Is PayPal Holdings Stock a Good Investment?
PayPal Holdings Investment Advice | PYPL |
- Examine PayPal Holdings' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research PayPal Holdings' leadership team and their track record. Good management can help PayPal Holdings navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Transaction & Payment Processing Services space and any emerging trends that could impact PayPal Holdings' business and its evolving consumer preferences.
- Compare PayPal Holdings' performance and market position to its competitors. Analyze how PayPal Holdings is positioned in terms of product offerings, innovation, and market share.
- Check if PayPal Holdings pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about PayPal Holdings' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in PayPal Holdings stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if PayPal Holdings is a good investment.
Sell | Buy |
Strong Buy
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Almost mirrors the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine PayPal Holdings Stock
Researching PayPal Holdings' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 75.0% of the company shares are owned by institutional investors. The book value of PayPal Holdings was at this time reported as 20.05. The company has Price/Earnings To Growth (PEG) ratio of 1.47. PayPal Holdings had not issued any dividends in recent years.
To determine if PayPal Holdings is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding PayPal Holdings' research are outlined below:
| PayPal Holdings has a strong financial position based on the latest SEC filings | |
| Over 75.0% of the company shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: I have no money Thousands of Americans see their savings vanish in Synapse fintech crisis |
PayPal Holdings Quarterly Cash And Short Term Investments |
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PayPal Holdings uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in PayPal Holdings. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to PayPal Holdings' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 7th of February 2024 Upcoming Quarterly Report | View | |
| 13th of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 7th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact PayPal Holdings' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises PayPal Holdings' investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2020-05-06 | 2020-03-31 | 0.75 | 0.83 | 0.08 | 10 | ||
2019-10-23 | 2019-09-30 | 0.52 | 0.61 | 0.09 | 17 | ||
2019-04-24 | 2019-03-31 | 0.68 | 0.78 | 0.1 | 14 | ||
2019-07-24 | 2019-06-30 | 0.75 | 0.86 | 0.11 | 14 | ||
2022-11-03 | 2022-09-30 | 0.96 | 1.08 | 0.12 | 12 | ||
2024-10-29 | 2024-09-30 | 1.07 | 1.2 | 0.13 | 12 | ||
2020-11-02 | 2020-09-30 | 0.94 | 1.07 | 0.13 | 13 | ||
2024-04-30 | 2024-03-31 | 1.22 | 1.4 | 0.18 | 14 |
Know PayPal Holdings' Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as PayPal Holdings is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading PayPal Holdings backward and forwards among themselves. PayPal Holdings' institutional investor refers to the entity that pools money to purchase PayPal Holdings' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Bank Of America Corp | 2024-06-30 | 9.7 M | Clearbridge Advisors, Llc | 2024-09-30 | 9.7 M | Northern Trust Corp | 2024-09-30 | 8.8 M | Legal & General Group Plc | 2024-06-30 | 8.6 M | Capital Research Global Investors | 2024-09-30 | 8.6 M | Nuveen Asset Management, Llc | 2024-06-30 | 8.6 M | Coatue Management Llc | 2024-09-30 | 8.3 M | Amvescap Plc. | 2024-06-30 | 7.8 M | Barclays Plc | 2024-06-30 | 7.4 M | Vanguard Group Inc | 2024-09-30 | 86.7 M | Blackrock Inc | 2024-06-30 | 72.8 M |
PayPal Holdings' market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 86.99 B.Market Cap |
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PayPal Holdings' profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.06 | 0.04 | |
| Return On Capital Employed | 0.15 | 0.10 | |
| Return On Assets | 0.05 | 0.04 | |
| Return On Equity | 0.20 | 0.10 |
Determining PayPal Holdings' profitability involves analyzing its financial statements and using various financial metrics to determine if PayPal Holdings is a good buy. For example, gross profit margin measures PayPal Holdings' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of PayPal Holdings' profitability and make more informed investment decisions.
