PayPal Holdings, Inc. (PYPL) Stock Analysis

Analysis from 10-Q filed 2025-10-28. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 15.7%. FCF margin 19.3%. D/E 0.7x. Source: 10-Q filed 2025-10-28.

Metric	Value	Context
ROIC	15.7%	Solid returns
FCF Margin	19.3%	Strong cash generation
Debt/Equity	0.7x	Moderate leverage

ROIC 15.7% — Top 25% of sector peers. FCF margin 19.3% — Top 50%.

Explore PayPal Holdings, Inc.: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for PYPL: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: PayPal Holdings, Inc. earns 15.7% ROIC, Top 25% in Technology

ROIC TTM 15.7%, sector median 3.9%, Top 25%. DuPont: NOPAT margin 14.6% × asset turnover 0.4x. Operating margin 17.4%. Source: 10-Q filed 2025-10-28.

Metric	PYPL	Rating	Context
Return on Invested Capital (ROIC)	15.7%	Good	Above sector median of 3.9%
Return on Equity (ROE)	24.4%	Excellent	Efficient use of shareholder equity
Operating Margin	17.4%	Good	Efficient operations

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Cash Flow: PayPal Holdings, Inc. generates $6.6B FCF at 19.3% margin, positive NaN/8 quarters

FCF TTM $6.6B. FCF margin 19.3%, Top 50%. OCF/Net income 1.5x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-28.

Metric	PYPL	Rating	Context
Free Cash Flow Margin	19.3%	Good	Excellent cash conversion
Free Cash Flow (TTM)	$6.6B	Good	Positive cash generation
OCF/Net Income	1.5x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: PayPal Holdings, Inc. at 0.7x leverage

Debt/Equity 0.7x. Total debt $13.4B, cash & investments $11.3B. Source: 10-Q filed 2025-10-28.

Metric	PYPL	Rating	Context
Debt to Equity	0.7x	Good	Moderate leverage
Net Cash Position	$-2.1B	Warning	Net debt position

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Valuation: PayPal Holdings, Inc. trades at 8.1x earnings

P/E 8.1x. EV/Sales 1.6x. FCF yield 16.7%. Source: 10-Q filed 2025-10-28.

Metric	PYPL	Rating	Context
P/E Ratio	8.1x	Adequate	Reasonable valuation
EV/Sales	1.6x	Excellent	Attractive revenue multiple
FCF Yield	16.7%	Excellent	Attractive cash return

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Capital Allocation: PayPal Holdings, Inc. returns 15.3% shareholder yield

Total shareholder yield 15.3% (buyback 15.3%). Capital returned $6.1B TTM. Source: 10-Q filed 2025-10-28.

Metric	PYPL	Rating	Context
Total Shareholder Yield	15.3%	Excellent	Dividend + buyback yield combined
Buyback Yield	15.3%	Good	Active share repurchases
Total Capital Returned (TTM)	$6.1B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	15.7%	Top 25%	4.1x above
Free Cash Flow Margin	19.3%	Top 50%	2.3x above
Operating Margin	17.4%	Top 25%	3.8x above
Return on Equity (ROE)	24.4%	Top 25%	4.5x above
P/E Ratio	8.1x	N/A	-

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Financial Scorecard

Metric	PYPL	Rating	Sector Context
Return on Invested Capital (ROIC)	15.7%	Good	Top 25% of sector (median: 3.9%)
Free Cash Flow Margin	19.3%	Good	Top 50% of sector (median: 8.5%)
Debt to Equity Ratio	67.6%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	806.9%	Adequate	Attractively valued
Free Cash Flow Yield	16.7%	Excellent	High cash return

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Frequently Asked Questions

Q: What is PayPal Holdings, Inc.'s Return on Invested Capital (ROIC)?

PayPal Holdings, Inc. (PYPL) has a trailing twelve-month Return on Invested Capital (ROIC) of 15.7%. Sector median 3.9%. Source: 10-Q filed 2025-10-28.

Q: What is PayPal Holdings, Inc.'s Free Cash Flow Margin?

PayPal Holdings, Inc. (PYPL) has a free cash flow margin of 19.3%, generating $6.6 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-28.

Q: What is PayPal Holdings, Inc.'s P/E ratio and how does it compare to peers?

PayPal Holdings, Inc. (PYPL) trades at a P/E ratio of 8.1x, which is above the sector median of N/A. EV/Sales 1.6x. FCF yield 16.7%. Source: 10-Q filed 2025-10-28.

Q: How much debt does PayPal Holdings, Inc. have?

PayPal Holdings, Inc. (PYPL) has a debt-to-equity ratio of 0.7x with total debt of $13.4 billion. Net debt $2.1 billion. Source: 10-Q filed 2025-10-28.

Q: What is PayPal Holdings, Inc.'s revenue and earnings growth?

PayPal Holdings, Inc. (PYPL) grew revenue by 5.7% year-over-year. EPS +13.6% YoY. Source: 10-Q filed 2025-10-28.

Q: Is PayPal Holdings, Inc. buying back stock?

PayPal Holdings, Inc. (PYPL) repurchased $6.1 billion of stock over the trailing twelve months. This represents a buyback yield of 15.3%. Source: 10-Q filed 2025-10-28.

Q: How does PayPal Holdings, Inc. compare to competitors in Technology?

Compared to other companies in Technology, PayPal Holdings, Inc. (PYPL) shows: ROIC 15.7%, sector median 3.9% (Top 25%). FCF margin 19.3%, sector median 8.5% (Top 50%). These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with PayPal Holdings, Inc.?

No quantitative warning flags fired for PayPal Holdings, Inc. (PYPL) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-28.

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Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.