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PayPal Holdings Piotroski F-Score

: 4 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

PayPal Holdings has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for PayPal Holdings's Piotroski F-Score or its related term are showing as below:

PYPL' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 8
Current: 4

During the past 10 years, the highest Piotroski F-Score of PayPal Holdings was 8. The lowest was 4. And the median was 6.


PayPal Holdings Piotroski F-Score Historical Data

The historical data trend for PayPal Holdings's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

PayPal Holdings Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 7.00 6.00 6.00

PayPal Holdings Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 7.00 6.00 5.00 4.00

Competitive Comparison

For the Credit Services subindustry, PayPal Holdings's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

PayPal Holdings Piotroski F-Score Distribution

For the Credit Services industry and Financial Services sector, PayPal Holdings's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where PayPal Holdings's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 1087 + 801 + 509 + -341 = $2,056 Mil.
Cash Flow from Operations was 1513 + 1763 + 1242 + 1466 = $5,984 Mil.
Revenue was 6182 + 6918 + 6483 + 6806 = $26,389 Mil.
Gross Profit was 3350 + 3616 + 3297 + 3314 = $13,577 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(73816 + 74534 + 75803 + 75805 + 77810) / 5 = $75553.6 Mil.
Total Assets at the begining of this year (Jun21) was $73,816 Mil.
Long-Term Debt & Capital Lease Obligation was $10,198 Mil.
Total Current Assets was $55,252 Mil.
Total Current Liabilities was $45,095 Mil.
Net Income was 1021 + 1567 + 1097 + 1184 = $4,869 Mil.

Revenue was 5459 + 6116 + 6033 + 6238 = $23,846 Mil.
Gross Profit was 3093 + 3420 + 3485 + 3545 = $13,543 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(63166 + 65582 + 70379 + 72517 + 73816) / 5 = $69092 Mil.
Total Assets at the begining of last year (Jun20) was $63,166 Mil.
Long-Term Debt & Capital Lease Obligation was $8,945 Mil.
Total Current Assets was $53,231 Mil.
Total Current Liabilities was $41,268 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

PayPal Holdings's current Net Income (TTM) was 2,056. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

PayPal Holdings's current Cash Flow from Operations (TTM) was 5,984. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=2056/73816
=0.02785304

ROA (Last Year)=Net Income/Total Assets (Jun20)
=4869/63166
=0.07708261

PayPal Holdings's return on assets of this year was 0.02785304. PayPal Holdings's return on assets of last year was 0.07708261. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

PayPal Holdings's current Net Income (TTM) was 2,056. PayPal Holdings's current Cash Flow from Operations (TTM) was 5,984. ==> 5,984 > 2,056 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=10198/75553.6
=0.13497702

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=8945/69092
=0.12946506

PayPal Holdings's gearing of this year was 0.13497702. PayPal Holdings's gearing of last year was 0.12946506. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun22)=Total Current Assets/Total Current Liabilities
=55252/45095
=1.22523561

Current Ratio (Last Year: Jun21)=Total Current Assets/Total Current Liabilities
=53231/41268
=1.28988563

PayPal Holdings's current ratio of this year was 1.22523561. PayPal Holdings's current ratio of last year was 1.28988563. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

PayPal Holdings's number of shares in issue this year was 1158. PayPal Holdings's number of shares in issue last year was 1186. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=13577/26389
=0.51449468

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=13543/23846
=0.56793592

PayPal Holdings's gross margin of this year was 0.51449468. PayPal Holdings's gross margin of last year was 0.56793592. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=26389/73816
=0.35749702

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=23846/63166
=0.37751322

PayPal Holdings's asset turnover of this year was 0.35749702. PayPal Holdings's asset turnover of last year was 0.37751322. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+0+1+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

PayPal Holdings has an F-score of 4 indicating the company's financial situation is typical for a stable company.

PayPal Holdings  (NAS:PYPL) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


PayPal Holdings Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of PayPal Holdings's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


PayPal Holdings Business Description

PayPal Holdings logo
Address
2211 North First Street, San Jose, CA, USA, 95131
PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had 426 million active accounts at the end of 2021, including 34 million merchant accounts. The company also owns Xoom, an international money transfer business, and Venmo, a person-to-person payment platform.
Executives
Scheibe Gabrielle officer: SVP, Corp Finance & Investor R 2211 NORTH FIRST STREET SAN JOSE CA 95131
Lores Enrique director 3000 HANOVER STREET PALO ALTO CA 94304
Karbowski Jeffrey William officer: VP, Chief Accounting Officer 2211 N 1ST ST SAN JOSE CA 95131
Alford Peggy officer: EVP, Global Sales 435 TASSO STREET PALO ALTO CA 94301
Rainey John D officer: CFO and EVP, Global Cust Oper C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Johnson Allison officer: EVP, Chief Marketing Officer C/O PAYPAL HOLDINGS INC 2211 NORTH FIRST STREET SAN JOSE CA 95131
Britto Mark officer: EVP, Global Sales and Credit C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Messemer Deborah M. director C/O ALLOGENE THERAPEUTICS, INC. 210 EAST GRAND AVENUE SOUTH SAN FRANCISCO CA 94080
Adkins Rodney C director 55 GLENLAKE PARKWAY, NE ATLANTA GA 30328
Sarnoff Ann director C/O HSN, INC. 1 HSN DRIVE SAINT PETERSBURG FL 33729
Karczmer Aaron officer: SVP, CR & Compliance Officer PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Johnson Belinda J. director 394 PACIFIC AVENUE, FLOOR 2 SAN FRANCISCO CA 94111
Shivananda Sripada officer: SVP, Chief Technology Officer 2211 NORTH FIRST STREET 2211 NORTH FIRST STREET SAN JOSE CA 95131
Casares Wences director C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Morales-jaffe Marcia officer: SVP, Human Resources C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131

PayPal Holdings Headlines

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