PAYPAL HOLDINGS INC (PYPL) Fundamental Analysis & Valuation
NASDAQ:PYPL • US70450Y1038
Current stock price
50.94 USD
+1.3 (+2.62%)
At close:
50.5 USD
-0.44 (-0.86%)
After Hours:
This PYPL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. PYPL Profitability Analysis
1.1 Basic Checks
- PYPL had positive earnings in the past year.
- In the past year PYPL had a positive cash flow from operations.
- PYPL had positive earnings in each of the past 5 years.
- Each year in the past 5 years PYPL had a positive operating cash flow.
1.2 Ratios
- PYPL has a Return On Assets of 6.53%. This is amongst the best in the industry. PYPL outperforms 84.00% of its industry peers.
- PYPL has a Return On Equity of 25.83%. This is amongst the best in the industry. PYPL outperforms 91.00% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 15.26%, PYPL belongs to the top of the industry, outperforming 93.00% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for PYPL is significantly above the industry average of 7.97%.
- The last Return On Invested Capital (15.26%) for PYPL is above the 3 year average (13.68%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.53% | ||
| ROE | 25.83% | ||
| ROIC | 15.26% |
ROA(3y)5.59%
ROA(5y)5.07%
ROE(3y)22.11%
ROE(5y)19.49%
ROIC(3y)13.68%
ROIC(5y)12.27%
1.3 Margins
- Looking at the Profit Margin, with a value of 15.78%, PYPL is in the better half of the industry, outperforming 65.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of PYPL has declined.
- Looking at the Operating Margin, with a value of 19.28%, PYPL is in the better half of the industry, outperforming 69.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of PYPL has grown nicely.
- With a decent Gross Margin value of 41.48%, PYPL is doing good in the industry, outperforming 62.00% of the companies in the same industry.
- PYPL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 19.28% | ||
| PM (TTM) | 15.78% | ||
| GM | 41.48% |
OM growth 3Y9.47%
OM growth 5Y3.83%
PM growth 3Y21.52%
PM growth 5Y-4.24%
GM growth 3Y-0.68%
GM growth 5Y-2.31%
2. PYPL Health Analysis
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PYPL is creating value.
- The number of shares outstanding for PYPL has been reduced compared to 1 year ago.
- Compared to 5 years ago, PYPL has less shares outstanding
- PYPL has a worse debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.89 indicates that PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
- PYPL has a better Altman-Z score (1.89) than 77.00% of its industry peers.
- PYPL has a debt to FCF ratio of 2.05. This is a good value and a sign of high solvency as PYPL would need 2.05 years to pay back of all of its debts.
- The Debt to FCF ratio of PYPL (2.05) is better than 73.00% of its industry peers.
- PYPL has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
- Looking at the Debt to Equity ratio, with a value of 0.49, PYPL is in line with its industry, outperforming 57.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 1.89 |
ROIC/WACC1.96
WACC7.8%
2.3 Liquidity
- A Current Ratio of 1.29 indicates that PYPL should not have too much problems paying its short term obligations.
- PYPL has a better Current ratio (1.29) than 62.00% of its industry peers.
- A Quick Ratio of 1.29 indicates that PYPL should not have too much problems paying its short term obligations.
- PYPL has a Quick ratio of 1.29. This is in the better half of the industry: PYPL outperforms 65.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. PYPL Growth Analysis
3.1 Past
- The Earnings Per Share has been growing slightly by 6.43% over the past year.
- Measured over the past 5 years, PYPL shows a small growth in Earnings Per Share. The EPS has been growing by 5.53% on average per year.
- The Revenue has been growing slightly by 4.32% in the past year.
- The Revenue has been growing by 9.11% on average over the past years. This is quite good.
EPS 1Y (TTM)6.43%
EPS 3Y8.67%
EPS 5Y5.53%
EPS Q2Q%3.36%
Revenue 1Y (TTM)4.32%
Revenue growth 3Y6.43%
Revenue growth 5Y9.11%
Sales Q2Q%3.71%
3.2 Future
- The Earnings Per Share is expected to grow by 11.59% on average over the next years. This is quite good.
- PYPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.14% yearly.
EPS Next Y2.24%
EPS Next 2Y5.7%
EPS Next 3Y7.37%
EPS Next 5Y11.59%
Revenue Next Year2.37%
Revenue Next 2Y3.3%
Revenue Next 3Y3.84%
Revenue Next 5Y6.14%
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. PYPL Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 9.61 indicates a reasonable valuation of PYPL.
- PYPL's Price/Earnings ratio is a bit cheaper when compared to the industry. PYPL is cheaper than 63.00% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 26.54, PYPL is valued rather cheaply.
- PYPL is valuated reasonably with a Price/Forward Earnings ratio of 9.40.
- PYPL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PYPL is cheaper than 63.00% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of PYPL to the average of the S&P500 Index (21.68), we can say PYPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.61 | ||
| Fwd PE | 9.4 |
4.2 Price Multiples
- 91.00% of the companies in the same industry are more expensive than PYPL, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, PYPL is valued cheaply inside the industry as 82.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.24 | ||
| EV/EBITDA | 5.88 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PYPL does not grow enough to justify the current Price/Earnings ratio.
- The excellent profitability rating of PYPL may justify a higher PE ratio.
PEG (NY)4.29
PEG (5Y)1.74
EPS Next 2Y5.7%
EPS Next 3Y7.37%
5. PYPL Dividend Analysis
5.1 Amount
- PYPL has a Yearly Dividend Yield of 1.13%.
- Compared to an average industry Dividend Yield of 1.81, PYPL pays a bit more dividend than its industry peers.
- Compared to the average S&P500 Dividend Yield of 1.82, PYPL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
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 Years1
5.3 Sustainability
- 2.48% of the earnings are spent on dividend by PYPL. This is a low number and sustainable payout ratio.
DP2.48%
EPS Next 2Y5.7%
EPS Next 3Y7.37%
PYPL Fundamentals: All Metrics, Ratios and Statistics
50.94
+1.3 (+2.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Industry Strength31.06
Industry Growth78.26
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)05-05 2026-05-05/amc
Inst Owners82.21%
Inst Owner Change-0.33%
Ins Owners0.1%
Ins Owner Change0.11%
Market Cap45.83B
Revenue(TTM)33.17B
Net Income(TTM)5.23B
Analysts66.4
Price Target51.32 (0.75%)
Short Float %5.05%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.13% |
Yearly Dividend0.14
Dividend Growth(5Y)N/A
DP2.48%
Div Incr Years0
Div Non Decr Years1
Ex-Date03-04 2026-03-04 (0.14)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.63%
Min EPS beat(2)-6.12%
Max EPS beat(2)9.38%
EPS beat(4)3
Avg EPS beat(4)5.34%
Min EPS beat(4)-6.12%
Max EPS beat(4)12.26%
EPS beat(8)7
Avg EPS beat(8)8.3%
EPS beat(12)10
Avg EPS beat(12)6.57%
EPS beat(16)13
Avg EPS beat(16)5.95%
Revenue beat(2)1
Avg Revenue beat(2)-1.54%
Min Revenue beat(2)-3.34%
Max Revenue beat(2)0.26%
Revenue beat(4)2
Avg Revenue beat(4)-1.3%
Min Revenue beat(4)-3.34%
Max Revenue beat(4)0.55%
Revenue beat(8)3
