PYPL

PayPal Holdings, Inc.

TechnologyCIK 0001633917

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Market Cap
$42.57B
P/E (TTM)
8.4x
Rev Growth (TTM)
+5.8%
Net Margin (TTM)
15.0%
FCF Yield (TTM)
12.9%
FCF Margin (TTM)
16.3%

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Factsheet

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LATEST EARNINGS

Q4 2025
5 months ago
View source
Revenue
$8.68B
+3.7%
Net Income
$1.44B
+28.2%
EPS
$1.53
+37.8%
Operating
17.4% +0.2%
  • Full year 2025 GAAP net revenues increased 4% to $33.2 billion, with 4% growth on a currency-neutral basis.
  • Full year 2025 GAAP EPS increased 35% to $5.41.
  • Full year 2025 GAAP operating margin expanded 154 basis points to 18.3%.
  • Returned $6.0 billion to stockholders by repurchasing approximately 86 million shares of common stock on a trailing 12-month basis.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$5.5B
Q1 '26
$903M-59%
Q4 '25
$2.2B+27%
FCF Margin
TTM16.3%
Q1 '2610.8%-57%
Sector: 8.5%Above Avg
OCF Margin18.9%
OCF/NI1.26x
CapEx Coverage7.2x
FCF Yield12.9%
FCF Growth (2Y)+3%
Cash Conversion Cycle
10 days
DSO: 10+DIO: DPO:

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldTTM
TTM14.2%
Div Yield0.0%
+
Buyback (TTM)14.2%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$5.5B
Stock Repurchases (TTM)$6.1B
Capital Return / FCF110.0%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
16.2%
Stable
+0.0% YoY+2.5%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
14.9%
8Q: 14.5%
Asset Turnover
0.42x
8Q: 0.41x
Leverage (1+D/E)
1.47x
D/E: 0.47x
DuPont: 9.2%16.2% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
20.43x
8Q:20.83x
-194.8%
Invested Cap Turn
2.52x
8Q:2.49x
+20.0%
CapEx Intensity
6.6%
8Q:6.0%
CapEx/Depreciation
0.93x
Depreciation Rate Trend
⚠ Declining -5.8%
Asset-based ROIC formula

Valuation Analysis

Fair Value
Price-to-EarningsTTM
8.4x
Volatile
8Q: 52.5x-3200%
Valuation Lenses
Earnings
8.4x
vs sector
Cash Flow
7.8x
EV/FCF vs
Growth-Adj
0.4xPEG
Undervalued for growth
Quality-Adj
0.5P/E per %ROIC
ROIC: 16.2%
Shareholder Returns
Dividend
Buyback
14.2%
Total Yield
14.2%
Market Cap$42.57B
EV$42.95B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
98/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 25%
25.0%
8Q:
Return on Invested Capital (ROIC)Top 25%
16.2%
8Q:
+2.5%
vs Sector:0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 14.9%
Asset Turnover: 0.42x

Earnings Quality

Cash Conversion

1.26x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin

Capital Efficiency

Invested Capital Turnover2.52x

Working Capital

Cash Conversion Cycle10 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
57/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
5.8%
OpInc Growth YoY
-2.7%
EPS Growth YoY
19.7%
FCF 3Y CAGR
2.7%

Margin Quality & Sustainability

High Quality
Profitability Cascade
Gross
Operating
17.9%
Top 25% in sector
Net
15.0%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+1.3 pts
FCF: 16.3% | Net: 15.0%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $67.00M
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.47x
Balance sheet risk & solvency analysis