PayPal Holdings
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. The last earnings update was 40 days ago. More info.
Add to Portfolio Compare Print
PYPL Share Price and Events
7 Day Returns
1 Year Returns
PYPL Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| PayPal Holdings (PYPL) | 2.8% | 5.6% | 19.3% | 24% | 142.7% | - |
| US IT | 3% | 4.7% | 19.4% | 15.5% | 79.7% | 94.9% |
| US Market | 2.4% | 1.7% | 11.9% | 1.9% | 38.2% | 42.4% |
1 Year Return vs Industry and Market
- PYPL outperformed the IT industry which returned 15.5% over the past year.
- PYPL outperformed the Market in United States of America which returned 1.9% over the past year.
Value
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
PayPal Holdings
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for PayPal Holdings.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 41 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| IT Unlevered Beta | Simply Wall St/ S&P Global | 1.06 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.063 (1 + (1- 21%) (1.7%)) |
1.052 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.05 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.052 * 5.96%) |
9% |
Discounted Cash Flow Calculation for NasdaqGS:PYPL using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for PayPal Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9%) |
|
|---|---|---|---|
| 2019 | 3,883.33 | Analyst x8 | 3,562.67 |
| 2020 | 4,724.80 | Analyst x8 | 3,976.74 |
| 2021 | 5,831.50 | Analyst x2 | 4,502.94 |
| 2022 | 5,655.00 | Analyst x1 | 4,006.08 |
| 2023 | 6,424.00 | Analyst x1 | 4,175.08 |
| 2024 | 6,867.93 | Est @ 6.91% | 4,095.03 |
| 2025 | 7,256.40 | Est @ 5.66% | 3,969.40 |
| 2026 | 7,603.14 | Est @ 4.78% | 3,815.65 |
| 2027 | 7,919.73 | Est @ 4.16% | 3,646.34 |
| 2028 | 8,215.43 | Est @ 3.73% | 3,470.16 |
| Present value of next 10 years cash flows | $39,220.09 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $8,215.43 × (1 + 2.73%) ÷ (9% – 2.73%) |
$134,595.97 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $134,595.97 ÷ (1 + 9%)10 |
$56,852.68 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $39,220.09 + $56,852.68 |
$96,072.76 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $96,072.76 / 1,173.21 |
$81.89 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $81.89 |
| Current discount | Discount to share price of
$100.27
= -1 x ($100.27 - $81.89) / $81.89 |
-22.4% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of PayPal Holdings is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for PayPal Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
PayPal Holdings's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $1.74 |
| NasdaqGS:PYPL Share Price ** | NasdaqGS (2019-03-18) in USD | $100.27 |
| United States of America IT Industry PE Ratio | Median Figure of 78 Publicly-Listed IT Companies | 30.16x |
| United States of America Market PE Ratio | Median Figure of 3,055 Publicly-Listed Companies | 17.61x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of PayPal Holdings.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:PYPL Share Price ÷ EPS (both in USD) = 100.27 ÷ 1.74 |
57.71x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- PayPal Holdings is overvalued based on earnings compared to the US IT industry average.
- PayPal Holdings is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
PayPal Holdings's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 57.71x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 41 Analysts |
13.9%per year |
| United States of America IT Industry PEG Ratio | Median Figure of 64 Publicly-Listed IT Companies | 2.43x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.48x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 57.71x ÷ 13.9% |
4.16x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- PayPal Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
PayPal Holdings's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $13.11 |
| NasdaqGS:PYPL Share Price * | NasdaqGS (2019-03-18) in USD | $100.27 |
| United States of America IT Industry PB Ratio | Median Figure of 122 Publicly-Listed IT Companies | 4.33x |
| United States of America Market PB Ratio | Median Figure of 5,152 Publicly-Listed Companies | 1.87x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:PYPL Share Price ÷ Book Value per Share (both in USD) = 100.27 ÷ 13.11 |
7.65x |
* Primary Listing of PayPal Holdings.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- PayPal Holdings is overvalued based on assets compared to the US IT industry average.
Value checks
We assess PayPal Holdings's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the IT industry average (and greater than 0)? (1 check) PayPal Holdings has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
Future Performance
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- PayPal Holdings's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- PayPal Holdings's earnings growth is positive but not above the United States of America market average.
