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Is VISA INC-CLASS A SHARES (NYSE:V) suited for quality investing?

By Mill Chart

Last update: Sep 5, 2023

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if VISA INC-CLASS A SHARES (NYSE:V) is suited for quality investing. Investors should of couse do their own research, but we spotted VISA INC-CLASS A SHARES showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Looking into the quality metrics of VISA INC-CLASS A SHARES

  • Over the past 5 years, VISA INC-CLASS A SHARES has experienced impressive revenue growth, with 9.81% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
  • With a robust ROIC excluding cash and goodwill at 370.0%, VISA INC-CLASS A SHARES showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
  • VISA INC-CLASS A SHARES demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.1, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • With a favorable Profit Quality (5-year) ratio of 112.0%, VISA INC-CLASS A SHARES showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
  • VISA INC-CLASS A SHARES has experienced impressive EBIT growth over the past 5 years, with 10.17% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
  • With EBIT 5-year growth outpacing its Revenue 5-year growth, VISA INC-CLASS A SHARES showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.

A complete fundamental analysis of NYSE:V

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Overall V gets a fundamental rating of 7 out of 10. We evaluated V against 96 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making V a very profitable company, without any liquidiy or solvency issues. V is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make V a good candidate for quality investing.

For an up to date full fundamental analysis you can check the fundamental report of V

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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