Paypal Stock Analysis (NASDAQ:PYPL)

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$41.96 $0.19 (0.45%) PYPL stock closing price Feb 17, 2017 (Closing)
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Paypal
Updated on : Feb 17, 2017
previous close
PYPL 42 (0%)
NASDAQ 5838.6 (0%)
Closing Price On: Feb 17, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
14.6%
Sector Average:
4.3%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$923M
Net Income:
$390M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PYPL PS :
4.7
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
14.5%
Return on Equity:
10%
Free Cash Flow Margin:
25.9%
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Paypal Analysis Video

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View Paypal stock analysis video. This is our PYPL analyst opinion covering the buy and sell arguments for PYPL stock.

Paypal Holdings Inc Stock Rating (3.1/5)

Our Paypal stock opinion is based on fundamentals of the company. This Paypal stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy PYPL stock?

  • The Year Over Year (YoY) revenue growth for Paypal was 16.6% in 2016 Q4.
  • Paypal's average operating margin of 14.6% was exceptional.
  • Net margins came in at average 12.9% for Paypal over the last twelve months.
  • The operating cash flow looks good at 2.4 times the net income.
  • Paypal generates a high return on invested capital of 14.5%.
  • Return On Equity (ROE) which is a measure of the company's profitability, looks great for Paypal at 10%.
  • The company has a healthy free cash flow margin of 25.9%.

Should you sell PYPL stock?

  • The company is trading at a price to sales multiple of 4.7, which is higher in comparison to the Internet Software industry average of 2.6, making PYPL stock expensive.

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