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 (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.