Quote:
Originally Posted by lewdog
It's pretty surprising given their financial numbers. They are a stock that is severely undervalued and seems to be beaten down more than most. PE ratio of 14.
https://finance.yahoo.com/quote/PYPL/ |
Eh, maybe. Their margins are shrinking substantially. They grew Gross revenue by 8% in 2022 but their Net Income fell 42%.. 2.4B is still a nice tidy profit, but is staggering compared to the 4.2 they'd been pulling in the last 2 FY. Their debt also rose by 8% and was roughly the same amount as the increase in gross revenue. A good chunk of that is long term debt, which may have been shifting operating debt to long term debt (which I wish I would have done before the interest rate went clear to ****).
It seems to me that companies that were riding the cheap money wave to achieve stock price improvement by growth at the sake of everything else are paying the piper. I don't know if Paypal is one of those, but it appears to me the pullback is growth related. And since the prices were irrationally inflated for tech companies (IMO), it's hard to tell where wall street sentiment will think it needs to be.
DISCLAIMER: REDDIT FINANCIAL ANALYSIS AHEAD
https://www.reddit.com/r/ValueInvest...ng_pypl_stock/
There is some interesting discussion on it in a recent reddit thread. These assbags who may know less that nothing suggest otherwise. 15 is fine for a PE which shows growth, while their gross revenue did grow 8% (which they'd consistentlly grown 18-20%), their net income declined 41%. That suggests that there is not much more growth to be had outside of M&A.
These assbags who may know nothing suggest that a PE without growth should be around 8.
These assbags who may know nothing also linked a pretty decent read, though dated.
https://valueinvestorsclub.com/idea/...INC/4614694159