PAYPAL HOLDINGS INC (PYPL) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:PYPL • US70450Y1038

39.9 USD
-1.13 (-2.75%)
At close: Feb 5, 2026
39.19 USD
-0.71 (-1.78%)
After Hours: 2/5/2026, 8:00:01 PM
Fundamental Rating

7

Overall PYPL gets a fundamental rating of 7 out of 10. We evaluated PYPL against 97 industry peers in the Financial Services industry. PYPL scores excellent points on both the profitability and health parts. This is a solid base for a good stock. PYPL is valued quite cheap, while showing a decent growth score. This is a good combination! With these ratings, PYPL could be worth investigating further for value and quality investing!.


Dividend Valuation Growth Profitability Health

7

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.
  • 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.
PYPL Yearly Net Income VS EBIT VS OCF VS FCFPYPL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • The Return On Assets of PYPL (6.53%) is better than 78.35% of its industry peers.
  • PYPL has a better Return On Equity (25.83%) than 91.75% of its industry peers.
  • The Return On Invested Capital of PYPL (15.26%) is better than 91.75% of its industry peers.
  • PYPL had an Average Return On Invested Capital over the past 3 years of 13.68%. This is significantly above the industry average of 8.54%.
  • 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 RankSector 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%
PYPL Yearly ROA, ROE, ROICPYPL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20 25

1.3 Margins

  • PYPL has a Profit Margin (15.78%) which is comparable to the rest of the industry.
  • PYPL's Profit Margin has declined in the last couple of years.
  • PYPL has a Operating Margin of 19.28%. This is in the better half of the industry: PYPL outperforms 67.01% 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 60.82% of its industry peers.
  • PYPL's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
PYPL Yearly Profit, Operating, Gross MarginsPYPL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so PYPL is creating value.
  • PYPL has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, PYPL has less shares outstanding
  • PYPL has a better debt/assets ratio than last year.
PYPL Yearly Shares OutstandingPYPL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M 1B
PYPL Yearly Total Debt VS Total AssetsPYPL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B

2.2 Solvency

  • An Altman-Z score of 1.83 indicates that PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • The Altman-Z score of PYPL (1.83) is better than 74.23% of its industry peers.
  • PYPL has a debt to FCF ratio of 1.79. This is a very positive value and a sign of high solvency as it would only need 1.79 years to pay back of all of its debts.
  • PYPL has a better Debt to FCF ratio (1.79) than 73.20% 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.
  • With a Debt to Equity ratio value of 0.49, PYPL perfoms like the industry average, outperforming 56.70% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 1.79
Altman-Z 1.83
ROIC/WACC1.92
WACC7.96%
PYPL Yearly LT Debt VS Equity VS FCFPYPL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

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 61.86% of its industry peers.
  • PYPL has a Quick Ratio of 1.29. This is a normal value and indicates that PYPL is financially healthy and should not expect problems in meeting its short term obligations.
  • PYPL's Quick ratio of 1.29 is fine compared to the rest of the industry. PYPL outperforms 64.95% of its industry peers.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.29
PYPL Yearly Current Assets VS Current LiabilitesPYPL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. Growth

3.1 Past

  • PYPL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.43%.
  • PYPL shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.53% yearly.
  • Looking at the last year, PYPL shows a small growth in Revenue. The Revenue has grown by 4.32% in the last 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

  • 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.
  • PYPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.83% yearly.
EPS Next Y10.74%
EPS Next 2Y11.08%
EPS Next 3Y14.21%
EPS Next 5Y12.78%
Revenue Next Year5.6%
Revenue Next 2Y5.94%
Revenue Next 3Y6.4%
Revenue Next 5Y7.83%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
PYPL Yearly Revenue VS EstimatesPYPL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 10B 20B 30B 40B 50B
PYPL Yearly EPS VS EstimatesPYPL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2 4 6 8 10

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Find the best growth stocksShow best growing peers

