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 (2.9/5)
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's revenue growth came in at 16.9% in 2017 Q1.
- Paypal's average operating margin of 14.3% was exceptional.
- LTM Net margins were good at 12.6% for Paypal.
- The operating cash flow looks good at 2 times the net income.
- Paypal's return on invested capital of 14.7% is good.
- Paypal has a good Return On Equity (ROE) of 10%.
- The company has a healthy free cash flow margin of 20.3%.
Should you sell PYPL stock?
- PYPL stock is trading at a PE ratio of 39.5, which is worse than the industry average multiple of 25.7.
- The company is trading at a price to sales multiple of 5.4, which is overvalued in comparison to the Internet Software industry average multiple of 2.7.