PayPal Holdings Inc.
Find Ratings ReportsPAYPAL HOLDINGS INC's gross profit margin for the fourth quarter of its fiscal year 2023 has decreased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the subsector average, its revenue growth has not. PAYPAL HOLDINGS INC has very weak liquidity. Currently, the Quick Ratio is 0.43 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.83% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 8026.0 | 7383.0 |
EBITDA ($mil) | 1680.0 | 1595.0 |
EBIT ($mil) | 1417.0 | 1269.0 |
Net Income ($mil) | 1402.0 | 921.0 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 14140.0 | 10892.0 |
Total Assets ($mil) | 82166.0 | 78717.0 |
Total Debt ($mil) | 11844.0 | 11555.0 |
Equity ($mil) | 21051.0 | 20274.0 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 48.17 | 52.07 |
EBITDA Margin | 20.93 | 21.6 |
Operating Margin | 17.66 | 17.19 |
Sales Turnover | 0.36 | 0.35 |
Return on Assets | 5.16 | 3.07 |
Return on Equity | 20.17 | 11.93 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.29 | 1.28 |
Debt/Capital | 0.36 | 0.36 |
Interest Expense | 87.0 | 89.0 |
Interest Coverage | 16.29 | 14.26 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 1072.0 | 1136.0 |
Div / share | 0.0 | 0.0 |
EPS | 1.29 | 0.81 |
Book value / share | 19.64 | 17.85 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 1.8616172E7 | 1.5437446E7 |
HOLD. This stock's P/E ratio indicates a discount compared to an average of 17.75 for the Credit Intermediation and Related Activities subsector and a significant discount compared to the S&P 500 average of 27.95. To use another comparison, its price-to-book ratio of 3.21 indicates a discount versus the S&P 500 average of 4.68 and a significant discount versus the subsector average of 8.64. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, PAYPAL HOLDINGS INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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PYPL 16.41 | Peers 17.75 | PYPL 13.95 | Peers 20.18 | |||||||||||||||||||||
Average. An average P/E ratio can signify an subsector neutral price for a stock and an average growth expectation. PYPL is trading at a valuation on par with its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. PYPL is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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PYPL 11.15 | Peers 13.86 | PYPL 0.50 | Peers 1.78 | |||||||||||||||||||||
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. PYPL is trading at a discount to its peers. |
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. PYPL trades at a significant discount to its peers. |
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Price/Book |
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Earnings Growth |
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PYPL 3.21 | Peers 8.64 | PYPL 82.85 | Peers 24.72 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. PYPL is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. PYPL is expected to have an earnings growth rate that significantly exceeds its peers. |
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Price/Sales |
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Sales Growth |
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PYPL 2.27 | Peers 4.87 | PYPL 8.18 | Peers 44.87 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. PYPL is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. PYPL significantly trails its peers on the basis of sales growth. |
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