PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe • Euronext Milan • BIT:1PYPL • US70450Y1038
44.03 EUR
-0.31 (-0.7%)
Last: Jan 30, 2026, 07:00 PM
We assign a fundamental rating of 6 out of 10 to 1PYPL. 1PYPL was compared to 55 industry peers in the Financial Services industry. 1PYPL scores excellent on profitability, but there are some minor concerns on its financial health. 1PYPL has a decent growth rate and is not valued too expensively.
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.
- 1PYPL had positive earnings in each of the past 5 years.
- 1PYPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 1PYPL has a Return On Assets of 6.16%. This is amongst the best in the industry. 1PYPL outperforms 85.45% of its industry peers.
- 1PYPL has a better Return On Equity (24.34%) than 87.27% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 14.11%, 1PYPL belongs to the top of the industry, outperforming 87.27% of the companies in the same industry.
- 1PYPL had an Average Return On Invested Capital over the past 3 years of 11.47%. This is above the industry average of 9.19%.
- 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
- Looking at the Profit Margin, with a value of 14.96%, 1PYPL is in line with its industry, outperforming 58.18% 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 65.45% of its industry peers.
- 1PYPL's Operating Margin has improved in the last couple of years.
- 1PYPL's Gross Margin of 41.56% is in line compared to the rest of the industry. 1PYPL outperforms 45.45% of its industry peers.
- In the last couple of years the Gross Margin of 1PYPL has declined.
| 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 just above the Cost of Capital (WACC), which means it is creating some 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 1.94 indicates that 1PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
- 1PYPL has a better Altman-Z score (1.94) than 65.45% of its industry peers.
- 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 better Debt to FCF ratio (2.06) than 81.82% 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's Debt to Equity ratio of 0.56 is in line compared to the rest of the industry. 1PYPL outperforms 49.09% of its industry peers.
- Although 1PYPL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.06 | ||
| Altman-Z | 1.94 |
ROIC/WACC1.8
WACC7.85%
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.
- The Current ratio of 1PYPL (1.34) is comparable to the rest of the industry.
- 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 better Quick ratio (1.34) than 61.82% 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%.
- Measured over the past years, 1PYPL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.87% on average per year.
- 1PYPL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.47%.
- 1PYPL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.34% yearly.
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.
- 1PYPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
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
- 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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- 1PYPL is valuated reasonably with a Price/Earnings ratio of 9.98.
- Based on the Price/Earnings ratio, 1PYPL is valued a bit cheaper than the industry average as 70.91% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 28.32, 1PYPL is valued rather cheaply.
- With a Price/Forward Earnings ratio of 8.92, the valuation of 1PYPL can be described as very reasonable.
- Based on the Price/Forward Earnings ratio, 1PYPL is valued a bit cheaper than 67.27% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, 1PYPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 8.92 |
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.
- Based on the Price/Free Cash Flow ratio, 1PYPL is valued a bit cheaper than the industry average as 74.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.82 | ||
| EV/EBITDA | 6.6 |
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)1.03
PEG (5Y)1.01
EPS Next 2Y8.71%
EPS Next 3Y9.86%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.05%, 1PYPL has a reasonable but not impressive dividend return.
- In the last 3 months the price of 1PYPL has falen by -25.37%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- Compared to an average industry Dividend Yield of 2.10, 1PYPL has a dividend in line with its industry peers.
- With a Dividend Yield of 1.05, 1PYPL pays less dividend than the S&P500 average, which is at 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
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 9.98 and the Price/Book (PB) ratio is 2.43.