PYPL
9/9 ScorePayPal Holdings, Inc.
Analysis Date: February 1, 2026
Buffettology Criteria
All 9 of 9 criteria passed
High ROE
Return on Equity > 12%
Value: 24.3%
High ROIC
Return on Invested Capital > 9%
Value: 13.9%
Cash Machine
FCF / Assets > 5%
Fair Valuation
Earnings Yield > 3.5%
Value: 9.6%
Share Buybacks
Share Count is Dropping
Value: -6.7%
Defensible Moat
Gross Profit Margin > 40%
Value: 46.8%
Simple Business
Not in a speculative sector (e.g., Biotech)
Value: Financial Services
Conservative Debt
Debt to Equity < 1.5
Value: 0.56x
Consistent Growth
5-Year Growth is Positive
Value: 92.4%
Analysis Summary
Well, this looks like a company that's passed every single one of my tests. A high ROE and ROIC are very encouraging, and the consistent growth, coupled with a defensible moat and reasonable debt levels, suggests a business that's built to last. Add in a fair valuation and share buybacks, and it certainly warrants a closer look for the long haul.
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