Pypl Stock Review: Comprehensive Analysis and Insights

Pypl stock has seen significant growth over the years, with its market capitalization increasing from $100 billion in 2020 to over $500 billion in 2022.

One of the main drivers of this growth is the company's strong financial performance. In 2020, PayPal's revenue reached $25.4 billion, with a net income of $4.3 billion.

PayPal's user base has also expanded rapidly, with over 430 million active accounts worldwide as of 2022. This large user base has contributed to the company's growth and stability.

The company's diversification into new areas, such as online payment services and digital wallets, has also helped to drive its growth and expansion.

PayPal Holdings had a strong revenue growth in 2023, increasing by 8.19% to $29.77 billion compared to the previous year's $27.52 billion.

The company's earnings also saw a significant boost, rising by 75.53% to $4.25 billion.

Here's a breakdown of the company's revenue growth over the years:

The company's strong revenue growth is a positive sign for investors, indicating a healthy financial performance.

PayPal Holdings' revenue in 2023 was $29.77 billion, an increase of 8.19% compared to the previous year's $27.52 billion.

The company's earnings were $4.25 billion, a significant increase of 75.53% from the previous year.

PayPal Holdings' revenue growth is a notable trend, with a 1-year change of 45.71% and a 3-year change of -53.30%.

Here's a breakdown of the company's financial performance:

PayPal Holdings' gross profit was $12.6 billion in 2023, resulting from a revenue of $31.5 billion and a cost of revenue of $18.8 billion.

The company's operating income was $5.7 billion, with operating expenses totaling $6.9 billion.

Let's break down the balance sheet of PayPal Holdings Inc. to understand its financial performance.

The company's current assets are substantial, totaling $62.7 billion.

This includes $11.9 billion in cash and short-term investments, which is a significant portion of its overall assets.

The company's receivables account for $46.7 billion of its current assets, indicating a large amount of outstanding payments from customers.

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Other current assets, such as inventory and prepaid expenses, account for $4.1 billion.

PayPal's non-current assets are also substantial, totaling $20.8 billion.

This includes $4.3 billion in long-term investments, which could be stocks, bonds, or other securities.

The company's property, plant, and equipment (PP&E) is valued at $2.2 billion.

Intangible assets, such as patents, trademarks, and copyrights, are worth $11.4 billion.

Other non-current assets, such as goodwill and deferred taxes, account for $3 billion.

Now, let's look at the company's liabilities. Its current liabilities total $50.3 billion.

This includes $41.3 billion in accounts payable, which is a significant portion of its current liabilities.

The company also has $6.5 billion in accrued liabilities, which are payments that are due but not yet paid.

Other current liabilities, such as taxes owed and dividends payable, account for $2.5 billion.

PayPal's non-current liabilities total $13.1 billion.

This includes $10 billion in long-term debt, which could be bonds or loans.

The company also has $3.1 billion in other non-current liabilities, such as deferred taxes and pension obligations.

Here's a breakdown of PayPal's balance sheet:

PYPL is trading below its estimated fair value of $115.6, with a current price of $83.36. This represents a discount of more than 20% from its fair value.

The company's Price-To-Earnings (P/E) ratio is 18.9x, which is lower than its estimated fair P/E ratio of 21.7x. This suggests that PYPL is a good value based on its P/E ratio.

The average revenue estimate for 2025 is $33,502 USD, with an average estimate of $35,831 USD for 2026. The number of analysts estimating revenue for 2025 is 40, with an average estimate of $35,831 USD for 2026 from 31 analysts.

PYPL's P/E ratio is lower than its estimated fair P/E ratio, indicating that the stock is undervalued.

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The Earnings Waterfall is a key metric that helps us understand how a company's revenue is translated into net income. PayPal's Earnings Waterfall is a great example of this.

Revenue is the starting point, and for PayPal, it was a whopping $31.5 billion USD.

The Cost of Revenue is the next step down, and it's where the company subtracts the cost of goods sold or services provided. For PayPal, this came out to be $18.8 billion USD.

Gross Profit is the difference between Revenue and Cost of Revenue, and it's a crucial metric that shows how much profit a company makes before operating expenses are taken into account. For PayPal, Gross Profit was $12.6 billion USD.

Operating Expenses are the next step down, and they include costs such as salaries, rent, and marketing expenses. For PayPal, Operating Expenses were $6.9 billion USD.

Operating Income is the difference between Gross Profit and Operating Expenses, and it's a key metric that shows how much profit a company makes from its core business activities. For PayPal, Operating Income was $5.7 billion USD.

Other Expenses are the next step down, and they include costs such as interest expenses and taxes. For PayPal, Other Expenses were $1.3 billion USD.

Net Income is the final step in the Earnings Waterfall, and it's the profit that the company makes after all expenses have been accounted for. For PayPal, Net Income was $4.4 billion USD.

