PAYPAL HOLDINGS INC (2PP.DE) Stock Fundamental Analysis
FRA:2PP - Deutsche Boerse Ag - US70450Y1038 - Common Stock - Currency: EUR
2PP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 50 industry peers in the Financial Services industry. 2PP has an average financial health and profitability rating. 2PP has a correct valuation and a medium 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.
Each year in the past 5 years 2PP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.30%, 2PP is in the better half of the industry, outperforming 68.18% of the companies in the same industry.
The Return On Equity of 2PP (21.95%) is better than 75.00% of its industry peers.
With an excellent Return On Invested Capital value of 12.86%, 2PP belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
2PP had an Average Return On Invested Capital over the past 3 years of 10.00%. This is in line with the industry average of 10.86%.
The last Return On Invested Capital (12.86%) for 2PP is above the 3 year average (10.00%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 21.95% | ||
| ROIC | 12.86% |
ROA(3y)4.58%
ROA(5y)4.9%
ROE(3y)17.1%
ROE(5y)17.37%
ROIC(3y)10%
ROIC(5y)9.33%
1.3 Margins
With a Profit Margin value of 14.08%, 2PP perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
2PP's Profit Margin has been stable in the last couple of years.
2PP has a better Operating Margin (18.09%) than 68.18% of its industry peers.
2PP's Operating Margin has been stable in the last couple of years.
The Gross Margin of 2PP (40.10%) is comparable to the rest of the industry.
2PP's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.09% | ||
| PM (TTM) | 14.08% | ||
| GM | 40.1% |
OM growth 3Y1.29%
OM growth 5Y0.5%
PM growth 3Y-10.03%
PM growth 5Y1.39%
GM growth 3Y-5.3%
GM growth 5Y-2.98%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 2PP is creating some value.
The number of shares outstanding for 2PP has been reduced compared to 1 year ago.
The number of shares outstanding for 2PP has been reduced compared to 5 years ago.
The debt/assets ratio for 2PP has been reduced compared to a year ago.
2.2 Solvency
2PP has an Altman-Z score of 1.99. This is not the best score and indicates that 2PP is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.99, 2PP is in line with its industry, outperforming 50.00% of the companies in the same industry.
2PP has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
2PP has a better Debt to FCF ratio (1.77) than 68.18% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that 2PP is not too dependend on debt financing.
2PP has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 1.99 |
ROIC/WACC1.54
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.25 indicates that 2PP should not have too much problems paying its short term obligations.
The Current ratio of 2PP (1.25) is comparable to the rest of the industry.
2PP has a Quick Ratio of 1.25. This is a normal value and indicates that 2PP is financially healthy and should not expect problems in meeting its short term obligations.
2PP has a Quick ratio (1.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.21% over the past year.
The Earnings Per Share has been growing by 16.12% 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 8.00%.
2PP shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.02% yearly.
EPS 1Y (TTM)8.21%
EPS 3Y8.06%
EPS 5Y16.12%
EPS Q2Q%-7.69%
Revenue 1Y (TTM)8%
Revenue growth 3Y11.54%
Revenue growth 5Y14.02%
Sales Q2Q%5.78%
3.2 Future
2PP is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.03% yearly.
2PP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.24% yearly.
EPS Next Y-8.52%
EPS Next 2Y-1.21%
EPS Next 3Y2.98%
EPS Next 5Y7.03%
Revenue Next Year6.99%
Revenue Next 2Y6.28%
Revenue Next 3Y6.45%
Revenue Next 5Y6.24%
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 decreasing.
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
2PP is valuated correctly with a Price/Earnings ratio of 14.93.
2PP's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.47, 2PP is valued a bit cheaper.
2PP is valuated correctly with a Price/Forward Earnings ratio of 15.78.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 2PP is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, 2PP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 15.78 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 2PP.