PayPal Holdings' Earnings Breakdown by Geography
Evaluate PayPal Holdings' management efficiency
PayPal Holdings has return on total asset (ROA) of 0.0434 % which means that it generated a profit of $0.0434 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.2219 %, meaning that it created $0.2219 on every $100 dollars invested by stockholders. PayPal Holdings' management efficiency ratios could be used to measure how well PayPal Holdings manages its routine affairs as well as how well it operates its assets and liabilities. The value of Return On Tangible Assets is estimated to slide to 0.04. The value of Return On Capital Employed is expected to slide to 0.1. At this time, PayPal Holdings' Intangibles To Total Assets are quite stable compared to the past year. Fixed Asset Turnover is expected to rise to 21.01 this year, although the value of Non Current Assets Total will most likely fall to about 13.9 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 19.09 | 10.87 | |
| Tangible Book Value Per Share | 8.60 | 5.86 | |
| Enterprise Value Over EBITDA | 10.00 | 9.50 | |
| Price Book Value Ratio | 3.22 | 4.98 | |
| Enterprise Value Multiple | 10.00 | 9.50 | |
| Price Fair Value | 3.22 | 4.98 | |
| Enterprise Value | 39.6 B | 34.8 B |
Effective leadership at PayPal Holdings drives its competitive edge in the market. Our analysis focuses on how this translates to financial performance and stock value.
Beta 1.436 |
Basic technical analysis of PayPal Stock
As of the 25th of November, PayPal Holdings holds the Semi Deviation of 1.52, risk adjusted performance of 0.1335, and Coefficient Of Variation of 600.78. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of PayPal Holdings, as well as the relationship between them. Please check PayPal Holdings coefficient of variation, as well as the relationship between the treynor ratio and semi variance to decide if PayPal Holdings is priced some-what accurately, providing market reflects its current price of 86.77 per share. Given that PayPal Holdings has jensen alpha of 0.1596, we recommend you to check out PayPal Holdings's recent market performance to make sure the company can sustain itself at a future point.PayPal Holdings' insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific PayPal Holdings insiders, such as employees or executives, is commonly permitted as long as it does not rely on PayPal Holdings' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases PayPal Holdings insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Natali Chris over three months ago Acquisition by Natali Chris of 32713 shares of PayPal Holdings subject to Rule 16b-3 | ||
Sri Shivananda over a year ago Acquisition by Sri Shivananda of 31673 shares of PayPal Holdings subject to Rule 16b-3 | ||
Sri Shivananda over a year ago Acquisition by Sri Shivananda of 31673 shares of PayPal Holdings subject to Rule 16b-3 | ||
Sri Shivananda over a year ago PayPal Holdings exotic insider transaction detected |
PayPal Holdings' Outstanding Corporate Bonds
PayPal Holdings issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. PayPal Holdings uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most PayPal bonds can be classified according to their maturity, which is the date when PayPal Holdings has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| PAYPAL HOLDINGS INC Corp BondUS70450YAD58 | View | |
| PAYPAL HOLDINGS INC Corp BondUS70450YAE32 | View | |
| PAYPAL HOLDINGS INC Corp BondUS70450YAG89 | View | |
| PAYPAL HOLDINGS INC Corp BondUS70450YAH62 | View | |
| PAYPAL HOLDINGS INC Corp BondUS70450YAJ29 | View | |
| PYPL 39 01 JUN 27 Corp BondUS70450YAK91 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View |
Understand PayPal Holdings' technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing PayPal Holdings' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1335 | |||
| Market Risk Adjusted Performance | 0.2678 | |||
| Mean Deviation | 1.38 | |||
| Semi Deviation | 1.52 | |||
| Downside Deviation | 1.8 | |||
| Coefficient Of Variation | 600.78 | |||
| Standard Deviation | 1.86 | |||
| Variance | 3.48 | |||
| Information Ratio | 0.0963 | |||
| Jensen Alpha | 0.1596 | |||
| Total Risk Alpha | 0.0067 | |||
| Sortino Ratio | 0.0996 | |||
| Treynor Ratio | 0.2578 | |||
| Maximum Drawdown | 10.05 | |||
| Value At Risk | (2.75) | |||
| Potential Upside | 3.52 | |||
| Downside Variance | 3.25 | |||
| Semi Variance | 2.32 | |||
| Expected Short fall | (1.49) | |||
