PayPal Holdings, Inc. ( $PYPL)
$1 trillion Company by 2028
Why?
• Alternative Payment Method
• Earnings are Increasing
• Rise in online Activities
• Reinvests Capital
• Cashless Society
• Constant growth
• User growth
• Scalable
• Crypto
(Thread) 👇🏽
$1 trillion Company by 2028
Why?
• Alternative Payment Method
• Earnings are Increasing
• Rise in online Activities
• Reinvests Capital
• Cashless Society
• Constant growth
• User growth
• Scalable
• Crypto
(Thread) 👇🏽
•Introduction
#PayPal is an American company that operates an online payments system. It’s widely accepted across the globe and supports money transfers.
It serves as an electronic payment system which is an alternative to the traditional paper method.
#PayPal is an American company that operates an online payments system. It’s widely accepted across the globe and supports money transfers.
It serves as an electronic payment system which is an alternative to the traditional paper method.
•Valuation
Currently, 4 US Companies enjoy the trillion $ valuation, in a few years $PYPL will too.
Market Cap: $340bill
$289
It’s a 3x company in my eyes.I see double digit growth over the next decade as digital payments become ubiquitous.
Let’s look at their financials👇🏽
Currently, 4 US Companies enjoy the trillion $ valuation, in a few years $PYPL will too.
Market Cap: $340bill
$289
It’s a 3x company in my eyes.I see double digit growth over the next decade as digital payments become ubiquitous.
Let’s look at their financials👇🏽
• Total Revenue
* $22billion 869million (TTM)
(2017-2020) =
(75% increase in revenue)
2020 = $21 billion 454 mill
2019 = $17 billion 772 mill
2018 = $15 billion 451 mill
2017 =$13 billion 94mill
Looking ahead
A 75% increase =
=37 bill 544 million in revenue by 2024
* $22billion 869million (TTM)
(2017-2020) =
(75% increase in revenue)
2020 = $21 billion 454 mill
2019 = $17 billion 772 mill
2018 = $15 billion 451 mill
2017 =$13 billion 94mill
Looking ahead
A 75% increase =
=37 bill 544 million in revenue by 2024
•Net Income
* $5 billion 215million (TTM)
(2017-2020) =
(134% increase in net income)
*134% increase = 9bill 832mil in net income by 2024
2020 = 4billion 202 mill
2019 = 2billion 459 mill
2018 = 2billion 57mill
2017 = 1billion 795mill
Even beat 2020 prediction ⬇️
* $5 billion 215million (TTM)
(2017-2020) =
(134% increase in net income)
*134% increase = 9bill 832mil in net income by 2024
2020 = 4billion 202 mill
2019 = 2billion 459 mill
2018 = 2billion 57mill
2017 = 1billion 795mill
Even beat 2020 prediction ⬇️
• Net Income Ratio
PayPal’s revenue is increasing each year and so is their profit margins. Not only are they earning more, but they are keeping more of it.
Net income ÷ Total revenue
TTM = 22.8%
2020 = 19.5%
2019 = 13.83%
2018 = 13.3%
2017 = 13.7%
This is attractive ✅
PayPal’s revenue is increasing each year and so is their profit margins. Not only are they earning more, but they are keeping more of it.
Net income ÷ Total revenue
TTM = 22.8%
2020 = 19.5%
2019 = 13.83%
2018 = 13.3%
2017 = 13.7%
This is attractive ✅
• Total Assets + Liabilities
A = $70bill 379mil
14% of this = Goodwill+ (intangibles )
L = $50bill 316 mill
•Shareholders Equity =
$20bill 63mill
(includes minority interest )
Fair ✅
A = $70bill 379mil
14% of this = Goodwill+ (intangibles )
L = $50bill 316 mill
•Shareholders Equity =
$20bill 63mill
(includes minority interest )
Fair ✅
• $PYPL Current Ratio
1.32
Would like to see it a bit higher, but still fairly decent.
PayPal has about $12.5 Billion in working capital.
So it’s got ample liquidity to keep it going.
Fair ✅
#StocksToBuy
1.32
Would like to see it a bit higher, but still fairly decent.
PayPal has about $12.5 Billion in working capital.
So it’s got ample liquidity to keep it going.
Fair ✅
#StocksToBuy
•Earnings Per Share
$PYPL has been growing their earnings per share each year.
2020 = $4.4
2019 = $2.09
2018 = $1.75
2017 = $1.49
Attractive ✅
But wait, let’s learn ⬇️
$PYPL has been growing their earnings per share each year.
2020 = $4.4
2019 = $2.09
2018 = $1.75
2017 = $1.49
Attractive ✅
But wait, let’s learn ⬇️
•Rewards
Companies reward shareholders in two ways:
• #dividends
• Rebuying shares
•Dividends payout profits
•Buying back shares puts profits into shareholders pockets another way. It increases EPS and helps the stock rise in price.
Dividends or buybacks?
Vote now
Companies reward shareholders in two ways:
• #dividends
• Rebuying shares
•Dividends payout profits
•Buying back shares puts profits into shareholders pockets another way. It increases EPS and helps the stock rise in price.
Dividends or buybacks?
Vote now
• Balance sheet.
