PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
BIT:1PYPL - Euronext Milan - US70450Y1038 - Common Stock - Currency: EUR
1PYPL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 47 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 has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
1PYPL had positive earnings in the past year.
In the past year 1PYPL had a positive cash flow from operations.
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's Return On Assets of 5.59% is fine compared to the rest of the industry. 1PYPL outperforms 74.47% of its industry peers.
1PYPL has a better Return On Equity (22.44%) than 82.98% of its industry peers.
With an excellent Return On Invested Capital value of 13.48%, 1PYPL belongs to the best of the industry, outperforming 85.11% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1PYPL is in line with the industry average of 10.14%.
The last Return On Invested Capital (13.48%) for 1PYPL is above the 3 year average (11.47%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 22.44% | ||
| ROIC | 13.48% |
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 (14.26%) which is in line with its industry peers.
In the last couple of years the Profit Margin of 1PYPL has remained more or less at the same level.
Looking at the Operating Margin, with a value of 18.75%, 1PYPL is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
1PYPL's Operating Margin has improved in the last couple of years.
1PYPL has a Gross Margin of 41.40%. This is comparable to the rest of the industry: 1PYPL outperforms 44.68% of its industry peers.
1PYPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.75% | ||
| PM (TTM) | 14.26% | ||
| GM | 41.4% |
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.
The number of shares outstanding for 1PYPL has been reduced compared to 5 years ago.
The debt/assets ratio for 1PYPL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.04 indicates that 1PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
1PYPL has a Altman-Z score (2.04) which is comparable to the rest of the industry.
The Debt to FCF ratio of 1PYPL is 2.12, which is a good value as it means it would take 1PYPL, 2.12 years of fcf income to pay off all of its debts.
1PYPL's Debt to FCF ratio of 2.12 is amongst the best of the industry. 1PYPL outperforms 80.85% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that 1PYPL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, 1PYPL perfoms like the industry average, outperforming 44.68% of the companies in the same industry.
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 | 2.12 | ||
| Altman-Z | 2.04 |
ROIC/WACC1.69
WACC7.96%
2.3 Liquidity
1PYPL has a Current Ratio of 1.30. 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 1.30 is fine compared to the rest of the industry. 1PYPL outperforms 63.83% of its industry peers.
A Quick Ratio of 1.30 indicates that 1PYPL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.30, 1PYPL is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 |
3. Growth
3.1 Past
1PYPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.05%.
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 4.79% 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)-8.05%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%-5%
Revenue 1Y (TTM)4.79%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%1.19%
3.2 Future
Based on estimates for the next years, 1PYPL will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.09% on average per year.
1PYPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.57% yearly.
EPS Next Y4.45%
EPS Next 2Y7.59%
EPS Next 3Y9.57%
EPS Next 5Y11.09%
Revenue Next Year3.06%
Revenue Next 2Y4.39%
Revenue Next 3Y5.34%
Revenue Next 5Y5.57%
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 stable.
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
With a Price/Earnings ratio of 15.10, 1PYPL is valued correctly.
1PYPL's Price/Earnings is on the same level as the industry average.
1PYPL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.86, which indicates a correct valuation of 1PYPL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1PYPL is on the same level as its industry peers.
1PYPL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 12.86 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1PYPL.
70.21% 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 | 12.08 | ||
| EV/EBITDA | 9.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1PYPL does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 1PYPL may justify a higher PE ratio.
PEG (NY)3.39
PEG (5Y)1.53
EPS Next 2Y7.59%
EPS Next 3Y9.57%
5. Dividend
5.1 Amount
1PYPL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1PYPL (6/30/2025, 7:00:00 PM)
63.25
+0.77 (+1.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners79.32%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap61.51B
Analysts72.94
Price Target74.71 (18.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)8.11%
Min EPS beat(2)3.97%
Max EPS beat(2)12.26%
EPS beat(4)4
Avg EPS beat(4)11.13%
Min EPS beat(4)3.97%
Max EPS beat(4)18.26%
EPS beat(8)7
Avg EPS beat(8)8.17%
EPS beat(12)11
Avg EPS beat(12)7.31%
EPS beat(16)13
Avg EPS beat(16)5.31%
Revenue beat(2)0
Avg Revenue beat(2)-1.66%
Min Revenue beat(2)-2.67%
Max Revenue beat(2)-0.65%
Revenue beat(4)0
Avg Revenue beat(4)-1.73%
Min Revenue beat(4)-2.67%
Max Revenue beat(4)-0.65%
Revenue beat(8)1
Avg Revenue beat(8)-1.22%
Revenue beat(12)1
Avg Revenue beat(12)-1.34%
Revenue beat(16)1
Avg Revenue beat(16)-1.45%
PT rev (1m)0.17%
PT rev (3m)-18.41%
EPS NQ rev (1m)0.68%
EPS NQ rev (3m)6.35%
EPS NY rev (1m)0.11%
EPS NY rev (3m)1.13%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.36%
Revenue NY rev (1m)-0.13%
Revenue NY rev (3m)-1.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.1 | ||
| Fwd PE | 12.86 | ||
| P/S | 2.26 | ||
| P/FCF | 12.08 | ||
| P/OCF | 10.77 | ||
| P/B | 3.56 | ||
| P/tB | 7.97 | ||
| EV/EBITDA | 9.98 |
EPS(TTM)4.19
EY6.62%
EPS(NY)4.92
Fwd EY7.78%
FCF(TTM)5.24
FCFY8.28%
OCF(TTM)5.87
OCFY9.28%
SpS27.98
BVpS17.77
TBVpS7.94
PEG (NY)3.39
PEG (5Y)1.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.59% | ||
| ROE | 22.44% | ||
| ROCE | 17.25% | ||
| ROIC | 13.48% | ||
| ROICexc | 19.93% | ||
| ROICexgc | 38.19% | ||
| OM | 18.75% | ||
| PM (TTM) | 14.26% | ||
| GM | 41.4% | ||
| FCFM | 18.71% |
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%
ROICexcg growth 3Y7.88%
ROICexcg 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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.12 | ||
| Debt/EBITDA | 1.64 | ||
| Cap/Depr | 71.64% | ||
| Cap/Sales | 2.27% | ||
| Interest Coverage | 16.34 | ||
| Cash Conversion | 95.74% | ||
| Profit Quality | 131.28% | ||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.3 | ||
| Altman-Z | 2.04 |
F-Score8
WACC7.96%
ROIC/WACC1.69
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)-8.05%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%-5%
EPS Next Y4.45%
EPS Next 2Y7.59%
EPS Next 3Y9.57%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.79%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%1.19%
Revenue Next Year3.06%
Revenue Next 2Y4.39%
Revenue Next 3Y5.34%
Revenue Next 5Y5.57%
EBIT growth 1Y15.85%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.59%
EBIT Next 3Y12.87%
EBIT Next 5Y10.05%
FCF growth 1Y17.46%
FCF growth 3Y11.44%
FCF growth 5Y14.98%
OCF growth 1Y16.08%
OCF growth 3Y8.72%
OCF growth 5Y12.85%