| Skewness | 0.192 | |||
| Kurtosis | 1.28 |
| Risk Adjusted Performance | 0.1335 | |||
| Market Risk Adjusted Performance | 0.2678 | |||
| Mean Deviation | 1.38 | |||
| Semi Deviation | 1.52 | |||
| Downside Deviation | 1.8 | |||
| Coefficient Of Variation | 600.78 | |||
| Standard Deviation | 1.86 | |||
| Variance | 3.48 | |||
| Information Ratio | 0.0963 | |||
| Jensen Alpha | 0.1596 | |||
| Total Risk Alpha | 0.0067 | |||
| Sortino Ratio | 0.0996 | |||
| Treynor Ratio | 0.2578 | |||
| Maximum Drawdown | 10.05 | |||
| Value At Risk | (2.75) | |||
| Potential Upside | 3.52 | |||
| Downside Variance | 3.25 | |||
| Semi Variance | 2.32 | |||
| Expected Short fall | (1.49) | |||
| Skewness | 0.192 | |||
| Kurtosis | 1.28 |
Consider PayPal Holdings' intraday indicators
PayPal Holdings intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of PayPal Holdings stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
PayPal Holdings Corporate Filings
8K | 29th of October 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 15th of October 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F3 | 3rd of July 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
| 22nd of May 2024 Prospectus used primarily for registering securities for public sale. | ViewVerify |
PayPal Stock media impact
Far too much social signal, news, headlines, and media speculation about PayPal Holdings that are available to investors today. That information is available publicly through PayPal media outlets and privately through word of mouth or via PayPal internal channels. However, regardless of the origin, that massive amount of PayPal data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of PayPal Holdings news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of PayPal Holdings relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to PayPal Holdings' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive PayPal Holdings alpha.
PayPal Holdings Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards PayPal Holdings can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
PayPal Holdings Historical Investor Sentiment
Investor biases related to PayPal Holdings' public news can be used to forecast risks associated with an investment in PayPal. The trend in average sentiment can be used to explain how an investor holding PayPal can time the market purely based on public headlines and social activities around PayPal Holdings. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
PayPal Holdings' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for PayPal Holdings and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average PayPal Holdings news discussions. The higher the estimate score, the more favorable the investor's outlook on PayPal Holdings.
PayPal Holdings Corporate Management
| Diego Scotti | GM VP | Profile | |
| Alfonso Villanueva | Corp Strategy | Profile | |
| Amy Bonitatibus | Senior Officer | Profile | |
| Bimal Patel | Senior Counsel | Profile | |
| Hannah Qiu | Senior Region | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in PayPal Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in american community survey. For more information on how to buy PayPal Stock please use our How to buy in PayPal Stock guide.You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Transaction & Payment Processing Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PayPal Holdings. If investors know PayPal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PayPal Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.065 | Earnings Share 4.18 | Revenue Per Share 29.966 | Quarterly Revenue Growth 0.058 | Return On Assets 0.0434 |
The market value of PayPal Holdings is measured differently than its book value, which is the value of PayPal that is recorded on the company's balance sheet. Investors also form their own opinion of PayPal Holdings' value that differs from its market value or its book value, called intrinsic value, which is PayPal Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PayPal Holdings' market value can be influenced by many factors that don't directly affect PayPal Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between PayPal Holdings' value and its price, as these two are different measures arrived at by various means. Investors typically determine if PayPal Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PayPal Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.