PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1PYPL • US70450Y1038
34.435 EUR
+0.79 (+2.33%)
Last: Feb 9, 2026, 07:00 PM
Overall 1PYPL gets a fundamental rating of 6 out of 10. We evaluated 1PYPL against 59 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 is valued quite cheap, while showing a decent growth score. This is a good combination! These ratings could make 1PYPL a good candidate for value investing.
1. Profitability
1.1 Basic Checks
- In the past year 1PYPL was profitable.
- In the past year 1PYPL had a positive cash flow from operations.
- In the past 5 years 1PYPL has always been profitable.
- 1PYPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1PYPL's Return On Assets of 6.53% is amongst the best of the industry. 1PYPL outperforms 86.44% of its industry peers.
- The Return On Equity of 1PYPL (25.83%) is better than 88.14% of its industry peers.
- 1PYPL has a better Return On Invested Capital (15.26%) than 88.14% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1PYPL is above the industry average of 9.72%.
- The last Return On Invested Capital (15.26%) for 1PYPL is above the 3 year average (13.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.53% | ||
| ROE | 25.83% | ||
| ROIC | 15.26% |
ROA(3y)5.59%
ROA(5y)5.07%
ROE(3y)22.11%
ROE(5y)19.49%
ROIC(3y)13.68%
ROIC(5y)12.27%
1.3 Margins
- The Profit Margin of 1PYPL (15.78%) is comparable to the rest of the industry.
- 1PYPL's Profit Margin has declined in the last couple of years.
- With a decent Operating Margin value of 19.28%, 1PYPL is doing good in the industry, outperforming 64.41% of the companies in the same industry.
- 1PYPL's Operating Margin has improved in the last couple of years.
- 1PYPL's Gross Margin of 41.48% is in line compared to the rest of the industry. 1PYPL outperforms 47.46% of its industry peers.
- 1PYPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.28% | ||
| PM (TTM) | 15.78% | ||
| GM | 41.48% |
OM growth 3Y9.47%
OM growth 5Y3.83%
PM growth 3Y21.52%
PM growth 5Y-4.24%
GM growth 3Y-0.68%
GM growth 5Y-2.31%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1PYPL is creating value.
- 1PYPL has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 1PYPL has less shares outstanding
- Compared to 1 year ago, 1PYPL has an improved debt to assets ratio.
2.2 Solvency
- 1PYPL has an Altman-Z score of 1.82. 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 (1.82) than 62.71% of its industry peers.
- The Debt to FCF ratio of 1PYPL is 1.79, which is an excellent value as it means it would take 1PYPL, only 1.79 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 1.79, 1PYPL is in the better half of the industry, outperforming 79.66% of the companies in the same industry.
- A Debt/Equity ratio of 0.49 indicates that 1PYPL is not too dependend on debt financing.
- 1PYPL has a Debt to Equity ratio (0.49) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 1.82 |
ROIC/WACC1.88
WACC8.14%
2.3 Liquidity
- A Current Ratio of 1.29 indicates that 1PYPL should not have too much problems paying its short term obligations.
- The Current ratio of 1PYPL (1.29) is comparable to the rest of the industry.
- 1PYPL has a Quick Ratio of 1.29. 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 (1.29) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
- 1PYPL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.43%.
- Measured over the past 5 years, 1PYPL shows a small growth in Earnings Per Share. The EPS has been growing by 5.53% on average per year.
- 1PYPL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.32%.
- The Revenue has been growing by 9.11% on average over the past years. This is quite good.
EPS 1Y (TTM)6.43%
EPS 3Y8.67%
EPS 5Y5.53%
EPS Q2Q%3.36%
Revenue 1Y (TTM)4.32%
Revenue growth 3Y6.43%
Revenue growth 5Y9.11%
Sales Q2Q%3.71%
3.2 Future
- The Earnings Per Share is expected to grow by 12.78% on average over the next years. This is quite good.
- The Revenue is expected to grow by 7.83% on average over the next years.
EPS Next Y10.74%
EPS Next 2Y11.08%
EPS Next 3Y14.21%
EPS Next 5Y12.78%
Revenue Next Year5.6%
Revenue Next 2Y5.94%
Revenue Next 3Y6.4%
Revenue Next 5Y7.83%
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 7.67, the valuation of 1PYPL can be described as very cheap.
- 83.05% of the companies in the same industry are more expensive than 1PYPL, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of 1PYPL to the average of the S&P500 Index (28.06), we can say 1PYPL is valued rather cheaply.
- 1PYPL is valuated cheaply with a Price/Forward Earnings ratio of 6.92.
- Based on the Price/Forward Earnings ratio, 1PYPL is valued cheaper than 83.05% of the companies in the same industry.
- 1PYPL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.67 | ||
| Fwd PE | 6.92 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1PYPL is valued cheaper than 81.36% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 1PYPL is valued cheaply inside the industry as 81.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.83 | ||
| EV/EBITDA | 4.7 |
4.3 Compensation for Growth
- 1PYPL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of 1PYPL may justify a higher PE ratio.
- A more expensive valuation may be justified as 1PYPL's earnings are expected to grow with 14.21% in the coming years.
PEG (NY)0.71
PEG (5Y)1.39
EPS Next 2Y11.08%
EPS Next 3Y14.21%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.40%, 1PYPL has a reasonable but not impressive dividend return.
- The stock price of 1PYPL dropped by -39.75% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
- Compared to an average industry Dividend Yield of 2.15, 1PYPL has a dividend in line with its industry peers.
- 1PYPL's Dividend Yield is slightly below the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 2.48% of the earnings are spent on dividend by 1PYPL. This is a low number and sustainable payout ratio.
