Based on the financial data, here's a summary of the company's performance:
Share Values:
- The company's earnings per share (EPS) have decreased by 68.27% YoY to $2.09 in the TTM.
- The book value per share has slightly decreased by 4.23% YoY to $17.85.
- Free cash flow per share has declined by 14.72% YoY to $4.80.
Profitability:
- Return on equity (ROE) has significantly decreased by 73.40% YoY to 11.519%.
- Return on assets (ROA) has also dropped by 73.18% YoY to 3.4418%.
- The gross profit margin has decreased by 10.96% YoY to 42.347%.
- The operating profit margin has decreased by 15.97% YoY to 14.696%.
Activity Ratios:
- The total asset turnover has increased by 4.26% to 0.34958.
Financial Ratios:
- The long-term debt to capital has increased by 20.36% to 33.942%.
- The financial leverage (assets/equity) has increased by 10.14% to 3.8827.
- The quick ratio has improved slightly by 3.35% to 1.2332, and the current ratio has increased by 4.19% to 1.2753.
Valuation:
- The current price-to-earnings (P/E) ratio is 36.382, lower than the 5-year average of 53.032.
- The current price-to-cash flow ratio is 13.16, lower than the 5-year average of 26.607.
- The current price-to-book value ratio is 3.9906, lower than the 5-year average of 8.4692.
Growth Rates:
- Revenue growth rate is 8.4624%, lower than the 3-year and 5-year averages of 15.689% and 16.044%, respectively.
- The net income growth rate is negative at -41.976%.
- The earnings per share (EPS) growth rate is negative at -40.573%.
- The book value per share growth rate is negative at -4.059%.
In summary, the company has experienced a decline in profitability, with significant drops in ROE, ROA, and EPS. The gross profit margin and operating profit margin have also decreased. The company's valuation ratios are lower compared to the 5-year average.
PYPL
PayPal Holdings Inc. (PYPL) has been moving in a sideways pattern since mid-February, facing strong resistance at the 95.50 level. The last time PYPL broke above this level was in August 2022, and the rise was short-lived, with the stock only gaining $5 before falling back. The company's financial performance has been weak, with significant declines in ROE, ROA, and EPS, as well as deteriorating profit margins. While the valuation ratios suggest that the stock might be undervalued, it is essential to consider the overall financial health, current market conditions, and future growth prospects before making any investment decisions.
Trading Idea Summary:
This trading idea aims to capitalize on a potential missed earnings due to the company's weak financial performance. The goal is to enter a short position if
PYPL
goes below $73.53
Profit Target:
Set a profit target based on a minimum risk-reward ratio of 1:2 or 1:3. For example, if your stop loss is $1 away from the entry point, set the profit target at $2 or $3 below the entry price.
Risk Management:
Ensure proper risk management by risking only 1-2% of your trading capital on this trade. Calculate your position size based on your account size, the entry price, and the stop-loss level.
Trade Management:
Monitor the trade for any significant changes in the company's financial performance, market sentiment, or industry-specific news that could impact the trade. If the stock starts to show signs of strength or breaks above the resistance level, consider closing the trade early to protect profits.
Note: This trading idea is based on the technical analysis of PYPL and the company's financial performance, along with current market conditions. It is essential to conduct your own research and analysis before entering any trade, and adjust your risk management and trade setup according to your personal trading style and risk tolerance.
Share Values:
- The company's earnings per share (EPS) have decreased by 68.27% YoY to $2.09 in the TTM.
- The book value per share has slightly decreased by 4.23% YoY to $17.85.
- Free cash flow per share has declined by 14.72% YoY to $4.80.
Profitability:
- Return on equity (ROE) has significantly decreased by 73.40% YoY to 11.519%.
- Return on assets (ROA) has also dropped by 73.18% YoY to 3.4418%.
- The gross profit margin has decreased by 10.96% YoY to 42.347%.
- The operating profit margin has decreased by 15.97% YoY to 14.696%.
Activity Ratios:
- The total asset turnover has increased by 4.26% to 0.34958.
Financial Ratios:
- The long-term debt to capital has increased by 20.36% to 33.942%.
- The financial leverage (assets/equity) has increased by 10.14% to 3.8827.
- The quick ratio has improved slightly by 3.35% to 1.2332, and the current ratio has increased by 4.19% to 1.2753.
Valuation:
- The current price-to-earnings (P/E) ratio is 36.382, lower than the 5-year average of 53.032.
- The current price-to-cash flow ratio is 13.16, lower than the 5-year average of 26.607.
- The current price-to-book value ratio is 3.9906, lower than the 5-year average of 8.4692.
Growth Rates:
- Revenue growth rate is 8.4624%, lower than the 3-year and 5-year averages of 15.689% and 16.044%, respectively.
- The net income growth rate is negative at -41.976%.
- The earnings per share (EPS) growth rate is negative at -40.573%.
- The book value per share growth rate is negative at -4.059%.
In summary, the company has experienced a decline in profitability, with significant drops in ROE, ROA, and EPS. The gross profit margin and operating profit margin have also decreased. The company's valuation ratios are lower compared to the 5-year average.
PYPL
PayPal Holdings Inc. (PYPL) has been moving in a sideways pattern since mid-February, facing strong resistance at the 95.50 level. The last time PYPL broke above this level was in August 2022, and the rise was short-lived, with the stock only gaining $5 before falling back. The company's financial performance has been weak, with significant declines in ROE, ROA, and EPS, as well as deteriorating profit margins. While the valuation ratios suggest that the stock might be undervalued, it is essential to consider the overall financial health, current market conditions, and future growth prospects before making any investment decisions. Trading Idea Summary:
This trading idea aims to capitalize on a potential missed earnings due to the company's weak financial performance. The goal is to enter a short position if
PYPL
goes below $73.53 Profit Target:
Set a profit target based on a minimum risk-reward ratio of 1:2 or 1:3. For example, if your stop loss is $1 away from the entry point, set the profit target at $2 or $3 below the entry price.
Risk Management:
Ensure proper risk management by risking only 1-2% of your trading capital on this trade. Calculate your position size based on your account size, the entry price, and the stop-loss level.
Trade Management:
Monitor the trade for any significant changes in the company's financial performance, market sentiment, or industry-specific news that could impact the trade. If the stock starts to show signs of strength or breaks above the resistance level, consider closing the trade early to protect profits.
Note: This trading idea is based on the technical analysis of PYPL and the company's financial performance, along with current market conditions. It is essential to conduct your own research and analysis before entering any trade, and adjust your risk management and trade setup according to your personal trading style and risk tolerance.