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?
- 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.