Paypal Stock Analysis (NASDAQ:PYPL)

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$41.62 $0.07 (0.17%) PYPL stock closing price Jan 23, 2017 (Closing)
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Paypal
Updated on : Jan 23, 2017
previous close
PYPL 41.6 (0%)
NASDAQ 5552.9 (0%)
Closing Price On: Jan 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q3
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
14.8%
Sector Average:
4.8%
5 Quarter Net Profit
Net Margins
2016-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$801M
Net Income:
$323M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PYPL PS :
4.8
Industry PS :
2.4
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
14.1%
Return on Equity:
10%
Free Cash Flow Margin:
23.2%
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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 (3/5)

Our Paypal stock opinion is based on fundamentals of the company. This Paypal stock analysis is based on latest Q3 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 18.1% in 2016 Q3.
  • Paypal's average operating margin of 14.8% was exceptional.
  • Net margins stood at a healthy 13.2% (average) for Paypal in the Trailing Twelve Months.
  • The operating cash flow looks good at 2.5 times the net income.
  • Paypal has an attractive ROIC (Return on Invested Capital) of 14.1%
  • 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 23.2%.

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 2.4.

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