You’ll see 3 things:
• Shares Issued (S/I)
• Ordinary Shares (O/S)
• Treasury Shares (T/S)
What’s the difference?
Let me explain
•S/I = Total shares
•O/S = Owned by shareholders
•T/S = Shares bought back by company
S/I -T/S = O/S
You’ll see 3 things:
• Shares Issued (S/I)
• Ordinary Shares (O/S)
• Treasury Shares (T/S)
What’s the difference?
Let me explain
•S/I = Total shares
•O/S = Owned by shareholders
•T/S = Shares bought back by company
S/I -T/S = O/S
•What does PayPal do?
They don’t
•Pay #dividends ❌
They do
•Buy back shares - which in turn lead to capital ⬆️
Sidenote:
It can be used to deceive shareholders, gives an impression that the company is doing better than what it really is
Net Income ÷ shares outstanding
They don’t
•Pay #dividends ❌
They do
•Buy back shares - which in turn lead to capital ⬆️
Sidenote:
It can be used to deceive shareholders, gives an impression that the company is doing better than what it really is
Net Income ÷ shares outstanding
•Price Per earnings
I hear a lot of talk how this is useless, I disagree. It’s a good indicator to use, but shouldn’t be used in its entirety.
Share price ÷ EPS
$PYPL P/E =65
IMO- For a company like this, that could 3x from here, it’s worth the risk.
Risk- Reward ✅
I hear a lot of talk how this is useless, I disagree. It’s a good indicator to use, but shouldn’t be used in its entirety.
Share price ÷ EPS
$PYPL P/E =65
IMO- For a company like this, that could 3x from here, it’s worth the risk.
Risk- Reward ✅
Higher P/E ratios demand higher earnings.
• PayPal is growing earnings
• Increasing profit margins
• Re-buying shares
These are strong tailwinds for the company.
IMO,
long term hold - it’s a buy ✅
• PayPal is growing earnings
• Increasing profit margins
• Re-buying shares
These are strong tailwinds for the company.
IMO,
long term hold - it’s a buy ✅
• Total Addressable Market
For them to grow into earnings, we need to know that the market is there.
And based on how successful they have been so far, and their growing network effect, I believe that this company will capture a large % of it.
More upside to come.
For them to grow into earnings, we need to know that the market is there.
And based on how successful they have been so far, and their growing network effect, I believe that this company will capture a large % of it.
More upside to come.
• Key Takeaways:
• PayPal continues to add users
• Constant revenue growth
• Margins are improving
• Pays no dividends
• Buys back shares
• Growing industry
• 392m Accounts
Overall rating 8/10 ✅
• PayPal continues to add users
• Constant revenue growth
• Margins are improving
• Pays no dividends
• Buys back shares
• Growing industry
• 392m Accounts
Overall rating 8/10 ✅
• YouTube
I can only say so much in a thread, get the detailed report of $PYPL here.
If you found this valuable, please:
- Retweet
-Subscribe
I can only say so much in a thread, get the detailed report of $PYPL here.
If you found this valuable, please:
- Retweet
-Subscribe
• Long term holds
(Individual name)
• PayPal ( $PYPL )
• Sibanye Stillwater ( $SSW)
• Purple Group ( $PPE)
• Grand Canyon Education ( $LOPE )
Check them below 👇🏽
(Individual name)
• PayPal ( $PYPL )
• Sibanye Stillwater ( $SSW)
• Purple Group ( $PPE)
• Grand Canyon Education ( $LOPE )
Check them below 👇🏽
•Sibanye Stillwater
JSE = $SSW
NYSE = $SBSW
•World's largest Primary Producer of Platinum
•Second largest Primary Producer of palladium
•Third largest Producer of Gold.
*PE= 5.6
Look into their financials 👇🏽
JSE = $SSW
NYSE = $SBSW
•World's largest Primary Producer of Platinum
•Second largest Primary Producer of palladium
•Third largest Producer of Gold.
*PE= 5.6
Look into their financials 👇🏽
https://twitter.com/talkcentss/status/1402161083385737217
Purple Group $PPE
Financial services and technology group founded in South Africa.
• Offers online trading
• Investing
• Asset management
*PE = 72
Check financials below 👇🏽
Financial services and technology group founded in South Africa.
• Offers online trading
• Investing
• Asset management
*PE = 72
Check financials below 👇🏽
https://twitter.com/talkcentss/status/1407178073439563776
• Lewis Group - Short Term Trade
South Africa’s largest furniture chain
PE= 5.6
👇🏽
South Africa’s largest furniture chain
PE= 5.6
👇🏽
https://twitter.com/talkcentss/status/1407540691777982467
•Newsletter
Want more gems?
Then signup to my newsletter to be the first to hear about it.
Monday mornings never felt this good👇🏽
davidketh.substack.com/p/coming-soon
Want more gems?
Then signup to my newsletter to be the first to hear about it.
Monday mornings never felt this good👇🏽
davidketh.substack.com/p/coming-soon
Shout-out 🔊
This is the definition of #DYOR Thanks for making it to the end, you rock.
$PYPL $SSW #PPE
This is the definition of #DYOR Thanks for making it to the end, you rock.
$PYPL $SSW #PPE
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