62.05 USD
+0.39 (+0.63%)
Overall PYPL gets a fundamental rating of 6 out of 10. We evaluated PYPL against 97 industry peers in the Financial Services industry. PYPL scores excellent on profitability, but there are some minor concerns on its financial health. PYPL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
PYPL had positive earnings in the past year.
In the past year PYPL had a positive cash flow from operations.
In the past 5 years PYPL has always been profitable.
PYPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.16%, PYPL is in the better half of the industry, outperforming 78.35% of the companies in the same industry.
PYPL has a Return On Equity of 24.34%. This is amongst the best in the industry. PYPL outperforms 89.69% of its industry peers.
PYPL's Return On Invested Capital of 14.11% is amongst the best of the industry. PYPL outperforms 90.72% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PYPL is above the industry average of 8.44%.
The last Return On Invested Capital (14.11%) for PYPL 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
The Profit Margin of PYPL (14.96%) is comparable to the rest of the industry.
In the last couple of years the Profit Margin of PYPL has remained more or less at the same level.
PYPL has a better Operating Margin (19.16%) than 68.04% of its industry peers.
PYPL's Operating Margin has improved in the last couple of years.
PYPL has a better Gross Margin (41.56%) than 60.82% of its industry peers.
PYPL'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
PYPL 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, PYPL has less shares outstanding
The number of shares outstanding for PYPL has been reduced compared to 5 years ago.
Compared to 1 year ago, PYPL has a worse debt to assets ratio.
2.2 Solvency
PYPL has an Altman-Z score of 2.03. This is not the best score and indicates that PYPL is in the grey zone with still only limited risk for bankruptcy at the moment.
PYPL has a Altman-Z score of 2.03. This is in the better half of the industry: PYPL outperforms 75.26% of its industry peers.
The Debt to FCF ratio of PYPL is 2.06, which is a good value as it means it would take PYPL, 2.06 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.06, PYPL is doing good in the industry, outperforming 72.16% of the companies in the same industry.
PYPL has a Debt/Equity ratio of 0.56. This is a neutral value indicating PYPL is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.56, PYPL is in line with its industry, outperforming 53.61% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for PYPL, 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 | 2.03 |
ROIC/WACC1.8
WACC7.83%
2.3 Liquidity
A Current Ratio of 1.34 indicates that PYPL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.34, PYPL is in the better half of the industry, outperforming 62.89% of the companies in the same industry.
PYPL has a Quick Ratio of 1.34. This is a normal value and indicates that PYPL is financially healthy and should not expect problems in meeting its short term obligations.
PYPL has a Quick ratio of 1.34. This is in the better half of the industry: PYPL outperforms 63.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
PYPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.19%.
The Earnings Per Share has been growing by 9.87% on average over the past years. This is quite good.
PYPL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.47%.
PYPL 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
PYPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.14% yearly.
PYPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y9.85%
EPS Next 2Y9.39%
EPS Next 3Y10.65%
EPS Next 5Y13.14%
Revenue Next Year5.18%
Revenue Next 2Y5.62%
Revenue Next 3Y6%
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.
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
With a Price/Earnings ratio of 11.80, the valuation of PYPL can be described as very reasonable.
PYPL's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.56. PYPL is valued rather cheaply when compared to this.
PYPL is valuated reasonably with a Price/Forward Earnings ratio of 10.41.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PYPL is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 23.79. PYPL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 10.41 |
4.2 Price Multiples
PYPL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PYPL is cheaper than 77.32% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PYPL is valued a bit cheaper than the industry average as 73.20% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.43 | ||
| EV/EBITDA | 7.78 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PYPL may justify a higher PE ratio.
PEG (NY)1.2
PEG (5Y)1.19
EPS Next 2Y9.39%
EPS Next 3Y10.65%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, PYPL is not a good candidate for dividend investing.
PYPL's Dividend Yield is comparable with the industry average which is at 2.16.
Compared to an average S&P500 Dividend Yield of 1.87, PYPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
PYPL is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y9.39%
EPS Next 3Y10.65%
NASDAQ:PYPL (12/15/2025, 9:50:09 AM)
62.05
+0.39 (+0.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.82%
Inst Owner Change-1.84%
Ins Owners0.09%
Ins Owner Change0.11%
Market Cap58.06B
Revenue(TTM)32.86B
Net Income(TTM)4.92B
Analysts71.2
Price Target84.07 (35.49%)
Short Float %4.62%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)-0.02%
PT rev (3m)0.07%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-1.33%
EPS NY rev (1m)0.39%
EPS NY rev (3m)2.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.71%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.8 | ||
| Fwd PE | 10.41 | ||
| P/S | 1.77 | ||
| P/FCF | 10.43 | ||
| P/OCF | 9.03 | ||
| P/B | 2.87 | ||
| P/tB | 6.43 | ||
| EV/EBITDA | 7.78 |
EPS(TTM)5.26
EY8.48%
EPS(NY)5.96
Fwd EY9.6%
FCF(TTM)5.95
FCFY9.59%
OCF(TTM)6.87
OCFY11.07%
SpS35.12
BVpS21.59
TBVpS9.65
PEG (NY)1.2
PEG (5Y)1.19
Graham Number50.55
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 | 2.03 |
F-Score8
WACC7.83%
ROIC/WACC1.8
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 Y9.85%
EPS Next 2Y9.39%
EPS Next 3Y10.65%
EPS Next 5Y13.14%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
Revenue Next Year5.18%
Revenue Next 2Y5.62%
Revenue Next 3Y6%
Revenue Next 5Y6.28%
EBIT growth 1Y10.67%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year26.64%
EBIT Next 3Y11.45%
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 / PYPL FAQ
Can you provide the ChartMill fundamental rating for PAYPAL HOLDINGS INC?
ChartMill assigns a fundamental rating of 6 / 10 to PYPL.
Can you provide the valuation status for PAYPAL HOLDINGS INC?
ChartMill assigns a valuation rating of 6 / 10 to PAYPAL HOLDINGS INC (PYPL). This can be considered as Fairly Valued.
What is the profitability of PYPL stock?
PAYPAL HOLDINGS INC (PYPL) has a profitability rating of 7 / 10.
What are the PE and PB ratios of PAYPAL HOLDINGS INC (PYPL) stock?
The Price/Earnings (PE) ratio for PAYPAL HOLDINGS INC (PYPL) is 11.8 and the Price/Book (PB) ratio is 2.87.
What is the earnings growth outlook for PAYPAL HOLDINGS INC?
The Earnings per Share (EPS) of PAYPAL HOLDINGS INC (PYPL) is expected to grow by 9.85% in the next year.