of the companies in the same industry.
In the last couple of years the Profit Margin of 1PYPL has remained more or less at the same level.
1PYPL has a better Operating Margin (19.08%) than 67.39% of its industry peers.
1PYPL's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 41.68%, 1PYPL perfoms like the industry average, outperforming 45.65% of the companies in the same industry.
1PYPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.08% | ||
| PM (TTM) | 14.49% | ||
| GM | 41.68% |
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.
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.
The debt/assets ratio for 1PYPL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.05 indicates that 1PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of 1PYPL (2.05) is comparable to the rest of the industry.
The Debt to FCF ratio of 1PYPL is 2.13, which is a good value as it means it would take 1PYPL, 2.13 years of fcf income to pay off all of its debts.
1PYPL has a Debt to FCF ratio of 2.13. This is in the better half of the industry: 1PYPL outperforms 76.09% of its industry peers.
1PYPL has a Debt/Equity ratio of 0.56. This is a neutral value indicating 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 41.30% 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 | 2.13 | ||
| Altman-Z | 2.05 |
ROIC/WACC1.81
WACC7.66%
2.3 Liquidity
1PYPL has a Current Ratio of 1.33. This is a normal value and indicates that 1PYPL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.33, 1PYPL is in line with its industry, outperforming 52.17% of the companies in the same industry.
1PYPL has a Quick Ratio of 1.33. 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 1.33. This is comparable to the rest of the industry: 1PYPL outperforms 56.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
1PYPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.66%.
1PYPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.87% yearly.
1PYPL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.07%.
1PYPL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.34% yearly.
EPS 1Y (TTM)-4.66%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%17.65%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%5.11%
3.2 Future
The Earnings Per Share is expected to grow by 11.09% on average over the next years. This is quite good.
Based on estimates for the next years, 1PYPL will show a small growth in Revenue. The Revenue will grow by 5.57% on average per year.
EPS Next Y7.44%
EPS Next 2Y9.04%
EPS Next 3Y10.45%
EPS Next 5Y11.09%
Revenue Next Year4.43%
Revenue Next 2Y5.21%
Revenue Next 3Y5.81%
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.
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
A Price/Earnings ratio of 13.10 indicates a correct valuation of 1PYPL.
Compared to the rest of the industry, the Price/Earnings ratio of 1PYPL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.27. 1PYPL is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.32 indicates a reasonable valuation of 1PYPL.
65.22% of the companies in the same industry are more expensive than 1PYPL, based on the Price/Forward Earnings ratio.
1PYPL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 11.32 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1PYPL is valued a bit cheaper than 60.87% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1PYPL is valued a bit cheaper than 63.04% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.11 | ||
| EV/EBITDA | 8.68 |
4.3 Compensation for Growth
1PYPL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
1PYPL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.76
PEG (5Y)1.33
EPS Next 2Y9.04%
EPS Next 3Y10.45%
5. Dividend
5.1 Amount
No dividends for 1PYPL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1PYPL (9/15/2025, 7:00:00 PM)
56.99
-0.15 (-0.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.95%
Inst Owner ChangeN/A
Ins Owners0.1%
Ins Owner ChangeN/A
Market Cap54.45B
Analysts72.65
Price Target71.47 (25.41%)
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)9.05%
Min EPS beat(2)5.83%
Max EPS beat(2)12.26%
EPS beat(4)4
Avg EPS beat(4)8.02%
Min EPS beat(4)3.97%
Max EPS beat(4)12.26%
EPS beat(8)8
Avg EPS beat(8)9.18%
EPS beat(12)11
Avg EPS beat(12)7.29%
EPS beat(16)13
Avg EPS beat(16)5.65%
Revenue beat(2)1
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-2.67%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-2.67%
Max Revenue beat(4)0.55%
Revenue beat(8)2
Avg Revenue beat(8)-0.93%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)2
Avg Revenue beat(16)-1.26%
PT rev (1m)-1.41%
PT rev (3m)-2.91%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-5.38%
EPS NY rev (1m)3.02%
EPS NY rev (3m)2.97%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.14%
Revenue NY rev (1m)1.27%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.1 | ||
| Fwd PE | 11.32 | ||
| P/S | 1.98 | ||
| P/FCF | 12.11 | ||
| P/OCF | 10.56 | ||
| P/B | 3.17 | ||
| P/tB | 7.15 | ||
| EV/EBITDA | 8.68 |
EPS(TTM)4.35
EY7.63%
EPS(NY)5.03
Fwd EY8.83%
FCF(TTM)4.71
FCFY8.26%
OCF(TTM)5.4
OCFY9.47%
SpS28.73
BVpS17.97
TBVpS7.97
PEG (NY)1.76
PEG (5Y)1.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 23.16% | ||
| ROCE | 17.74% | ||
| ROIC | 13.86% | ||
| ROICexc | 19.48% | ||
| ROICexgc | 35.74% | ||
| OM | 19.08% | ||
| PM (TTM) | 14.49% | ||
| GM | 41.68% | ||
| FCFM | 16.39% |
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-Score8
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 78.34% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 15.76 | ||
| Cash Conversion | 84.85% | ||
| Profit Quality | 113.1% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 2.05 |
F-Score8
WACC7.66%
ROIC/WACC1.81
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)-4.66%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%17.65%
EPS Next Y7.44%
EPS Next 2Y9.04%
EPS Next 3Y10.45%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%5.11%
Revenue Next Year4.43%
Revenue Next 2Y5.21%
Revenue Next 3Y5.81%
Revenue Next 5Y5.57%
EBIT growth 1Y13.21%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.08%
EBIT Next 3Y12.19%
EBIT Next 5Y10.05%
FCF growth 1Y44.75%
FCF growth 3Y11.44%
FCF growth 5Y14.98%
OCF growth 1Y40.55%
OCF growth 3Y8.72%
OCF growth 5Y12.85%