Paypal Holdings, Inc.

Consumer Discretionary
Business Services
www.paypal.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $90.42B
PE 20
Debt $11.88B
Cash $21.43B
EV $80.87B
FCF $7.05B

Earnings

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Sales & Net Margins

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Earnings	$4.43B
EBIT	$5.76B
ROE	22%
ROA	7%
FCF	$7.05B
Equity	$20.17B
Growth Stability	67%
PE	20.42
PEG	2.72
PB	4.48
P/FCF	12.83
P/S	2.87
Price/Cash	0.24
Debt/Equity	0.59
Debt/FCF	1.69
Net Margins	13%
Op. Margins	18%
Earnings CAGR	15%
Sales Growth YoY	6%
Sales Growth QoQ	-0%
Sales CAGR	16%
FCF CAGR	13%
Equity CAGR	7%
Earnings Stability	0.71
Earnings Growth YoY	-1%
Earnings Growth QoQ	-10%

Earnings CAGR 5Y	8%
Sales CAGR 5Y	12%
FCF CAGR 5Y	2%
Equity CAGR 5Y	3%
Earnings CAGR 3Y	8%
Sales CAGR 3Y	8%
FCF CAGR 3Y	2%
Equity CAGR 3Y	-1%
Market Cap	$90.42B
Revenue	$31.46B
Assets	$83.51B
Total Debt	$11.88B
Cash	$21.43B
Shares Outstanding	1.01B
EV	80.87B
Earnings Score	91%
Moat Score	90%
Safety Score	88%
Final Score	90%
Working Capital	12.41B
Current Ratio	1.25
Shares Growth 3y	-5%
Equity Growth QoQ	-2%
Equity Growth YoY	2%

Assets & ROA

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Stockholders Equity & ROE

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PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had 426 million active accounts at the end of 2021, including 34 million merchant accounts. The company also owns Xoom, an international money transfer business, and Venmo, a person-to-person payment platform.

SEC Filings

Direct access to Paypal Holdings, Inc. (PYPL) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Paypal Holdings, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Paypal Holdings, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 15%

Stability 71%

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Paypal Holdings, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Paypal Holdings, Inc..

Years

Calculation mode

= $169B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$7B	$7.9B	$8.9B	$10B	$11B	$13B	$14B	$16B	$18B	$20B	$23B	$230B
DCF		$7.2B	$7.4B	$7.5B	$7.7B	$7.9B	$8.1B	$8.3B	$8.5B	$8.7B	$8.9B	$89B
Value	$169B

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	5%	13%	13%	14%	13%	14%	20%	16%	9%	14%	13%
ROA	-	5%	5%	5%	6%	6%	7%	6%	5%	7%	7%
ROE	-	9%	10%	11%	13%	15%	21%	19%	12%	20%	22%

Good Net Margins (12.91%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	0	0.54	0.43	1.3	1.8	1.66	2.04	2.52	1.69
Debt over Equity	-	-	0	0.06	0.13	0.3	0.45	0.41	0.51	0.51	0.59
Growth Stability	-	-	-	100%	100%	100%	100%	100%	67%	100%	67%

Good Debt/FCF ratio (1.69)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.59)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (67%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	15%	17%	21%	18%	15%	21%	18%	8%	8%	12%
Earnings YoY growth	-	193%	14%	28%	15%	20%	71%	-1%	-42%	76%	8%
Equity YoY growth	-	67%	7%	9%	-4%	10%	19%	8%	-7%	4%	3%
FCF YoY growth	-	6%	36%	-25%	150%	-17%	29%	9%	-6%	-17%	2%