NasdaqGS:PYPL

Stock Analysis Report

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.

Snowflake

Fundamentals

Excellent balance sheet with reasonable growth potential.


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


Market Performance


7 Day Return

-5.6%

PYPL

-4.6%

US IT

0.07%

US Market


1 Year Return

17.2%

PYPL

19.0%

US IT

8.9%

US Market

Return vs Industry: PYPL underperformed the US IT industry which returned 19% over the past year.

Return vs Market: PYPL exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

PYPLIndustryMarket
7 Day-5.6%-4.6%0.07%
30 Day-7.4%-3.7%-0.3%
90 Day-15.4%-7.8%-1.6%
1 Year17.2%17.2%20.2%19.0%11.3%8.9%
3 Year130.0%130.0%88.3%80.6%46.3%36.8%
5 Yearn/a136.9%115.2%62.1%44.3%

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?

45.6x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PYPL ($97.36) is trading above our estimate of fair value ($77.77)

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 (45.6x) compared to the IT industry average (36.1x).

PE vs Market: PYPL is poor value based on its PE Ratio (45.6x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: PYPL is poor value based on its PEG Ratio (3x)


Price to Book Ratio

PB vs Industry: PYPL is overvalued based on its PB Ratio (7.1x) compared to the US IT industry average (4.2x).


Next Steps

Future Growth

How is PayPal Holdings forecast to perform in the next 1 to 3 years based on estimates from 38 analysts?

15.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PYPL's forecast earnings growth (15.3% per year) is above the savings rate (2.7%).

Earnings vs Market: PYPL's earnings (15.3% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: PYPL's earnings are forecast to grow, but not significantly.

Revenue vs Market: PYPL's revenue (15% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: PYPL's revenue (15% 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 (25.9%)


Next Steps

Past Performance

How has PayPal Holdings performed over the past 5 years?

22.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PYPL's earnings have grown significantly by 22% per year over the past 5 years.

Accelerating Growth: PYPL's earnings growth over the past year (23.2%) exceeds its 5-year average (22% per year).

Earnings vs Industry: PYPL earnings growth over the past year (23.2%) exceeded the IT industry 9.8%.


Return on Equity

High ROE: PYPL's Return on Equity (15.6%) is considered low.


Return on Assets

ROA vs Industry: PYPL's Return on Assets is below or equal to the IT industry average last year.


Return on Capital Employed

ROCE Improving: PYPL has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is PayPal Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PYPL's short term assets ($36.4B) exceeds its short term liabilities ($29.8B)

Long Term Liabilities: PYPL's short term assets (36.4B) exceeds its long term liabilities (2.4B)


Debt to Equity History and Analysis

Debt Level: PYPL's debt to equity ratio (15.5%) is considered satisfactory

Reducing Debt: PYPL's debt to equity ratio has increased from 14% to 15.5% over the past 5 years.

Debt Coverage: PYPL's debt is well covered by operating cash flow (320.3%).

Interest Coverage: PYPL earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: PYPL has a low level of unsold assets or inventory.

Debt Coverage by Assets: PYPL's debt is covered by short term assets (assets are 14.6x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

What is the CEO of PayPal Holdings's salary, the management and board of directors tenure and is there insider trading?

4.2yrs

Average management tenure


CEO

Dan Schulman (61yo)

4.3yrs

Tenure

US$37,764,588

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 ($USD37.76M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Dan's compensation has increased by more than 20% in the past year.


Management Age and Tenure

4.2yrs

Average Tenure

47yo

Average Age

Experienced Management: PYPL's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

4.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: PYPL's board of directors are considered experienced (4.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Dan Schulman (61yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$37.76m
  • Bill Ready (39yo)

    Executive Vice President

    • Tenure: 4.3yrs
    • Compensation: US$9.52m
  • John Rainey (48yo)

    CFO & Executive VP of Global Customer Operations

    • Tenure: 4.2yrs
    • Compensation: US$9.52m
  • Adele Pentland (47yo)

    Executive VP and Chief Business Affairs & Legal Officer

    • Tenure: 3.1yrs
    • Compensation: US$9.52m
  • Sri Shivananda (46yo)

    CTO & Senior VP

    • Tenure: 3.5yrs
  • Aaron Anderson

    Chief Accounting Officer & VP

    • Tenure: 0yrs
  • Franz Paasche

    Senior Vice President of Corporate Affairs

    • Tenure: 0yrs
  • Gabrielle Rabinovitch

    Vice President

    • Tenure: 0yrs
  • Aaron Karczmer (47yo)

    Executive VP of Risk

    • Tenure: 2.8yrs
  • Brad Strock (56yo)

    Chief Information Officer

    • Tenure: 5.8yrs

Board Members

  • Frank Yeary (55yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$375.02k
  • Wences Casares (46yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$373.02k
  • Dan Schulman (61yo)

    President

    • Tenure: 4.3yrs
    • Compensation: US$37.76m
  • David Moffett (67yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$470.02k
  • Dave Dorman (65yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$385.02k
  • John Donahoe (58yo)

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: US$622.56k
  • Gail McGovern (67yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$393.02k
  • Ann Sarnoff (57yo)

    Director

    • Tenure: 2.3yrs
    • Compensation: US$375.02k
  • Jonathan Christodoro (43yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$373.02k
  • Belinda Johnson (52yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$375.02k

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$114.561b
  • Shares outstanding: 1.18b
  • 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
PYPLWBAG (Wiener Boerse AG)YesCommon StockATEURJul 2015
PYPLBASE (Buenos Aires Stock Exchange)CEDEAR EACH 4 REP 1 COM USD0.0001ARARSApr 2019
PYPL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 1 REP 0.5 COM USD0.0001BRBRLMay 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 Analysis2019/10/23 00:27
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.