PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1PYPL • US70450Y1038
44.03 EUR
-1.58 (-3.46%)
Last: Jan 30, 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 has a great profitability rating, 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
- In the past year 1PYPL was profitable.
- 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.
1.2 Ratios
- Looking at the Return On Assets, with a value of 6.16%, 1PYPL is in the better half of the industry, outperforming 79.66% of the companies in the same industry.
- 1PYPL's Return On Equity of 24.34% is amongst the best of the industry. 1PYPL outperforms 86.44% of its industry peers.
- The Return On Invested Capital of 1PYPL (14.11%) is better than 84.75% of its industry peers.
- 1PYPL had an Average Return On Invested Capital over the past 3 years of 11.47%. This is in line with the industry average of 10.02%.
- 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
- 1PYPL has a Profit Margin of 14.96%. This is comparable to the rest of the industry: 1PYPL outperforms 57.63% of its industry peers.
- 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 (19.16%) than 64.41% of its industry peers.
- In the last couple of years the Operating Margin of 1PYPL has grown nicely.
- 1PYPL has a Gross Margin (41.56%) which is in line with 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.
- 1PYPL has less shares outstanding than it did 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 1.95 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 1.95, 1PYPL is doing good in the industry, outperforming 62.71% 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.
- 1PYPL has a Debt to FCF ratio of 2.06. This is in the better half of the industry: 1PYPL outperforms 76.27% 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.
- 1PYPL has a Debt to Equity ratio of 0.56. This is comparable to the rest of the industry: 1PYPL outperforms 44.07% 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 | 1.95 |
ROIC/WACC1.82
WACC7.73%
2.3 Liquidity
- A Current Ratio of 1.34 indicates that 1PYPL should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.34, 1PYPL is in line with its industry, outperforming 52.54% of the companies in the same industry.
- A Quick Ratio of 1.34 indicates that 1PYPL should not have too much problems paying its short term obligations.
- 1PYPL's Quick ratio of 1.34 is in line compared to the rest of the industry. 1PYPL outperforms 57.63% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
- 1PYPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.19%.
- 1PYPL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.87% yearly.
- The Revenue has been growing slightly by 4.47% in the past 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
- 1PYPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.14% yearly.
- The Revenue is expected to grow by 6.28% on average over the next years.
EPS Next Y9.71%
EPS Next 2Y8.71%
EPS Next 3Y9.86%
EPS Next 5Y13.14%
Revenue Next Year5.07%
Revenue Next 2Y5.38%
Revenue Next 3Y5.72%
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.
- 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
- The Price/Earnings ratio is 10.01, which indicates a very decent valuation of 1PYPL.
- Based on the Price/Earnings ratio, 1PYPL is valued a bit cheaper than 71.19% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, 1PYPL is valued rather cheaply.
- 1PYPL is valuated reasonably with a Price/Forward Earnings ratio of 8.95.
- Based on the Price/Forward Earnings ratio, 1PYPL is valued a bit cheaper than the industry average as 67.80% of the companies are valued more expensively.
- 1PYPL is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.01 | ||
| Fwd PE | 8.95 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1PYPL is valued a bit cheaper than 72.88% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1PYPL indicates a somewhat cheap valuation: 1PYPL is cheaper than 72.88% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.86 | ||
| EV/EBITDA | 6.68 |
4.3 Compensation for Growth
- 1PYPL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The decent profitability rating of 1PYPL may justify a higher PE ratio.
PEG (NY)1.03
PEG (5Y)1.01
EPS Next 2Y8.71%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.98%, 1PYPL is not a good candidate for dividend investing.
- The stock price of 1PYPL dropped by -24.85% 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 1.97.
- With a Dividend Yield of 0.98, 1PYPL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.98% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y8.71%
EPS Next 3Y9.86%
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 6 / 10 to PAYPAL HOLDINGS INC (1PYPL.MI). This can be considered as Fairly Valued.
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 10.01 and the Price/Book (PB) ratio is 2.44.