PayPal Holdings Inc (PYPL, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth trajectory. With its shares currently priced at $66.82, PayPal Holdings Inc has experienced a daily gain of 4.41%, despite a slight dip of -2.18% over the past three months. A detailed evaluation using the GF Score indicates that PayPal Holdings Inc is poised for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently and have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. For PayPal Holdings Inc, the GF Score is an impressive 96 out of 100, indicating a high potential for outperformance.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 8/10
- Momentum rank: 5/10
Understanding PayPal Holdings Inc's Business
PayPal Holdings Inc, with a market cap of $68.96 billion and annual sales of $30.43 billion, operates at an operating margin of 16.96%. Since its spin-off from eBay in 2015, PayPal has become a leading entity in electronic payment solutions, focusing primarily on online transactions. It boasts 426 million active accounts and owns Venmo, a popular person-to-person payment platform.
Financial Strength Breakdown
PayPal Holdings Inc's Financial Strength is evident in its robust balance sheet and an impressive Interest Coverage ratio of 14.92, indicating strong capability to meet interest obligations. The company's strategic debt management is reflected in its favorable Debt-to-Revenue ratio of 0.32.
Profitability Rank Breakdown
PayPal Holdings Inc's profitability is top-notch, with an Operating Margin that has shown consistent improvement over the past five years. The company's Piotroski F-Score and Predictability Rank further confirm its solid financial health and operational efficiency.
Growth Rank Breakdown
PayPal Holdings Inc is recognized for its strong growth, with a 3-Year Revenue Growth Rate of 14.2%, outperforming 60.74% of its industry peers. The company's EBITDA growth over the past three and five years underscores its ongoing growth capabilities.
Conclusion
Considering PayPal Holdings Inc's robust financial strength, exceptional profitability, and compelling growth metrics, the GF Score highlights the company's unmatched position for potential market outperformance. For investors looking for similar opportunities, the GF Score Screen offers a valuable tool for identifying high-potential stocks.
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.
