Fundamental analysis · SEC EDGAR · TTM through 30/09/2026
PYPL · Nasdaq · Financial
Fundamental quality
76
out of 100
PayPal Holdings, Inc. runs like a cash machine: it converts about 18.4% of revenue into free cash flow and holds a 13.8% net margin, though it grows at a measured pace. On fundamental quality it scores 76 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +8.5%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.
PayPal is one of the world's most widespread digital-payments platforms: it processes online purchases through its checkout buttons (PayPal, Venmo, Braintree) and takes a fee per transaction. A sector pioneer, it now fights to reignite growth.
EPS growth: 7.1% · Revenue growth: 8.5%
Net margin: 13.8% · ROE: 24.3% · ROIC: 18%
Net debt/EBITDA: 0.9x · FCF: 18.4%
Source: SEC EDGAR · TTM through 30/09/2026
The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.
Percentile against the other 71 Financial companies in our coverage: how far it beats them on each metric (100 = best in sector).
Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.
Key concepts
What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow
| Year | Revenue | Net income | Free cash flow | Net debt |
|---|---|---|---|---|
| 2020 | 21,454 | 4,202 | 5,353 | 4,145 |
| 2021 | 25,371 | 4,169 | 4,889 | 2,852 |
| 2022 | 27,518 | 2,419 | 5,107 | 2,641 |
| 2023 | 29,771 | 4,246 | 4,220 | 595 |
| 2024 | 31,797 | 4,147 | 6,767 | 3,217 |
| 2025 | 33,172 | 5,233 | 5,564 | 3,334 |
Between 2020 and 2025, revenue went from $21,454M to $33,172M (+55%) and net income went from $4,202M to $5,233M (+25%). Meanwhile, its margins have narrowed (from 20% to 16%).
Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.
Latest results
Figures for the nine months ended September 30, 2026, versus the nine months ended September 30, 2025 (SEC filings):
Compared with the previous close (March 31, 2026), this is what moved in its accounts:
Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.
$0.14
per share, yearly
2.5% of earnings
Payout
The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →
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Is PayPal Holdings, Inc. cheap or expensive?
That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).
Compute the valuation →Is PayPal Holdings, Inc. a good company to invest in?
In terms of business quality, PayPal Holdings, Inc. scores 76 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.
Is PayPal Holdings, Inc. a profitable company?
Yes. PayPal Holdings, Inc. shows a net margin of 13.8% and an ROE of 24.3%, a sign of a profitable business.
Does PayPal Holdings, Inc. have a lot of debt?
Not particularly. Its net debt is 0.9 times its EBITDA, a low level.
Is PayPal Holdings, Inc. growing?
Its revenue has grown 8.5% annualized in recent years and its earnings per share 7.1%, and without interruption since 2020.
Does PayPal Holdings, Inc. generate cash?
Yes. It converts about 18.4% of its revenue into free cash flow, and has done so positively year after year.
The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.
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Who's behind the methodology and model · how the score is computed
Data: see PayPal Holdings, Inc.'s filings on EDGAR
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