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 (3/5)
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?
- Paypal's revenue growth came in at 18.1% in 2016 Q3.
- The TTM operating margin was good at 14.8% for Paypal.
- Net margins came in at average 13.2% for Paypal over the last twelve months.
- The company has an operating cash flow which is 2.5 times the net income. We see this as a positive signal.
- 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%.
- Paypal has a healthy FCF (Free Cash Flow) 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.