- PayPal Holdings's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:PYPL Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 41 Analysts | 13.9% |
| NasdaqGS:PYPL Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 41 Analysts | 13.3% |
| United States of America IT Industry Earnings Growth Rate | Market Cap Weighted Average | 15.7% |
| United States of America IT Industry Revenue Growth Rate | Market Cap Weighted Average | 9% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 41 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 30,599 | 8,266 | 3,566 | 3 |
| 2022-12-31 | 27,592 | 8,378 | 3,844 | 5 |
| 2021-12-31 | 24,796 | 7,459 | 3,532 | 13 |
| 2020-12-31 | 21,172 | 6,001 | 2,937 | 36 |
| 2019-12-31 | 17,982 | 5,363 | 2,382 | 41 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 15,451 | 5,483 | 2,057 |
| 2018-09-30 | 14,969 | 4,202 | 2,093 |
| 2018-06-30 | 14,525 | 538 | 2,037 |
| 2018-03-31 | 13,804 | 1,431 | 1,922 |
| 2017-12-31 | 13,094 | 2,531 | 1,795 |
| 2017-09-30 | 12,331 | 3,601 | 1,565 |
| 2017-06-30 | 11,759 | 3,396 | 1,508 |
| 2017-03-31 | 11,273 | 3,171 | 1,420 |
| 2016-12-31 | 10,842 | 3,158 | 1,401 |
| 2016-09-30 | 10,417 | 2,963 | 1,378 |
| 2016-06-30 | 10,008 | 2,814 | 1,356 |
| 2016-03-31 | 9,655 | 2,740 | 1,338 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 41 Analyst Estimates (S&P Global) | See Below |
All data from PayPal Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2023-12-31 | 3.34 | 3.62 | 3.06 | 2.00 |
| 2022-12-31 | 3.14 | 3.81 | 2.55 | 3.00 |
| 2021-12-31 | 3.02 | 3.39 | 2.59 | 8.00 |
| 2020-12-31 | 2.47 | 2.88 | 2.22 | 18.00 |
| 2019-12-31 | 2.01 | 2.50 | 1.76 | 22.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 1.74 |
| 2018-09-30 | 1.76 |
| 2018-06-30 | 1.70 |
| 2018-03-31 | 1.60 |
| 2017-12-31 | 1.49 |
| 2017-09-30 | 1.30 |
| 2017-06-30 | 1.25 |
| 2017-03-31 | 1.18 |
| 2016-12-31 | 1.16 |
| 2016-09-30 | 1.13 |
| 2016-06-30 | 1.11 |
| 2016-03-31 | 1.10 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess PayPal Holdings's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
PayPal Holdings has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
Past Performance
How has PayPal Holdings performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- PayPal Holdings has delivered over 20% year on year earnings growth in the past 5 years.
- PayPal Holdings's 1-year earnings growth is less than its 5-year average (14.6% vs 20%)
- PayPal Holdings's earnings growth has not exceeded the US IT industry average in the past year (14.6% vs 15.3%).
Earnings and Revenue History
All data from PayPal Holdings Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 15,451.00 | 2,057.00 | 2,784.00 | 1,071.00 |
| 2018-09-30 | 14,969.00 | 2,093.00 | 2,646.00 | 1,049.00 |
| 2018-06-30 | 14,525.00 | 2,037.00 | 2,535.00 | 1,020.00 |
| 2018-03-31 | 13,804.00 | 1,922.00 | 2,418.00 | 997.00 |
| 2017-12-31 | 13,094.00 | 1,795.00 | 2,295.00 | 953.00 |
| 2017-09-30 | 12,331.00 | 1,565.00 | 2,178.00 | 901.00 |
| 2017-06-30 | 11,759.00 | 1,508.00 | 2,100.00 | 876.00 |
| 2017-03-31 | 11,273.00 | 1,420.00 | 2,043.00 | 853.00 |
| 2016-12-31 | 10,842.00 | 1,401.00 | 2,003.00 | 834.00 |
| 2016-09-30 | 10,417.00 | 1,378.00 | 1,954.00 | 827.00 |
| 2016-06-30 | 10,008.00 | 1,356.00 | 1,902.00 | 809.00 |
| 2016-03-31 | 9,655.00 | 1,338.00 | 1,841.00 | 802.00 |
| 2015-12-31 | 9,248.00 | 1,228.00 | 1,817.00 | 792.00 |
| 2015-09-30 | 8,885.00 | 1,147.00 | 1,744.00 | 823.00 |
| 2015-06-30 | 8,602.00 | 1,080.00 | 1,671.00 | 858.00 |
| 2015-03-31 | 8,288.00 | 1,056.00 | 1,595.00 | 877.00 |
| 2014-12-31 | 8,025.00 | 419.00 | 1,691.00 | 747.00 |
| 2013-12-31 | 6,727.00 | 955.00 | 1,176.00 | 727.00 |
| 2012-12-31 | 5,662.00 | 778.00 | 1,007.00 | 677.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- PayPal Holdings has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- PayPal Holdings used its assets less efficiently than the US IT industry average last year based on Return on Assets.
