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PYPL Logo

Paypal Holdings, Inc.

PYPL

Services-Business Services, NEC

Mkt Cap

$71.23B

PE

16.78

Debt

$10.64B

Cash

$21.83B

EV

$60.04B

FCF

$4.22B

Market Cap

$71.23B

P/E Ratio

16.78

Debt

$10.64B

Cash

$21.83B

EV

$60.04B

FCF

$4.22B
Charts data: {"Earnings":[{"time":"2014-12-30","value":419000000},{"time":"2015-12-30","value":1228000000},{"time":"2016-12-30","value":1401000000},{"time":"2017-12-30","value":1795000000},{"time":"2018-12-30","value":2057000000},{"time":"2019-12-30","value":2459000000},{"time":"2020-12-30","value":4202000000},{"time":"2021-12-30","value":4169000000},{"time":"2022-12-30","value":2419000000},{"time":"2023-12-30","value":4246000000}],"Sales":[{"time":"2014-12-30","value":8025000000},{"time":"2015-12-30","value":9248000000},{"time":"2016-12-30","value":10842000000},{"time":"2017-12-30","value":13094000000},{"time":"2018-12-30","value":15451000000},{"time":"2019-12-30","value":17772000000},{"time":"2020-12-30","value":21454000000},{"time":"2021-12-30","value":25371000000},{"time":"2022-12-30","value":27518000000},{"time":"2023-12-30","value":29771000000}],"Net Margins":[{"time":"2014-12-30","value":0.052211838006230527},{"time":"2015-12-30","value":0.1327854671280277},{"time":"2016-12-30","value":0.1292197011621472},{"time":"2017-12-30","value":0.1370856881014205},{"time":"2018-12-30","value":0.13313054171251051},{"time":"2019-12-30","value":0.13836371820841772},{"time":"2020-12-30","value":0.19586091171809453},{"time":"2021-12-30","value":0.1643214693941902},{"time":"2022-12-30","value":0.08790609782687696},{"time":"2023-12-30","value":0.14262201471230393}],"Assets":[{"time":"2014-12-30","value":21917000000},{"time":"2015-12-30","value":28881000000},{"time":"2016-12-30","value":33103000000},{"time":"2017-12-30","value":40774000000},{"time":"2018-12-30","value":43332000000},{"time":"2019-12-30","value":51333000000},{"time":"2020-12-30","value":70379000000},{"time":"2021-12-30","value":75803000000},{"time":"2022-12-30","value":78717000000},{"time":"2023-12-30","value":82166000000}],"Stockholders Equity":[{"time":"2014-12-30","value":8248000000},{"time":"2015-12-30","value":13759000000},{"time":"2016-12-30","value":14712000000},{"time":"2017-12-30","value":15994000000},{"time":"2018-12-30","value":15386000000},{"time":"2019-12-30","value":16929000000},{"time":"2020-12-30","value":20063000000},{"time":"2021-12-30","value":21727000000},{"time":"2022-12-30","value":20274000000},{"time":"2023-12-30","value":21051000000}],"ROE":[{"time":"2014-12-30","value":0.05080019398642095},{"time":"2015-12-30","value":0.08925067228723017},{"time":"2016-12-30","value":0.0952283849918434},{"time":"2017-12-30","value":0.11222958609478555},{"time":"2018-12-30","value":0.13369296763291305},{"time":"2019-12-30","value":0.14525370665721543},{"time":"2020-12-30","value":0.2094402631710113},{"time":"2021-12-30","value":0.19188106963685736},{"time":"2022-12-30","value":0.11931537930354148},{"time":"2023-12-30","value":0.2017006317989644}],"ROA":[{"time":"2014-12-30","value":0.05785463338960624},{"time":"2015-12-30","value":0.051521761711852083},{"time":"2016-12-30","value":0.04927045887079721},{"time":"2017-12-30","value":0.053955952322558495},{"time":"2018-12-30","value":0.05660943413643497},{"time":"2019-12-30","value":0.06064325093020084},{"time":"2020-12-30","value":0.07493712613137442},{"time":"2021-12-30","value":0.05713494188884345},{"time":"2022-12-30","value":0.0487442356797134},{"time":"2023-12-30","value":0.07007764768882506}]}

PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. The company provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, PayPal Zettle, Hyperwallet, PayPal Honey, and Paidy names. Its payments platform allows consumers to send and receive payments in approximately 200 markets and in approximately 150 currencies, withdraw funds to their bank accounts in 56 currencies, and hold balances in their PayPal accounts in 25 currencies. The company was founded in 1998 and is headquartered in San Jose, California.

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Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$4.22B$4.786B$5.384B$6.005B$6.643B$7.286B$7.923B$8.541B$9.128B$9.67B$10.15B$101.5B
DCF$4.162B$4.071B$3.949B$3.798B$3.622B$3.425B$3.211B$2.984B$2.749B$2.51B$25.1B
Value$59.58B

In the chart Earnings are multiplied by this value.

Earnings Growth 16%
Earnings Stability 71%


Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years12-201512-201612-201712-201812-201912-202012-202112-202212-2023TTM
Net Margin13%13%14%13%14%20%16%8.8%14%14%
ROA5.2%4.9%5.4%5.7%6.1%7.5%5.7%4.9%7%7%
ROE8.9%9.5%11%13%15%21%19%12%20%20%

What is the average Net Margin?

The average Net Margin over the past 5 years is +14.37%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.39%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +6.14%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.04%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +16.69%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.7%.


Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years12-201512-201612-201712-201812-201912-202012-202112-202212-2023TTM
Debt FCF-0.000.540.431.301.801.662.042.522.52
Debt Equity-0.000.060.130.300.450.410.510.510.51
MIN
Graham Stability--100%100%100%100%100%67%100%67%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.52.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.36.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.67.


Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years12-201612-201812-202012-2022Trend
Revenue16%14%12%8.2%-0.95%
Net Income17%16%0.35%76%-11%
Stockholders Equity5.3%6.5%1.6%3.8%-4.5%
FCF7.8%-2%-5.4%-17%-4.5%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +14.02%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.95%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +15.6%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -10.67%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +6.47%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -4.52%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -1.96%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -4.53%.