PayPal Holdings, Inc. (PYPL) Factsheet
PayPal Holdings, Inc. (PYPL) Stock Analysis
Analysis from 10-Q filed 2025-10-28. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 16.2%. FCF margin 16.3%. D/E 0.5x. Source: 10-Q filed 2025-10-28.
| Metric | Value | Context |
|---|---|---|
| ROIC | 16.2% | Solid returns |
| FCF Margin | 16.3% | Strong cash generation |
| Debt/Equity | 0.5x | Conservative leverage |
ROIC 16.2% — Top 25% of sector peers. FCF margin 16.3% — Top 50%.
Explore PayPal Holdings, Inc.: Earnings History | Filings | ROIC Analysis
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.
Profitability: PayPal Holdings, Inc. earns 16.2% ROIC, Top 25% in Technology
ROIC TTM 16.2%, sector median 4.6%, Top 25%. DuPont: NOPAT margin 14.9% × asset turnover 0.4x. Operating margin 17.9%. Source: 10-Q filed 2025-10-28.
| Metric | PYPL | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 16.2% | Good | Above sector median of 4.6% |
| Return on Equity (ROE) | 25.0% | Excellent | Efficient use of shareholder equity |
| Operating Margin | 17.9% | Good | Efficient operations |
Cash Flow: PayPal Holdings, Inc. generates $5.5B FCF at 16.3% margin, positive NaN/8 quarters
FCF TTM $5.5B. FCF margin 16.3%, Top 50%. OCF/Net income 1.3x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-28.
| Metric | PYPL | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 16.3% | Good | Excellent cash conversion |
| Free Cash Flow (TTM) | $5.5B | Good | Positive cash generation |
| OCF/Net Income | 1.3x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: PayPal Holdings, Inc. at 0.5x leverage
Debt/Equity 0.5x. Net cash $15.4B. Source: 10-Q filed 2025-10-28.
| Metric | PYPL | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.5x | Good | Conservative capital structure |
| Net Cash Position | $15.4B | Excellent | Net cash positive |
Valuation: PayPal Holdings, Inc. trades at 8.4x earnings
P/E 8.4x. EV/Sales 0.8x. FCF yield 12.9%. Source: 10-Q filed 2025-10-28.
| Metric | PYPL | Rating | Context |
|---|---|---|---|
| P/E Ratio | 8.4x | Adequate | Reasonable valuation |
| EV/Sales | 0.8x | Excellent | Attractive revenue multiple |
| FCF Yield | 12.9% | Excellent | Attractive cash return |
Capital Allocation: PayPal Holdings, Inc. returns 14.2% shareholder yield
Total shareholder yield 14.2% (buyback 14.2%). Capital returned $6.1B TTM. Source: 10-Q filed 2025-10-28.
| Metric | PYPL | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 14.2% | Excellent | Dividend + buyback yield combined |
| Buyback Yield | 14.2% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $6.1B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 16.2% | Top 25% | 3.5x above |
| Free Cash Flow Margin | 16.3% | Top 50% | 1.9x above |
| Operating Margin | 17.9% | Top 25% | 3.7x above |
| Return on Equity (ROE) | 25.0% | Top 25% | 4.9x above |
| P/E Ratio | 8.4x | N/A | - |
Financial Scorecard
| Metric | PYPL | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 16.2% | Good | Top 25% of sector (median: 4.6%) |
| Free Cash Flow Margin | 16.3% | Good | Top 50% of sector (median: 8.5%) |
| Debt to Equity Ratio | 47.0% | Good | Moderate leverage |
| P/E Ratio (Price-to-Earnings) | 841.4% | Adequate | Attractively valued |
| Free Cash Flow Yield | 12.9% | Excellent | High cash return |
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 16.2%. Sector median 4.6%. 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 16.3%, generating $5.5 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 8.4x, which is above the sector median of N/A. EV/Sales 0.8x. FCF yield 12.9%. 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 5.8% year-over-year. EPS +19.7% 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 14.2%. 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 16.2%, sector median 4.6% (Top 25%). FCF margin 16.3%, 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.
Data Source: Data sourced from 10-Q filed 2025-10-28. TTM metrics as of Q1 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.