- PayPal Holdings has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess PayPal Holdings's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
PayPal Holdings has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
Health
How is PayPal Holdings's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up PayPal Holdings's finances.
The net worth of a company is the difference between its assets and liabilities.
- PayPal Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- PayPal Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 16.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from PayPal Holdings Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 15,386.00 | 1,998.00 | 9,109.00 |
| 2018-09-30 | 15,115.00 | 2,000.00 | 9,587.00 |
| 2018-06-30 | 15,019.00 | 2,000.00 | 4,965.00 |
| 2018-03-31 | 14,641.00 | 3,000.00 | 6,306.00 |
| 2017-12-31 | 15,994.00 | 1,000.00 | 5,695.00 |
| 2017-09-30 | 15,432.00 | 0.00 | 4,921.00 |
| 2017-06-30 | 14,998.00 | 0.00 | 4,091.00 |
| 2017-03-31 | 14,626.00 | 0.00 | 4,055.00 |
| 2016-12-31 | 14,712.00 | 0.00 | 4,975.00 |
| 2016-09-30 | 14,192.00 | 0.00 | 5,088.00 |
| 2016-06-30 | 13,817.00 | 0.00 | 4,957.00 |
| 2016-03-31 | 13,598.00 | 0.00 | 4,767.00 |
| 2015-12-31 | 13,759.00 | 0.00 | 3,411.00 |
| 2015-09-30 | 13,214.00 | 0.00 | 4,299.00 |
| 2015-06-30 | 12,740.00 | 102.00 | 4,408.00 |
| 2015-03-31 | 8,640.00 | 868.00 | 2,375.00 |
| 2014-12-31 | 8,248.00 | 1,093.00 | 2,230.00 |
| 2013-12-31 | 7,390.00 | 1,103.00 | 1,925.00 |
| 2012-12-31 |
- PayPal Holdings's level of debt (13%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (14.9% vs 13% today).
- Debt is well covered by operating cash flow (274.4%, greater than 20% of total debt).
- PayPal Holdings earns more interest than it pays, coverage of interest payments is not a concern.
Financial health checks
We assess PayPal Holdings's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) PayPal Holdings has a total score of 6/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
Dividends
What is PayPal Holdings's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
PayPal Holdings
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate PayPal Holdings's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate PayPal Holdings's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 41 Analyst Estimates (S&P Global) | See Below |
| United States of America IT Industry Average Dividend Yield | Market Cap Weighted Average of 33 Stocks | 1.4% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2004 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2023-12-31 | ||
| 2022-12-31 | ||
| 2021-12-31 | 0.00 | 5.00 |
| 2020-12-31 | 0.00 | 6.00 |
| 2019-12-31 | 0.00 | 6.00 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as PayPal Holdings has not reported any payouts.
- Unable to verify if PayPal Holdings's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess PayPal Holdings's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can PayPal Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) PayPal Holdings has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
Management
CEO
| COMPENSATION | $19,218,634 |
| AGE | 60 |
| TENURE AS CEO | 3.7 years |
CEO Bio
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. Mr. Schulman joined PayPal in 2014 to lead the PayPal into its next phase as an independent business. He is Director of Verizon Communications Inc. since September 6, 2018. He served as of Enterprise Growth at American Express Company from August 2010 to September 30, 2014. At American Express, he was responsible for the its global strategy to expand alternative mobile and online payment services, form new partnerships and build revenue streams beyond the traditional card and travel businesses. He was also responsible for the American Express's Business Development, Mergers and Acquisitions unit. He has a record of high performance in the consumer-marketing arena and almost two decades of experience in the wireless industry. Mr. Schulman served as an Advisor at Greycroft Partners LLC. He served as the President of Prepaid Group at Sprint Corporation (Sprint Nextel Corporation) from 2009 to August 23, 2010. He served as President of Sprint Prepaid Group at Boost Mobile LLC. Mr. Schulman served as Founding Chief Executive Officer of Virgin Mobile USA, L.P. From May 2000 to May 2001, he served as the President and Chief Executive Officer of The Priceline Group Inc. (alternate name, Priceline.com Incorporated) since May 2000 and also served as its Chief Operating Officer since July 1999. He spent the early part of his career with AT&T, where he ultimately led its consumer long distance business. From December 1998 to July 1999, he served as the President of Consumer Markets Division of AT&T Corp. He served as