PYPLPYPL
US • —
$56.15
P/E
10.51
PEG
0.53
FCF Yield
11.9%
Rev Growth YoY
+5.8% YoY
Gross Margin
40.9%
Health Score
7/10
D/E Ratio
0.56
Confidence
LOW
Business Snapshot
PayPal operates a digital payments platform that facilitates online transactions for consumers and merchants worldwide. Its primary revenue-generating segments include payment processing fees, value-added services like merchant solutions, and interest income from customer balances. The company competes in the global digital payments market, facing strong competition from traditional financial institutions, fintech disruptors, and card networks. PayPal is a large-cap company with a market capitalisation of $49.50B and generates significant free cash flow. A defining characteristic is its vast two-sided network that connects millions of merchants and consumers, creating substantial switching costs and network effects.
Financial Health
Gross margin stands at 40.9%, while net margin is a solid 15.0%, indicating the company retains a healthy portion of revenue as profit after all expenses. The balance sheet is well-positioned with a debt-to-equity ratio of 0.56x and a current ratio of 1.29x, suggesting manageable leverage and adequate short-term liquidity...
Risk Assessment
- VALUATION DIVERGENCE — No FMP DCF fair value is available, so the assessment relies solely on the Python DCF estimate of $107.21, which carries significant model risk.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- EARNINGS QUALITY — Only 3 of the last 4 quarters beat estimates, a solid but not perfect record that introduces some uncertainty.
- DEBT / LIQUIDITY — A current ratio of 1.29x, while above 1.0x, is relatively low and could indicate limited short-term liquidity buffer.
- CONCENTRATION — The business is heavily dependent on its core payments processing segment, with no diversification evident from the data provided....
Gross margin stands at 40.9%, while net margin is a solid 15.0%, indicating the company retains a healthy portion of revenue as profit after all expenses. The balance sheet is well-positioned with a debt-to-equity ratio of 0.56x and a current ratio of 1.29x, suggesting manageable leverage and adequate short-term liquidity. Free cash flow is robust at $5.88B, translating to an attractive free cash flow yield of 11.9%, demonstrating strong cash generation capability. Overall, PayPal exhibits sound financial health with ample cash flow to support reinvestment in the business, pursue strategic acquisitions, or return capital to shareholders.
- VALUATION DIVERGENCE — No FMP DCF fair value is available, so the assessment relies solely on the Python DCF estimate of $107.21, which carries significant model risk. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - EARNINGS QUALITY — Only 3 of the last 4 quarters beat estimates, a solid but not perfect record that introduces some uncertainty. - DEBT / LIQUIDITY — A current ratio of 1.29x, while above 1.0x, is relatively low and could indicate limited short-term liquidity buffer. - CONCENTRATION — The business is heavily dependent on its core payments processing segment, with no diversification evident from the data provided.
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