PayPay Corporation Fundamental Analysis (NASDAQ: PAYP)
PayPay Corporation Fundamental Analysis (NASDAQ: PAYP)
PayPay Corporation (NASDAQ: PAYP) shows strong financial fundamentals with a PE ratio of 36.80, profit margin of 30.91%, and ROE of 47.29%. The company generates $392.0B in annual revenue with strong year-over-year growth of 38.21%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 85.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze PAYP's fundamental strength across five key dimensions:
Efficiency Score
WeakPAYP struggles to generate sufficient returns from assets.
Valuation Score
ModeratePAYP shows balanced valuation metrics.
Growth Score
ModeratePAYP shows steady but slowing expansion.
Financial Health Score
ModeratePAYP shows balanced financial health with some risks.
Profitability Score
ExcellentPAYP achieves industry-leading margins.
Key Financial Metrics
Is PAYP Expensive or Cheap?
P/E Ratio
PAYP trades at 36.80 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PAYP's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values PayPay Corporation at 3.97 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.77 times EBITDA. This signals the market has high growth expectations.
How Well Does PAYP Make Money?
Net Profit Margin
For every $100 in sales, PayPay Corporation keeps $30.91 as profit after all expenses.
Operating Margin
Core operations generate 21.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $47.29 in profit for every $100 of shareholder equity.
ROA
PayPay Corporation generates $2.22 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PayPay Corporation generates strong operating cash flow of $387.14B, reflecting robust business health.
Free Cash Flow
PayPay Corporation generates strong free cash flow of $366.25B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $540.88 in free cash annually.
FCF Yield
PAYP converts 21.21% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.80
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.97
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.46
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.47
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How PAYP Stacks Against Its Sector Peers
| Metric | PAYP Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.80 | 35.12 | Neutral |
| ROE | 47.29% | 671.00% | Weak |
| Net Margin | 30.91% | -138220.00% (disorted) | Strong |
| Debt/Equity | 1.46 | 0.25 | Weak (High Leverage) |
| Current Ratio | 8.67 | 3.44 | Strong Liquidity |
| ROA | 2.22% | 246.00% | Weak |
PAYP outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PayPay Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
102.01%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
565.63%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
249.16%
Industry Style: Growth, Innovation, High Beta
High Growth