PayPal Holdings, Inc. [NASDAQ:PYPL]: Analyst Rating and Earnings
Expert stock traders often make certain they pay attention what leading Wall Street analysts think regarding a potential stock purchase. As it relates to PayPal Holdings, Inc. [PYPL] currently, the latest ratings from Wall St. experts that can be seen publicly is related to the fiscal quarter that’s scheduled to end in December. On average, stock market experts give PYPL an Outperform rating. Its stock price has been found in the range of 70.22 to 100.59. This is compared to its latest closing price of $99.03.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for PayPal Holdings, Inc. [PYPL] is sitting at 1.98. This is compared to 1 month ago, when its average rating was 1.93.
For the quarter ending in Dec-18 PayPal Holdings, Inc. [PYPL] generated $4.23 billion in sales. That’s 0.30% lower than the average estimate of $4.24 billion as provided by Wall Street analysts. The three indicators above suggest that on the whole, this stock is not presenting an attractive investment option, as there are too many red flags that don’t point to a high-value ROI.
Pay attention to the next-scheduled financial results for this company to be released, which is slated for Wed 24 Apr (In 40 Days).
Fundamental Analysis of PayPal Holdings, Inc. [PYPL]
Now let’s turn to look at profitability: with a current Operating Margin for PayPal Holdings, Inc. [PYPL] sitting at +16.36 and its Gross Margin at +49.54, this company’s Net Margin is now 13.30%. These measurements indicate that PayPal Holdings, Inc. [PYPL] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 14.74, and its Return on Invested Capital has reached 10.90%. Its Return on Equity is 13.11, and its Return on Assets is 4.89. These metrics suggest that this PayPal Holdings, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, PayPal Holdings, Inc. [PYPL] has generated a Total Debt to Total Equity ratio of 12.99. Similarly, its Total Debt to Total Capital is 11.49, while its Total Debt to Total Assets stands at 4.61.
What about valuation? This company’s Enterprise Value to EBITDA is 31.78 and its Total Debt to EBITDA Value is 0.60. The Enterprise Value to Sales for this firm is now 6.79, and its Total Debt to Enterprise Value stands at 0.02. PayPal Holdings, Inc. [PYPL] has a Price to Book Ratio of 6.42, a Price to Cash Flow Ratio of 18.45 and P/E Ratio of 58.98. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Shifting the focus to workforce efficiency, PayPal Holdings, Inc. [PYPL] earns $710,138 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 0.72 and its Total Asset Turnover is 0.37. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.27 and its Current Ratio is 1.27. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
PayPal Holdings, Inc. [PYPL] has 1.18B shares outstanding, amounting to a total market cap of $116.81B. Its stock price has been found in the range of 70.22 to 100.59. At its current price, it has moved by 0.30% from its 52-week high, and it has moved 43.68% from its 52-week low.
This stock’s Beta value is currently 1.04, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 70.23. This RSI suggests that PayPal Holdings, Inc. is currently Overbought.
Conclusion: Is PayPal Holdings, Inc. [PYPL] a Reliable Buy?
Shares of PayPal Holdings, Inc. [PYPL], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.