PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe - BIT:1PYPL - US70450Y1038 - Common Stock
55.46 EUR
-2.38 (-4.11%)
Overall 1PYPL gets a fundamental rating of 6 out of 10. We evaluated 1PYPL against 50 industry peers in the Financial Services industry. While 1PYPL has a great profitability rating, 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.
1PYPL had positive earnings in each of the past 5 years.
In the past 5 years 1PYPL always reported a positive cash flow from operatings.
1.2 Ratios
1PYPL has a Return On Assets of 6.16%. This is in the better half of the industry: 1PYPL outperforms 80.00% 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 86.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 14.11%, 1PYPL belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1PYPL is in line with the industry average of 9.72%.
The 3 year average ROIC (11.47%) for 1PYPL is below the current ROIC(14.11%), indicating increased profibility in the last year.
| 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
With a decent Profit Margin value of 14.96%, 1PYPL is doing good in the industry, outperforming 64.00% of the companies in the same industry.
1PYPL's Profit Margin has been stable in the last couple of years.
1PYPL has a Operating Margin of 19.16%. This is in the better half 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 of 41.56%. This is comparable to the rest of the industry: 1PYPL outperforms 50.00% of its industry peers.
1PYPL's Gross Margin has declined in the last couple of years.
| 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.
Compared to 5 years ago, 1PYPL has less shares outstanding
The debt/assets ratio for 1PYPL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.09 indicates that 1PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a decent Altman-Z score value of 2.09, 1PYPL is doing good in the industry, outperforming 62.00% of the companies in the same industry.
The Debt to FCF ratio of 1PYPL is 2.06, which is a good value as it means it would take 1PYPL, 2.06 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.06, 1PYPL is in the better half of the industry, outperforming 74.00% of the companies in the same industry.
1PYPL has a Debt/Equity ratio of 0.56. This is a neutral value indicating 1PYPL is somewhat dependend on debt financing.
1PYPL's Debt to Equity ratio of 0.56 is on the low side compared to the rest of the industry. 1PYPL is outperformed by 60.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for 1PYPL, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.06 | ||
| Altman-Z | 2.09 |
ROIC/WACC1.83
WACC7.69%
2.3 Liquidity
1PYPL has a Current 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.
1PYPL's Current ratio of 1.34 is in line compared to the rest of the industry. 1PYPL outperforms 50.00% of 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.
1PYPL has a Quick ratio of 1.34. This is comparable to the rest of the industry: 1PYPL outperforms 56.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The earnings per share for 1PYPL have decreased by -0.19% in the last year.
The Earnings Per Share has been growing by 9.87% on average over the past years. This is quite good.
Looking at the last year, 1PYPL shows a small growth in Revenue. The Revenue has grown by 4.47% in the last year.
Measured over the past years, 1PYPL shows a quite strong growth in Revenue. The Revenue has been growing by 12.34% on average per year.
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
The Earnings Per Share is expected to grow by 13.14% 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 6.28% on average per year.
EPS Next Y9.42%
EPS Next 2Y9.27%
EPS Next 3Y10.66%
EPS Next 5Y13.14%
Revenue Next Year5.07%
Revenue Next 2Y5.54%
Revenue Next 3Y5.96%
Revenue Next 5Y6.28%
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.
4. Valuation
4.1 Price/Earnings Ratio
1PYPL is valuated correctly with a Price/Earnings ratio of 12.24.
Compared to the rest of the industry, the Price/Earnings ratio of 1PYPL indicates a somewhat cheap valuation: 1PYPL is cheaper than 70.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. 1PYPL is valued rather cheaply when compared to this.
1PYPL is valuated reasonably with a Price/Forward Earnings ratio of 10.84.
Based on the Price/Forward Earnings ratio, 1PYPL is valued a bit cheaper than 66.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, 1PYPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 10.84 |
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.
66.00% of the companies in the same industry are more expensive than 1PYPL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.06 | ||
| 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)1.3
PEG (5Y)1.24
EPS Next 2Y9.27%
EPS Next 3Y10.66%
5. Dividend
5.1 Amount
1PYPL has a yearly dividend return of 0.85%, which is pretty low.
Compared to an average industry Dividend Yield of 3.47, 1PYPL has a dividend in line with its industry peers.
With a Dividend Yield of 0.85, 1PYPL pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y9.27%
EPS Next 3Y10.66%
BIT:1PYPL (11/14/2025, 7:00:00 PM)
55.46
-2.38 (-4.11%)
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 Cap52.99B
Revenue(TTM)32.86B
Net Income(TTM)4.92B
Analysts70.98
Price Target75.53 (36.19%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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)4.51%
PT rev (3m)4.98%
EPS NQ rev (1m)-1.3%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)1.69%
EPS NY rev (3m)4.92%
Revenue NQ rev (1m)0.71%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 10.84 | ||
| P/S | 1.87 | ||
| P/FCF | 11.06 | ||
| P/OCF | 9.58 | ||
| P/B | 3.05 | ||
| P/tB | 6.82 | ||
| EV/EBITDA | 8.68 |
EPS(TTM)4.53
EY8.17%
EPS(NY)5.12
Fwd EY9.23%
FCF(TTM)5.01
FCFY9.04%
OCF(TTM)5.79
OCFY10.44%
SpS29.6
BVpS18.2
TBVpS8.14
PEG (NY)1.3
PEG (5Y)1.24
Graham Number43.06
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 | 2.09 |
F-Score8
WACC7.69%
ROIC/WACC1.83
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 Y9.42%
EPS Next 2Y9.27%
EPS Next 3Y10.66%
EPS Next 5Y13.14%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
Revenue Next Year5.07%
Revenue Next 2Y5.54%
Revenue Next 3Y5.96%
Revenue Next 5Y6.28%
EBIT growth 1Y10.67%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.15%
EBIT Next 3Y12.17%
EBIT Next 5Y10.48%
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 9.42% in the next year.