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PYPL

PayPal Holdings NasdaqGS:PYPL Stock Report

Last Price

US$86.07

Market Cap

US$99.5b

7D

-1.0%

1Y

-67.5%

Updated

30 Sep, 2022

Data

Company Financials +
PYPL fundamental analysis
Snowflake Score
Valuation4/6
Future Growth5/6
Past Performance1/6
Financial Health5/6
Dividends0/6

PYPL Stock Overview

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

PayPal Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for PayPal Holdings
Historical stock prices
Current Share PriceUS$86.07
52 Week HighUS$273.51
52 Week LowUS$67.58
Beta1.44
1 Month Change-7.89%
3 Month Change20.55%
1 Year Change-67.48%
3 Year Change-16.27%
5 Year Change30.31%
Change since IPO134.46%

Recent News & Updates

Oct 01

PayPal's Best Years Are Ahead

Summary Honey, I shrunk the PEG; PayPal actually sports a forward PEG PayPal's larger ecosystem gives it an edge over its rivals and will power the next decade of growth. Several challenges such as stiff competition and declining margins remain, but are surmountable and reflected in its price. Elliot Management's stake in PayPal brings in discipline and focus. Buyback authorizations of up to $15Bn will goose earnings. Honey; I Shrunk the PEG For the first time in the last decade, PayPal Holdings Inc, (PYPL) actually sports a forward PEG (Price to Earnings Growth) ratio of 0.84. At $88, PayPal is just priced at 18X 2023 earnings of $4.79, with a projected growth of 22% next year. PayPal had reached a high of $308 in July 2021, before falling on growth concerns to a low of $68 in July 2022. At $88, I believe the rebound has just started and a PEG of 0.84 is too good to pass up for a company that still has a very bright future. What used to be a tearing growth story has now evolved into a more mature company still growing revenues at 14% and earnings at 20%. Very formidable and given the opportunities abroad, fairly sustainable. PayPal Financial Analysis (Fountainhead, PayPal) For those looking for a steadier ship without the destruction of overpaying for growth, this is ideal. The story gets even better as Seeking Alpha consensus earnings estimates climb to $10.09 in 2027, reflecting a continued CAGR of 20% for the next 5 years. The PayPal Flywheel The PayPal Flywheel (PayPal) PayPal has a unique position in the global payments industry, it being a strong contender in both the customer and merchant segments, besides having the first mover advantage in peer to peer payments with Venmo. It is a network like Visa (NYSE:V) and Mastercard (NYSE:MA) with the added advantage of owning the end user. Visa and Mastercard earn network fees for processing credit card transactions from card issuers. That is, for every swipe that costs the merchant about 3%, Visa and Mastercard take a percentage - they don't issue cards themselves. Because PayPal started as an internet based e-commerce player, it is the network, the issuer reaching the end customer, and the merchant providing a payment option to the seller. In addition, they provide credit to their customers through their tie-up with Synchrony Bank, besides offering branded Venmo and PayPal credit and debit cards. Additionally, merchants also get other valued added products such as credit, loans and access to working capital, the same as most of the other providers such as Block (NYSE:SQ) and Shopify (NYSE:SHOP). Both Block and Shopify have strong merchant bases and Block with its Cash app also competes with Venmo, but it doesn't have the same customer base as PayPal. As of Q3-2022, PayPal had about 400Mn customer accounts, and 35Mn Merchant accounts. Sticky Customers PayPal accounts are sticky; the likelihood of closing your PayPal account is pretty low, the switching costs are high in terms of convenience and time, and often times are not worth it. The biggest advantages PayPal has are a) the convenience of never having to enter new credit card information and b) safety, even if Chrome or another browser stores your credit card information, you still have to enter the CVC code. In the words of PayPal CEO Dan Schulman "Consumers trust and know the PayPal brand. If you do a consumer survey, there is one that was just done externally, where 60% of consumers would prefer to use PayPal to do an online Checkout. The next closest digital wallet was 8%. " Venmo's increasing reach Venmo should be available on Amazon (NASDAQ:AMZN) in Q4-22, which is a huge win for PayPal. One of PayPal's biggest challenges was monetizing Venmo because there was no way to charge fees for peer to peer transactions and Venmo wasn't accepted in most places. With the Amazon deal this will change significantly. Venmo is estimated to have about 90Mn accounts with 55Mn monthly users; this is a huge boost for both Amazon and PayPal. More importantly, this will bring in other e-commerce websites who were not previously accepting Venmo and lead to further growth. Challenges The US Market is penetrated The US market for PayPal may be fully penetrated because PayPal and Venmo combined already have more than 50% consumer penetration. However, the international markets are mostly under penetrated and growing faster. Growth at a Price In 2021, Total Payment Volume (TPV) grew 33% to $1.25Tn and the number of transactions grew 25%, but total revenues grew only 18%. Growth from new accounts are coming at a price. Venmo's transactions are mostly peer to peer and cannot be monetized easily. It's only merchants who pay when a customer uses Venmo to pay for transactions. In Q3-2022, Venmo had an estimated 90Mn accounts and $230Bn in TPV, about 22% of total accounts and 18% of TPV. PayPal Performance Indicators (PayPal, Fountainhead) TPV grows well per active account from $ 2,334 in 2019 to $3,034 in 2022, but, revenue decreases as a percentage of TPV from 2.5% to 2.07%. As the payments space gets more crowded, bigger merchants pay less for high volumes and as more peer to peer accounts are added, these margins will continue to remain tight. Stiff Competition Besides Block and Shopify and several other Fintech companies, PayPal also competes with the big money center banks. Zelle, owned by JPMorgan Chase (NYSE:JPM) and used by many other banks is a huge competitor. Zelle's usage has spread to the mainstream. In 2021 at $490Bn, Zelle had more than double the TPV of PayPal's $229Bn, while Block came in third with $167Bn. Little Product Differentiation For most customers, there is little product differentiation, no bells and whistles, it's only convenience. There are no financial incentives to switch. Slower Growth Post COVID COVID accelerated e-commerce shopping and online transactions in 2020, which led to PayPal's revenues growing 21% but only 18% in 2021 and is now expected to reduce to 15% in 2022 and grow steadily at 14% for the next 3. SWOT Analysis SWOT Analysis (Fountainhead) Competitor Analysis Squaring Up: PayPal and Block (Business of apps, PayPal, Block)

