PayPal Holdings (PYPL) AI Stock Analysis

• Market Cap: $64.12B
• Dividend Yield: N/A
• Average Volume (3M): 11.10M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.41
• Revenue Growth: 4.05%
• EPS Growth: 13.85%
• Country: US
• Employees: 24,400
• Sector: Financial
• Sector Strength: 64
• Industry: Financial - Credit Services
• EPS (TTM): 1.40
• Shares Outstanding: 955,378,400
• 10 Day Avg. Volume: 15,546,857
• 30 Day Avg. Volume: 11,103,576
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.17
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 4.94
• Enterprise Value/Ebitda: 10.86
• 1Y Price Target: $82.63
• Price Target Upside: 21.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 25

• Rating: 78 Outperform
• Price Target: $78.00 ▲(14.99% Upside)

PayPal's strong financial performance and positive earnings outlook, driven by strategic initiatives, are key strengths. However, bearish technical signals and macroeconomic uncertainties pose risks. The fair valuation suggests potential long-term value, but short-term caution is advised.

Positive Factors

Earnings

PayPal delivered upside across essentially all metrics, which supports a bullish outlook on the stock.

Financial Performance

The transition to modern checkout is now 60% complete, which is expected to drive future growth and improve financial performance.

Product Innovation

Considering the backlog of product innovation and utility to be introduced to merchants and consumers, PayPal is seen as incrementally bullish.

Negative Factors

Branded Checkout

The most pressing investor focus is in its core Branded checkout business which lagged more bullish Street expectations.

Competition

Neutral and bearish investors focus on long-term structural share loss concerns due to increasing competition from Apple Pay and Shop Pay.

E-commerce Uncertainty

The stock finished down notably, likely due to a slight slowdown in its branded checkout segment and ongoing uncertainty around e-commerce and consumer spending.

PayPal Holdings Business Overview & Revenue Model

Company Description

PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide. It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names. The company's payments platform allows consumers to send and receive payments in approximately 200 markets and in approximately 100 currencies, withdraw funds to their bank accounts in 56 currencies, and hold balances in their PayPal accounts in 25 currencies. PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California.

How the Company Makes Money

PayPal makes money primarily through transaction fees charged to merchants when consumers make purchases using its payment platforms. These fees are typically a percentage of the transaction amount, along with a fixed fee based on the currency used. Additionally, PayPal earns revenue from value-added services, such as providing working capital and credit products to merchants and consumers. The company also generates income from partnerships, interest on certain customer balances, and subscription fees for enhanced services. Strategic acquisitions and partnerships, such as those with financial institutions and e-commerce platforms, further bolster PayPal's revenue by expanding its user base and transaction volume.

PayPal Holdings Financial Statement Overview

Summary

PayPal's financial performance is strong with robust profitability, efficient cash flow generation, and a balanced capital structure. The company's revenue growth and solid profitability margins highlight effective management and market position. Moderate leverage is a concern but is offset by strong returns on equity and effective cash flow management.

Income Statement

PayPal shows strong profitability with a consistent increase in revenue over the years, reflected in a positive Revenue Growth Rate from 2023 to 2024. Gross Profit Margin remains solid at 45.4% TTM (Trailing-Twelve-Months) indicating efficient cost management. The Net Profit Margin stands at 14.3% TTM, showing effective bottom-line profitability. EBIT and EBITDA margins at 18.1% and 20.8% TTM respectively denote strong operational efficiency. The company has maintained stable profitability metrics over time, reflecting a strong competitive position in the financial industry.

Balance Sheet

PayPal's balance sheet reflects moderate financial leverage with a Debt-to-Equity Ratio of 0.56 TTM, indicating a balanced use of debt in its capital structure. The Equity Ratio of 24.9% TTM shows a decent proportion of equity financing. Return on Equity is strong at 22.4% TTM, demonstrating efficiency in generating returns from shareholders' equity. While the company maintains a stable equity base, the slight decrease in Stockholders' Equity over time could be a concern if the trend continues.

