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 Q1 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy PYPL stock?
- Paypal sales grew by 16.9% year on year in 2017 Q1.
- Paypal's average operating margin of 14.3% was exceptional.
- Net margins stood at a healthy 12.6% (average) for Paypal in the Trailing Twelve Months.
- The operating cash flow looks good at 2 times the net income.
- Paypal has an attractive ROIC (Return on Invested Capital) of 14.7%
- The LTM ROE of 10% for Paypal is attractive.
- Paypal has a healthy FCF (Free Cash Flow) margin of 20.3%.
Should you sell PYPL stock?
- The company is trading at a price to sales multiple of 5.1, which is overvalued in comparison to the Internet Software industry average multiple of 2.7.