Sep 20

Visa Or PayPal: A Comparative Analysis

Summary The Seeking Alpha Quant Ranking places Visa ahead of PayPal within the Data Processing and Outsources Services Industry and the Information Technology Sector. The HQC Scorecard indicates that Visa is more attractive than PayPal in terms of Economic Moat, Profitability and Financial Strength. I consider the industry in which Visa and PayPal operate as being highly attractive for investors. In this comparison analysis, I will show you which of the two companies I consider to be the more attractive prospect at this moment in time. I expect a compound annual rate of return of about 14% for Visa and 16% for PayPal. Investment Thesis According to the Seeking Alpha Quant Ranking, Visa (NYSE:V) is ahead of PayPal (NASDAQ:PYPL): in the Data Processing and Outsources Services Industry, Visa is ranked 16th while PayPal is 20th (out of 67). Within the Information Technology Sector, Visa is also in front of PayPal in 118th place while PayPal is ranked 140th (out of 632). Visa scores 82/100 points on the HQC Scorecard, which is a very attractive overall rating in terms of risk and reward. As according to the Scorecard, the company is rated as very attractive in the categories of Economic Moat (89/100), Financial Strength (80/100), Profitability (100/100), Growth (84/100) and Expected Return (100/100). PayPal currently scores 68/100 points as according to the HQC Scorecard, showing an attractive overall rating in terms of risk and reward. The company achieves very attractive results in the categories of Growth (88/100) and Expected Return (80/100). However, when it comes to Profitability (50/100), it’s only rated as moderately attractive. The overall rankings of the HQC Scorecard reinforce my opinion to rate PayPal as a buy and Visa as a strong buy. However, if I had to pick one out of the two, I would choose Visa. Taking into account Visa’s current stock price of $193.30, my DCF Model calculates an Internal Rate of Return of 14% for Visa. Considering PayPal’s current stock price of $94, my DCF Model calculates an Internal Rate of Return of 16% for PayPal. Visa and PayPal’s Competitive Positions In a previous analysis on Visa, I discussed the company’s wide economic moat: “Despite the high profit margins when compared to other industries, it is hard for Visa’s competitors to enter into the market. Visa’s reliable payments network, the company’s technological knowledge as well as its broad network within the financial service industry in combination with a strong brand image, protect the company from additional competitors entering the business segment.” Visa’s high EBIT Margin of 67.48% provides a strong indicator of the company’s excellent competitive position. Its Average Dividend Growth Rate of 17.84% over the last five years shows that the company is on track when it comes to growth. PayPal, however, has shown an even higher Revenue and EBIT Growth Rate [FWD] over the last 5 years: while PayPal has an Average Revenue Growth Rate of 17.55% and an Average EBIT Growth Rate of 21.34% over the last five years, Visa’s 5 Year Average Revenue Growth Rate is 10.83% and its 5 Year Average EBIT Growth Rate is 12.13%. In 2Q22, PayPal released figures that suggest it currently has 429M active accounts including 35M active merchant accounts. At the same time, the company’s Total Payment Volume was $340B in 2Q22 and its Payment Transactions Per Active Account [TPA] were 48.7. This implies an increase of 12% as compared to the same quarter of the previous year. PayPal has been able to create a payment ecosystem, which provides the company with a wide economic moat over its competitors. The company’s high Free Cash Flow Yield of about 4.7% signifies another competitive advantage over less financially