PayPay Corporation American Depository Shares (PAYP)

FairStock Score: 48/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am a patient value investor, and PayPay is a puzzle. The business itself is easy to understand: it runs a Japanese digital payment and financial-services platform through the PayPay app, with 1,994 employees. Growth is impressive. The supplied growth figures show revenue up 27.79% and profit up 75.32% (period not labeled in the data), and in fiscal Q2 2026 the company reported revenue of $105.1B, net income of $18.4B, and a 17.53% net margin. Those are the marks of a business gaining scale. The returns are mixed. FairStock calculations show a high ROE of 37.27%, but ROCE is only 1.19%, debt-to-equity is 1.70, and the Altman Z-Score of 0.56 sits in distress territory. The Piotroski F-Score is 5/9. So I would not call the balance sheet safe without more history. The company has only 0 years of filed annual results, so FairStock assigns no Peter Lynch category; that is a real handicap for judging durability. Valuation looks cheap on several FairStock calculations. At the 2026-10-13 close of $15.28, the P/E is 13.17, P/B is 3.98, PEG is 0.17, and EV/EBITDA is 2.19. The Graham Number is $126.23, implying an 87.90% margin of safety, and the TTM FCF yield is 1,552.9% on $210.7B of free cash flow. Those latter figures are so extreme that I suspect data or currency distortions. A cheap price is only useful if the earnings and balance sheet are real. PayPay may have a valuable app ecosystem, but I need more years of clean financials before trusting the apparent bargain.

In plain English: PayPay runs a Japanese mobile payment app and offers related financial services like banking and investing. Sales and profits have been growing quickly, but the company carries a lot of debt and has some weak balance-sheet signals. Based on the numbers provided, the stock price looks low compared with earnings, though some figures look unusual and should be treated with care.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer