company background image
PYPL

PayPal HoldingsNasdaqGS:PYPL Stock Report

Market Cap

US$220.6b

7D

-3.0%

1Y

-11.2%

Updated

27 Nov, 2021

Data

Company Financials +
PYPL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance5/6
Financial Health5/6
Dividends0/6

PYPL Stock Overview

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.

PayPal Holdings Competitors

Mastercard

NYSE:MA

US$318.5b

Square

NYSE:SQ

US$97.8b

Fidelity National Information Services

NYSE:FIS

US$65.8b

Fiserv

NasdaqGS:FISV

US$64.9b

Price History & Performance

Summary of all time highs, changes and price drops for PayPal Holdings
Historical stock prices
Current Share PriceUS$187.79
52 Week HighUS$310.16
52 Week LowUS$184.28
Beta1.1
1 Month Change-20.71%
3 Month Change-32.53%
1 Year Change-11.16%
3 Year Change118.84%
5 Year Change386.25%
Change since IPO411.55%

Recent News & Updates

Nov 22

PayPal's Oversold Stock May Be Due For A Short-Term Rebound

PayPal's stock has been shattered over the past several weeks. However, last week there was a noteworthy options bet suggesting the shares rally by the middle of February. The technical chart is also showing a potential bottoming process.

Nov 22
Do PayPal Holdings's (NASDAQ:PYPL) Earnings Warrant Your Attention?

Do PayPal Holdings's (NASDAQ:PYPL) Earnings Warrant Your Attention?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling...

Nov 10
After Weeks of Selling, PayPal (NASDAQ:PYPL) is Now in Value Territory

After Weeks of Selling, PayPal (NASDAQ:PYPL) is Now in Value Territory

Despite posting solid Q3 results, PayPal Holdings, Inc. (NASDAQ: PYPL) took a double-digit dive in the most recent trading session. It seems that the cautious guidance spooked the market, while other positive catalyst news failed to reverse the downward trend that has been going on for months. As the stock dropped over 30% from the summer highs, in this article, we'll take a look into the valuation according to our model.

Shareholder Returns

PYPLUS ITUS Market
7D-3.0%-4.0%-2.7%
1Y-11.2%2.9%21.3%

Return vs Industry: PYPL underperformed the US IT industry which returned 2.9% over the past year.

Return vs Market: PYPL underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is PYPL's price volatile compared to industry and market?
PYPL volatility
PYPL Average Weekly Movement5.2%
IT Industry Average Movement7.0%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: PYPL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PYPL's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199826,500Dan Schulmanhttps://www.paypal.com

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, Hyperwallet, and iZettle products. The company's payments platform allows consumers to send and receive payments, withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies.

PayPal Holdings Fundamentals Summary

How do PayPal Holdings's earnings and revenue compare to its market cap?
PYPL fundamental statistics
Market CapUS$220.64b
Earnings (TTM)US$4.94b
Revenue (TTM)US$24.57b

44.7x

P/E Ratio

9.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PYPL income statement (TTM)
RevenueUS$24.57b
Cost of RevenueUS$12.82b
Gross ProfitUS$11.75b
ExpensesUS$6.82b
EarningsUS$4.94b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.20
Gross Margin47.82%
Net Profit Margin20.09%
Debt/Equity Ratio40.5%

How did PYPL perform over the long term?

See historical performance and comparison

Valuation

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

35.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PYPL ($187.79) is trading below our estimate of fair value ($293)

Significantly Below Fair Value: PYPL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PYPL is poor value based on its PE Ratio (44.7x) compared to the US IT industry average (34.7x).

PE vs Market: PYPL is poor value based on its PE Ratio (44.7x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

PEG Ratio: PYPL is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: PYPL is overvalued based on its PB Ratio (10x) compared to the US IT industry average (4.7x).


Future Growth

How is PayPal Holdings forecast to perform in the next 1 to 3 years based on estimates from 46 analysts?

17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PYPL's forecast earnings growth (17.5% per year) is above the savings rate (2%).

Earnings vs Market: PYPL's earnings (17.5% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: PYPL's revenue (17.5% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: PYPL's revenue (17.5% 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 (21.3%)


Past Performance

How has PayPal Holdings performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PYPL has a large one-off gain of $1.1B impacting its September 30 2021 financial results.

Growing Profit Margin: PYPL's current net profit margins (20.1%) are higher than last year (15.5%).


Past Earnings Growth Analysis

Earnings Trend: PYPL's earnings have grown significantly by 26.8% per year over the past 5 years.

Accelerating Growth: PYPL's earnings growth over the past year (57.1%) exceeds its 5-year average (26.8% per year).

Earnings vs Industry: PYPL earnings growth over the past year (57.1%) exceeded the IT industry 38.3%.


Return on Equity

High ROE: PYPL's Return on Equity (22.3%) is considered high.


Financial Health

How is PayPal Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: PYPL's short term assets ($54.1B) exceed its short term liabilities ($41.7B).

Long Term Liabilities: PYPL's short term assets ($54.1B) exceed its long term liabilities ($10.7B).


Debt to Equity History and Analysis

Debt Level: PYPL has more cash than its total debt.

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 (66.2%).

Interest Coverage: PYPL's interest payments on its debt are well covered by EBIT (24.7x 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?

4.0yrs

Average management tenure


CEO

Dan Schulman (63 yo)

6.33yrs

Tenure

US$23,362,072

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 ($USD23.36M) is above average for companies of similar size in the US market ($USD11.11M).

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 years average tenure).


Board Members

Experienced Board: PYPL's board of directors are considered experienced (6.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: PYPL insiders have bought more shares than they have sold 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 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$220.640b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/27 23:23
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.