# PayPal Holdings, Inc. Common Stock (PYPL) — Stock CV

PayPal Holdings, Inc. is a $47.4B financial services company. Revenue grew 5.7% over the last year, and it keeps 14¢ of every dollar of sales as profit. It trades at 9.7× earnings — in the cheapest third of its own history.

> PayPal was spun off from eBay in 2015 and provides electronic payment solutions to merchants and consumers, with a focus on online transactions. The company had 439 million active accounts at the end of 2025.

## Identity

- **Ticker**: PYPL
- **Sector**: Financial Services
- **Industry**: Credit Services
- **Headquarters**: SAN JOSE, CA
- **Employees**: 23 800
- **Website**: https://www.paypal.com
- **Market cap**: $47.4B
- **Last price**: $55.45
- **Financial profile**: Solid

## Vitals (TTM)

- **Revenue**: $34.1B
- **Net income**: $4.90B
- **Free cash flow**: $6.59B
- **Net cash**: $435M
- **P/E**: 9.7
- **Revenue growth (YoY)**: 5.7%

## Skills (profile scores, 0–100)

| Pillar | Score |
|---|---|
| Valuation | 100 |
| Growth | 41 |
| Profitability | 85 |
| Health | 72 |
| Quality | 100 |
| Moat | 68 |

## Qualifications (beginner checklist) — 9 of 10 passed

- [x] Revenue growing — +5.7% YoY
- [x] Profitable — $4.90B TTM
- [x] Profit growing — +37.3% YoY
- [x] Generates cash — $6.59B TTM
- [x] Debt under control — more cash than debt
- [x] Established company — $47.4B market cap
- [x] Not printing shares — -18.4% shares over ~5y
- [x] Proven track record — 10/10 profitable years
- [ ] Financially stable — Altman Z 1.6 — distress
- [x] Valuation not extreme — P/E 9.7

## Experience (career milestones)

- **FY2025** — Best year on record: $5.23B net income
- **2021** — PayPal became the first foreign operator with 100% control of a payment platform in China, gaining…
- **Jan 6, 2020** — PayPal acquired Honey for over $4 billion
- **2019** — This was PayPal's largest acquisition until late November 2019 and the company claims that it is the in-store…
- **FY2016** — Profitable every year on record: 10 consecutive profitable years in our data
- **FY2016** — Revenue already above $10B: $10.8B in first reported year
- **FY2016** — Positive free cash flow every year since: 10-year streak
- **Jul 20, 2015** — Spun off from eBay: relisted at a higher value than all of eBay
- **2015** — EBay spun off PayPal to its shareholders, and PayPal became an independent company again
- **2013** — Acquired Braintree: $800M — brought Venmo along with it
- **2008** — PayPal acquired Fraud Sciences, a privately held Israeli start-up that developed online risk tools,…
- **2007** — PayPal acquired the online credit product Bill Me Later, Inc
- **Oct 3, 2002** — Acquired by eBay: $1.5B — PayPal alumni later founded YouTube, Tesla, LinkedIn…
- **Feb 15, 2002** — IPO on Nasdaq: went public in February at $13
- **2000** — Merged with Elon Musk's X.com: the merged company took the PayPal name in 2001
- **1999** — The first version of the PayPal electronic payments system was launched in 1999
- **1998** — Founded as Confinity: Max Levchin, Peter Thiel and Luke Nosek — security software for PalmPilots

## Strengths

- High gross margin (40.5%)
- Strong cash conversion — FCF is 19.3% of revenue
- Net cash position after subtracting debt from cash
- Could repay net debt from ~0.5 years of free cash flow
- Interest covered 1066.8× by operating earnings

## Watch-outs

- Altman Z-Score 1.58 — elevated financial-distress risk

## Track record

| Year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $25.4B | $4.17B | $5.43B |
| FY2022 | $27.5B | $2.42B | $5.11B |
| FY2023 | $29.8B | $4.25B | $4.22B |
| FY2024 | $31.8B | $4.15B | $6.77B |
| FY2025 | $33.2B | $5.23B | $5.56B |

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Source: https://stockcv.com/PYPL — derived from company filings; may be delayed or incomplete. Information, not investment advice.