Don't Buy PayPal (PYPL) Before Checking Its Fundamentals!

Shares of Large-cap consumer discretionary company PayPal moved -1.1 this evening, and are now trading at $60.98 per share. On the other hand, the average analyst target price for the stock is $80.63.

PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide.

Potential PayPal Investors Should Analyze the Following:

  • PayPal has moved -37.0% over the last year.

  • The company has a price to earnings growth (PEG) ratio of 0.82. A number between 0 and 1 could mean that the market is undervaluing PayPal's estimated growth potential

  • Its Price to Book (P/B) ratio is 3.42

Understanding PayPal's Operating Margins

Date Reported Total Revenue ($ k) Operating Expenses ($ k) Operating Margins (%) YoY Growth (%)
2023-02-10 27,518,000 -9,729,000 20 -4.76
2022-02-03 25,371,000 -9,672,000 21 -12.5
2021-02-05 21,454,000 -8,351,000 24 4.35
2020-02-06 17,772,000 -6,812,000 23 -4.17
2019-02-07 15,451,000 -6,093,000 24 -4.0
2018-02-07 13,094,000 -5,405,000 25

PayPal's operating margins have averaged 22.8% over the last 6 years, which is significantly higher than the Business Services industry average of 9.03%. The firm's margins exhibit a relatively stable growth trend of -3.3%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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