PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe - BIT:1PYPL - US70450Y1038 - Common Stock
54.08 EUR
-1.38 (-2.49%)
We assign a fundamental rating of 6 out of 10 to 1PYPL. 1PYPL was compared to 52 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
1PYPL had positive earnings in the past year.
In the past year 1PYPL had a positive cash flow from operations.
Each year in the past 5 years 1PYPL has been profitable.
In the past 5 years 1PYPL always reported a positive cash flow from operatings.
1.2 Ratios
1PYPL's Return On Assets of 6.16% is amongst the best of the industry. 1PYPL outperforms 80.77% of its industry peers.
1PYPL's Return On Equity of 24.34% is amongst the best of the industry. 1PYPL outperforms 86.54% of its industry peers.
With an excellent Return On Invested Capital value of 14.11%, 1PYPL belongs to the best of the industry, outperforming 86.54% 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 in line with the industry average of 9.75%.
The last Return On Invested Capital (14.11%) for 1PYPL is above the 3 year average (11.47%), which is a sign of increasing profitability.
| 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 in the better half of the industry: 1PYPL outperforms 65.38% of its industry peers.
1PYPL's Profit Margin has been stable in the last couple of years.
The Operating Margin of 1PYPL (19.16%) is better than 71.15% of its industry peers.
1PYPL's Operating Margin has improved in the last couple of years.
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1PYPL is creating value.
Compared to 1 year ago, 1PYPL has less shares outstanding
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
1PYPL has an Altman-Z score of 2.05. 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.
With a decent Altman-Z score value of 2.05, 1PYPL is doing good in the industry, outperforming 61.54% of the companies in the same industry.
1PYPL has a debt to FCF ratio of 2.06. This is a good value and a sign of high solvency as 1PYPL would need 2.06 years to pay back of all of its debts.
The Debt to FCF ratio of 1PYPL (2.06) is better than 73.08% 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 40.38% 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 | 2.05 |
ROIC/WACC1.83
WACC7.69%
2.3 Liquidity
A Current Ratio of 1.34 indicates that 1PYPL should not have too much problems paying its short term obligations.
1PYPL has a Current ratio of 1.34. This is comparable to the rest of the industry: 1PYPL outperforms 50.00% of its industry peers.
A Quick Ratio of 1.34 indicates that 1PYPL should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.34, 1PYPL perfoms like the industry average, outperforming 55.77% of the companies in the same industry.
| 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.
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%.
The Revenue has been growing by 12.34% on average over the past years. This is quite good.
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.
The Revenue is expected to grow by 6.28% on average over the next years.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
1PYPL is valuated reasonably with a Price/Earnings ratio of 11.91.
Based on the Price/Earnings ratio, 1PYPL is valued a bit cheaper than the industry average as 73.08% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 25.56. 1PYPL is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 10.54, the valuation of 1PYPL can be described as reasonable.
67.31% of the companies in the same industry are more expensive than 1PYPL, based on the Price/Forward Earnings ratio.
1PYPL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.62.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 10.54 |
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 71.15% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 1PYPL is valued a bit cheaper than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.76 | ||
| EV/EBITDA | 8.09 |
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)1.26
PEG (5Y)1.21
EPS Next 2Y9.27%
EPS Next 3Y10.66%
5. Dividend
5.1 Amount
1PYPL has a yearly dividend return of 0.86%, which is pretty low.
1PYPL's Dividend Yield is comparable with the industry average which is at 3.37.
Compared to an average S&P500 Dividend Yield of 2.44, 1PYPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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 (11/17/2025, 7:00:00 PM)
54.08
-1.38 (-2.49%)
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 Cap51.67B
Revenue(TTM)32.86B
Net Income(TTM)4.92B
Analysts70.98
Price Target71.6 (32.4%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.86% |
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)-0.92%
PT rev (3m)-1.23%
EPS NQ rev (1m)-1.17%
EPS NQ rev (3m)-0.9%
EPS NY rev (1m)1.69%
EPS NY rev (3m)4.92%
Revenue NQ rev (1m)0.82%
Revenue NQ rev (3m)0.95%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.91 | ||
| Fwd PE | 10.54 | ||
| P/S | 1.82 | ||
| P/FCF | 10.76 | ||
| P/OCF | 9.32 | ||
| P/B | 2.97 | ||
| P/tB | 6.63 | ||
| EV/EBITDA | 8.09 |
EPS(TTM)4.54
EY8.39%
EPS(NY)5.13
Fwd EY9.48%
FCF(TTM)5.02
FCFY9.29%
OCF(TTM)5.8
OCFY10.73%
SpS29.67
BVpS18.24
TBVpS8.15
PEG (NY)1.26
PEG (5Y)1.21
Graham Number43.16
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 | 2.05 |
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.