PYPL - Embedded Expectations Analysis - 2020 04 24
ï€ PayPal Holdings, Inc. (PYPL:USA) currently trades at historical highs relative toUAFRS-based (Uniform) earnings, with a 35.5x Uniform P/E. Even at these levels, the market is pricing in expectations for Uniform ROA to remain stable, and management may be concerned about growth, margins, and acquisition integration
ï€ Specifically, management may lack confidence in their ability to meet total payment volume and non-GAAP EPS guidance, expand operating margins, and sustain active accounts growth, specifically in China. Furthermore, they may be overstating the flexibility of their balance sheet and the potential value of the Honey app to the PayPal network. Additionally, they may lack confidence in their ability to mitigate Synchrony servicing revenue headwinds, continue to return cash to shareholders, and integrate MercadoPago into their PayPal merchant network. Moreover, they may be concerned about payment processor competition and the progress of their acquisition integration. Finally, they may have concerns about their ability to strengthen cross-border payment volume in China, their commercial partnership with MercadoLibre, and transaction expenses
PayPal Holdings is a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. The company's combined payment solutions include its PayPal, PayPal Credit, Braintree, Venmo, Xoom and iZettle products and services. PayPal's payment solutions enable the company's customers to send and receive payments. PayPal helps merchants and consumers connect, transact, and complete payments, whether they are online, on a mobile device, in an app, or in person. The company provides proprietary payment solutions accepted by merchants that enable the completion of payments on the company's Payments Platform on behalf of its customers.
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