PAYPAL HOLDINGS INC (2PP.DE) Stock Fundamental Analysis
FRA:2PP - Deutsche Boerse Ag - US70450Y1038 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 2PP. 2PP was compared to 51 industry peers in the Financial Services industry. 2PP has an excellent profitability rating, but there are some minor concerns on its financial health. 2PP is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
2PP had positive earnings in the past year.
2PP had a positive operating cash flow in the past year.
In the past 5 years 2PP has always been profitable.
2PP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
2PP has a Return On Assets of 5.08%. This is in the better half of the industry: 2PP outperforms 70.59% of its industry peers.
With a decent Return On Equity value of 20.31%, 2PP is doing good in the industry, outperforming 76.47% of the companies in the same industry.
With an excellent Return On Invested Capital value of 13.55%, 2PP belongs to the best of the industry, outperforming 86.27% of the companies in the same industry.
2PP had an Average Return On Invested Capital over the past 3 years of 11.47%. This is in line with the industry average of 10.89%.
The 3 year average ROIC (11.47%) for 2PP is below the current ROIC(13.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 20.31% | ||
| ROIC | 13.55% |
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
2PP's Profit Margin of 13.04% is fine compared to the rest of the industry. 2PP outperforms 64.71% of its industry peers.
2PP's Profit Margin has been stable in the last couple of years.
2PP has a Operating Margin of 18.12%. This is in the better half of the industry: 2PP outperforms 68.63% of its industry peers.
2PP's Operating Margin has improved in the last couple of years.
2PP has a Gross Margin of 40.54%. This is comparable to the rest of the industry: 2PP outperforms 50.98% of its industry peers.
In the last couple of years the Gross Margin of 2PP has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.12% | ||
| PM (TTM) | 13.04% | ||
| GM | 40.54% |
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 below the Cost of Capital (WACC), so 2PP is destroying value.
2PP has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 2PP has been reduced compared to 5 years ago.
Compared to 1 year ago, 2PP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.90 indicates that 2PP is not a great score, but indicates only limited risk for bankruptcy at the moment.
2PP has a Altman-Z score (1.90) which is comparable to the rest of the industry.
The Debt to FCF ratio of 2PP is 1.64, which is an excellent value as it means it would take 2PP, only 1.64 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 2PP (1.64) is better than 80.39% of its industry peers.
2PP has a Debt/Equity ratio of 0.48. This is a healthy value indicating a solid balance between debt and equity.
2PP has a Debt to Equity ratio (0.48) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.64 | ||
| Altman-Z | 1.9 |
ROIC/WACC0.97
WACC13.94%
2.3 Liquidity
A Current Ratio of 1.26 indicates that 2PP should not have too much problems paying its short term obligations.
2PP's Current ratio of 1.26 is fine compared to the rest of the industry. 2PP outperforms 62.75% of its industry peers.
A Quick Ratio of 1.26 indicates that 2PP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.26, 2PP is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
2PP shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -2.54%.
The Earnings Per Share has been growing by 9.87% on average over the past years. This is quite good.
2PP shows a small growth in Revenue. In the last year, the Revenue has grown by 6.81%.
Measured over the past years, 2PP shows a quite strong growth in Revenue. The Revenue has been growing by 12.34% on average per year.
EPS 1Y (TTM)-2.54%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%-19.59%
Revenue 1Y (TTM)6.81%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%4.24%
3.2 Future
2PP is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.09% yearly.
2PP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.57% yearly.
EPS Next Y2.67%
EPS Next 2Y6.88%
EPS Next 3Y8.91%
EPS Next 5Y11.09%
Revenue Next Year3.8%
Revenue Next 2Y5.03%
Revenue Next 3Y5.49%
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.
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
A Price/Earnings ratio of 13.02 indicates a correct valuation of 2PP.
2PP's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.79. 2PP is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 12.67, 2PP is valued correctly.
2PP's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.38. 2PP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.02 | ||
| Fwd PE | 12.67 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 2PP is valued a bit cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 2PP is valued a bit cheaper than the industry average as 70.59% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.36 | ||
| EV/EBITDA | 8.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 2PP does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of 2PP may justify a higher PE ratio.
PEG (NY)4.88
PEG (5Y)1.32
EPS Next 2Y6.88%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
2PP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:2PP (4/25/2025, 7:00:00 PM)
57.04
+0.62 (+1.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners77.78%
Inst Owner ChangeN/A
Ins Owners0.09%
Ins Owner ChangeN/A
Market Cap55.75B
Analysts74.9
Price Target75.3 (32.01%)
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)6.99%
Min EPS beat(2)3.97%
Max EPS beat(2)10.02%
EPS beat(4)4
Avg EPS beat(4)11.27%
Min EPS beat(4)3.97%
Max EPS beat(4)18.26%
EPS beat(8)7
Avg EPS beat(8)7.19%
EPS beat(12)10
Avg EPS beat(12)6.15%
EPS beat(16)13
Avg EPS beat(16)5.67%
Revenue beat(2)0
Avg Revenue beat(2)-1.56%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)-0.65%
Revenue beat(4)1
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)0.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.02%
Revenue beat(12)1
Avg Revenue beat(12)-1.17%
Revenue beat(16)2
Avg Revenue beat(16)-1.27%
PT rev (1m)-18.05%
PT rev (3m)-18.28%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)3.25%
EPS NY rev (1m)-0.49%
EPS NY rev (3m)2.58%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.34%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-1.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.02 | ||
| Fwd PE | 12.67 | ||
| P/S | 1.99 | ||
| P/FCF | 9.36 | ||
| P/OCF | 8.5 | ||
| P/B | 3.1 | ||
| P/tB | 6.84 | ||
| EV/EBITDA | 8.73 |
EPS(TTM)4.38
EY7.68%
EPS(NY)4.5
Fwd EY7.89%
FCF(TTM)6.1
FCFY10.69%
OCF(TTM)6.71
OCFY11.77%
SpS28.65
BVpS18.39
TBVpS8.34
PEG (NY)4.88
PEG (5Y)1.32
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.08% | ||
| ROE | 20.31% | ||
| ROCE | 17.34% | ||
| ROIC | 13.55% | ||
| ROICexc | 20.09% | ||
| ROICexgc | 40.03% | ||
| OM | 18.12% | ||
| PM (TTM) | 13.04% | ||
| GM | 40.54% | ||
| FCFM | 21.28% |
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-Score6
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.48 | ||
| Debt/FCF | 1.64 | ||
| Debt/EBITDA | 1.46 | ||
| Cap/Depr | 66.18% | ||
| Cap/Sales | 2.15% | ||
| Interest Coverage | 15.75 | ||
| Cash Conversion | 109.64% | ||
| Profit Quality | 163.18% | ||
| Current Ratio | 1.26 | ||
| Quick Ratio | 1.26 | ||
| Altman-Z | 1.9 |
F-Score6
WACC13.94%
ROIC/WACC0.97
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)-2.54%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%-19.59%
EPS Next Y2.67%
EPS Next 2Y6.88%
EPS Next 3Y8.91%
EPS Next 5Y11.09%
Revenue 1Y (TTM)6.81%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%4.24%
Revenue Next Year3.8%
Revenue Next 2Y5.03%
Revenue Next 3Y5.49%
Revenue Next 5Y5.57%
EBIT growth 1Y16.57%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.56%
EBIT Next 3Y13.51%
EBIT Next 5Y10.05%
FCF growth 1Y60.36%
FCF growth 3Y11.44%
FCF growth 5Y14.98%
OCF growth 1Y53.83%
OCF growth 3Y8.72%
OCF growth 5Y12.85%