Cash Flow

PayPal demonstrates healthy cash flow management with a strong Operating Cash Flow to Net Income Ratio of 1.47 TTM, indicating excellent conversion of net income to cash. The Free Cash Flow to Net Income Ratio is robust at 1.31 TTM, underscoring effective cash generation beyond capital expenditures. Free Cash Flow has shown variability, but the TTM data indicates a stable increase, suggesting effective management of capital investments and operational cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	32.29B	31.80B	29.77B	27.52B	25.37B	21.45B
Gross Profit	15.15B	14.66B	13.70B	13.77B	14.00B	11.78B
EBITDA	6.88B	6.74B	6.83B	4.99B	5.60B	6.46B
Net Income	4.68B	4.15B	4.25B	2.42B	4.17B	4.20B
Balance Sheet
Total Assets	79.78B	81.61B	82.17B	78.62B	75.80B	70.38B
Cash, Cash Equivalents and Short-Term Investments	10.01B	10.82B	14.06B	10.85B	9.39B	13.08B
Total Debt	11.30B	9.88B	9.68B	10.42B	9.05B	8.94B
Total Liabilities	59.58B	61.19B	61.12B	58.35B	54.08B	50.32B
Stockholders Equity	20.20B	20.42B	21.05B	20.27B	21.73B	20.02B
Cash Flow
Free Cash Flow	5.29B	6.77B	4.22B	5.11B	4.89B	5.35B
Operating Cash Flow	6.07B	7.45B	4.84B	5.81B	5.80B	6.22B
Investing Cash Flow	1.58B	1.59B	752.00M	-3.33B	-5.15B	-16.55B
Financing Cash Flow	-8.29B	-8.28B	-2.99B	-1.20B	-557.00M	12.45B

PayPal Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 67.83
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PYPL, the sentiment is Negative. The current price of 67.83 is below the 20-day moving average (MA) of 73.21, below the 50-day MA of 72.97, and below the 200-day MA of 76.35, indicating a bearish trend. The MACD of -1.27 indicates Positive momentum. The RSI at 35.35 is Neutral, neither overbought nor oversold. The STOCH value of 8.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PYPL.

PayPal Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MA	80 Outperform	$511.71B	38.44	177.90%	0.53%	14.55%	13.25%
PYPL	78 Outperform	$64.12B	14.37	22.92%	―	4.05%	13.85%
AXP	78 Outperform	$206.43B	20.96	32.58%	1.03%	8.03%	6.26%
V	77 Outperform	$653.79B	33.50	51.18%	0.67%	11.38%	7.43%
SOFI	68 Neutral	$0.00	43.67	8.80%	―	22.60%	―
WU	65 Neutral	$2.59B	3.03	135.32%	11.71%	-3.83%	62.05%
Sector *	62 Neutral	AU$10.22B	9.27	11.82%	5.04%	33.79%	41.40%

PayPal Holdings Corporate Events

PayPal Holdings Appoints Deirdre Stanley to Board

On June 24, 2025, PayPal Holdings appointed Deirdre Stanley, former Executive Vice President and General Counsel of The Estée Lauder Companies, to its Board of Directors, expanding the Board from 11 to 12 members. She will also serve on the Corporate Governance and Nominating Committee and Risk and Compliance Committee. Additionally, effective June 23, 2025, PayPal’s Board reorganized its committee structure by disbanding the Audit, Risk and Compliance Committee and establishing two new committees: the Audit and Finance Committee and the Risk and Compliance Committee, to enhance oversight of financial and risk management practices.

The most recent analyst rating on (PYPL) stock is a Hold with a $70.00 price target. To see the full list of analyst forecasts on PayPal Holdings stock, see the PYPL Stock Forecast page.

PayPal Stockholders Approve Key Proposals at Annual Meeting

At the 2025 Annual Meeting of Stockholders held on June 5, PayPal Holdings‘ stockholders approved several key proposals, including the amendment and restatement of the 2015 Equity Incentive Award Plan, which increased the number of shares reserved for issuance by 15 million. Additionally, the stockholders elected 11 directors, approved executive compensation, and ratified the appointment of PricewaterhouseCoopers LLP as the independent auditor for 2025. However, proposals regarding charitable giving and reducing the threshold to call special meetings were not approved. These decisions reflect PayPal’s strategic focus on enhancing shareholder value and maintaining robust governance practices.

The most recent analyst rating on (PYPL) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on PayPal Holdings stock, see the PYPL Stock Forecast page.