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PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis

BIT:1PYPL - Borsa Italiana Milan - US70450Y1038 - Common Stock - Currency: EUR

78.27  -7.48 (-8.72%)

Fundamental Rating

5

1PYPL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 50 industry peers in the Financial Services industry. Both the profitability and the financial health of 1PYPL get a neutral evaluation. Nothing too spectacular is happening here. 1PYPL has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

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6

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.
Each year in the past 5 years 1PYPL has been profitable.
In the past 5 years 1PYPL always reported a positive cash flow from operatings.
1PYPL.MI Yearly Net Income VS EBIT VS OCF VS FCF1PYPL.MI Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B

1.2 Ratios

Looking at the Return On Assets, with a value of 5.30%, 1PYPL is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
1PYPL has a better Return On Equity (21.95%) than 72.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.86%, 1PYPL is in the better half of the industry, outperforming 79.55% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1PYPL is in line with the industry average of 10.86%.
The 3 year average ROIC (10.00%) for 1PYPL is below the current ROIC(12.86%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 5.3%
ROE 21.95%
ROIC 12.86%
ROA(3y)4.58%
ROA(5y)4.9%
ROE(3y)17.1%
ROE(5y)17.37%
ROIC(3y)10%
ROIC(5y)9.33%
1PYPL.MI Yearly ROA, ROE, ROIC1PYPL.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

With a Profit Margin value of 14.08%, 1PYPL perfoms like the industry average, outperforming 52.27% of the companies in the same industry.
1PYPL's Profit Margin has been stable in the last couple of years.
The Operating Margin of 1PYPL (18.09%) is better than 65.91% of its industry peers.
1PYPL's Operating Margin has been stable in the last couple of years.
1PYPL's Gross Margin of 40.10% is on the low side compared to the rest of the industry. 1PYPL is outperformed by 61.36% of its industry peers.
In the last couple of years the Gross Margin of 1PYPL has declined.
Industry RankSector Rank
OM 18.09%
PM (TTM) 14.08%
GM 40.1%
OM growth 3Y1.29%
OM growth 5Y0.5%
PM growth 3Y-10.03%
PM growth 5Y1.39%
GM growth 3Y-5.3%
GM growth 5Y-2.98%
1PYPL.MI Yearly Profit, Operating, Gross Margins1PYPL.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 10 20 30 40 50

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6

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1PYPL is still creating some value.
1PYPL has less shares outstanding than it did 1 year ago.
1PYPL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1PYPL has an improved debt to assets ratio.
1PYPL.MI Yearly Shares Outstanding1PYPL.MI Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B
1PYPL.MI Yearly Total Debt VS Total Assets1PYPL.MI Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B 80B

2.2 Solvency

An Altman-Z score of 1.99 indicates that 1PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
1PYPL's Altman-Z score of 1.99 is in line compared to the rest of the industry. 1PYPL outperforms 52.27% of its industry peers.
1PYPL has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.77, 1PYPL is doing good in the industry, outperforming 65.91% of the companies in the same industry.
A Debt/Equity ratio of 0.50 indicates that 1PYPL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.50, 1PYPL is in line with its industry, outperforming 43.18% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 1.77
Altman-Z 1.99
ROIC/WACC1.54
WACC8.36%
1PYPL.MI Yearly LT Debt VS Equity VS FCF1PYPL.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B 20B

2.3 Liquidity

A Current Ratio of 1.25 indicates that 1PYPL should not have too much problems paying its short term obligations.
1PYPL's Current ratio of 1.25 is in line compared to the rest of the industry. 1PYPL outperforms 47.73% of its industry peers.
1PYPL has a Quick Ratio of 1.25. This is a normal value and indicates that 1PYPL is financially healthy and should not expect problems in meeting its short term obligations.
1PYPL's Quick ratio of 1.25 is in line compared to the rest of the industry. 1PYPL outperforms 52.27% of its industry peers.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 1.25
1PYPL.MI Yearly Current Assets VS Current Liabilites1PYPL.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20B 40B 60B

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4

3. Growth

3.1 Past

1PYPL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.21%, which is quite good.
Measured over the past years, 1PYPL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.12% on average per year.
The Revenue has been growing slightly by 8.00% in the past year.
Measured over the past years, 1PYPL shows a quite strong growth in Revenue. The Revenue has been growing by 14.02% on average per year.
EPS 1Y (TTM)8.21%
EPS 3Y8.06%
EPS 5Y16.12%
EPS Q2Q%-7.69%
Revenue 1Y (TTM)8%
Revenue growth 3Y11.54%
Revenue growth 5Y14.02%
Sales Q2Q%5.78%

3.2 Future

1PYPL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.03% yearly.
The Revenue is expected to grow by 6.24% on average over the next years.
EPS Next Y-8.52%
EPS Next 2Y-1.21%
EPS Next 3Y2.98%
EPS Next 5Y7.03%
Revenue Next Year6.99%
Revenue Next 2Y6.28%
Revenue Next 3Y6.45%
Revenue Next 5Y6.24%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.
1PYPL.MI Yearly Revenue VS Estimates1PYPL.MI Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10B 20B 30B 40B 50B
1PYPL.MI Yearly EPS VS Estimates1PYPL.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 2 4 6 8 10