strong companies within the digital payment industry. This high Free Cash Flow Yield contributes to my buy rating for the company. The Valuation of Visa and PayPal Discounted Cash Flow [DCF]-Model I have used the DCF Model to determine the intrinsic value of Visa and PayPal. The method calculates a fair value of $248.98 for Visa and $126.06 for PayPal. At the current stock prices, this gives Visa an upside of 28.8% and PayPal an upside of 34.1%. My calculations are based on the following assumptions as presented below (in $ millions except per share items): Visa PayPal Company Ticker V PYPL Revenue Growth Rate for the next 5 years 10% 11% EBIT Growth Rate for the next 5 years 10% 11% Tax Rate 23.4% 19.3% Discount Rate [WACC] 7.50% 8.3% Perpetual Growth Rate 4% 4% EV/EBITDA Multiple 22.7x 23.4x Current Price/Share $193.30 $94 Shares Outstanding 2,069 1,157 Debt $23,795 $11,381 Cash $14,047 $4,583 Capex $883 $806 Source: The Author Based on the above, I calculated the following results: Market Value vs. Intrinsic Value Visa PayPal Market Value $193.30 $94.00 Upside 28.80% 34.10% Intrinsic Value $248.98 $126.06 Source: The Author Internal Rate of Return for Visa The Internal Rate of Return [IRR] is defined as the expected compound annual rate of return that will be earned on an investment. Below you can find the Internal Rate of Return as according to my DCF Model, when assuming different purchase prices for the Visa stock. The lower the purchasing price, the higher the Internal Rate of Return. At Visa's current stock price of $193.30, my DCF Model indicates an Internal Rate of Return of approximately 14%, while assuming a Revenue and EBIT Growth Rate of 10% for the company over the next five years. (In bold you can see the Internal Rate of Return for Visa’s current stock price of $193.30.) Purchase Price of the Visa Stock Internal Rate of Return as according to my DCF Model $150.00 21% $160.00 20% $170.00 18% $180.00 16% $190.00 15% $193.30 14% $200.00 13% $210.00 12% $220.00 11% $230.00 10% $240.00 9% $250.00 7% Source: The Author Internal Rate of Return for PayPal At PayPal’s current stock price of $94, my DCF Model indicates an Internal Rate of Return of 16%, while assuming a Revenue and EBIT Growth Rate of 11% over the next 5 years. (In bold you can see the Internal Rate of Return for PayPal’s current stock price of $94.) Purchase Price of the PayPal Stock Internal Rate of Return as according to my DCF Model $70.00 24% $75.00 22% $80.00 21% $85.00 19% $90.00 17% $94.00 16% $95.00 16% $100.00 14% $105.00 13% $110.00 12% $115.00 11% Source: The Author Relative Valuation Models The P/E [FWD] Ratio for Visa and PayPal Visa’s P/E Ratio is currently 28.36, which is 13.07% below its 5 Year Average (32.62), indicating that the company is currently undervalued. PayPal’s current P/E [FWD] Ratio is 62.57, which is 7.51% above its 5 Year Average of 58.20, showing that PayPal is currently slightly overvalued. Fundamentals: Visa vs. PayPal Visa’s Return on Equity [ROE] of 39.85% is significantly higher than PayPal’s (10.11%). This high ROE is proof that Visa’s management is very efficient in generating income and growth from its equity financing. Visa and PayPal’s relatively high Free Cash Flow Yield [TTM] of 3.96% and 4.7% show that both companies have significant amounts of cash left each year to be able to pay dividends, pay down debt and also to contribute to growth. It's also an indicator of the enormous financial strength of both companies. The low Total Debt to Equity Ratio of 67.06% for Visa and 57.58% for PayPal once again underlines this enormous financial strength. Visa’s EBIT Growth Rate [FWD] of 16.13% and Free Cash Flow Per Share Growth Rate [FWD] of 23.98% are significantly higher in comparison to PayPal (which has an EBIT Growth