PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PYPL - US70450Y1038 - Common Stock
49.56 EUR
-0.45 (-0.9%)
1PYPL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 58 industry peers in the Financial Services industry. 1PYPL has an excellent profitability rating, but 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.
1PYPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1PYPL (6.16%) is better than 81.03% of its industry peers.
1PYPL has a better Return On Equity (24.34%) than 87.93% 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 87.93% 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 9.69%.
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's Profit Margin of 14.96% is fine compared to the rest of the industry. 1PYPL outperforms 60.34% 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's Operating Margin of 19.16% is fine compared to the rest of the industry. 1PYPL outperforms 67.24% of its industry peers.
In the last couple of years the Operating Margin of 1PYPL has grown nicely.
With a Gross Margin value of 41.56%, 1PYPL perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so 1PYPL is still creating some value.
1PYPL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1PYPL has been reduced compared to 5 years ago.
Compared to 1 year ago, 1PYPL has a worse debt to assets ratio.
2.2 Solvency
1PYPL has an Altman-Z score of 1.99. 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.
The Altman-Z score of 1PYPL (1.99) is better than 60.34% of its industry peers.
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.
With a decent Debt to FCF ratio value of 2.06, 1PYPL is doing good in the industry, outperforming 77.59% 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.
Looking at the Debt to Equity ratio, with a value of 0.56, 1PYPL is in line with its industry, outperforming 46.55% 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 | 2.06 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.79
WACC7.89%
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 (1.34) which 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's Quick ratio of 1.34 is fine compared to the rest of the industry. 1PYPL outperforms 60.34% 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.
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 Y9.7%
EPS Next 2Y9.3%
EPS Next 3Y10.43%
EPS Next 5Y13.14%
Revenue Next Year5.12%
Revenue Next 2Y5.48%
Revenue Next 3Y5.85%
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
With a Price/Earnings ratio of 10.96, the valuation of 1PYPL can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of 1PYPL indicates a somewhat cheap valuation: 1PYPL is cheaper than 74.14% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of 1PYPL to the average of the S&P500 Index (27.19), we can say 1PYPL is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 9.70, the valuation of 1PYPL can be described as reasonable.
72.41% of the companies in the same industry are more expensive than 1PYPL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of 1PYPL to the average of the S&P500 Index (23.88), we can say 1PYPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 9.7 |
4.2 Price Multiples
74.14% of the companies in the same industry are more expensive than 1PYPL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1PYPL indicates a somewhat cheap valuation: 1PYPL is cheaper than 77.59% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.7 | ||
| EV/EBITDA | 7.27 |
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)1.13
PEG (5Y)1.11
EPS Next 2Y9.3%
EPS Next 3Y10.43%
5. Dividend
5.1 Amount
1PYPL has a yearly dividend return of 0.96%, which is pretty low.
1PYPL's Dividend Yield is comparable with the industry average which is at 2.02.
With a Dividend Yield of 0.96, 1PYPL pays less dividend than the S&P500 average, which is at 1.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y9.3%
EPS Next 3Y10.43%
BIT:1PYPL (1/9/2026, 7:00:00 PM)
49.56
-0.45 (-0.9%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.89%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap46.37B
Revenue(TTM)32.86B
Net Income(TTM)4.92B
Analysts68.8
Price Target70.95 (43.16%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
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)-1.22%
PT rev (3m)-1.83%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)-1.31%
EPS NY rev (1m)-0.14%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.96 | ||
| Fwd PE | 9.7 | ||
| P/S | 1.64 | ||
| P/FCF | 9.7 | ||
| P/OCF | 8.4 | ||
| P/B | 2.67 | ||
| P/tB | 5.98 | ||
| EV/EBITDA | 7.27 |
EPS(TTM)4.52
EY9.12%
EPS(NY)5.11
Fwd EY10.31%
FCF(TTM)5.11
FCFY10.31%
OCF(TTM)5.9
OCFY11.9%
SpS30.17
BVpS18.54
TBVpS8.29
PEG (NY)1.13
PEG (5Y)1.11
Graham Number43.43
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 | 1.99 |
F-Score8
WACC7.89%
ROIC/WACC1.79
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 Y9.7%
EPS Next 2Y9.3%
EPS Next 3Y10.43%
EPS Next 5Y13.14%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
Revenue Next Year5.12%
Revenue Next 2Y5.48%
Revenue Next 3Y5.85%
Revenue Next 5Y6.28%
EBIT growth 1Y10.67%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year26.62%
EBIT Next 3Y11.6%
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.
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 10.96 and the Price/Book (PB) ratio is 2.67.