9

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 7.53, the valuation of PYPL can be described as very cheap.
  • Compared to the rest of the industry, the Price/Earnings ratio of PYPL indicates a rather cheap valuation: PYPL is cheaper than 81.44% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.67, PYPL is valued rather cheaply.
  • The Price/Forward Earnings ratio is 6.80, which indicates a rather cheap valuation of PYPL.
  • 80.41% of the companies in the same industry are more expensive than PYPL, based on the Price/Forward Earnings ratio.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.20, PYPL is valued rather cheaply.
Industry RankSector Rank
PE 7.53
Fwd PE 6.8
PYPL Price Earnings VS Forward Price EarningsPYPL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 92.78% of the companies listed in the same industry.
  • 88.66% of the companies in the same industry are more expensive than PYPL, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 6.71
EV/EBITDA 4.84
PYPL Per share dataPYPL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of PYPL may justify a higher PE ratio.
  • A more expensive valuation may be justified as PYPL's earnings are expected to grow with 14.21% in the coming years.
PEG (NY)0.7
PEG (5Y)1.36
EPS Next 2Y11.08%
EPS Next 3Y14.21%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

2

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.36%, PYPL has a reasonable but not impressive dividend return.
  • In the last 3 months the price of PYPL has falen by -39.75%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 1.99, PYPL has a dividend in line with its industry peers.
  • Compared to the average S&P500 Dividend Yield of 1.82, PYPL is paying slightly less dividend.
Industry RankSector Rank
Dividend Yield 1.36%

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 Years0
PYPL Yearly Dividends per sharePYPL Yearly Dividends per shareYearly Dividends per share 2025 0.05 0.1

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 2Y11.08%
EPS Next 3Y14.21%
PYPL Yearly Income VS Free CF VS DividendPYPL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
PYPL Dividend Payout.PYPL Dividend Payout, showing the Payout Ratio.PYPL Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

PAYPAL HOLDINGS INC

NASDAQ:PYPL (2/5/2026, 8:00:01 PM)

After market: 39.19 -0.71 (-1.78%)

39.9

-1.13 (-2.75%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)02-03
Earnings (Next)04-27
Inst Owners80.89%
Inst Owner Change-2.32%
Ins Owners0.09%
Ins Owner Change0.12%
Market Cap37.33B
Revenue(TTM)33.17B
Net Income(TTM)5.23B
Analysts68.8
Price Target74.03 (85.54%)
Short Float %4.74%
Short Ratio2.81
Dividend
Industry RankSector Rank
Dividend Yield 1.36%
Yearly Dividend0.14
Dividend Growth(5Y)N/A
DP2.48%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-4.92%
PT rev (3m)-8.46%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-1.56%
EPS NY rev (1m)0.01%
EPS NY rev (3m)2.08%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.62%
Valuation
Industry RankSector Rank
PE 7.53
Fwd PE 6.8
P/S 1.13
P/FCF 6.71
P/OCF 5.82
P/B 1.84
P/tB 4.06
EV/EBITDA 4.84
EPS(TTM)5.3
EY13.28%
EPS(NY)5.87
Fwd EY14.71%
FCF(TTM)5.95
FCFY14.9%
OCF(TTM)6.86
OCFY17.19%
SpS35.45
BVpS21.65
TBVpS9.82
PEG (NY)0.7
PEG (5Y)1.36
Graham Number50.81
Profitability
Industry RankSector 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 RankSector Rank
Debt/Equity 0.49
Debt/FCF 1.79
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 1.83
F-Score8
WACC7.96%
ROIC/WACC1.92
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 Y10.74%
EPS Next 2Y11.08%
EPS Next 3Y14.21%
EPS Next 5Y12.78%
Revenue 1Y (TTM)4.32%
Revenue growth 3Y6.43%
Revenue growth 5Y9.11%
Sales Q2Q%3.71%
Revenue Next Year5.6%
Revenue Next 2Y5.94%
Revenue Next 3Y6.4%
Revenue Next 5Y7.83%
EBIT growth 1Y10.98%
EBIT growth 3Y16.51%
EBIT growth 5Y13.29%
EBIT Next Year16.39%
EBIT Next 3Y11.28%
EBIT Next 5Y10.31%
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 FAQ

Can you provide the ChartMill fundamental rating for PAYPAL HOLDINGS INC?

ChartMill assigns a fundamental rating of 7 / 10 to PYPL.


What is the valuation status of PAYPAL HOLDINGS INC (PYPL) stock?

ChartMill assigns a valuation rating of 9 / 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 7 / 10.


What is the financial health of PAYPAL HOLDINGS INC (PYPL) stock?

The financial health rating of PAYPAL HOLDINGS INC (PYPL) is 7 / 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 10.74% in the next year.