a Member of AT&T Operations Group and served as its President of the Long Distance Division. From March 1997 to November 1998, Mr. Schulman served as the President of AT&T WorldNet Service. From December 1995 to February 1997, he served as the Vice President of Business Services Marketing of AT&T Business Markets Division and from May 1994 to November 1995, he served as a Small Business Marketing Vice President of AT&T Business Markets Division. He served for more than 18 years at&T. He has been the Non-Executive Chairman and Independent Director of Symantec Corporation since January 23, 2013 and March 2000 respectively. He has been Director at PayPal Holdings, Inc. since July 2015 and serves as Director at Xoom Corporation. Mr. Schulman had been an Independent Director of Flex Ltd. from June 18, 2009 until August, 2018. He served as a Director of The Telx Group, Inc. since February 2010 and Virgin Mobile USA, Inc. from 2001 to 2009. He served as Lead Director at Symantec Corporation from 2012 to January 23, 2013. Mr. Schulman served as a Director of Net2Phone, Inc., from September 1999 to September 2004. He served as a Director of iVillage Inc. He served as a Director of Veritas Software Corp. He serves on the Board of Autism Speaks and Rutgers University. Mr. Schulman serves as a Director of New Jersey Technology Council. He serves on the boards of several charitable organizations, including Teach for America. He received the New Jersey Ernst & He serves as a Trustee and Member of Board of Governors at Rutgers, The State University of New Jersey. He received Young Entrepreneur of the Year Award, saluting executives' efforts in business excellence and community improvement. He is named to Business Week's Top 20 People to Watch in media and FierceWireless' Top 25 Most Powerful People in the global wireless industry. Mr. Schulman served as Chief Executive Officer of Virgin Mobile USA, a cellular phone service provider, from 2001 to 2009. Mr. Schulman is a member of the boards of directors of Verizon Communications Inc. and Flextronics International Ltd. Mr. Schulman holds an M.B.A., majoring in Finance and International Business from New York University’s Leonard N. Stern School of Business and B.A in Economics from Middlebury College
CEO Compensation
- Dan's compensation has been consistent with company performance over the past year.
- Dan's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the PayPal Holdings management team in years:
- The tenure for the PayPal Holdings management team is about average.
Management Team
Dan Schulman
President
$19M
60
3.7 yrs
John Rainey
CFO & Executive VP of Global Customer Operations
$9M
47
3.6 yrs
Bill Ready
Executive VP & COO
$26M
38
2.5 yrs
Adele Pentland
Executive VP and Chief Business Affairs & Legal Officer
$7M
46
2.5 yrs
Aaron Anderson
Chief Accounting Officer & VP
Sri Shivananda
CTO & Senior VP
45
2.9 yrs
Brad Strock
Chief Information Officer
55
5.2 yrs
Gabrielle Rabinovitch
Vice President of Investor Relations
Aaron Karczmer
Executive VP of Risk
46
2.2 yrs
Franz Paasche
Senior Vice President of Corporate Affairs
Board of Directors Tenure
Average tenure and age of the PayPal Holdings board of directors in years:
- The tenure for the PayPal Holdings board of directors is about average.
Board of Directors
John Donahoe
Chairman of the Board
$530K
57
3.7 yrs
Dan Schulman
President
$19M
60
3.7 yrs
Dave Dorman
Director
$360K
64
3.8 yrs
Gail McGovern
Director
$370K
66
3.8 yrs
David Moffett
Lead Independent Director
$430K
66
3.7 yrs
Jonathan Christodoro
Director
$348K
42
3.7 yrs
Frank Yeary
Director
$350K
54
3.7 yrs
Wences Casares
Director
$348K
45
3.2 yrs
Belinda Johnson
Director
$347K
51
2.2 yrs
Ann Sarnoff
Director
$279K
56
1.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 05. Jan 19 | Buy | Frank Yeary | Individual | 17. Oct 18 | 17. Oct 18 | 8 | $81.22 | $650 | ||
Management checks
We assess PayPal Holdings's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) PayPal Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
News
Simply Wall St News
Is PayPal Holdings Inc's (NASDAQ:PYPL) 14% Better Than Average?
To keep the lesson grounded in practicality, we'll use ROE to better understand PayPal Holdings Inc (NASDAQ:PYPL). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleAll You Need To Know About PayPal Holdings Inc's (NASDAQ:PYPL) Financial Health
PayPal Holdings Inc (NASDAQ:PYPL), a large-cap worth US$102.92b, comes to mind for investors seeking a strong and reliable stock investment. … Most investors favour these big stocks due to their strong balance sheet and high market liquidity, meaning there are an adundance of stock in the public market available for trading. … In times of low liquidity in the market, these firms won’t be left high and dry.
