62.69 USD
+0.86 (+1.39%)
62.6281 USD
-0.06 (-0.1%)
PYPL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 98 industry peers in the Financial Services industry. PYPL has an excellent profitability rating, 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
In the past year PYPL was profitable.
In the past year PYPL had a positive cash flow from operations.
Each year in the past 5 years PYPL has been profitable.
PYPL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PYPL has a better Return On Assets (6.16%) than 78.57% of its industry peers.
Looking at the Return On Equity, with a value of 24.34%, PYPL belongs to the top of the industry, outperforming 88.78% of the companies in the same industry.
PYPL has a better Return On Invested Capital (14.11%) than 90.82% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PYPL is above the industry average of 8.20%.
The 3 year average ROIC (11.47%) for PYPL 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
PYPL has a Profit Margin (14.96%) which 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.
The Operating Margin of PYPL (19.16%) is better than 66.33% of its industry peers.
PYPL's Operating Margin has improved in the last couple of years.
PYPL's Gross Margin of 41.56% is fine compared to the rest of the industry. PYPL outperforms 62.24% 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.
The number of shares outstanding for PYPL has been reduced compared to 1 year ago.
The number of shares outstanding for PYPL has been reduced compared to 5 years ago.
The debt/assets ratio for PYPL is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.03 indicates that PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
PYPL's Altman-Z score of 2.03 is fine compared to the rest of the industry. PYPL outperforms 75.51% of its industry peers.
PYPL has a debt to FCF ratio of 2.06. This is a good value and a sign of high solvency as PYPL would need 2.06 years to pay back of all of its debts.
PYPL has a better Debt to FCF ratio (2.06) than 74.49% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that PYPL is somewhat dependend on debt financing.
PYPL has a Debt to Equity ratio (0.56) which is comparable to the rest of the 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/WACC1.84
WACC7.68%
2.3 Liquidity
A Current Ratio of 1.34 indicates that PYPL should not have too much problems paying its short term obligations.
PYPL has a Current ratio of 1.34. This is in the better half of the industry: PYPL outperforms 63.27% of its industry peers.
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.
With a decent Quick ratio value of 1.34, PYPL is doing good in the industry, outperforming 64.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
The earnings per share for PYPL have decreased by -0.19% in the last year.
PYPL 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.
The Revenue has been growing by 12.34% on average over the past years. This is quite good.
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 Y9.42%
EPS Next 2Y9.27%
EPS Next 3Y10.66%
EPS Next 5Y13.14%
Revenue Next Year5.07%
Revenue Next 2Y5.54%
Revenue Next 3Y5.96%
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.
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
Based on the Price/Earnings ratio of 11.92, the valuation of PYPL can be described as reasonable.
PYPL's Price/Earnings ratio is in line with the industry average.
PYPL is valuated cheaply when we compare the Price/Earnings ratio to 26.31, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 10.54 indicates a reasonable valuation of PYPL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PYPL is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PYPL to the average of the S&P500 Index (36.59), we can say PYPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.54 |
4.2 Price Multiples
PYPL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PYPL is cheaper than 76.53% of the companies in the same industry.
PYPL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PYPL is cheaper than 72.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.54 | ||
| EV/EBITDA | 7.81 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PYPL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.26
PEG (5Y)1.21
EPS Next 2Y9.27%
EPS Next 3Y10.66%
5. Dividend
5.1 Amount
With a yearly dividend of 0.96%, PYPL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.20, PYPL has a dividend in line with its industry peers.
With a Dividend Yield of 0.96, PYPL pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.96% |
5.2 History
PYPL does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y9.27%
EPS Next 3Y10.66%
62.69
+0.86 (+1.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.2%
Inst Owner Change-1.69%
Ins Owners0.1%
Ins Owner Change0.15%
Market Cap58.66B
Revenue(TTM)32.86B
Net Income(TTM)4.92B
Analysts70.98
Price Target85.25 (35.99%)
Short Float %4.65%
Short Ratio2.7
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-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)0.09%
PT rev (3m)1.07%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)-1.34%
EPS NY rev (1m)1.82%
EPS NY rev (3m)4.92%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0.63%
Revenue NY rev (3m)1.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.92 | ||
| Fwd PE | 10.54 | ||
| P/S | 1.78 | ||
| P/FCF | 10.54 | ||
| P/OCF | 9.13 | ||
| P/B | 2.9 | ||
| P/tB | 6.49 | ||
| EV/EBITDA | 7.81 |
EPS(TTM)5.26
EY8.39%
EPS(NY)5.95
Fwd EY9.49%
FCF(TTM)5.95
FCFY9.49%
OCF(TTM)6.87
OCFY10.96%
SpS35.12
BVpS21.59
TBVpS9.65
PEG (NY)1.26
PEG (5Y)1.21
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
WACC7.68%
ROIC/WACC1.84
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 Y9.42%
EPS Next 2Y9.27%
EPS Next 3Y10.66%
EPS Next 5Y13.14%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
Revenue Next Year5.07%
Revenue Next 2Y5.54%
Revenue Next 3Y5.96%
Revenue Next 5Y6.28%
EBIT growth 1Y10.67%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year23.15%
EBIT Next 3Y12.17%
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 11.92 and the Price/Book (PB) ratio is 2.9.
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 9.42% in the next year.