The rest of the industry has a similar Price/Free Cash Flow ratio as 2PP.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.2 | ||
| EV/EBITDA | 11.42 |
4.3 Compensation for Growth
2PP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.93
EPS Next 2Y-1.21%
EPS Next 3Y2.98%
5. Dividend
5.1 Amount
2PP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PAYPAL HOLDINGS INC
FRA:2PP (2/5/2025, 4:38:46 PM)
76.15
-2.05 (-2.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners74.06%
Inst Owner ChangeN/A
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap76.34B
Analysts74.81
Price Target91.96 (20.76%)
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)14.14%
Min EPS beat(2)10.02%
Max EPS beat(2)18.26%
EPS beat(4)4
Avg EPS beat(4)11.89%
Min EPS beat(4)6.45%
Max EPS beat(4)18.26%
EPS beat(8)7
Avg EPS beat(8)6.87%
EPS beat(12)9
Avg EPS beat(12)5.57%
EPS beat(16)13
Avg EPS beat(16)5.8%
Revenue beat(2)0
Avg Revenue beat(2)-1.79%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)-1.13%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)0.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.2%
Revenue beat(12)1
Avg Revenue beat(12)-1.22%
Revenue beat(16)2
Avg Revenue beat(16)-1.32%
PT rev (1m)-0.18%
PT rev (3m)17.9%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-0.65%
EPS NY rev (1m)0.12%
EPS NY rev (3m)0.3%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-3.49%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.93 | ||
| Fwd PE | 15.78 | ||
| P/S | 2.51 | ||
| P/FCF | 11.2 | ||
| P/OCF | 10.29 | ||
| P/B | 3.91 | ||
| P/tB | 8.98 | ||
| EV/EBITDA | 11.42 |
EPS(TTM)5.1
EY6.7%
EPS(NY)4.83
Fwd EY6.34%
FCF(TTM)6.8
FCFY8.93%
OCF(TTM)7.4
OCFY9.72%
SpS30.36
BVpS19.47
TBVpS8.48
PEG (NY)N/A
PEG (5Y)0.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 21.95% | ||
| ROCE | 17.11% | ||
| ROIC | 12.86% | ||
| ROICexc | 20.05% | ||
| ROICexgc | 43.04% | ||
| OM | 18.09% | ||
| PM (TTM) | 14.08% | ||
| GM | 40.1% | ||
| FCFM | 22.4% |
ROA(3y)4.58%
ROA(5y)4.9%
ROE(3y)17.1%
ROE(5y)17.37%
ROIC(3y)10%
ROIC(5y)9.33%
ROICexc(3y)15.39%
ROICexc(5y)15.03%
ROICexgc(3y)34.97%
ROICexgc(5y)33.17%
ROCE(3y)13.3%
ROCE(5y)12.41%
ROICexcg growth 3Y16.01%
ROICexcg growth 5Y-4.74%
ROICexc growth 3Y11.6%
ROICexc growth 5Y0.74%
OM growth 3Y1.29%
OM growth 5Y0.5%
PM growth 3Y-10.03%
PM growth 5Y1.39%
GM growth 3Y-5.3%
GM growth 5Y-2.98%
F-Score6
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 1.48 | ||
| Cap/Depr | 59.75% | ||
| Cap/Sales | 1.99% | ||
| Interest Coverage | 17.14 | ||
| Cash Conversion | 113.88% | ||
| Profit Quality | 159.1% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 1.99 |
F-Score6
WACC8.36%
ROIC/WACC1.54
Cap/Depr(3y)61.17%
Cap/Depr(5y)66.71%
Cap/Sales(3y)2.75%
Cap/Sales(5y)3.25%
Profit Quality(3y)142.59%
Profit Quality(5y)138.42%
High Growth Momentum
Growth
EPS 1Y (TTM)8.21%
EPS 3Y8.06%
EPS 5Y16.12%
EPS Q2Q%-7.69%
EPS Next Y-8.52%
EPS Next 2Y-1.21%
EPS Next 3Y2.98%
EPS Next 5Y7.03%
Revenue 1Y (TTM)8%
Revenue growth 3Y11.54%
Revenue growth 5Y14.02%
Sales Q2Q%5.78%
Revenue Next Year6.99%
Revenue Next 2Y6.28%
Revenue Next 3Y6.45%
Revenue Next 5Y6.24%
EBIT growth 1Y18.62%
EBIT growth 3Y12.98%
EBIT growth 5Y14.58%
EBIT Next Year4.56%
EBIT Next 3Y4.82%
EBIT Next 5Y6.45%
FCF growth 1Y50.5%
FCF growth 3Y-7.62%
FCF growth 5Y-1.95%
OCF growth 1Y40.94%
OCF growth 3Y-8%
OCF growth 5Y-2.44%