Rate [FWD] of 16.13% and Free Cash Flow Per Share Growth Rate [FWD] of 11.93%). These Growth Rates confirm my assumption that Visa is currently slightly more attractive than PayPal. Below you can find an overview of some fundamental data for both companies. Visa PayPal Ticker V PYPL Sector Information Technology Information Technology Industry Data Processing and Outsourced Services Data Processing and Outsourced Services Market Cap 412.55B 112.94B Revenue 28.08B 26.39B Revenue 3 Year [CAGR] 8.03% 17.32% Revenue Growth 5 Year [CAGR] 9.59% 17.55% EBITDA 19.79B 4.64B EBIT Margin 67.48% 14.00% ROE 39.85% 10.11% P/E GAAP [FWD] 28.36 62.57 Dividend Yield [FWD] 0.75% - Dividend Growth 3 Yr [CAGR] 14.47% - Dividend Growth 5 Yr [CAGR] 17.84% - Consecutive Years of Dividend Growth 13 Years - Dividend Frequency Quarterly - Source: Seeking Alpha The High-Quality Company [HQC] Scorecard “The aim of the HQC Scorecard that I have developed is to help investors identify companies which are attractive long-term investments in terms of risk and reward.” Here you can find a detailed description of how the HQC Scorecard works. Overview of the Items on the HQC Scorecard “In the graphic below, you can find the individual items and weighting for each category of the HQC Scorecard. A score between 0 and 5 is given (with 0 being the lowest rating and 5 the highest) for each item on the Scorecard. Furthermore, you can see the conditions that must be met for each point of every rated item.” Source: The Author Visa and PayPal According to the HQC Scorecard Source: The Author As according to the HQC Scorecard, Visa scores 82/100 points. This is a very attractive overall scoring in terms of risk and reward. PayPal scores 68/100, resulting in an attractive overall rating when it comes to risk and reward. In the category of Economic Moat, Visa achieves 89/100 points while PayPal gets 74/100. In the category of Financial Strength, Visa scores 80/100 points compared to 61/100 for PayPal. Visa’s higher score in this category is particularly due to its higher credit rating of Aa3 by Moody’s (PayPal has an A3 rating) and also its higher Quick Ratio and Cash Ratio as compared to PayPal. While Visa has a Quick Ratio of 1.05, PayPal’s is only 0.23. Visa’s Cash Ratio was 0.9 in the last quarter, while PayPal’s was just 0.2. Visa’s higher Quick and Cash Ratio as compared to PayPal is evidence that the company has a stronger ability to meet its short-term obligations. In terms of Profitability, Visa shows very attractive results by achieving 100/100 points while PayPal only shows moderately attractive results (50/100). The scorings in this category are a result of Visa’s higher EBIT Margin (67.48% as compared to PayPal’s 14.00%) and its higher ROE (39.85% as compared to PayPal’s 10.11%). In the categories of Valuation, Visa (76/100 points) and PayPal (68/100) achieve attractive results. This is particularly due to the upside potential that my DCF Model shows for both companies. In terms of Growth and Expected Return, both companies achieve very attractive results. This is especially due to the companies' relatively high Expected Internal Rate of Return (my DCF Model indicates an IRR of 14% for Visa and 16% for PayPal). The companies’ overall ratings as according to the HQC Scorecard, strengthen my opinion to rate PayPal as a buy and Visa as a strong buy; if having to decide between investing in Visa or in PayPal, I would choose Visa. Visa and PayPal According to the Seeking Alpha Quant Factor Grades Taking into account the Seeking Alpha Quant Factor Grades, Visa is rated with a C in terms of Growth while PayPal receives a D+. For Profitability, Visa gets an A+ while PayPal gets an A. The results in these categories reinforce my opinion to look at Visa ahead of PayPal.