Here's a breakdown of the Earnings Waterfall for PayPal:

Estimates in USD can be a crucial factor in valuation. Earnings estimates for PayPal in 2025 are $1.132 USD on average, as of April 30, 2025.

The number of analysts making these estimates has decreased from 38 in the previous quarter to 29 in the current quarter. This could be due to various factors, including changes in market sentiment or analyst expectations.

The average revenue estimate for PayPal in 2026 is $35,831 USD, based on 31 analyst estimates. This represents an increase from the estimated revenue of $33,502 USD for 2025.

Here's a breakdown of the average earnings and revenue estimates for PayPal in 2025 and 2026:

As you can see, the estimates for 2026 are significantly higher than those for 2025. This could be due to various factors, including changes in market conditions, analyst expectations, or the company's own performance.

Analysts are cautiously optimistic about PayPal's future, with a consensus 12-month forecast of a target price less than 20% higher than the current share price.

According to the data, the average 1Y Price Target is $94.42, which represents a 13.3% increase from the current share price.

In some cases, the target price is even lower, with a 9.8% increase predicted for January 2026.

However, in other instances, the target price is significantly higher, with a 58.5% increase predicted for November 2024.

The analyst forecast for PYPL stock is consistent, with an average rating of "Buy" from 35 analysts.

The 12-month stock price forecast is $89.17, which is an increase of 3.47% from the latest price.

Here's a breakdown of the analyst forecast for PYPL stock:

It's worth noting that the dispersion of the analyst forecasts is relatively high, ranging from 12.3% to 28.3% across different time periods.

PayPal's financial reports have shown a mix of positive and negative earnings per share (EPS) over the years. In Q3 2024, the company reported an EPS of 0.990 USD.

The company's quarterly earnings reports have been released on the following dates: Q2 2024 (07/30/2024), Q1 2024 (04/30/2024), Q4 2023 (02/07/2024), and Q3 2023 (11/01/2023).

PayPal's stock price has been evaluated as overvalued by 6% compared to the current market price of 87.6 USD.

PayPal Holdings Inc is currently trading at 87.6 USD.

The market has deemed PayPal Holdings Inc to be overvalued by 6% compared to its current market price.

In the world of finance, even a 6% overvaluation can make a significant difference in the long run.

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Let's take a look at the calendar for upcoming events. We have several earnings reports scheduled, with the first one set for February 4th, 2025, and the last one on February 11th, 2026.

The Q4 2024 Earnings Release is estimated to be around 1.120 USD.

Here's a summary of the upcoming earnings reports:

The Q1 2025 Earnings Release is set for April 30th, 2025, and is estimated to be around 1.132 USD.

PayPal has a history of releasing earnings reports, with the most recent one being $1.080 USD in Q2 2024.

These reports are typically released quarterly, with the exact dates varying. For example, the Q3 2024 Earnings Release is scheduled for October 29th, 2024.

PayPal also holds annual general meetings, with the most recent one being on May 22nd, 2024.

Here's a breakdown of PayPal's past earnings reports:

PYPL's price has been relatively stable in the past 3 months, with an average weekly movement of 4.1%, compared to the US market's average movement of 6.3%.

This stability is a positive sign for investors, as it indicates that PYPL's price is less prone to sudden fluctuations.

PYPL's weekly volatility has been stable over the past year, averaging 4% per week.

This consistency is a key factor in managing risk for investors, as it allows them to make more informed decisions about their investments.

Here's a comparison of PYPL's volatility to other stocks in the US market:

PYPL's volatility is in line with the 10% least volatile stocks in the US market, indicating a relatively low risk investment.

Volatility is a measure of how much a stock's price can fluctuate. PYPL's price volatility is relatively low compared to the US market.

PYPL's average weekly movement is 4.1%, which is lower than the market average movement of 6.3%. This suggests that PYPL's price is more stable than the overall market.

To put this into perspective, the 10% least volatile stocks in the US market have an average weekly movement of 3.1%. This means that PYPL's price is more stable than these stocks.

Here's a comparison of PYPL's volatility with other industry and market averages:

Overall, PYPL's low price volatility makes it a relatively stable investment option.

Solvency Due Diligence is a crucial aspect of evaluating a company's financial health. PayPal Holdings Inc's solvency score is 61/100, indicating a moderate level of solvency.

The higher the solvency score, the more solvent the company is. This means that PayPal Holdings Inc has a moderate ability to meet its financial obligations.

A solvency score of 61/100 suggests that the company may struggle to meet its financial commitments during times of economic stress. However, it's essential to consider this score in conjunction with other financial metrics.

PayPal Holdings Inc's moderate solvency score may be attributed to its high profitability score of 61/100, which indicates a moderate level of profitability.

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