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 had a healthy average operating margin of 14.3% over the last 4 quarters.
- Net margins came in at average 12.6% for Paypal over the last twelve months.
- The company has an operating cash flow which is 2 times the net income. We see this as a positive signal.
- Paypal has an attractive ROIC (Return on Invested Capital) of 14.7%
- The LTM ROE of 10% for Paypal is attractive.
- The company has a healthy free cash flow margin of 20.3%.
Should you sell PYPL stock?
- Trading at a PE ratio of 39.6, PYPL stock is overvalued in comparison to industry average multiple of 25.7.
- PYPL stock is trading at a PS multiple of 5.4, which is a negative when compared to the Internet Software industry average multiple of 2.7.