PayPal Holdings
Market Cap
US$314.6b
Last Updated
2021/04/19 23:39 UTC
Data Sources
Company Financials +
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
Rewards
Risk Analysis
Snowflake Analysis
Solid track record 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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: PYPL's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-0.4%
PYPL
1.0%
US IT
1.3%
US Market
1 Year Return
138.8%
PYPL
58.8%
US IT
53.8%
US Market
Return vs Industry: PYPL exceeded the US IT industry which returned 58.8% over the past year.
Return vs Market: PYPL exceeded the US Market which returned 53.9% over the past year.
Shareholder returns
| PYPL | Industry | Market | |
|---|---|---|---|
| 7 Day | -0.4% | 1.0% | 1.3% |
| 30 Day | 11.0% | 7.8% | 5.1% |
| 90 Day | 8.4% | 10.5% | 8.9% |
| 1 Year | 138.8%138.8% | 60.4%58.8% | 56.6%53.8% |
| 3 Year | 242.6%242.6% | 108.4%100.8% | 64.4%53.6% |
| 5 Year | 572.8%572.8% | 211.6%190.5% | 120.4%95.7% |
Long-Term 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
14 hours ago | Simply Wall St
Did You Miss PayPal Holdings' (NASDAQ:PYPL) Whopping 569% Share Price Gain?1 week ago | Simply Wall St
Why PayPal Holdings, Inc. (NASDAQ:PYPL) Could Be Worth Watching3 weeks ago | Simply Wall St
PayPal Holdings (NASDAQ:PYPL) Has A Rock Solid Balance SheetValuation
Is PayPal Holdings undervalued compared to its fair value and its price relative to the market?
74.79x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PYPL ($269.87) is trading above our estimate of fair value ($197.64)
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 (75.3x) compared to the US IT industry average (39.7x).
PE vs Market: PYPL is poor value based on its PE Ratio (75.3x) compared to the US market (22.5x).
Price to Earnings Growth Ratio
PEG Ratio: PYPL is poor value based on its PEG Ratio (4.7x)
Price to Book Ratio
PB vs Industry: PYPL is overvalued based on its PB Ratio (15.8x) compared to the US IT industry average (5.3x).
Future Growth
How is PayPal Holdings forecast to perform in the next 1 to 3 years based on estimates from 44 analysts?
16.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PYPL's forecast earnings growth (16% per year) is above the savings rate (2%).
Earnings vs Market: PYPL's earnings (16% per year) are forecast to grow slower than the US market (18% per year).
High Growth Earnings: PYPL's earnings are forecast to grow, but not significantly.
Revenue vs Market: PYPL's revenue (16.7% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: PYPL's revenue (16.7% 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 (24.9%)
Past Performance
How has PayPal Holdings performed over the past 5 years?
19.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PYPL has a large one-off gain of $1.9B impacting its December 31 2020 financial results.
Growing Profit Margin: PYPL's current net profit margins (19.6%) are higher than last year (13.8%).
Past Earnings Growth Analysis
Earnings Trend: PYPL's earnings have grown by 19.9% per year over the past 5 years.
Accelerating Growth: PYPL's earnings growth over the past year (71.3%) exceeds its 5-year average (19.9% per year).
Earnings vs Industry: PYPL earnings growth over the past year (71.3%) exceeded the IT industry 8.4%.
Return on Equity
High ROE: PYPL's Return on Equity (20.9%) is considered high.
Financial Health
How is PayPal Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: PYPL's short term assets ($51.0B) exceed its short term liabilities ($38.4B).
Long Term Liabilities: PYPL's short term assets ($51.0B) exceed its long term liabilities ($11.9B).
Debt to Equity History and Analysis
Debt Level: PYPL's debt to equity ratio (44.6%) is considered high.
Reducing Debt: Insufficient data to determine if PYPL's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: PYPL's debt is well covered by operating cash flow (65.5%).
Interest Coverage: PYPL's interest payments on its debt are well covered by EBIT (28.3x coverage).
Balance Sheet
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?
4.8yrs
Average management tenure
CEO
Dan Schulman (62 yo)
5.75yrs
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 ($USD11.15M).
Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: PYPL's management team is considered experienced (4.8 years average tenure).
Board Members
Experienced Board: PYPL's board of directors are considered experienced (5.8 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$314.596b
- 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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/19 23:39 |
| End of Day Share Price | 2021/04/19 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.