Simply Wall St - – Full articleWhat Should You Know About PayPal Holdings Inc's (NASDAQ:PYPL) Capital Returns?
and looking to gauge the potential return on investment in PayPal Holdings Inc (NASDAQ:PYPL). … Therefore, looking at how efficiently PayPal Holdings is able to use capital to create earnings will help us understand your potential return. … Investors use many different metrics but the analysis below focuses on return on capital employed (ROCE).
Simply Wall St - – Full articleBreaking Down PayPal Holdings Inc's (NASDAQ:PYPL) Ownership Structure
Today, I will be analyzing PayPal Holdings Inc’s (NASDAQ:PYPL) recent ownership structure, an important but not-so-popular subject among individual investors. … The impact of a company's ownership structure affects both its short- and long-term performance. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment.
Simply Wall St - – Full articleIs PayPal Holdings Inc's (NASDAQ:PYPL) CEO Pay Fair?
Understanding how CEOs are incentivised to run and grow their company is an important aspect of investing in a stock. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability
Simply Wall St - – Full articleWhy PayPal Holdings Inc's (NASDAQ:PYPL) ROE Of 13.13% Does Not Tell The Whole Story
and want to learn about Return on Equity using a real-life example. … PayPal Holdings Inc (NASDAQ:PYPL) performed in line with its data processing and outsourced services industry on the basis of its ROE – producing a return of 13.13% relative to the peer average of 14.77% over the past 12 months. … But what is more interesting is whether PYPL can sustain or improve on this level of return
Simply Wall St - – Full articleIntrinsic Calculation For PayPal Holdings Inc (NASDAQ:PYPL) Shows Investors Are Overpaying
Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of PayPal Holdings Inc (NASDAQ:PYPL) as an investment opportunity. … by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF).
Simply Wall St - – Full articleWant To Invest In PayPal Holdings Inc (NASDAQ:PYPL) Today? Read This First
PayPal Holdings Inc (NASDAQ:PYPL) is a stock well-positioned for future growth, but many investors are wondering whether its last closing price of $85.12 is based on unrealistic expectations. … Investors in PayPal Holdings have been patiently waiting for the uptick in earnings. … If you believe the analysts covering the stock then the following year will be very interesting
Simply Wall St - – Full articleWhat Is PayPal Holdings Inc's (NASDAQ:PYPL) Share Price Doing?
Let's talk about the popular PayPal Holdings Inc (NASDAQ:PYPL). … As a large-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Let’s take a look at PayPal Holdings’s outlook and value based on the most recent financial data to see if the opportunity still exists
Simply Wall St - – Full articleWhat Is Driving PayPal Holdings Inc's (NASDAQ:PYPL) Margins In The Future?
As analysts forecast … PayPal Holdings Inc (NASDAQ:PYPL) to … earnings growth of 17.45%
Simply Wall St - – Full articleCompany Info
Description
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 PayPal, PayPal Credit, Braintree, Venmo, Xoom, and iZettle products. The company's Payments Platform allows consumers to send payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies. It also offers gateway services that enable merchants to accept payments online with credit or debit cards. PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California.
Details
| Name: | PayPal Holdings, Inc. |
| PYPL | |
| Exchange: | NasdaqGS |
| Founded: | 1998 |
| $117,637,703,229 | |
| 1,173,209,367 | |
| Website: | http://www.paypal.com |
| Address: |
PayPal Holdings, Inc. 2211 North First Street, San Jose, California, 95131, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | PYPL | Common Stock | Nasdaq Global Select | US | USD | 06. Jul 2015 | |
| DB | 2PP | Common Stock | Deutsche Boerse AG | DE | EUR | 06. Jul 2015 | |
| XTRA | 2PP | Common Stock | XETRA Trading Platform | DE | EUR | 06. Jul 2015 | |
| LSE | 0R9U | Common Stock | London Stock Exchange | GB | USD | 06. Jul 2015 | |
| SWX | PYPL | Common Stock | SIX Swiss Exchange | CH | CHF | 06. Jul 2015 | |
| WBAG | PYPL | Common Stock | Wiener Boerse AG | AT | EUR | 06. Jul 2015 | |
| BMV | PYPL * | Common Stock | Bolsa Mexicana de Valores | MX | MXN | 06. Jul 2015 |
Number of employees
Current staff
Industry
| Data Processing and Outsourced Services | |
| Software |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/19 00:39 |
| End of day share price update: | 2019/03/18 00:00 |
| Last estimates confirmation: | 2019/03/16 |
| Last earnings filing: | 2019/02/07 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
