PAYPAL HOLDINGS INC (PYPL)
US70450Y1038 - Common Stock
Overall PYPL gets a fundamental rating of 5 out of 10. We evaluated PYPL against 99 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 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.
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 78.79% of the companies in the same industry.
PYPL has a Return On Equity of 21.95%. This is amongst the best in the industry. PYPL outperforms 85.86% of its industry peers.
With an excellent Return On Invested Capital value of 12.86%, PYPL belongs to the best of the industry, outperforming 89.90% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PYPL is above the industry average of 7.84%.
The last Return On Invested Capital (12.86%) for PYPL is above the 3 year average (10.00%), which is a sign of increasing profitability.
| 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 Profit Margin value of 14.08%, PYPL perfoms like the industry average, outperforming 59.60% of the companies in the same industry.
PYPL's Profit Margin has been stable in the last couple of years.
The Operating Margin of PYPL (18.09%) is better than 62.63% of its industry peers.
PYPL's Operating Margin has been stable in the last couple of years.
PYPL has a Gross Margin of 40.10%. This is in the better half of the industry: PYPL outperforms 62.63% of its industry peers.
PYPL's Gross Margin has declined in the last couple of years.
| 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
PYPL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, PYPL has less shares outstanding
The number of shares outstanding for PYPL has been reduced compared to 5 years ago.
The debt/assets ratio for PYPL has been reduced compared to a year ago.
2.2 Solvency
PYPL has an Altman-Z score of 2.04. 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 (2.04) is better than 73.74% of its industry peers.
The Debt to FCF ratio of PYPL is 1.77, which is an excellent value as it means it would take PYPL, only 1.77 years of fcf income to pay off all of its debts.
PYPL's Debt to FCF ratio of 1.77 is fine compared to the rest of the industry. PYPL outperforms 72.73% of its industry peers.
PYPL has a Debt/Equity ratio of 0.50. This is a healthy value indicating a solid balance between debt and equity.
PYPL has a Debt to Equity ratio of 0.50. This is comparable to the rest of the industry: PYPL outperforms 53.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 2.04 |
ROIC/WACC1.52
WACC8.44%
2.3 Liquidity
PYPL has a Current 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.
Looking at the Current ratio, with a value of 1.25, PYPL is in line with its industry, outperforming 58.59% 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.
With a Quick ratio value of 1.25, PYPL perfoms like the industry average, outperforming 59.60% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 16.12% on average over the past years. This is quite good.
The Revenue has been growing slightly by 8.00% in the past year.
Measured over the past years, PYPL shows a quite strong growth in Revenue. The Revenue has been growing by 14.02% on average per year.
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
The Earnings Per Share is expected to grow by 7.66% on average over the next years.
PYPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.09% yearly.
EPS Next Y-8.63%
EPS Next 2Y-1.19%
EPS Next 3Y2.68%
EPS Next 5Y7.66%
Revenue Next Year7.06%
Revenue Next 2Y6.34%
Revenue Next 3Y6.5%
Revenue Next 5Y7.09%
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
PYPL is valuated correctly with a Price/Earnings ratio of 16.53.
PYPL's Price/Earnings is on the same level as the industry average.
PYPL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 17.46, PYPL is valued on the expensive side.
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 (22.83), we can say PYPL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 17.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PYPL indicates a somewhat cheap valuation: PYPL is cheaper than 64.65% of the companies listed in the same industry.
