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PayPal Holdings Inc

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PayPal Holdings Inc
PYPL Financial Services
$41.32 ▼ -3.35%
$1.43 today · as of 06 Jun 2026
50 S.I.F.T
S.I.F.T.™ Analysis
Red
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Caution – significant pillar weakness detected.
Last updated: 06 Jun 2026 · Confidence: 55%
Pillar Breakdown
🛡 Safety 35
Balance sheet or moat concerns are weighing on the score.
💰 Income 35
High cyclicality and lack of recurring revenue are limiting stability.
📊 Fundamentals 75
Strong growth but valuation is elevated.
⏱ Time 60
Shorter track record or weaker tailwinds.
🧠 Munger Reality Filter AVOID

Weak competitive position with limited durable advantages amid rising fintech competition and regulatory risks.

Strengths: Solid ROE of 25.1% reflecting efficient capital use, Moderate time_in_market score of 60 showing some operational history
Risks: Extremely high debt_to_cfo ratio of 999 signaling severe leverage concerns, Very low safety (35) and income_stability (35) pillar scores, Zero warchest_pct indicating no cash buffer for downturns
📈 Price History

Business Overview

Key Metrics
ROE (10yr)
25.1%
Debt / CFO
N/A
Div. Yield
0.00%
FCF Growth
0.0%

FAQ

Financial Details

Recent Quarters
Quarter Revenue Gross Profit EPS
No quarterly data available.
Segment Breakdown
Data Center 56%
Client 28%
Gaming 9%
Embedded 7%

Management

Leadership Summary
  • - Transitioned to new CEO Alex Chriss in 2023 to accelerate product innovation and simplify user experience
  • - Emphasis on core payments strength while divesting non-core assets and optimizing cost structure
  • - Focus on merchant and consumer retention amid rising competition from Apple Pay and Stripe
  • - Commitment to regulatory compliance and responsible growth in emerging markets
Track Record

Under prior leadership, PayPal scaled to over 400 million active accounts and completed major acquisitions including Honey and iZettle; recent team has executed portfolio pruning and returned capital via buybacks while navigating post-pandemic normalization.

Recent Commentary

“In Q2 2024 earnings, CEO Chriss highlighted progress on the 'Simplify and Focus' initiative, noted stable TPV growth, and signaled continued investment in AI-driven fraud tools and checkout optimization.”

Analyst Reviews & Risks

Wall Street Consensus
4.6
out of 5 (Strong Buy)
Average Target: $485.00
Key Investment Risks
  • Extremely high debt_to_cfo ratio of 999 signaling severe leverage concerns
  • Very low safety (35) and income_stability (35) pillar scores
  • Zero warchest_pct indicating no cash buffer for downturns
Ownership & Sentiment

Institutional Ownership: N/A%

Short Interest: N/A%

AI Investment Thesis
  • Dominant digital payments platform with 400M+ active accounts driving network effects and high switching costs.
  • Diversified growth via Venmo, BNPL, and crypto services expanding beyond core checkout revenue.
  • Strong free cash flow generation and margin expansion from cost discipline and scale efficiencies.
  • Undervalued relative to peers with potential for multiple re-rating as growth stabilizes.
  • Strategic M&A and partnerships positioning PayPal for long-term leadership in global commerce.
Key Catalysts & Risks
Catalysts
  • Accelerating e-commerce and Venmo volume growth in upcoming earnings
  • Successful rollout of new BNPL and crypto features boosting user engagement
  • Potential share buybacks or capital return increases
Risks
  • Intense competition from Apple Pay, Stripe, and bank wallets eroding market share
  • Regulatory scrutiny on fees, data privacy, and crypto operations
  • Macroeconomic slowdown reducing consumer spending and transaction volumes
Peer Comparison
Company P/E Rev Growth Gross Margin ROE Debt/Equity
NVDA N/A N/A% N/A% 61.51% 0.51
INTC N/A N/A% N/A% -1.64% 8.05
AVGO N/A N/A% N/A% 14.7% 3.03
AMD N/A N/A% N/A% 8.08% 999
  • ...

    Investors

     0

  • Ticker

     PYPL
  • ...

    Sector

     Financial Services

  • Current Price

     $41.32

  • S.I.F.T. Score

     50
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