NasdaqGS:PYPL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

PayPal Holdings, Inc. operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. More Details


Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has PayPal Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PYPL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.9%

PYPL

-6.6%

US IT

-4.1%

US Market


1 Year Return

85.8%

PYPL

17.7%

US IT

12.0%

US Market

Return vs Industry: PYPL exceeded the US IT industry which returned 17.7% over the past year.

Return vs Market: PYPL exceeded the US Market which returned 12% over the past year.


Shareholder returns

PYPLIndustryMarket
7 Day-3.9%-6.6%-4.1%
30 Day-1.0%-5.1%-0.2%
90 Day-0.5%-2.5%2.8%
1 Year85.8%85.8%18.9%17.7%14.6%12.0%
3 Year165.8%165.8%78.4%71.6%35.8%26.8%
5 Year438.2%438.2%135.4%117.1%75.2%55.6%

Price Volatility Vs. Market

How volatile is PayPal Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PayPal Holdings undervalued compared to its fair value and its price relative to the market?

88.65x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PYPL ($195.04) is trading above our estimate of fair value ($135.74)

Significantly Below Fair Value: PYPL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PYPL is poor value based on its PE Ratio (88.6x) compared to the US IT industry average (30.8x).

PE vs Market: PYPL is poor value based on its PE Ratio (88.6x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: PYPL is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: PYPL is overvalued based on its PB Ratio (13x) compared to the US IT industry average (3.6x).


Next Steps

Future Growth

How is PayPal Holdings forecast to perform in the next 1 to 3 years based on estimates from 41 analysts?

21.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PYPL's forecast earnings growth (21.3% per year) is above the savings rate (2.2%).

Earnings vs Market: PYPL's earnings (21.3% per year) are forecast to grow slower than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PYPL's revenue (16.3% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: PYPL's revenue (16.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PYPL's Return on Equity is forecast to be high in 3 years time (23.3%)


Next Steps

Past Performance

How has PayPal Holdings performed over the past 5 years?

16.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PYPL has high quality earnings.

Growing Profit Margin: PYPL's current net profit margins (13.4%) are lower than last year (15.4%).


Past Earnings Growth Analysis

Earnings Trend: PYPL's earnings have grown by 16.6% per year over the past 5 years.

Accelerating Growth: PYPL's earnings growth over the past year (2.9%) is below its 5-year average (16.6% per year).

Earnings vs Industry: PYPL earnings growth over the past year (2.9%) underperformed the IT industry 5.9%.


Return on Equity

High ROE: PYPL's Return on Equity (14.6%) is considered low.


Next Steps

Financial Health

How is PayPal Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PYPL's short term assets ($46.5B) exceed its short term liabilities ($33.7B).

Long Term Liabilities: PYPL's short term assets ($46.5B) exceed its long term liabilities ($11.8B).


Debt to Equity History and Analysis

Debt Level: PYPL's debt to equity ratio (50.5%) is considered high.

Reducing Debt: PYPL's debt to equity ratio has increased from 0.8% to 50.5% over the past 5 years.

Debt Coverage: PYPL's debt is well covered by operating cash flow (69.9%).

Interest Coverage: PYPL's interest payments on its debt are well covered by EBIT (971.3x coverage).


Balance Sheet


Next Steps

Dividend

What is PayPal Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PYPL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PYPL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PYPL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PYPL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PYPL's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Dan Schulman (62 yo)

5.25yrs

Tenure

US$25,825,473

Compensation

Mr. Daniel H. Schulman, also known as Dan, has been the President of PayPal Holdings, Inc. since September 30, 2014 and has been its Chief Executive Officer since July 2015 and served as Chief Executive Of ...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD25.83M) is above average for companies of similar size in the US market ($USD11.21M).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Schulman
President5.25yrsUS$25.83m0.038%
$ 87.1m
John Rainey
CFO & Executive VP of Global Customer Operations5.17yrsUS$11.18m0.0092%
$ 21.0m
Adele Pentland
Executive VP and Chief Business Affairs & Legal Officer4.08yrsUS$11.19m0.0045%
$ 10.3m
Jonathan Auerbach
Executive VP and Chief Strategy5.5yrsUS$8.36m0.0052%
$ 11.8m
Aaron Karczmer
Chief Risk Officer and Executive VP of Risk & Platforms1.75yrsUS$8.84m0.0029%
$ 6.5m
Jeffrey Karbowski
VP, Chief Accounting Officer & Global Controller0.25yrno data0.00046%
$ 1.1m
Sripada Shivananda
CTO & Senior VP4.5yrsno datano data
Gabrielle Rabinovitch
Vice President of Corporate Finance & Investor Relationsno datano datano data
Franz Paasche
Senior Vice President of Corporate Affairsno datano datano data
Peggy Alford
Executive VP of Global Sales0.58yrno data0.00066%
$ 1.5m
Guru Bhat
Head of Engineering & GM of the Chennai Technology Center - Indiano datano datano data
Anupam Pahuja
Managing Director of India4.33yrsno datano data

4.3yrs

Average Tenure

48yo

Average Age

Experienced Management: PYPL's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Schulman
President5.25yrsUS$25.83m0.038%
$ 87.1m
Frank Yeary
Independent Director5.25yrsUS$375.10k0.0015%
$ 3.5m
David Moffett
Independent Director5.33yrsUS$395.10k0.00078%
$ 1.8m
David Dorman
Independent Director5.33yrsUS$385.10k0.0029%
$ 6.6m
John Donahoe
Independent Chairman of the Board5.25yrsUS$455.04k0.0040%
$ 9.2m
Gail McGovern
Independent Director5.33yrsUS$393.10k0.0016%
$ 3.7m
Rodney Adkins
Independent Director3.08yrsUS$385.10k0.0015%
$ 3.5m
Ann Sarnoff
Independent Director3.33yrsUS$375.10k0.0014%
$ 3.2m
Jonathan Christodoro
Independent Director5.25yrsUS$373.10k0.0016%
$ 3.6m
Deborah Messemer
Independent Director1.75yrsUS$191.60k0.00046%
$ 1.1m
Belinda Johnson
Independent Director3.75yrsUS$375.10k0.0013%
$ 3.0m

5.3yrs

Average Tenure

61yo

Average Age

Experienced Board: PYPL's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PYPL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

PayPal Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PayPal Holdings, Inc.
  • Ticker: PYPL
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$228.840b
  • Shares outstanding: 1.17b
  • Website: https://www.paypal.com

Number of Employees


Location

  • PayPal Holdings, Inc.
  • 2211 North First Street
  • San Jose
  • California
  • 95131
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PYPLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2015
2PPDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2015
2PPXTRA (XETRA Trading Platform)YesCommon StockDEEURJul 2015
PYPL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2015
0R9ULSE (London Stock Exchange)YesCommon StockGBUSDJul 2015
PYPLSWX (SIX Swiss Exchange)YesCommon StockCHCHFJul 2015
PYPL-UETLX (Eurotlx)YesCommon StockITEURJul 2015
PYPLWBAG (Wiener Boerse AG)YesCommon StockATEURJul 2015
PYPLBVL (Bolsa de Valores de Lima)YesCommon StockPEUSDJul 2015
PYPL-RMMISX (Micex - Rts)YesCommon StockRUUSDJul 2015
PYPLBASE (Buenos Aires Stock Exchange)CEDEAR EACH 4 REP 1 COM USD0.0001ARARSApr 2019
PYPL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLMay 2019

Biography

PayPal Holdings, Inc. operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its payment solutions include P ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 03:21
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.