Avg Revenue beat(8)-1.12%
Revenue beat(12)3
Avg Revenue beat(12)-1.11%
Revenue beat(16)3
Avg Revenue beat(16)-1.21%
PT rev (1m)-1.11%
PT rev (3m)-33.33%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-8.03%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-7.93%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)-2.69%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-3.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.61 | ||
| Fwd PE | 9.4 | ||
| P/S | 1.38 | ||
| P/FCF | 8.24 | ||
| P/OCF | 7.14 | ||
| P/B | 2.26 | ||
| P/tB | 4.99 | ||
| EV/EBITDA | 5.88 |
EPS(TTM)5.3
EY10.4%
EPS(NY)5.42
Fwd EY10.64%
FCF(TTM)6.18
FCFY12.14%
OCF(TTM)7.13
OCFY14%
SpS36.87
BVpS22.51
TBVpS10.21
PEG (NY)4.29
PEG (5Y)1.74
Graham Number51.8161 (1.72%)
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.53% | ||
| ROE | 25.83% | ||
| ROCE | 18.96% | ||
| ROIC | 15.26% | ||
| ROICexc | 22.09% | ||
| ROICexgc | 42.08% | ||
| OM | 19.28% | ||
| PM (TTM) | 15.78% | ||
| GM | 41.48% | ||
| FCFM | 16.77% |
ROA(3y)5.59%
ROA(5y)5.07%
ROE(3y)22.11%
ROE(5y)19.49%
ROIC(3y)13.68%
ROIC(5y)12.27%
ROICexc(3y)21.02%
ROICexc(5y)18.45%
ROICexgc(3y)44.19%
ROICexgc(5y)39.13%
ROCE(3y)16.99%
ROCE(5y)15.24%
ROICexgc growth 3Y11.65%
ROICexgc growth 5Y5.93%
ROICexc growth 3Y15.6%
ROICexc growth 5Y8.67%
OM growth 3Y9.47%
OM growth 5Y3.83%
PM growth 3Y21.52%
PM growth 5Y-4.24%
GM growth 3Y-0.68%
GM growth 5Y-2.31%
F-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.05 | ||
| Debt/EBITDA | 1.36 | ||
| Cap/Depr | 88.47% | ||
| Cap/Sales | 2.57% | ||
| Interest Coverage | 15.75 | ||
| Cash Conversion | 87.19% | ||
| Profit Quality | 106.33% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 1.89 |
F-Score8
WACC7.8%
ROIC/WACC1.96
Cap/Depr(3y)70.92%
Cap/Depr(5y)67.63%
Cap/Sales(3y)2.27%
Cap/Sales(5y)2.59%
Profit Quality(3y)122.96%
Profit Quality(5y)139.46%
High Growth Momentum
Growth
EPS 1Y (TTM)6.43%
EPS 3Y8.67%
EPS 5Y5.53%
EPS Q2Q%3.36%
EPS Next Y2.24%
EPS Next 2Y5.7%
EPS Next 3Y7.37%
EPS Next 5Y11.59%
Revenue 1Y (TTM)4.32%
Revenue growth 3Y6.43%
Revenue growth 5Y9.11%
Sales Q2Q%3.71%
Revenue Next Year2.37%
Revenue Next 2Y3.3%
Revenue Next 3Y3.84%
Revenue Next 5Y6.14%
EBIT growth 1Y10.98%
EBIT growth 3Y16.51%
EBIT growth 5Y13.29%
EBIT Next Year4.81%
EBIT Next 3Y1.99%
EBIT Next 5Y5.31%
FCF growth 1Y-17.78%
FCF growth 3Y2.9%
FCF growth 5Y0.78%
OCF growth 1Y-13.88%
OCF growth 3Y3.34%
OCF growth 5Y0.63%
PAYPAL HOLDINGS INC / PYPL Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for PAYPAL HOLDINGS INC?
ChartMill assigns a fundamental rating of 6 / 10 to PYPL.
What is the valuation status of PAYPAL HOLDINGS INC (PYPL) stock?
ChartMill assigns a valuation rating of 7 / 10 to PAYPAL HOLDINGS INC (PYPL). This can be considered as Undervalued.
How profitable is PAYPAL HOLDINGS INC (PYPL) stock?
PAYPAL HOLDINGS INC (PYPL) has a profitability rating of 8 / 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 9.61 and the Price/Book (PB) ratio is 2.26.
How sustainable is the dividend of PAYPAL HOLDINGS INC (PYPL) stock?
The dividend rating of PAYPAL HOLDINGS INC (PYPL) is 3 / 10 and the dividend payout ratio is 2.48%.