PYPL
PayPal Holdings, Inc.
Technology • CIK: 0001633917
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Market Cap
$56.00B
P/E (TTM)
10.7x
Rev Growth (TTM)
+4.3%
Net Margin (TTM)
15.8%
FCF Yield (TTM)
9.9%
FCF Margin (TTM)
16.8%
Filing Intelligence
5.0/10
10-K filed Feb 3, 2026 • FYNone
Executive Summary
Operating margin improved to 18% in 2025, driven by revenue growth outpacing expense increases, particularly a lower transaction expense growth rate.. Revenue growth was primarily fueled by TPV...
Key Concerns
- ●Revenue growth was primarily fueled by TPV expansion, though transaction volume per active account declined, indicating a shift in user...
- ●Goodwill decreased by $189 million in 2024 due to adjustments, which warrants monitoring for potential impairment indicators.
- ●The company recognized a significant pre-tax gain of $339 million from the sale of Happy Returns in 2023, which boosts reported earnings...
Cash Flow Health
Free Cash Flow8/8 positive
TTM$5.6B
Q4 '25
$2.2B+27%
Q3 '25
$1.7B+148%
FCF Margin
TTM16.8%
Q4 '2525.2%+24%
Sector: 9.1%Above Avg
OCF Margin19.3%
OCF/NI1.23x
CapEx Coverage7.5x
FCF Yield9.9%
FCF Growth (2Y)+3%
Cash Conversion Cycle
11 days
DSO: 11+DIO: –−DPO: –
Capital Allocation & Returns
Shareholder Friendly
Total Shareholder YieldTTM
TTM10.8%
Div Yield0.0%
+Buyback (TTM)10.8%
Strong capital returns to shareholders
Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$5.6B
Stock Repurchases (TTM)$6.1B
Capital Return / FCF108.8%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders
Operational Efficiency & Returns
Return on Invested CapitalTTM
16.2%
Stable
+0.0% YoY+4.7%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
15.2%
8Q: 14.2%
Asset Turnover
0.41x
8Q: 0.39x
Leverage (1+D/E)
1.49x
D/E: 0.49x
DuPont: 9.4% ≈ 16.2% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
20.66x
8Q:21.05x
-104.4%
Invested Cap Turn
1.20x
8Q:1.20x
+5.4%
CapEx Intensity
3.1%
8Q:2.9%
CapEx/Depreciation
0.88x
Depreciation Rate Trend
⚠ Declining -7.2%
Asset-based ROIC formula
QUARTERLY TRENDS
Last 8 quarters + TTM
| Metric | TTM | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 |
|---|---|---|---|---|---|---|---|---|---|
Revenue | $33.2B | $8.7B↑3.1% | $8.4B↑1.6% | $8.3B↑6.4% | $7.8B↓6.9% | $8.4B↑6.6% | $7.8B↓0.5% | $7.9B↑2.4% | $7.7B |
Operating Income | $6.1B | $1.5B↓0.6% | $1.5B↑1.1% | $1.5B↓1.7% | $1.5B↑6.2% | $1.4B↑3.6% | $1.4B↑5.0% | $1.3B↑13.4% | $1.2B |
Net Income | $5.2B | $1.4B↑15.1% | $1.2B↓1.0% | $1.3B↓2.0% | $1.3B↑14.8% | $1.1B↑11.0% | $1.0B↓10.5% | $1.1B↑27.0% | $888.0M |
Operating Cash Flow | $6.4B | $2.4B↑20.8% | $2.0B↑119.8% | $898.0M↓22.6% | $1.2B↓51.5% | $2.4B↑48.3% | $1.6B↑5.8% | $1.5B↓20.4% | $1.9B |
Free Cash Flow | $5.6B | $2.2B↑27.5% | $1.7B↑148.3% | $692.0M↓28.2% | $964.0M↓56.0% | $2.2B↑51.6% | $1.4B↑5.6% | $1.4B↓22.4% | $1.8B |
Total Equity | N/A |
Valuation Analysis
Fair Value
Price-to-EarningsTTM
10.7x
Volatile
8Q: 55.5x-3344%
Valuation Lenses
Earnings
10.7x
vs – sector
Cash Flow
7.6x
EV/FCF vs –
Growth-Adj
0.3xPEG
Undervalued for growth
Quality-Adj
0.7P/E per %ROIC
ROIC: 16.2%
Shareholder Returns
Dividend
–
Buyback
10.8%
Total Yield
10.8%
Market Cap$56.00B
EV$42.18B
Multi-angle valuation analysis with sector context
Business Quality & Moat
Overall Quality Score
97/100
Exceptional
Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)
Returns on Capital
Return on Equity (ROE)Top 25%
25.8%
8Q:–
Return on Invested Capital (ROIC)Top 25%
16.2%
8Q:–
+4.7%
vs Sector:0.1%
DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)
NOPAT Margin: 15.2%
Asset Turnover: 0.41x
Earnings Quality
Cash Conversion
1.23x
OCF / Net Income ✓
FCF Consistency
–
Positive quarters
Competitive Moat Indicators
Pricing Power
Gross Margin–
Capital Efficiency
Invested Capital Turnover1.20x
Working Capital
Cash Conversion Cycle11 days
Growth Quality & Momentum
Moderate Growth
Growth Quality Score
56/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%
Growth Rates
Revenue Growth YoY
4.3%
OpInc Growth YoY
4.9%
EPS Growth YoY
35.3%
FCF 3Y CAGR
2.9%
Margin Quality & Sustainability
High Quality
Profitability Cascade
Gross
—
Operating
18.3%
Top 25% in sector
Net
15.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+1.0 pts
FCF: 16.8% | Net: 15.8%
Quality = stability + cash conversion + low dilution
Balance Sheet & Solvency
Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $16.40B
Interest Coverage
–
+Net cash position: $16.40B
Balance sheet risk & solvency analysis