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Why VISA INC-CLASS A SHARES (NYSE:V) Deserves Consideration as a Quality Investment.

By Mill Chart

Last update: Nov 15, 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 course 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.

Highlighting Notable Quality Metrics of NYSE:V.

  • VISA INC-CLASS A SHARES has shown strong performance in revenue growth over the past 5 years, with a 9.81% increase. This indicates the company's ability to generate consistent revenue growth and reflects its potential for long-term success.
  • The ROIC excluding cash and goodwill of VISA INC-CLASS A SHARES stands at 370.0%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • 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.
  • VISA INC-CLASS A SHARES demonstrates consistent Profit Quality over the past 5 years, with a strong 112.0%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • VISA INC-CLASS A SHARES has demonstrated consistent growth in EBIT over the past 5 years, with a strong 10.17%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
  • VISA INC-CLASS A SHARES has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.

Fundamental Analysis Observations

Every day, ChartMill assigns a Fundamental Rating to each stock, providing a score ranging from 0 to 10. This rating is determined by evaluating various fundamental indicators and properties.

Taking everything into account, V scores 7 out of 10 in our fundamental rating. V was compared to 100 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 quite expensive at the moment. 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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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