PAYPAL HOLDINGS INC (PYPL) Fundamental Analysis & Valuation
NASDAQ:PYPL • US70450Y1038
Current stock price
49.77 USD
-0.71 (-1.41%)
At close:
49.7 USD
-0.07 (-0.14%)
Pre-Market:
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.
- PYPL had positive earnings in each of the past 5 years.
- In the past 5 years PYPL always reported a positive cash flow from operatings.
1.2 Ratios
- PYPL has a better Return On Assets (6.53%) than 84.00% of its industry peers.
- PYPL's Return On Equity of 25.83% is amongst the best of 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 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
- PYPL has a better Profit Margin (15.78%) than 65.00% of its industry peers.
- In the last couple of years the Profit Margin of PYPL has declined.
- With a decent Operating Margin value of 19.28%, PYPL is doing good in 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.
- 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
- 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
- PYPL has an Altman-Z score of 1.89. 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 better Altman-Z score (1.89) than 77.00% of its industry peers.
- The Debt to FCF ratio of PYPL is 2.05, which is a good value as it means it would take PYPL, 2.05 years of fcf income to pay off all of its debts.
- PYPL's Debt to FCF ratio of 2.05 is fine compared to the rest of the industry. PYPL outperforms 73.00% of its industry peers.
- A Debt/Equity ratio of 0.49 indicates that PYPL is not too dependend on debt financing.
- 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/WACC1.97
WACC7.74%
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 better Quick ratio (1.29) than 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.
- Looking at the last year, PYPL shows a small growth in Revenue. The Revenue has grown by 4.32% in the last year.
- PYPL shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.11% yearly.
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 11.59% yearly.
- 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
- 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
- PYPL is valuated reasonably with a Price/Earnings ratio of 9.39.
- Based on the Price/Earnings ratio, PYPL is valued a bit cheaper than 64.00% of the companies in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.15. PYPL is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 9.18, the valuation of PYPL can be described as very reasonable.
- 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.
- Compared to an average S&P500 Price/Forward Earnings ratio of 22.12, PYPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 9.18 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PYPL indicates a rather cheap valuation: PYPL is cheaper than 91.00% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PYPL indicates a rather cheap valuation: PYPL is cheaper than 82.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.05 | ||
| EV/EBITDA | 5.9 |
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)4.19
PEG (5Y)1.7
EPS Next 2Y5.7%
EPS Next 3Y7.37%
5. PYPL Dividend Analysis
5.1 Amount
- PYPL has a Yearly Dividend Yield of 1.13%.
- PYPL's Dividend Yield is a higher than the industry average which is at 1.81.
- 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 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 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
49.77
-0.71 (-1.41%)
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 Owners82.21%
Inst Owner Change-0.33%
Ins Owners0.1%
Ins Owner Change0.11%
Market Cap44.78B
Revenue(TTM)33.17B
Net Income(TTM)5.23B
Analysts66.4
Price Target51.32 (3.11%)
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 | 9.39 | ||
| Fwd PE | 9.18 | ||
| P/S | 1.35 | ||
| P/FCF | 8.05 | ||
| P/OCF | 6.98 | ||
| P/B | 2.21 | ||
| P/tB | 4.88 | ||
| EV/EBITDA | 5.9 |
EPS(TTM)5.3
EY10.65%
EPS(NY)5.42
Fwd EY10.89%
FCF(TTM)6.18
FCFY12.43%
OCF(TTM)7.13
OCFY14.33%
SpS36.87
BVpS22.51
TBVpS10.21
PEG (NY)4.19
PEG (5Y)1.7
Graham Number51.8161 (4.11%)
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
WACC7.74%
ROIC/WACC1.97
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 9.39 and the Price/Book (PB) ratio is 2.21.
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%.