74.75% of the companies in the same industry are more expensive than PYPL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.4 | ||
| EV/EBITDA | 12.31 |
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)1.03
EPS Next 2Y-1.19%
EPS Next 3Y2.68%
5. Dividend
5.1 Amount
No dividends for PYPL!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PAYPAL HOLDINGS INC
NASDAQ:PYPL (12/20/2024, 8:00:01 PM)
After market: 87.46 +0.33 (+0.38%)87.13
+0.35 (+0.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners72.84%
Inst Owner Change2.07%
Ins Owners7.25%
Ins Owner Change0.13%
Market Cap87.35B
Analysts73.33
Price Target92.81 (6.52%)
Short Float %2.29%
Short Ratio2.44
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.14%
Min EPS beat(2)10.02%
Max EPS beat(2)18.26%
EPS beat(4)4
Avg EPS beat(4)11.89%
Min EPS beat(4)6.45%
Max EPS beat(4)18.26%
EPS beat(8)7
Avg EPS beat(8)6.87%
EPS beat(12)9
Avg EPS beat(12)5.57%
EPS beat(16)13
Avg EPS beat(16)5.8%
Revenue beat(2)0
Avg Revenue beat(2)-1.79%
Min Revenue beat(2)-2.46%
Max Revenue beat(2)-1.13%
Revenue beat(4)1
Avg Revenue beat(4)-0.79%
Min Revenue beat(4)-2.46%
Max Revenue beat(4)0.47%
Revenue beat(8)1
Avg Revenue beat(8)-1.2%
Revenue beat(12)1
Avg Revenue beat(12)-1.22%
Revenue beat(16)2
Avg Revenue beat(16)-1.32%
PT rev (1m)8.92%
PT rev (3m)16.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.02%
EPS NY rev (1m)0.27%
EPS NY rev (3m)3.34%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-3.3%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.53 | ||
| Fwd PE | 17.46 | ||
| P/S | 2.78 | ||
| P/FCF | 12.4 | ||
| P/OCF | 11.39 | ||
| P/B | 4.33 | ||
| P/tB | 9.94 | ||
| EV/EBITDA | 12.31 |
EPS(TTM)5.27
EY6.05%
EPS(NY)4.99
Fwd EY5.73%
FCF(TTM)7.03
FCFY8.07%
OCF(TTM)7.65
OCFY8.78%
SpS31.38
BVpS20.12
TBVpS8.76
PEG (NY)N/A
PEG (5Y)1.03
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.3% | ||
| ROE | 21.95% | ||
| ROCE | 17.11% | ||
| ROIC | 12.86% | ||
| ROICexc | 20.05% | ||
| ROICexgc | 43.04% | ||
| OM | 18.09% | ||
| PM (TTM) | 14.08% | ||
| GM | 40.1% | ||
| FCFM | 22.4% |
ROA(3y)4.58%
ROA(5y)4.9%
ROE(3y)17.1%
ROE(5y)17.37%
ROIC(3y)10%
ROIC(5y)9.33%
ROICexc(3y)15.39%
ROICexc(5y)15.03%
ROICexgc(3y)34.97%
ROICexgc(5y)33.17%
ROCE(3y)13.3%
ROCE(5y)12.41%
ROICexcg growth 3Y16.01%
ROICexcg growth 5Y-4.74%
ROICexc growth 3Y11.6%
ROICexc growth 5Y0.74%
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%
F-Score6
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 1.48 | ||
| Cap/Depr | 59.75% | ||
| Cap/Sales | 1.99% | ||
| Interest Coverage | 17.14 | ||
| Cash Conversion | 113.88% | ||
| Profit Quality | 159.1% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 2.04 |
F-Score6
WACC8.44%
ROIC/WACC1.52
Cap/Depr(3y)61.17%
Cap/Depr(5y)66.71%
Cap/Sales(3y)2.75%
Cap/Sales(5y)3.25%
Profit Quality(3y)142.59%
Profit Quality(5y)138.42%
High Growth Momentum
Growth
EPS 1Y (TTM)8.21%
EPS 3Y8.06%
EPS 5Y16.12%
EPS Q2Q%-7.69%
EPS Next Y-8.63%
EPS Next 2Y-1.19%
EPS Next 3Y2.68%
EPS Next 5Y7.66%
Revenue 1Y (TTM)8%
Revenue growth 3Y11.54%
Revenue growth 5Y14.02%
Sales Q2Q%5.78%
Revenue Next Year7.06%
Revenue Next 2Y6.34%
Revenue Next 3Y6.5%
Revenue Next 5Y7.09%
EBIT growth 1Y18.62%
EBIT growth 3Y12.98%
EBIT growth 5Y14.58%
EBIT Next Year4.61%
EBIT Next 3Y4.7%
EBIT Next 5Y6.45%
FCF growth 1Y50.5%
FCF growth 3Y-7.62%
FCF growth 5Y-1.95%
OCF growth 1Y40.94%
OCF growth 3Y-8%
OCF growth 5Y-2.44%