Sep 19
Is PayPal Holdings (NASDAQ:PYPL) A Risky Investment?

Is PayPal Holdings (NASDAQ:PYPL) A Risky Investment?

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

PYPLUS ITUS Market
7D-1.0%-2.7%-2.5%
1Y-67.5%-39.1%-23.2%

Return vs Industry: PYPL underperformed the US IT industry which returned -37.2% over the past year.

Return vs Market: PYPL underperformed the US Market which returned -21.5% over the past year.

Price Volatility

Is PYPL's price volatile compared to industry and market?
PYPL volatility
PYPL Average Weekly Movement7.2%
IT Industry Average Movement8.0%
Market Average Movement6.9%
10% most volatile stocks in US Market15.6%
10% least volatile stocks in US Market2.8%

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.

About the Company

FoundedEmployeesCEOWebsite
199830,900Dan Schulmanhttps://www.paypal.com

PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company's payments platform allows consumers to send and receive payments in approximately 200 markets and in approximately 100 currencies, withdraw funds to their bank accounts in 56 currencies, and hold balances in their PayPal accounts in 25 currencies.

PayPal Holdings Fundamentals Summary

How do PayPal Holdings's earnings and revenue compare to its market cap?
PYPL fundamental statistics
Market CapUS$99.54b
Earnings (TTM)US$2.06b
Revenue (TTM)US$26.39b

48.4x

P/E Ratio

3.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PYPL income statement (TTM)
RevenueUS$26.39b
Cost of RevenueUS$14.92b
Gross ProfitUS$11.47b
Other ExpensesUS$9.42b
EarningsUS$2.06b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)1.78
Gross Margin43.47%
Net Profit Margin7.79%
Debt/Equity Ratio53.7%

How did PYPL perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is PYPL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PYPL?

Other financial metrics that can be useful for relative valuation.

PYPL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.9x
Enterprise Value/EBITDA21.9x
PEG Ratio1.8x

Price to Earnings Ratio vs Peers

How does PYPL's PE Ratio compare to its peers?

PYPL PE Ratio vs Peers
The above table shows the PE ratio for PYPL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average34.5x
FIS Fidelity National Information Services
54.3x24.8%US$45.9b
V Visa
25.7x12.4%US$367.5b
MA Mastercard
28.3x15.1%US$274.8b
FISV Fiserv
29.5x15.2%US$59.8b
PYPL PayPal Holdings
48.4x27.6%US$99.5b

Price-To-Earnings vs Peers: PYPL is expensive based on its Price-To-Earnings Ratio (48.4x) compared to the peer average (34.5x).


Price to Earnings Ratio vs Industry

How does PYPL's PE Ratio compare vs other companies in the US IT Industry?

Price-To-Earnings vs Industry: PYPL is expensive based on its Price-To-Earnings Ratio (48.4x) compared to the US IT industry average (25.4x)


Price to Earnings Ratio vs Fair Ratio

What is PYPL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PYPL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio48.4x
Fair PE Ratio49.6x

Price-To-Earnings vs Fair Ratio: PYPL is good value based on its Price-To-Earnings Ratio (48.4x) compared to the estimated Fair Price-To-Earnings Ratio (49.6x).


Share Price vs Fair Value

What is the Fair Price of PYPL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PYPL ($86.07) is trading below our estimate of fair value ($137.83)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


27.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PYPL's forecast earnings growth (27.6% per year) is above the savings rate (1.9%).

