60.78 USD
-0.34 (-0.56%)
60.64 USD
-0.14 (-0.23%)
Overall PYPL gets a fundamental rating of 6 out of 10. We evaluated PYPL against 97 industry peers in the Financial Services industry. While PYPL belongs to the best of the industry regarding profitability, 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
The Return On Assets of PYPL (6.16%) is better than 78.35% of its industry peers.
Looking at the Return On Equity, with a value of 24.34%, PYPL belongs to the top of the industry, outperforming 89.69% of the companies in the same industry.
With an excellent Return On Invested Capital value of 14.11%, PYPL belongs to the best of the industry, outperforming 90.72% 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 8.44%.
The 3 year average ROIC (11.47%) for PYPL is below the current ROIC(14.11%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 24.34% | ||
| ROIC | 14.11% |
ROA(3y)4.44%
ROA(5y)4.96%
ROE(3y)17.47%
ROE(5y)18.52%
ROIC(3y)11.47%
ROIC(5y)10.62%
1.3 Margins
With a Profit Margin value of 14.96%, PYPL perfoms like the industry average, outperforming 58.76% 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.
PYPL has a Operating Margin of 19.16%. This is in the better half of the industry: PYPL outperforms 68.04% of its industry peers.
PYPL's Operating Margin has improved in the last couple of years.
With a decent Gross Margin value of 41.56%, PYPL is doing good in the industry, outperforming 60.82% 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 | 19.16% | ||
| PM (TTM) | 14.96% | ||
| GM | 41.56% |
OM growth 3Y2.07%
OM growth 5Y2.92%
PM growth 3Y-7.41%
PM growth 5Y-1.18%
GM growth 3Y-4.8%
GM growth 5Y-2.04%
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.
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
An Altman-Z score of 2.02 indicates that PYPL is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.02, PYPL is in the better half of the industry, outperforming 75.26% of the companies in the same industry.
PYPL has a debt to FCF ratio of 2.06. This is a good value and a sign of high solvency as PYPL would need 2.06 years to pay back of all of its debts.
PYPL's Debt to FCF ratio of 2.06 is fine compared to the rest of the industry. PYPL outperforms 72.16% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that PYPL is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, PYPL perfoms like the industry average, outperforming 52.58% of the companies in the same industry.
Although PYPL does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.06 | ||
| Altman-Z | 2.02 |
ROIC/WACC1.81
WACC7.8%
2.3 Liquidity
PYPL has a Current Ratio of 1.34. 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 1.34, PYPL is in the better half of the industry, outperforming 62.89% of the companies in the same industry.
A Quick Ratio of 1.34 indicates that PYPL should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.34, PYPL is doing good in the industry, outperforming 63.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
PYPL shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.19%.
The Earnings Per Share has been growing by 9.87% on average over the past years. This is quite good.
PYPL shows a small growth in Revenue. In the last year, the Revenue has grown by 4.47%.
The Revenue has been growing by 12.34% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.19%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%11.67%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
3.2 Future
The Earnings Per Share is expected to grow by 13.14% on average over the next years. This is quite good.
PYPL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.28% yearly.
EPS Next Y9.85%
EPS Next 2Y9.39%
EPS Next 3Y10.65%
EPS Next 5Y13.14%
Revenue Next Year5.18%
Revenue Next 2Y5.62%
Revenue Next 3Y6%
Revenue Next 5Y6.28%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.56 indicates a reasonable valuation of PYPL.
The rest of the industry has a similar Price/Earnings ratio as PYPL.
PYPL is valuated cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
PYPL is valuated reasonably with a Price/Forward Earnings ratio of 10.20.
PYPL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PYPL to the average of the S&P500 Index (23.52), we can say PYPL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 10.2 |
4.2 Price Multiples
76.29% of the companies in the same industry are more expensive than PYPL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, PYPL is valued a bit cheaper than 73.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.22 | ||
| EV/EBITDA | 7.67 |
4.3 Compensation for Growth
PYPL's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of PYPL may justify a higher PE ratio.
PEG (NY)1.17
PEG (5Y)1.17
EPS Next 2Y9.39%
EPS Next 3Y10.65%
5. Dividend
5.1 Amount
PYPL has a yearly dividend return of 0.91%, which is pretty low.
PYPL's Dividend Yield is comparable with the industry average which is at 3.96.
