PayPal Holdings, Inc. (PYPL) on Decifer

Decifer ranks PYPL number 140 of 265 tracked names on durable business quality.

Why it ranks here

• It earns solid returns on the money it puts to work, around 15% and those returns have been improving and it turns most of its profit into real cash.
• Revenue is expected to grow about 4% a year, profits grew 35% over the past year, and growth is speeding up, not slowing down.
• It keeps a high share of every sale as profit, and that has stayed steady over the years, a sign of real pricing power.
• It is riding an active market tailwind and has the balance sheet to fund its growth.
• It is not watering down its owners with new shares and it returns cash to shareholders.
• Solid 15% returns and 35% profit growth are held back by slim 4% revenue growth and muted momentum of 11 out of 35, making the setup too slow to act on now.

The current read

The evidence on PYPL lines up on the supportive side: options activity is unusually heavy with positioning leaning toward upside. The independent signals we track are telling the same story.

Themes

• Digital Payments: Consumer and commercial payment volume is migrating structurally to digital rails, with cross-border e-commerce and emerging-market card penetration compounding double-digit annual growth.
• Digital Commerce Platforms: Consumer spending is shifting online across emerging and developed markets, with cross-border DTC commerce growing double-digits annually.

Read the full PYPL research brief · See all quality rankings

Intelligence data powered by Decifer. Not financial advice. For informational purposes only.