PAYPAL HOLDINGS INC (PYPL)
US70450Y1038 - Common Stock
PYPL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 100 industry peers in the Financial Services industry. While PYPL has a great profitability rating, there are some minor concerns on its financial health. PYPL has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years PYPL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.30%, PYPL is in the better half of the industry, outperforming 79.00% of the companies in the same industry.
The Return On Equity of PYPL (21.95%) is better than 88.00% of its industry peers.
PYPL's Return On Invested Capital of 12.86% is amongst the best of the industry. PYPL outperforms 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PYPL is above the industry average of 7.54%.
The 3 year average ROIC (10.00%) for PYPL is below the current ROIC(12.86%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 21.95% | ||
| ROIC | 12.86% |
ROA(3y)4.58%
ROA(5y)4.9%
ROE(3y)17.1%
ROE(5y)17.37%
ROIC(3y)10%
ROIC(5y)9.33%
1.3 Margins
With a decent Profit Margin value of 14.08%, PYPL is doing good in the industry, outperforming 61.00% of the companies in the same industry.
In the last couple of years the Profit Margin of PYPL has remained more or less at the same level.
Looking at the Operating Margin, with a value of 18.09%, PYPL is in the better half of the industry, outperforming 63.00% of the companies in the same industry.
PYPL's Operating Margin has been stable in the last couple of years.
With a decent Gross Margin value of 40.10%, 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 | 18.09% | ||
| PM (TTM) | 14.08% | ||
| GM | 40.1% |
OM growth 3Y1.29%
OM growth 5Y0.5%
PM growth 3Y-10.03%
PM growth 5Y1.39%
GM growth 3Y-5.3%
GM growth 5Y-2.98%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so PYPL is still creating some value.
Compared to 1 year ago, PYPL has less shares outstanding
Compared to 5 years ago, PYPL has less shares outstanding
PYPL has a better debt/assets ratio than last year.
2.2 Solvency
PYPL has an Altman-Z score of 2.02. 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.
The Altman-Z score of PYPL (2.02) is better than 75.00% of its industry peers.
PYPL has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
PYPL has a Debt to FCF ratio of 1.77. This is in the better half of the industry: PYPL outperforms 75.00% of its industry peers.
A Debt/Equity ratio of 0.50 indicates that PYPL is not too dependend on debt financing.
PYPL has a Debt to Equity ratio (0.50) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 2.02 |
ROIC/WACC1.56
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.25 indicates that PYPL should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.25, PYPL is in line with its industry, outperforming 59.00% of the companies in the same industry.
PYPL has a Quick Ratio of 1.25. 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 (1.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.21% over the past year.
Measured over the past years, PYPL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 16.12% on average per year.
PYPL shows a small growth in Revenue. In the last year, the Revenue has grown by 8.00%.
The Revenue has been growing by 14.02% on average over the past years. This is quite good.
EPS 1Y (TTM)8.21%
EPS 3Y8.06%
EPS 5Y16.12%
EPS Q2Q%-7.69%
Revenue 1Y (TTM)8%
Revenue growth 3Y11.54%
Revenue growth 5Y14.02%
Sales Q2Q%5.78%
3.2 Future
Based on estimates for the next years, PYPL will show a small growth in Earnings Per Share. The EPS will grow by 6.21% on average per year.
PYPL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.36% yearly.
EPS Next Y-8.88%
EPS Next 2Y-1.38%
EPS Next 3Y2.45%
EPS Next 5Y6.21%
Revenue Next Year7.05%
Revenue Next 2Y6.25%
Revenue Next 3Y6.39%
Revenue Next 5Y8.36%
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 decreasing.
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
The Price/Earnings ratio is 16.00, which indicates a correct valuation of PYPL.
The rest of the industry has a similar Price/Earnings ratio as PYPL.
When comparing the Price/Earnings ratio of PYPL to the average of the S&P500 Index (28.65), we can say PYPL is valued slightly cheaper.
A Price/Forward Earnings ratio of 16.96 indicates a correct 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.
The average S&P500 Price/Forward Earnings ratio is at 23.56. PYPL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 16.96 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PYPL is valued a bit cheaper than the industry average as 67.00% of the companies are valued more expensively.
PYPL's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PYPL is cheaper than 73.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12 | ||
| EV/EBITDA | 12 |
4.3 Compensation for Growth
PYPL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.99
EPS Next 2Y-1.38%
EPS Next 3Y2.45%
5. Dividend
5.1 Amount
No dividends for PYPL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PAYPAL HOLDINGS INC
NASDAQ:PYPL (11/21/2024, 10:40:09 AM)
84.31
-0.43 (-0.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap84.52B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16 | ||
| Fwd PE | 16.96 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.99
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 21.95% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 18.09% | ||
| PM (TTM) | 14.08% | ||
| GM | 40.1% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)8.21%
EPS 3Y8.06%
EPS 5Y
EPS Q2Q%
EPS Next Y-8.88%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8%
Revenue growth 3Y11.54%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y