Earnings vs Market: PYPL's earnings (27.6% per year) are forecast to grow faster than the US market (14.7% per year).

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

Revenue vs Market: PYPL's revenue (12.7% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: PYPL's revenue (12.7% 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 (20.6%)


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Past Performance

How has PayPal Holdings performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


19.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PYPL has a large one-off loss of $1.1B impacting its June 30 2022 financial results.

Growing Profit Margin: PYPL's current net profit margins (7.8%) are lower than last year (20.4%).


Past Earnings Growth Analysis

Earnings Trend: PYPL's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: PYPL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PYPL had negative earnings growth (-57.8%) over the past year, making it difficult to compare to the IT industry average (19.2%).


Return on Equity

High ROE: PYPL's Return on Equity (10.4%) is considered low.


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Financial Health

How is PayPal Holdings's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: PYPL's short term assets ($55.3B) exceed its short term liabilities ($45.1B).

Long Term Liabilities: PYPL's short term assets ($55.3B) exceed its long term liabilities ($12.9B).


Debt to Equity History and Analysis

Debt Level: PYPL's net debt to equity ratio (6.6%) is considered satisfactory.

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 (56.4%).

Interest Coverage: PYPL's interest payments on its debt are well covered by EBIT (21.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

PayPal Holdings Dividend Yield vs Market
How does PayPal Holdings dividend yield compare to the market?
SegmentDividend Yield
Company (PayPal Holdings)n/a
Market Bottom 25% (US)1.7%
Market Top 25% (US)4.7%
Industry Average (IT)1.6%
Analyst forecast in 3 Years (PayPal Holdings)0%

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.


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PYPL has not reported any payouts.


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Management

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

2.5yrs

Average management tenure


CEO

Dan Schulman (64 yo)

7.17yrs

Tenure

US$32,070,353

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

Dan Schulman's Compensation vs PayPal Holdings Earnings
How has Dan Schulman's remuneration changed compared to PayPal Holdings's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$2b

Mar 31 2022n/an/a

US$4b

Dec 31 2021US$32mUS$1m

US$4b

Sep 30 2021n/an/a

US$5b

Jun 30 2021n/an/a

US$5b

Mar 31 2021n/an/a

US$5b

Dec 31 2020US$23mUS$1m

US$4b

Sep 30 2020n/an/a

US$3b

Jun 30 2020n/an/a

US$3b

Mar 31 2020n/an/a

US$2b

Dec 31 2019US$26mUS$1m

US$2b

Sep 30 2019n/an/a

US$3b

Jun 30 2019n/an/a

US$3b

Mar 31 2019n/an/a

US$2b

Dec 31 2018US$38mUS$1m

US$2b

Sep 30 2018n/an/a

US$2b

Jun 30 2018n/an/a

US$2b

Mar 31 2018n/an/a

US$2b

Dec 31 2017US$19mUS$1m

US$2b

Sep 30 2017n/an/a

US$2b

Jun 30 2017n/an/a

US$2b

Mar 31 2017n/an/a

US$1b

Dec 31 2016US$19mUS$1m

US$1b

Sep 30 2016n/an/a

US$1b

Jun 30 2016n/an/a

US$1b

Mar 31 2016n/an/a

US$1b

Dec 31 2015US$14mUS$942k

US$1b

Compensation vs Market: Dan's total compensation ($USD32.07M) is above average for companies of similar size in the US market ($USD13.04M).

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


Leadership Team

Experienced Management: PYPL's management team is considered experienced (2.5 years average tenure).


