PayPal Holdings: Attractive On Any Signs Of Weakness

Summary:

  • PayPal Holdings had a really solid quarter, but shares of the business moved lower after-hours because of weak near-term guidance.
  • A reduction in the number of active accounts might also have been a factor, but management is optimistic about this year as a whole.
  • Add in how shares are priced, and investors should give the company serious consideration.
PayPal Headquarters San Jose

JasonDoiy

Perhaps no company in the payment processing space is known better than industry giant PayPal Holdings (NASDAQ:PYPL). Year after year, the company continues to grow, with sales, profits, and cash flows usually coming in higher each year than the year prior. But this

Company Price / Earnings Price / Operating Cash Flow EV / EBITDA
PayPal 17.2 12.8 16.3
Automatic Data Processing (ADP) 27.4 22.7 18.2
Fiserv (FISV) 31.5 15.5 13.9
Fidelity National Information Services (FIS) 44.4 9.1 10.5
Global Payments (GPN) 234.5 12.8 22.2
Paychex (PAYX) 25.6 23.7 17.4


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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