PAYPAL HOLDINGS INC (PYPL) Fundamental Analysis & Valuation
NASDAQ:PYPL • US70450Y1038
Current stock price
44.9 USD
+0.54 (+1.22%)
At close:
44.74 USD
-0.16 (-0.36%)
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
- In the past year PYPL was profitable.
- PYPL had a positive operating cash flow in the past year.
- 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's Return On Assets of 6.53% is amongst the best of the industry. PYPL outperforms 80.61% of its industry peers.
- With an excellent Return On Equity value of 25.83%, PYPL belongs to the best of the industry, outperforming 89.80% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 15.26%, PYPL belongs to the top of the industry, outperforming 91.84% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for PYPL is significantly above the industry average of 8.33%.
- The 3 year average ROIC (13.68%) for PYPL is below the current ROIC(15.26%), indicating increased profibility in the last year.
| 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
- The Profit Margin of PYPL (15.78%) is better than 62.24% of its industry peers.
- PYPL's Profit Margin has declined in the last couple of years.
- PYPL's Operating Margin of 19.28% is fine compared to the rest of the industry. PYPL outperforms 68.37% of its industry peers.
- PYPL's Operating Margin has improved in the last couple of years.
- The Gross Margin of PYPL (41.48%) is better than 61.22% of its industry peers.
- In the last couple of years the Gross Margin of PYPL has declined.
| 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 1.85 indicates that PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With a decent Altman-Z score value of 1.85, PYPL is doing good in the industry, outperforming 76.53% of the companies in the same industry.
- 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.
- PYPL's Debt to FCF ratio of 2.05 is fine compared to the rest of the industry. PYPL outperforms 71.43% 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.
- PYPL's Debt to Equity ratio of 0.49 is in line compared to the rest of the industry. PYPL outperforms 55.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 2.05 | ||
| Altman-Z | 1.85 |
ROIC/WACC1.95
WACC7.84%
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 Current ratio of 1.29. This is in the better half of the industry: PYPL outperforms 61.22% of its industry peers.
- A Quick Ratio of 1.29 indicates that PYPL should not have too much problems paying its short term obligations.
- The Quick ratio of PYPL (1.29) is better than 63.27% 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.
- Measured over the past years, PYPL shows a quite strong growth in Revenue. The Revenue has been growing by 9.11% on average per year.
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
- PYPL is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.78% yearly.
- The Revenue is expected to grow by 6.93% on average over the next years.
EPS Next Y2.2%
EPS Next 2Y5.68%
EPS Next 3Y7.36%
EPS Next 5Y12.78%
Revenue Next Year2.42%
Revenue Next 2Y3.41%
Revenue Next 3Y3.98%
Revenue Next 5Y6.93%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. PYPL Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 8.47, which indicates a very decent valuation of PYPL.
- 67.35% of the companies in the same industry are more expensive than PYPL, based on the Price/Earnings ratio.
- PYPL is valuated cheaply when we compare the Price/Earnings ratio to 25.70, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 8.29, which indicates a very decent valuation of PYPL.
- PYPL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PYPL is cheaper than 64.29% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 23.84. PYPL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 8.29 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PYPL is valued cheaply inside the industry as 90.82% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, PYPL is valued cheaper than 81.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.43 | ||
| EV/EBITDA | 5.36 |
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)3.85
PEG (5Y)1.53
EPS Next 2Y5.68%
EPS Next 3Y7.36%
5. PYPL Dividend Analysis
5.1 Amount
- PYPL has a Yearly Dividend Yield of 1.18%.
- In the last 3 months the price of PYPL has falen by -27.18%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
- PYPL's Dividend Yield is comparable with the industry average which is at 2.34.
- Compared to the average S&P500 Dividend Yield of 1.82, PYPL is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
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
- 2.48% of the earnings are spent on dividend by PYPL. This is a low number and sustainable payout ratio.
DP2.48%
EPS Next 2Y5.68%
EPS Next 3Y7.36%
PYPL Fundamentals: All Metrics, Ratios and Statistics
44.9
+0.54 (+1.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-03 2026-02-03/bmo
Earnings (Next)05-05 2026-05-05/amc
Inst Owners82.1%
Inst Owner Change-1.18%
Ins Owners0.1%
Ins Owner Change0.18%
Market Cap41.34B
Revenue(TTM)33.17B
Net Income(TTM)5.23B
Analysts65.88
Price Target51.89 (15.57%)
Short Float %5.63%
Short Ratio2.09
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend0.14
Dividend Growth(5Y)N/A
DP2.48%
Div Incr Years0
Div Non Decr Years0
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)-29.9%
PT rev (3m)-38.27%
EPS NQ rev (1m)-8.07%
EPS NQ rev (3m)-9.26%
EPS NY rev (1m)-7.71%
EPS NY rev (3m)-9.11%
Revenue NQ rev (1m)-2.55%
Revenue NQ rev (3m)-2.97%
Revenue NY rev (1m)-3.01%
Revenue NY rev (3m)-3.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.47 | ||
| Fwd PE | 8.29 | ||
| P/S | 1.25 | ||
| P/FCF | 7.43 | ||
| P/OCF | 6.44 | ||
| P/B | 2.04 | ||
| P/tB | 4.5 | ||
| EV/EBITDA | 5.36 |
EPS(TTM)5.3
EY11.8%
EPS(NY)5.42
Fwd EY12.06%
FCF(TTM)6.04
FCFY13.46%
OCF(TTM)6.97
OCFY15.52%
SpS36.03
BVpS22
TBVpS9.98
PEG (NY)3.85
PEG (5Y)1.53
Graham Number51.22
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 | 1.85 |
F-Score8
WACC7.84%
ROIC/WACC1.95
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 Y2.2%
EPS Next 2Y5.68%
EPS Next 3Y7.36%
EPS Next 5Y12.78%
Revenue 1Y (TTM)4.32%
Revenue growth 3Y6.43%
Revenue growth 5Y9.11%
Sales Q2Q%3.71%
Revenue Next Year2.42%
Revenue Next 2Y3.41%
Revenue Next 3Y3.98%
Revenue Next 5Y6.93%
EBIT growth 1Y10.98%
EBIT growth 3Y16.51%
EBIT growth 5Y13.29%
EBIT Next Year5.21%
EBIT Next 3Y1.99%
EBIT Next 5Y10.35%
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.
Can you provide the profitability details for PAYPAL HOLDINGS INC?
PAYPAL HOLDINGS INC (PYPL) has a profitability rating of 8 / 10.
What is the financial health of PAYPAL HOLDINGS INC (PYPL) stock?
The financial health rating of PAYPAL HOLDINGS INC (PYPL) is 6 / 10.
Can you provide the expected EPS growth for PYPL stock?
The Earnings per Share (EPS) of PAYPAL HOLDINGS INC (PYPL) is expected to grow by 2.2% in the next year.