PayPal Holdings Inc (PYPL, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $62.87, PayPal Holdings Inc has witnessed a daily loss of 2.13%, marked against a three-month change of 0.33%. A thorough analysis, underlined by the GF Score, suggests that PayPal Holdings Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 6/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 8/10
- Momentum rank: 5/10
Considering these components, GuruFocus assigned PayPal Holdings Inc a GF Score of 95 out of 100, which signals the highest outperformance potential.
Understanding PayPal Holdings Inc's Business
PayPal Holdings Inc, with a market cap of $67.38 billion and sales of $29.77 billion, has established itself as a leader in electronic payment solutions. Since its spin-off from eBay in 2015, the company has focused on online transactions, amassing 426 million active accounts by the end of 2023. PayPal Holdings Inc also owns Venmo, a popular person-to-person payment platform. With an operating margin of 16.61%, the company demonstrates efficient management and profitability.
Financial Strength Breakdown
PayPal Holdings Inc's Financial Strength rating reflects a resilient balance sheet, with an Interest Coverage ratio of 14.25, indicating a strong ability to cover interest obligations. The company's strategic debt management is evident in its Debt-to-Revenue ratio of 0.33, further solidifying its financial health.
Profitability Rank Breakdown
The Profitability Rank of PayPal Holdings Inc is exceptional, with an increasing Operating Margin over the past five years. The company's Piotroski F-Score and Predictability Rank of 5 stars further confirm its strong financial performance and reliability.
Growth Rank Breakdown
PayPal Holdings Inc's high Growth rank is a testament to its commitment to expansion, with a 3-Year Revenue Growth Rate of 14.2%, outperforming 67.28% of its industry peers. The company's EBITDA growth rates over the past three and five years highlight its growth capabilities.
Conclusion: PayPal Holdings Inc's Path to Outperformance
Considering PayPal Holdings Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking companies with similar robust financial indicators can explore more options using the GF Score Screen provided by GuruFocus.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