Compared to an average S&P500 Dividend Yield of 2.31, PYPL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
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
5.3 Sustainability
DPN/A
EPS Next 2Y9.39%
EPS Next 3Y10.65%
60.78
-0.34 (-0.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.82%
Inst Owner Change-1.84%
Ins Owners0.09%
Ins Owner Change0.11%
Market Cap56.87B
Revenue(TTM)32.86B
Net Income(TTM)4.92B
Analysts71.2
Price Target84.07 (38.32%)
Short Float %4.62%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.61%
Min EPS beat(2)5.83%
Max EPS beat(2)9.38%
EPS beat(4)4
Avg EPS beat(4)7.86%
Min EPS beat(4)3.97%
Max EPS beat(4)12.26%
EPS beat(8)8
Avg EPS beat(8)9.88%
EPS beat(12)11
Avg EPS beat(12)7.2%
EPS beat(16)13
Avg EPS beat(16)6.14%
Revenue beat(2)2
Avg Revenue beat(2)0.4%
Min Revenue beat(2)0.26%
Max Revenue beat(2)0.55%
Revenue beat(4)2
Avg Revenue beat(4)-0.63%
Min Revenue beat(4)-2.67%
Max Revenue beat(4)0.55%
Revenue beat(8)3
Avg Revenue beat(8)-0.71%
Revenue beat(12)3
Avg Revenue beat(12)-1.01%
Revenue beat(16)3
Avg Revenue beat(16)-1.07%
PT rev (1m)-0.02%
PT rev (3m)-0.12%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-1.31%
EPS NY rev (1m)0.39%
EPS NY rev (3m)2.24%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.56 | ||
| Fwd PE | 10.2 | ||
| P/S | 1.73 | ||
| P/FCF | 10.22 | ||
| P/OCF | 8.85 | ||
| P/B | 2.82 | ||
| P/tB | 6.3 | ||
| EV/EBITDA | 7.67 |
EPS(TTM)5.26
EY8.65%
EPS(NY)5.96
Fwd EY9.81%
FCF(TTM)5.95
FCFY9.79%
OCF(TTM)6.87
OCFY11.3%
SpS35.12
BVpS21.59
TBVpS9.65
PEG (NY)1.17
PEG (5Y)1.17
Graham Number50.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.16% | ||
| ROE | 24.34% | ||
| ROCE | 18.05% | ||
| ROIC | 14.11% | ||
| ROICexc | 20.4% | ||
| ROICexgc | 37.98% | ||
| OM | 19.16% | ||
| PM (TTM) | 14.96% | ||
| GM | 41.56% | ||
| FCFM | 16.93% |
ROA(3y)4.44%
ROA(5y)4.96%
ROE(3y)17.47%
ROE(5y)18.52%
ROIC(3y)11.47%
ROIC(5y)10.62%
ROICexc(3y)17.88%
ROICexc(5y)16.45%
ROICexgc(3y)39.06%
ROICexgc(5y)35.94%
ROCE(3y)14.68%
ROCE(5y)13.59%
ROICexgc growth 3Y7.88%
ROICexgc growth 5Y4.11%
ROICexc growth 3Y11.61%
ROICexc growth 5Y4.7%
OM growth 3Y2.07%
OM growth 5Y2.92%
PM growth 3Y-7.41%
PM growth 5Y-1.18%
GM growth 3Y-4.8%
GM growth 5Y-2.04%
F-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.06 | ||
| Debt/EBITDA | 1.55 | ||
| Cap/Depr | 88.04% | ||
| Cap/Sales | 2.62% | ||
| Interest Coverage | 15.43 | ||
| Cash Conversion | 88.34% | ||
| Profit Quality | 113.18% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 2.02 |
F-Score8
WACC7.8%
ROIC/WACC1.81
Cap/Depr(3y)59.3%
Cap/Depr(5y)64.5%
Cap/Sales(3y)2.27%
Cap/Sales(5y)2.88%
Profit Quality(3y)157.9%
Profit Quality(5y)143.67%
High Growth Momentum
Growth
EPS 1Y (TTM)-0.19%
EPS 3Y2.76%
EPS 5Y9.87%
EPS Q2Q%11.67%
EPS Next Y9.85%
EPS Next 2Y9.39%
EPS Next 3Y10.65%
EPS Next 5Y13.14%
Revenue 1Y (TTM)4.47%
Revenue growth 3Y7.82%
Revenue growth 5Y12.34%
Sales Q2Q%7.26%
Revenue Next Year5.18%
Revenue Next 2Y5.62%
Revenue Next 3Y6%
Revenue Next 5Y6.28%
EBIT growth 1Y10.67%
EBIT growth 3Y10.05%
EBIT growth 5Y15.61%
EBIT Next Year26.64%
EBIT Next 3Y11.45%
EBIT Next 5Y10.48%
FCF growth 1Y74.78%
FCF growth 3Y11.44%
FCF growth 5Y14.98%
OCF growth 1Y68.22%
OCF growth 3Y8.72%
OCF growth 5Y12.85%
PAYPAL HOLDINGS INC / PYPL FAQ
Can you provide the ChartMill fundamental rating for PAYPAL HOLDINGS INC?
ChartMill assigns a fundamental rating of 6 / 10 to PYPL.
Can you provide the valuation status for PAYPAL HOLDINGS INC?
ChartMill assigns a valuation rating of 6 / 10 to PAYPAL HOLDINGS INC (PYPL). This can be considered as Fairly Valued.
What is the profitability of PYPL stock?
PAYPAL HOLDINGS INC (PYPL) has a profitability rating of 7 / 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 11.56 and the Price/Book (PB) ratio is 2.82.
What is the earnings growth outlook for PAYPAL HOLDINGS INC?
The Earnings per Share (EPS) of PAYPAL HOLDINGS INC (PYPL) is expected to grow by 9.85% in the next year.