PayPal Rated 75% in Shareholder Yield Model, Areas of Concern

PayPal Holdings Inc. receives a 75% rating in a Shareholder Yield model, indicating solid fundamentals but highlights some weaknesses. Despite a strong passing in various categories, the stock's shareholder yield has failed to meet expectations.

Date: 20-02-2025

AI Rating: 5

Stock Performance Indicators

PayPal Holdings Inc. (PYPL) has been rated 75% under the Shareholder Yield Investor model, indicating a generally favorable view of the company's fundamentals and stock valuation. This score reflects a company that is deemed to have some level of interest from this particular investment strategy. A score of 80% or above would suggest a stronger level of interest.

The analysis produced comprehensive insights across various criteria:

UNIVERSE: PASS
NET PAYOUT YIELD: PASS
QUALITY AND DEBT: PASS
VALUATION: PASS
RELATIVE STRENGTH: PASS
SHAREHOLDER YIELD: FAIL

This categorization highlights that while PYPL has passed on multiple fronts, it has not met the criteria for share return strategies aimed at rewarding shareholders. The failure in the shareholder yield aspect could lead potential investors to reconsider their interest in the stock, as the focus of this evaluation is to identify companies that prioritize returning cash to shareholders through dividends, share buybacks, or debt reduction.

Such a rating points towards a strong underlying performance in aspects such as valuation and relative strength, which may provide some reassurance. However, the red flag on shareholder yield signifies a concern that could potentially affect the stock price negatively, as investors may look for more attractive options that demonstrate a commitment to returning value.

Stocks: PYPL