Paypal Stock Analysis (NASDAQ:PYPL)

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$58.26 $0.32 (0.55%) PYPL stock closing price Jul 25, 2017 (Closing)
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Paypal
Updated on : Jul 25, 2017
previous close
PYPL 58.3 (0%)
NASDAQ 6412.2 (0%)
Closing Price On: Jul 25, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Internet Software
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2017-Q1
$billion
%
YOY GROWTH
Compared to the industry
Operating Profit
Operating Margin:
14.3%
Sector Average:
6%
5 Quarter Net Profit
Net Margins
2017-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$751M
Net Income:
$384M
PROS      CONS
Recent Growth
Operating Margins
Net Margins
Cash Flow
ROIC
ROE
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PYPL PS :
6.2
Industry PS :
2.8
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
14.7%
Return on Equity:
10%
Free Cash Flow Margin:
20.3%
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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 (2.8/5)

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?

  • The Year Over Year (YoY) revenue growth for Paypal was 16.9% in 2017 Q1.
  • Paypal had a healthy average operating margin of 14.3% over the last 4 quarters.
  • LTM Net margins were good at 12.6% for Paypal.
  • The company has an operating cash flow which is 2 times the net income.
  • Paypal generates a high 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?

  • PYPL stock is trading at a PE ratio of 45.2, which is worse than the industry average multiple of 26.8.
  • The company is trading at a price to sales multiple of 6.2, which is overvalued in comparison to the Internet Software industry average multiple of 2.8.

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