Board Members

Experienced Board: PYPL's board of directors are considered experienced (7.2 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

NasdaqGS:PYPL Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
04 Aug 22SellUS$2,131,596Peggy AlfordIndividual21,791US$97.82
06 May 22BuyUS$597,229Mark BrittoIndividual7,370US$81.04
04 May 22BuyUS$96,947Enrique LoresIndividual1,100US$88.13
18 Feb 22BuyUS$467,834Frank YearyIndividual4,500US$103.96
08 Feb 22BuyUS$1,002,372David DormanIndividual8,400US$119.33
04 Feb 22BuyUS$499,400Frank YearyIndividual4,000US$124.85
03 Feb 22BuyUS$995,842Daniel SchulmanIndividual7,994US$125.18
03 Dec 21BuyUS$498,822Enrique LoresIndividual2,770US$180.08
23 Nov 21BuyUS$288,469David DormanIndividual1,547US$186.47
09 Nov 21BuyUS$1,999,228John DonahoeIndividual9,780US$204.42

Ownership Breakdown

What is the ownership structure of PYPL?
Owner TypeNumber of SharesOwnership Percentage
Private Companies145,4620.01%
State or Government523,5860.05%
Individual Insiders1,421,9510.1%
General Public311,225,47526.9%
Institutions843,159,40072.9%

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


Top Shareholders

Top 25 shareholders own 39.35% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.2%
The Vanguard Group, Inc.
94,828,323$8.2b0.42%0.19%
6.59%
BlackRock, Inc.
76,191,144$6.6b-2.64%0.16%
3.81%
State Street Global Advisors, Inc.
44,099,447$3.8b-3.43%0.21%
2.75%
Comprehensive Financial Management LLC
31,841,618$2.7b-0.52%69.51%
1.75%
Geode Capital Management, LLC
20,260,874$1.7b2.74%0.23%
1.5%
Fisher Asset Management, LLC
17,329,942$1.5b3.29%1.11%
1.12%
Polen Capital Management, LLC
12,970,892$1.1b0.46%3.06%
1.09%
Northern Trust Global Investments
12,623,717$1.1b-4.04%0.22%
1.03%
Morgan Stanley, Investment Banking and Brokerage Investments
11,958,148$1.0b0.01%0.21%
0.96%
BNY Mellon Asset Management
11,154,948$960.1m10.66%0.22%
0.86%
Norges Bank Investment Management
9,936,783$855.3m0%0.12%
0.83%
Fundsmith, LLP
9,651,818$830.7m-7.87%2.84%
0.82%
Temasek Holdings (Private) Limited
9,502,785$817.9m0%0.91%
0.76%
AllianceBernstein L.P.
8,757,707$753.8m-7.94%0.31%
0.74%
D. E. Shaw & Co., L.P.
8,528,031$734.0m85.02%1.41%
0.73%
UBS Asset Management
8,472,792$729.3m-2.48%0.14%
0.7%
Deutsche Asset & Wealth Management
8,114,399$698.4m25.51%0.3%
0.68%
Legal & General Investment Management Limited
7,916,740$681.4m2.24%0.21%
0.68%
FMR LLC
7,868,785$677.3m-49.58%0.06%
0.66%
Dodge & Cox
7,686,300$661.6m28420.59%0.39%
0.65%
Teachers Insurance and Annuity Association-College Retirement Equities Fund
7,490,030$644.7m0.64%0.22%
0.61%
The Public Investment Fund of The Kingdom of Saudi Arabia
7,058,407$607.5m674.86%0.22%
0.61%
Loomis Sayles & Company, L.P.
7,012,069$603.5m-0.69%1.13%
0.6%
ClearBridge Investments, LLC
6,978,864$600.7m12.01%0.56%
0.59%
BlueSpruce Investments, LP
6,815,889$586.6m95.34%11.81%

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
  • Implied Market Cap: US$99.538b
  • Shares outstanding: 1.16b
  • 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
2PPBUL (Bulgaria Stock Exchange)YesCommon StockBGEURJul 2015
PYPL_KZKAS (Kazakhstan Stock Exchange)YesCommon StockKZUSDJul 2015
PYPLBASE (Buenos Aires Stock Exchange)CEDEAR EACH 8 REP 1ARARSApr 2019
PYPLDBASE (Buenos Aires Stock Exchange)CEDEAR EACH 8 REP 1ARUSDApr 2019
PYPL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 20 REP 1 COMBRBRLMay 2019
PYPLNEOE (Aequitas Neo Exchange)PAYPAL CDR CAD HDG REG SCACADOct 2021
2PP0DB (Deutsche Boerse AG)PAYPAL CDR CAD HDG REG SDEEUROct 2021

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/30 00:00
End of Day Share Price2022/09/30 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.