Paypal Stock Analysis (NASDAQ:PYPL)
Paypal Analysis Video
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?
- Paypal sales grew by 16.6% year on year in 2016 Q4.
- The TTM operating margin was good at 14.6% for Paypal.
- Net margins came in at average 12.9% for Paypal over the last twelve months.
- The company has an operating cash flow which is 2.4 times the net income.
- Paypal's return on invested capital of 14.5% is good.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Paypal at 10%.
- The company has a good Free Cash Flow (FCF) margin of 25.9%.
Should you sell PYPL stock?
- PYPL stock is trading at a PS multiple of 4.8, which is a negative when compared to the Internet Software industry average multiple of 2.6.