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 prospects. With its shares currently priced at $83.47, PayPal Holdings Inc has experienced a daily gain of 2.16% and an impressive three-month change of 43.31%. A detailed analysis, supported by 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 of valuation, which have been proven to correlate closely with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. PayPal Holdings Inc boasts a GF Score of 99, signaling strong future performance potential.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 9/10
- Momentum rank: 10/10
Understanding PayPal Holdings Inc's Business
PayPal Holdings Inc, with a market cap of $85.33 billion and annual sales of $31.03 billion, operates with a robust operating margin of 17.54%. Since its spin-off from eBay in 2015, PayPal has been at the forefront of 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 balance sheet, showcasing resilience against financial volatility. The company's Interest Coverage ratio stands at an impressive 15.46, indicating a strong ability to meet its interest obligations. Additionally, its strategic debt management is reflected in a favorable Debt-to-Revenue ratio of 0.31.
Profitability and Growth Metrics
PayPal Holdings Inc's Profitability Rank is outstanding, with an Operating Margin that has consistently improved over the past five years. The company's growth is equally impressive, with a 3-Year Revenue Growth Rate of 14.2%, outperforming 60.64% of its peers in the Credit Services industry.
Conclusion: A Promising Outlook for PayPal Holdings Inc
Considering PayPal Holdings Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen.
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.
