PAYPAL HOLDINGS INC (1PYPL.MI) Fundamental Analysis & Valuation

BIT:1PYPL • US70450Y1038

40.915 EUR
+2.13 (+5.48%)
Last: Mar 5, 2026, 07:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership

This 1PYPL.MI fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

Overall 1PYPL gets a fundamental rating of 6 out of 10. We evaluated 1PYPL against 55 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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination. This makes 1PYPL very considerable for value investing!


Dividend Valuation Growth Profitability Health

8

1. 1PYPL.MI Profitability Analysis

1.1 Basic Checks

  • 1PYPL had positive earnings in the past year.
  • 1PYPL had a positive operating cash flow in the past year.
  • 1PYPL had positive earnings in each of the past 5 years.
  • Each year in the past 5 years 1PYPL had a positive operating cash flow.
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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • With an excellent Return On Assets value of 6.53%, 1PYPL belongs to the best of the industry, outperforming 87.27% of the companies in the same industry.
  • 1PYPL has a Return On Equity of 25.83%. This is amongst the best in the industry. 1PYPL outperforms 90.91% of its industry peers.
  • The Return On Invested Capital of 1PYPL (15.26%) is better than 90.91% of its industry peers.
  • 1PYPL had an Average Return On Invested Capital over the past 3 years of 13.68%. This is significantly above the industry average of 8.26%.
  • 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 RankSector 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%
1PYPL.MI Yearly ROA, ROE, ROIC1PYPL.MI Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • 1PYPL has a better Profit Margin (15.78%) than 61.82% of its industry peers.
  • In the last couple of years the Profit Margin of 1PYPL has declined.
  • 1PYPL has a Operating Margin of 19.28%. This is in the better half of the industry: 1PYPL outperforms 67.27% of its industry peers.
  • In the last couple of years the Operating Margin of 1PYPL has grown nicely.
  • Looking at the Gross Margin, with a value of 41.48%, 1PYPL is in line with its industry, outperforming 47.27% of the companies in the same industry.
  • In the last couple of years the Gross Margin of 1PYPL has declined.
Industry RankSector 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%
1PYPL.MI Yearly Profit, Operating, Gross Margins1PYPL.MI Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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6

2. 1PYPL.MI Health Analysis

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.
  • 1PYPL has less shares outstanding than it did 1 year ago.
  • 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.
1PYPL.MI Yearly Shares Outstanding1PYPL.MI Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 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 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

2.2 Solvency

  • 1PYPL has an Altman-Z score of 1.88. 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.
  • The Altman-Z score of 1PYPL (1.88) is better than 69.09% of its industry peers.
  • 1PYPL has a debt to FCF ratio of 2.05. This is a good value and a sign of high solvency as 1PYPL would need 2.05 years to pay back of all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 2.05, 1PYPL belongs to the top of the industry, outperforming 83.64% of the companies in the same industry.
  • 1PYPL has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
  • 1PYPL's Debt to Equity ratio of 0.49 is in line compared to the rest of the industry. 1PYPL outperforms 50.91% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 2.05
Altman-Z 1.88
ROIC/WACC1.98
WACC7.7%
1PYPL.MI Yearly LT Debt VS Equity VS FCF1PYPL.MI Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.3 Liquidity

  • 1PYPL has a Current 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 Current ratio of 1PYPL (1.29) is comparable to the rest of the industry.
  • A Quick Ratio of 1.29 indicates that 1PYPL should not have too much problems paying its short term obligations.
  • With a Quick ratio value of 1.29, 1PYPL perfoms like the industry average, outperforming 52.73% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.29
1PYPL.MI Yearly Current Assets VS Current Liabilites1PYPL.MI Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

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5

3. 1PYPL.MI Growth Analysis

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

  • 1PYPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.78% yearly.
  • The Revenue is expected to grow by 6.93% on average over the next years.
EPS Next Y10.74%
EPS Next 2Y11.08%
EPS Next 3Y14.21%
EPS Next 5Y12.78%
Revenue Next Year2.52%
Revenue Next 2Y3.51%
Revenue Next 3Y3.98%
Revenue Next 5Y6.93%

