Paypal Stock Analysis (NASDAQ:PYPL)

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$47.72 $0.57 (1.21%) PYPL stock closing price Apr 28, 2017 (Closing)
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Paypal
Updated on : Apr 28, 2017
previous close
PYPL 47.7 (0%)
NASDAQ 6047.6 (0%)
Closing Price On: Apr 28, 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:
5.3%
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
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
PYPL PS :
5.1
Industry PS :
2.7
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 (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.

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