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4

4. Valuation

4.1 Price/Earnings Ratio

1PYPL is valuated correctly with a Price/Earnings ratio of 15.35.
The rest of the industry has a similar Price/Earnings ratio as 1PYPL.
The average S&P500 Price/Earnings ratio is at 28.47. 1PYPL is valued slightly cheaper when compared to this.
1PYPL is valuated correctly with a Price/Forward Earnings ratio of 16.22.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1PYPL is on the same level as its industry peers.
1PYPL is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 15.35
Fwd PE 16.22
1PYPL.MI Price Earnings VS Forward Price Earnings1PYPL.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1PYPL is on the same level as its industry peers.
1PYPL's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 11.51
EV/EBITDA 11.43
1PYPL.MI Per share data1PYPL.MI EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

1PYPL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.95
EPS Next 2Y-1.21%
EPS Next 3Y2.98%

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0

5. Dividend

5.1 Amount

1PYPL does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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PAYPAL HOLDINGS INC

BIT:1PYPL (2/4/2025, 7:00:00 PM)

78.27

-7.48 (-8.72%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)10-29 2024-10-29/bmo
Earnings (Next)02-04 2025-02-04/bmo
Inst Owners74.06%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap78.47B
Analysts74.81
Price Target92 (17.54%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)14.14%
Min EPS beat(2)10.02%
Max EPS beat(2)18.26%
EPS beat(4)4
Avg EPS beat(4)11.89%
Min EPS beat(4)6.45%
Max EPS beat(4)18.26%
EPS beat(8)7
Avg EPS beat(8)6.87%
EPS beat(12)9
Avg EPS beat(12)5.57%
EPS beat(16)13
Avg EPS beat(16)5.8%
Revenue beat(2)0
Avg Revenue beat(2)-1.79%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)-1.13%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)0.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.2%
Revenue beat(12)1
Avg Revenue beat(12)-1.22%
Revenue beat(16)2
Avg Revenue beat(16)-1.32%
PT rev (1m)-0.07%
PT rev (3m)17.93%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-0.65%
EPS NY rev (1m)0.12%
EPS NY rev (3m)3.46%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-3.49%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.78%
Valuation
Industry RankSector Rank
PE 15.35
Fwd PE 16.22
P/S 2.58
P/FCF 11.51
P/OCF 10.57
P/B 4.02
P/tB 9.23
EV/EBITDA 11.43
EPS(TTM)5.1
EY6.52%
EPS(NY)4.83
Fwd EY6.17%
FCF(TTM)6.8
FCFY8.69%
OCF(TTM)7.4
OCFY9.46%
SpS30.36
BVpS19.47
TBVpS8.48
PEG (NY)N/A
PEG (5Y)0.95
Profitability
Industry RankSector Rank
ROA 5.3%
ROE 21.95%
ROCE 17.11%
ROIC 12.86%
ROICexc 20.05%
ROICexgc 43.04%
OM 18.09%
PM (TTM) 14.08%
GM 40.1%
FCFM 22.4%
ROA(3y)4.58%
ROA(5y)4.9%
ROE(3y)17.1%
ROE(5y)17.37%
ROIC(3y)10%
ROIC(5y)9.33%
ROICexc(3y)15.39%
ROICexc(5y)15.03%
ROICexgc(3y)34.97%
ROICexgc(5y)33.17%
ROCE(3y)13.3%
ROCE(5y)12.41%
ROICexcg growth 3Y16.01%
ROICexcg growth 5Y-4.74%
ROICexc growth 3Y11.6%
ROICexc growth 5Y0.74%
OM growth 3Y1.29%
OM growth 5Y0.5%
PM growth 3Y-10.03%
PM growth 5Y1.39%
GM growth 3Y-5.3%
GM growth 5Y-2.98%
F-Score6
Asset Turnover0.38
Health
Industry RankSector Rank
Debt/Equity 0.5
Debt/FCF 1.77
Debt/EBITDA 1.48
Cap/Depr 59.75%
Cap/Sales 1.99%
Interest Coverage 17.14
Cash Conversion 113.88%
Profit Quality 159.1%
Current Ratio 1.25
Quick Ratio 1.25
Altman-Z 1.99
F-Score6
WACC8.36%
ROIC/WACC1.54
Cap/Depr(3y)61.17%
Cap/Depr(5y)66.71%
Cap/Sales(3y)2.75%
Cap/Sales(5y)3.25%
Profit Quality(3y)142.59%
Profit Quality(5y)138.42%
High Growth Momentum
Growth
EPS 1Y (TTM)8.21%
EPS 3Y8.06%
EPS 5Y16.12%
EPS Q2Q%-7.69%
EPS Next Y-8.52%
EPS Next 2Y-1.21%
EPS Next 3Y2.98%
EPS Next 5Y7.03%
Revenue 1Y (TTM)8%
Revenue growth 3Y11.54%
Revenue growth 5Y14.02%
Sales Q2Q%5.78%
Revenue Next Year6.99%
Revenue Next 2Y6.28%
Revenue Next 3Y6.45%
Revenue Next 5Y6.24%
EBIT growth 1Y18.62%
EBIT growth 3Y12.98%
EBIT growth 5Y14.58%
EBIT Next Year4.56%
EBIT Next 3Y4.82%
EBIT Next 5Y6.45%
FCF growth 1Y50.5%
FCF growth 3Y-7.62%
FCF growth 5Y-1.95%
OCF growth 1Y40.94%
OCF growth 3Y-8%
OCF growth 5Y-2.44%