This Score-Card analysis of PayPal Inc (PYPL) attributes an Overall Score to a company by analyzing several aspects that I consider to be among the most important.
In summary, a company to have an overall score close to 100% must have the following characteristics:
- Report high growth rates in the last 3 years (and in the last quarter) in terms of Revenue, Gross Profit, Operating Income and Net Income. Furthermore, it must operate with high and improving margins in recent years.
- Analysts expect Earnings Per Share (EPS) and revenues to grow in the short term (in the next quarter) and in the medium to long term (in the next 5 years). Moreover, they expect the company to be undervalued at current prices and in the last quarter their EPS expectations must have been beaten with a consequent rise in share prices.
- The stock price of the company must have outperformed the S&P 500 index and in the last 3 months the Hedge Funds and Insiders bought shares in the company.
The overall score ranges from 0% (if the characteristics listed above are all very negative) to +100% and it is unlikely that there will be a company with a +100% score because the requirements for achieving this score are very high, however a score higher than +70% can be considered good.
The purpose of this analysis is purely informative.
Score-Card analysis of PayPal Inc (PYPL)
- Overall Score: +75%
- PYPL is well viewed by analysts
- They expect an annual growth of EPS by 18.2% for the next 5 years and consider it undervalued by 16.6% at current prices
- Revenue amounted to 17 billion dollars, up 80% in the last 3 years and produce 2.5 billion dollars in profits (doubled in the same period)
- Growth also in the last quarter, despite a decline in the net margin
- In the last quarter Hedge Fund increased their positions on PYPL by 2 million shares, a very significant figure
PayPal Holdings Inc is an American company operating a worldwide online payments system that supports online money transfers and serves as an electronic alternative to traditional paper methods like checks and money orders.
The overall score of PYPL is 75% .
In the last 6 months, PYPL has underperformed the S&P500 index by -6,5% and analysts believe the company is undervalued by 16,6% .
In the last quarter, the company reported revenue of 4378 million, up by 18,9% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 17037 million, up by 84,2% in the last 3 years.
PYPL reported an operating income of 697 million in the last quarter, an improvement of 42,2% compared to the same quarter 12 months earlier, also reporting an improvement of 19,7% in the operating margin. Considering the sum of the last four quarters (TTM), PYPL reports an operating income of 2518,0 Million , a growth of 72,3% compared to three years ago and a reduction of -6,4% in the operating margin.
PYPL reported a net income of 462 million in the last quarter, an improvement of 5,2% compared to the same quarter 12 months earlier, also reporting an improvement of -11,5% in the net margin. The TTM net income is 2518 million , a growth of 105,0% compared to three years ago and the net margin has improved by 11,3% .
In the next quarter, analysts expect growth in EPS (Earnings Per Share) of 18,8% and a growth in revenue of 17,0% . Furthermore, they expect an annual growth of PYPL EPS by 18,2% for the next 5 years.
In the last quarter, PYPL reported better EPS than analysts’ expectations and the stock price reacted by increasing by 8,6% .
Finally, in the last quarter the Hedge Funds have increased their positions by 2M shares.
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Sources & additional info
*The comparison with the S&P 500 index (black line) is visible inside the graph.
*Information updated to the last quarterly report available
*Data in Millions of Dollars
*Data from zacks.com, tipranks.com, reuters.com, finance.yahoo.com
*Company information from wikipedia.com
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