PayPal Holdings (PYPL) AI Stock Analysis

• Market Cap: $73.62B
• Dividend Yield: N/A
• Average Volume (3M): 8.95M
• Price to Earnings (P/E): 16.0
• Beta (1Y): 1.37
• Revenue Growth: 4.50%
• EPS Growth: 12.82%
• Country: US
• Employees: 24,400
• Sector: Financial
• Sector Strength: 80
• Industry: Financial - Credit Services
• EPS (TTM): 1.33
• Shares Outstanding: 972,532,840
• 10 Day Avg. Volume: 6,926,116
• 30 Day Avg. Volume: 8,953,507
• PEG Ratio: -0.83
• Price to Book (P/B): 4.05
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.09
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 0.67
• Enterprise Value/Gross Profit: 5.87
• Enterprise Value/Ebitda: 3.19
• 1Y Price Target: $79.38
• Price Target Upside: 11.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 27

• Rating: 71 Outperform
• Price Target: $79.00 ▲(10.71%Upside)

PayPal's overall stock score reflects strong financial performance and strategic growth in key areas like Venmo. However, technical indicators and macroeconomic uncertainties present challenges. The company's reasonable valuation and strategic initiatives, such as omnichannel expansion, show potential for future growth, but caution is warranted due to external economic pressures.

Positive Factors

Adoption and Growth

BNPL/Pay Later adoption is gaining traction, with users transacting 17% more and spending 33% more on average.

Financial Performance

PYPL's 1Q25 results were solid, and reiterated 2025 guidance now appears increasingly conservative/de-risked.

Operational Progress

PayPal is poised to deliver durable low-teens EPS compounding and strong free cash flow.

Negative Factors

Market Competition

PayPal is at a competitive disadvantage to other digital wallets and payment service providers, lacking a differentiated unified commerce offering.

Strategic Challenges

PayPal lacks a consumer and merchant value proposition capable of meaningfully accelerating branded volume and transaction dollar growth.

Valuation Constraints

The long-term trade-off between Braintree share and margin limits the company's total addressable market and constrains valuation.

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 maintains a strong financial position with robust profitability and efficient cash flow generation, supported by a balanced capital structure. The consistent revenue growth and solid profitability margins highlight effective management and market position. While the balance sheet shows moderate leverage, the company’s ability to generate strong returns on equity and manage cash flows effectively positions it well for future growth.

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	31.87B	31.80B	29.77B	27.52B	25.37B	21.45B
Gross Profit	14.45B	14.66B	13.70B	13.77B	14.00B	11.78B
EBITDA	7.05B	6.74B	6.83B	4.99B	5.60B	6.46B
Net Income	4.55B	4.15B	4.25B	2.42B	4.17B	4.20B
Balance Sheet
Total Assets	81.27B	81.61B	82.17B	78.62B	75.80B	70.38B
Cash, Cash Equivalents and Short-Term Investments	11.21B	10.82B	14.06B	10.85B	9.39B	13.08B
Total Debt	11.42B	9.88B	9.68B	10.42B	9.05B	8.94B
Total Liabilities	61.02B	61.19B	61.12B	58.35B	54.08B	50.32B
Stockholders Equity	20.25B	20.42B	21.05B	20.27B	21.73B	20.02B
Cash Flow
Free Cash Flow	5.97B	6.77B	4.22B	5.11B	4.89B	5.35B
Operating Cash Flow	6.69B	7.45B	4.84B	5.81B	5.80B	6.22B
Investing Cash Flow	-3.05B	1.59B	752.00M	-3.33B	-5.15B	-16.55B
Financing Cash Flow	-4.92B	-8.28B	-2.99B	-1.20B	-557.00M	12.45B

PayPal Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.36
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 71.36 is below the 20-day moving average (MA) of 73.41, below the 50-day MA of 71.99, and below the 200-day MA of 76.85, indicating a bearish trend. The MACD of 0.84 indicates Positive momentum. The RSI at 43.44 is Neutral, neither overbought nor oversold. The STOCH value of 42.61 is Neutral, 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
V	79 Outperform	$690.11B	36.20	50.03%	0.68%	10.19%	12.45%
AXP	77 Outperform	$223.82B	22.32	34.02%	1.03%	8.45%	17.89%
MA	77 Outperform	$499.59B	38.59	188.92%	0.55%	12.94%	13.22%
PYPL	71 Outperform	$73.62B	16.01	22.20%	―	4.50%	12.82%
Sector *	67 Neutral	$16.77B	11.73	9.77%	3.75%	12.07%	-8.28%
SOFI	66 Neutral	$23.43B	50.38	7.51%	―	21.24%	―
WU	66 Neutral	$2.76B	3.10	136.84%	11.26%	-5.16%	59.60%

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.