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PayPal Holdings Inc PYPL

Morningstar Rating
$59.98 −0.56 (0.93%)
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Company Report

PayPal Earnings: Results Are Solid, but 2024 Outlook Disappoints

PayPal's fourth-quarter results were solid overall, but the outlook management provided for 2024 suggests the road toward improving growth and profitability will be longer than expected. We expect to reduce our $135 per share fair value estimate by about 20% as we moderate our growth and margin assumptions. That said, we still believe the company's narrow moat and favorable secular tailwinds create an attractive long-term picture, and see the shares as undervalued.

Price vs Fair Value

PYPL is trading at a 42% discount.
Price
$59.98
Fair Value
$846.00
Uncertainty
High
1-Star Price
$378.70
5-Star Price
$67.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

There is still plenty of runway for growth in electronic payments. Electronic payments only surpassed cash payments on a global basis a couple of years ago.

Bears

The separation between online and point-of-sale transactions is blurring, and PayPal may increasingly come into competition with larger companies in the future.

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News

Trading Information

Previous Close Price
$60.54
Day Range
$58.8660.60
52-Week Range
$50.2579.27
Bid/Ask
$59.32 / $59.53
Market Cap
$64.28 Bil
Volume/Avg
15,637 / 18.6 Mil

Key Statistics

Price/Earnings (Normalized)
11.74
Price/Sales
2.23
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
7.58%

Company Profile

PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had 426 million active accounts at the end of 2023. The company also owns Venmo, a person-to-person payment platform.
Sector
Financial Services
Industry
Credit Services
Stock Style Box
Large Value
Total Number of Employees
27,200

Competitors

Valuation

Metric
PYPL
V
MA
Price/Earnings (Normalized)
11.7431.2038.21
Price/Book Value
3.0514.5163.15
Price/Sales
2.2317.4217.66
Price/Cash Flow
10.7818.0431.83
Price/Earnings
PYPL
V
MA

Financial Strength

Metric
PYPL
V
MA
Quick Ratio
1.241.040.81
Current Ratio
1.291.451.17
Interest Coverage
15.2132.8524.72
Quick Ratio
PYPL
V
MA

Profitability

Metric
PYPL
V
MA
Return on Assets (Normalized)
6.30%21.02%29.19%
Return on Equity (Normalized)
24.36%48.30%191.08%
Return on Invested Capital (Normalized)
15.74%32.46%56.34%
Return on Assets
PYPL
V
MA
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