DP2.48%
EPS Next 2Y11.08%
EPS Next 3Y14.21%
BIT:1PYPL (2/9/2026, 7:00:00 PM)
34.435
+0.79 (+2.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)04-27 2026-04-27/amc
Inst Owners80.89%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap32.22B
Revenue(TTM)33.17B
Net Income(TTM)5.23B
Analysts68.8
Price Target63.49 (84.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Yearly Dividend0.12
Dividend Growth(5Y)N/A
DP2.48%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.63%
Min EPS beat(2)-6.12%
Max EPS beat(2)9.38%
EPS beat(4)3
Avg EPS beat(4)5.34%
Min EPS beat(4)-6.12%
Max EPS beat(4)12.26%
EPS beat(8)7
Avg EPS beat(8)8.3%
EPS beat(12)10
Avg EPS beat(12)6.57%
EPS beat(16)13
Avg EPS beat(16)5.95%
Revenue beat(2)1
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-3.34%
Max Revenue beat(2)0.26%
Revenue beat(4)2
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-3.34%
Max Revenue beat(4)0.55%
Revenue beat(8)3
Avg Revenue beat(8)-1.12%
Revenue beat(12)3
Avg Revenue beat(12)-1.11%
Revenue beat(16)3
Avg Revenue beat(16)-1.21%
PT rev (1m)-10.51%
PT rev (3m)-15.94%
EPS NQ rev (1m)-1.21%
EPS NQ rev (3m)-1.02%
EPS NY rev (1m)-1.34%
EPS NY rev (3m)-0.71%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-0.17%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.67 | ||
| Fwd PE | 6.92 | ||
| P/S | 1.15 | ||
| P/FCF | 6.83 | ||
| P/OCF | 5.92 | ||
| P/B | 1.88 | ||
| P/tB | 4.14 | ||
| EV/EBITDA | 4.7 |
EPS(TTM)4.49
EY13.04%
EPS(NY)4.98
Fwd EY14.45%
FCF(TTM)5.04
FCFY14.64%
OCF(TTM)5.81
OCFY16.88%
SpS30.06
BVpS18.36
TBVpS8.32
PEG (NY)0.71
PEG (5Y)1.39
Graham Number43.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.53% | ||
| ROE | 25.83% | ||
| ROCE | 18.96% | ||
| ROIC | 15.26% | ||
| ROICexc | 22.09% | ||
| ROICexgc | 42.08% | ||
| OM | 19.28% | ||
| PM (TTM) | 15.78% | ||
| GM | 41.48% | ||
| FCFM | 16.77% |
ROA(3y)5.59%
ROA(5y)5.07%
ROE(3y)22.11%
ROE(5y)19.49%
ROIC(3y)13.68%
ROIC(5y)12.27%
ROICexc(3y)21.02%
ROICexc(5y)18.45%
ROICexgc(3y)44.19%
ROICexgc(5y)39.13%
ROCE(3y)16.99%
ROCE(5y)15.24%
ROICexgc growth 3Y11.65%
ROICexgc growth 5Y5.93%
ROICexc growth 3Y15.6%
ROICexc growth 5Y8.67%
OM growth 3Y9.47%
OM growth 5Y3.83%
PM growth 3Y21.52%
PM growth 5Y-4.24%
GM growth 3Y-0.68%
GM growth 5Y-2.31%
F-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.79 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 88.47% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 15.75 | ||
| Cash Conversion | 87.19% | ||
| Profit Quality | 106.33% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 1.82 |
F-Score8
WACC8.14%
ROIC/WACC1.88
Cap/Depr(3y)70.92%
Cap/Depr(5y)67.63%
Cap/Sales(3y)2.27%
Cap/Sales(5y)2.59%
Profit Quality(3y)122.96%
Profit Quality(5y)139.46%
High Growth Momentum
Growth
EPS 1Y (TTM)6.43%
EPS 3Y8.67%
EPS 5Y5.53%
EPS Q2Q%3.36%
EPS Next Y10.74%
EPS Next 2Y11.08%
EPS Next 3Y14.21%
EPS Next 5Y12.78%
Revenue 1Y (TTM)4.32%
Revenue growth 3Y6.43%
Revenue growth 5Y9.11%
Sales Q2Q%3.71%
Revenue Next Year5.6%
Revenue Next 2Y5.94%
Revenue Next 3Y6.4%
Revenue Next 5Y7.83%
EBIT growth 1Y10.98%
EBIT growth 3Y16.51%
EBIT growth 5Y13.29%
EBIT Next Year16.39%
EBIT Next 3Y11.28%
EBIT Next 5Y10.31%
FCF growth 1Y-17.78%
FCF growth 3Y2.9%
FCF growth 5Y0.78%
OCF growth 1Y-13.88%
OCF growth 3Y3.34%
OCF growth 5Y0.63%
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.
What is the valuation status of PAYPAL HOLDINGS INC (1PYPL.MI) stock?
ChartMill assigns a valuation rating of 9 / 10 to PAYPAL HOLDINGS INC (1PYPL.MI). This can be considered as Undervalued.
What is the profitability of 1PYPL stock?
PAYPAL HOLDINGS INC (1PYPL.MI) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for 1PYPL stock?
The Price/Earnings (PE) ratio for PAYPAL HOLDINGS INC (1PYPL.MI) is 7.67 and the Price/Book (PB) ratio is 1.88.
Can you provide the dividend sustainability for 1PYPL stock?
The dividend rating of PAYPAL HOLDINGS INC (1PYPL.MI) is 3 / 10 and the dividend payout ratio is 2.48%.