PAYPAL HOLDINGS INC (1PYPL.MI) Stock Fundamental Analysis
Europe - BIT:1PYPL - US70450Y1038 - Common Stock
56.83 EUR
-2.47 (-4.17%)
Overall 1PYPL gets a fundamental rating of 5 out of 10. We evaluated 1PYPL against 50 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 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 5.87%, 1PYPL belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
1PYPL's Return On Equity of 23.16% is amongst the best of the industry. 1PYPL outperforms 88.00% of its industry peers.
1PYPL has a better Return On Invested Capital (13.86%) than 88.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1PYPL is above the industry average of 8.73%.
The 3 year average ROIC (11.47%) for 1PYPL is below the current ROIC(13.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 23.16% | ||
| ROIC | 13.86% |
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 14.49%. This is in the better half of the industry: 1PYPL outperforms 68.00% of its industry peers.
In the last couple of years the Profit Margin of 1PYPL has remained more or less at the same level.
With a decent Operating Margin value of 19.08%, 1PYPL is doing good in the industry, outperforming 72.00% of the companies in the same industry.
1PYPL's Operating Margin has improved in the last couple of years.
The Gross Margin of 1PYPL (41.68%) is comparable to the rest of the industry.
1PYPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.08% | ||
| PM (TTM) | 14.49% | ||
| GM | 41.68% |
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.
Compared to 1 year ago, 1PYPL has less shares outstanding
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
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 Altman-Z score value of 2.05, 1PYPL perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
The Debt to FCF ratio of 1PYPL is 2.13, which is a good value as it means it would take 1PYPL, 2.13 years of fcf income to pay off all of its debts.
1PYPL has a better Debt to FCF ratio (2.13) than 74.00% 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.
The Debt to Equity ratio of 1PYPL (0.56) is worse than 60.00% 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 | 2.13 | ||
| Altman-Z | 2.05 |
ROIC/WACC1.81
WACC7.64%
2.3 Liquidity
A Current Ratio of 1.33 indicates that 1PYPL should not have too much problems paying its short term obligations.
1PYPL has a Current ratio of 1.33. This is comparable to the rest of the industry: 1PYPL outperforms 44.00% of its industry peers.
1PYPL has a Quick Ratio of 1.33. This is a normal value and indicates that 1PYPL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.33, 1PYPL is in line with its industry, outperforming 50.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
1PYPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.66%.
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.
The Revenue has been growing slightly by 4.07% 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)-4.66%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%17.65%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%5.11%
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 11.09% yearly.
Based on estimates for the next years, 1PYPL will show a small growth in Revenue. The Revenue will grow by 5.57% on average per year.
EPS Next Y7.6%
EPS Next 2Y9.1%
EPS Next 3Y10.5%
EPS Next 5Y11.09%
Revenue Next Year4.36%
Revenue Next 2Y5.15%
Revenue Next 3Y5.72%
Revenue Next 5Y5.57%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
A Price/Earnings ratio of 12.97 indicates a correct valuation of 1PYPL.
1PYPL's Price/Earnings ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 70.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1PYPL to the average of the S&P500 Index (27.42), we can say 1PYPL is valued rather cheaply.
A Price/Forward Earnings ratio of 11.20 indicates a reasonable valuation of 1PYPL.
1PYPL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 68.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.94, 1PYPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 11.2 |
4.2 Price Multiples
68.00% of the companies in the same industry are more expensive than 1PYPL, based on the Enterprise Value to EBITDA ratio.
1PYPL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1PYPL is cheaper than 66.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.98 | ||
| EV/EBITDA | 8.59 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.71
PEG (5Y)1.31
EPS Next 2Y9.1%
EPS Next 3Y10.5%
5. Dividend
5.1 Amount
1PYPL does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1PYPL (10/17/2025, 7:00:00 PM)
56.83
-2.47 (-4.17%)
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 Cap54.29B
Analysts72.65
Price Target72.27 (27.17%)
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)9.05%
Min EPS beat(2)5.83%
Max EPS beat(2)12.26%
EPS beat(4)4
Avg EPS beat(4)8.02%
Min EPS beat(4)3.97%
Max EPS beat(4)12.26%
EPS beat(8)8
Avg EPS beat(8)9.18%
EPS beat(12)11
Avg EPS beat(12)7.29%
EPS beat(16)13
Avg EPS beat(16)5.65%
Revenue beat(2)1
Avg Revenue beat(2)-1.06%
Min Revenue beat(2)-2.67%
Max Revenue beat(2)0.55%
Revenue beat(4)1
Avg Revenue beat(4)-1.31%
Min Revenue beat(4)-2.67%
Max Revenue beat(4)0.55%
Revenue beat(8)2
Avg Revenue beat(8)-0.93%
Revenue beat(12)2
Avg Revenue beat(12)-1.16%
Revenue beat(16)2
Avg Revenue beat(16)-1.26%
PT rev (1m)1.11%
PT rev (3m)-3.27%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)0.21%
EPS NY rev (1m)0.16%
EPS NY rev (3m)3.18%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)1.26%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.97 | ||
| Fwd PE | 11.2 | ||
| P/S | 1.96 | ||
| P/FCF | 11.98 | ||
| P/OCF | 10.46 | ||
| P/B | 3.14 | ||
| P/tB | 7.08 | ||
| EV/EBITDA | 8.59 |
EPS(TTM)4.38
EY7.71%
EPS(NY)5.07
Fwd EY8.93%
FCF(TTM)4.74
FCFY8.34%
OCF(TTM)5.44
OCFY9.56%
SpS28.94
BVpS18.1
TBVpS8.02
PEG (NY)1.71
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.87% | ||
| ROE | 23.16% | ||
| ROCE | 17.74% | ||
| ROIC | 13.86% | ||
| ROICexc | 19.48% | ||
| ROICexgc | 35.74% | ||
| OM | 19.08% | ||
| PM (TTM) | 14.49% | ||
| GM | 41.68% | ||
| FCFM | 16.39% |
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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.13 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 78.34% | ||
| Cap/Sales | 2.4% | ||
| Interest Coverage | 15.76 | ||
| Cash Conversion | 84.85% | ||
| Profit Quality | 113.1% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 2.05 |
F-Score8
WACC7.64%
ROIC/WACC1.81
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)-4.66%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%17.65%
EPS Next Y7.6%
EPS Next 2Y9.1%
EPS Next 3Y10.5%
EPS Next 5Y11.09%
Revenue 1Y (TTM)4.07%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%5.11%
Revenue Next Year4.36%
Revenue Next 2Y5.15%
Revenue Next 3Y5.72%
Revenue Next 5Y5.57%
EBIT growth 1Y13.21%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.15%
EBIT Next 3Y12.17%
EBIT Next 5Y10.05%
FCF growth 1Y44.75%
FCF growth 3Y11.44%
FCF growth 5Y14.98%
OCF growth 1Y40.55%
OCF growth 3Y8.72%
OCF growth 5Y12.85%