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 accelerating.
  • 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 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 10B 20B 30B 40B 50B
1PYPL.MI Yearly EPS VS Estimates1PYPL.MI Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8 10

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8

4. 1PYPL.MI Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 8.97, the valuation of 1PYPL can be described as very reasonable.
  • Based on the Price/Earnings ratio, 1PYPL is valued a bit cheaper than 70.91% of the companies in the same industry.
  • 1PYPL is valuated cheaply when we compare the Price/Earnings ratio to 26.69, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 8.10, which indicates a very decent valuation of 1PYPL.
  • 69.09% of the companies in the same industry are more expensive than 1PYPL, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 24.79. 1PYPL is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 8.97
Fwd PE 8.1
1PYPL.MI Price Earnings VS Forward Price Earnings1PYPL.MI Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1PYPL indicates a somewhat cheap valuation: 1PYPL is cheaper than 72.73% of the companies listed in the same industry.
  • 81.82% of the companies in the same industry are more expensive than 1PYPL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 7.87
EV/EBITDA 5.76
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

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • 1PYPL has an outstanding profitability rating, which may justify a higher PE ratio.
  • 1PYPL's earnings are expected to grow with 14.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.84
PEG (5Y)1.62
EPS Next 2Y11.08%
EPS Next 3Y14.21%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. 1PYPL.MI Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.23%, 1PYPL has a reasonable but not impressive dividend return.
  • The stock price of 1PYPL dropped by -23.69% 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.
  • 1PYPL's Dividend Yield is comparable with the industry average which is at 2.26.
  • 1PYPL's Dividend Yield is slightly below the S&P500 average, which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.23%

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%
1PYPL.MI Yearly Income VS Free CF VS Dividend1PYPL.MI Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
1PYPL.MI Dividend Payout.1PYPL.MI Dividend Payout, showing the Payout Ratio.1PYPL.MI Dividend Payout.PayoutRetained Earnings

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1PYPL.MI Fundamentals: All Metrics, Ratios and Statistics

PAYPAL HOLDINGS INC

BIT:1PYPL (3/5/2026, 7:00:00 PM)

40.915

+2.13 (+5.48%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-03
Earnings (Next)04-27
Inst Owners80.89%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap37.67B
Revenue(TTM)33.17B
Net Income(TTM)5.23B
Analysts67.45
Price Target43.88 (7.25%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 1.23%
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)-33.63%
PT rev (3m)-41.81%
EPS NQ rev (1m)-8.04%
EPS NQ rev (3m)-9.23%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)-1.3%
Revenue NQ rev (1m)-2.55%
Revenue NQ rev (3m)-2.98%
Revenue NY rev (1m)-3.01%
Revenue NY rev (3m)-3.3%
Valuation
Industry RankSector Rank
PE 8.97
Fwd PE 8.1
P/S 1.32
P/FCF 7.87
P/OCF 6.82
P/B 2.16
P/tB 4.77
EV/EBITDA 5.76
EPS(TTM)4.56
EY11.15%
EPS(NY)5.05
Fwd EY12.35%
FCF(TTM)5.2
FCFY12.71%
OCF(TTM)6
OCFY14.66%
SpS31.01
BVpS18.94
TBVpS8.59
PEG (NY)0.84
PEG (5Y)1.62
Graham Number44.08
Profitability
Industry RankSector 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 RankSector Rank
Debt/Equity 0.49
Debt/FCF 2.05
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 1.88
F-Score8
WACC7.7%
ROIC/WACC1.98
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 Year2.52%
Revenue Next 2Y3.51%
Revenue Next 3Y3.98%
Revenue Next 5Y6.93%
EBIT growth 1Y10.98%
EBIT growth 3Y16.51%
EBIT growth 5Y13.29%
EBIT Next Year4.9%
EBIT Next 3Y1.65%
EBIT Next 5Y10.35%
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 8 / 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 8 / 10.


Can you provide the PE and PB ratios for 1PYPL stock?

The Price/Earnings (PE) ratio for PAYPAL HOLDINGS INC (1PYPL.MI) is 8.97 and the Price/Book (PB) ratio is 2.16.


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%.