PayPal Holdings Gross Profit vs. Return On Asset
| PYPL Stock | USD 84.67 1.16 1.35% |
Gross Profit | First Reported 2014-03-31 | Previous Quarter 3.1 B | Current Value 3.7 B | Quarterly Volatility 840.1 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.64 | 0.4603 |
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| Net Profit Margin | 0.1 | 0.1426 |
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| Operating Profit Margin | 0.18 | 0.1689 |
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| Pretax Profit Margin | 0.13 | 0.1818 |
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| Return On Assets | 0.0357 | 0.0517 |
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| Return On Equity | 0.1 | 0.2017 |
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For PayPal Holdings profitability analysis, we use financial ratios and fundamental drivers that measure the ability of PayPal Holdings to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well PayPal Holdings utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between PayPal Holdings's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of PayPal Holdings over time as well as its relative position and ranking within its peers.
PayPal |
PayPal Holdings' Revenue Breakdown by Earning Segment
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Is Transaction & Payment Processing Services space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of PayPal Holdings. If investors know PayPal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about PayPal Holdings listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.065 | Earnings Share 4.18 | Revenue Per Share 29.966 | Quarterly Revenue Growth 0.058 | Return On Assets 0.0434 |
The market value of PayPal Holdings is measured differently than its book value, which is the value of PayPal that is recorded on the company's balance sheet. Investors also form their own opinion of PayPal Holdings' value that differs from its market value or its book value, called intrinsic value, which is PayPal Holdings' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because PayPal Holdings' market value can be influenced by many factors that don't directly affect PayPal Holdings' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between PayPal Holdings' value and its price as these two are different measures arrived at by different means. Investors typically determine if PayPal Holdings is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, PayPal Holdings' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
PayPal Holdings Return On Asset vs. Gross Profit Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining PayPal Holdings's current stock value. Our valuation model uses many indicators to compare PayPal Holdings value to that of its competitors to determine the firm's financial worth. PayPal Holdings is considered to be number one stock in gross profit category among its peers. It also is considered to be number one stock in return on asset category among its peers . The ratio of Gross Profit to Return On Asset for PayPal Holdings is about 268,502,304,147 . At this time, PayPal Holdings' Gross Profit is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value PayPal Holdings by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.PayPal Return On Asset vs. Gross Profit
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
PayPal Holdings |
| = | 11.65 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
PayPal Holdings |
| = | 0.0434 |
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.
PayPal Return On Asset Comparison
PayPal Holdings is currently under evaluation in return on asset category among its peers.
PayPal Holdings Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in PayPal Holdings, profitability is also one of the essential criteria for including it into their portfolios because, without profit, PayPal Holdings will eventually generate negative long term returns. The profitability progress is the general direction of PayPal Holdings' change in net profit over the period of time. It can combine multiple indicators of PayPal Holdings, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -746 M | -783.3 M | |
| Operating Income | 5 B | 2.7 B | |
| Income Before Tax | 5.4 B | 2.9 B | |
| Total Other Income Expense Net | 383 M | 402.1 M | |
| Net Income | 4.2 B | 2.4 B | |
| Income Tax Expense | 1.2 B | 1.2 B | |
| Net Income Applicable To Common Shares | 2.8 B | 2.3 B | |
| Net Income From Continuing Ops | 4.2 B | 2.7 B | |
| Interest Income | 480 M | 504 M | |
| Non Operating Income Net Other | -541.6 M | -514.6 M | |
| Net Interest Income | 133 M | 139.7 M | |
| Change To Netincome | 863.1 M | 797.4 M | |
| Net Income Per Share | 3.85 | 4.04 | |
| Income Quality | 1.14 | 1.08 | |
| Net Income Per E B T | 0.78 | 0.64 |
PayPal Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on PayPal Holdings. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of PayPal Holdings position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the PayPal Holdings' important profitability drivers and their relationship over time.
Use PayPal Holdings in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if PayPal Holdings position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in PayPal Holdings will appreciate offsetting losses from the drop in the long position's value.PayPal Holdings Pair Trading
PayPal Holdings Pair Trading Analysis
The ability to find closely correlated positions to PayPal Holdings could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace PayPal Holdings when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back PayPal Holdings - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling PayPal Holdings to buy it.
The correlation of PayPal Holdings is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as PayPal Holdings moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if PayPal Holdings moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for PayPal Holdings can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your PayPal Holdings position
In addition to having PayPal Holdings in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out Your Equity Center. For more information on how to buy PayPal Stock please use our How to buy in PayPal Stock guide.You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
To fully project PayPal Holdings' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of PayPal Holdings at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include PayPal Holdings' income statement, its balance sheet, and the statement of cash flows.