VISA INC-CLASS A SHARES (1V.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1V - US92826C8394 - Common Stock
275 EUR
-2.9 (-1.04%)
1V gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 59 industry peers in the Financial Services industry. 1V gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, 1V is valued expensive at the moment. These ratings could make 1V a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
- In the past year 1V was profitable.
- 1V had a positive operating cash flow in the past year.
- Each year in the past 5 years 1V has been profitable.
- In the past 5 years 1V always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 19.93%, 1V belongs to the top of the industry, outperforming 94.92% of the companies in the same industry.
- With an excellent Return On Equity value of 52.38%, 1V belongs to the best of the industry, outperforming 93.22% of the companies in the same industry.
- 1V has a Return On Invested Capital of 34.02%. This is amongst the best in the industry. 1V outperforms 94.92% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 1V is significantly above the industry average of 10.02%.
- The 3 year average ROIC (30.07%) for 1V is below the current ROIC(34.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.93% | ||
| ROE | 52.38% | ||
| ROIC | 34.02% |
ROA(3y)19.76%
ROA(5y)18.18%
ROE(3y)48.65%
ROE(5y)43.8%
ROIC(3y)30.07%
ROIC(5y)26.99%
1.3 Margins
- With an excellent Profit Margin value of 49.64%, 1V belongs to the best of the industry, outperforming 93.22% of the companies in the same industry.
- 1V's Profit Margin has been stable in the last couple of years.
- 1V has a Operating Margin of 66.39%. This is amongst the best in the industry. 1V outperforms 93.22% of its industry peers.
- In the last couple of years the Operating Margin of 1V has remained more or less at the same level.
- The Gross Margin of 1V (80.36%) is better than 79.66% of its industry peers.
- In the last couple of years the Gross Margin of 1V has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 66.39% | ||
| PM (TTM) | 49.64% | ||
| GM | 80.36% |
OM growth 3Y-0.48%
OM growth 5Y0.58%
PM growth 3Y-0.19%
PM growth 5Y0.69%
GM growth 3Y-0.07%
GM growth 5Y0.25%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1V is creating value.
- 1V has less shares outstanding than it did 1 year ago.
- 1V has less shares outstanding than it did 5 years ago.
- 1V has a worse debt/assets ratio than last year.
2.2 Solvency
- 1V has an Altman-Z score of 7.58. This indicates that 1V is financially healthy and has little risk of bankruptcy at the moment.
- 1V has a Altman-Z score of 7.58. This is amongst the best in the industry. 1V outperforms 88.14% of its industry peers.
- The Debt to FCF ratio of 1V is 1.17, which is an excellent value as it means it would take 1V, only 1.17 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of 1V (1.17) is better than 83.05% of its industry peers.
- A Debt/Equity ratio of 0.52 indicates that 1V is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.52, 1V perfoms like the industry average, outperforming 49.15% of the companies in the same industry.
- Even though the debt/equity ratio score it not favorable for 1V, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | 7.58 |
ROIC/WACC3.96
WACC8.6%
2.3 Liquidity
- A Current Ratio of 1.08 indicates that 1V should not have too much problems paying its short term obligations.
- The Current ratio of 1V (1.08) is worse than 62.71% of its industry peers.
- 1V has a Quick Ratio of 1.08. This is a normal value and indicates that 1V is financially healthy and should not expect problems in meeting its short term obligations.
- 1V's Quick ratio of 1.08 is on the low side compared to the rest of the industry. 1V is outperformed by 62.71% of its industry peers.
- 1V does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 |
3. Growth
3.1 Past
- 1V shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.13%, which is quite good.
- 1V shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.92% yearly.
- The Revenue has grown by 11.34% in the past year. This is quite good.
- 1V shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.86% yearly.
EPS 1Y (TTM)14.13%
EPS 3Y15.16%
EPS 5Y17.92%
EPS Q2Q%9.96%
Revenue 1Y (TTM)11.34%
Revenue growth 3Y10.92%
Revenue growth 5Y12.86%
Sales Q2Q%11.51%
3.2 Future
- 1V is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.16% yearly.
- Based on estimates for the next years, 1V will show a quite strong growth in Revenue. The Revenue will grow by 10.38% on average per year.
EPS Next Y13.7%
EPS Next 2Y13.29%
EPS Next 3Y12.87%
EPS Next 5Y13.16%
Revenue Next Year11.48%
Revenue Next 2Y10.84%
Revenue Next 3Y10.38%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 28.38 indicates a quite expensive valuation of 1V.
- 1V's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, 1V is valued at the same level.
- With a Price/Forward Earnings ratio of 24.96, 1V is valued on the expensive side.
- 1V's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 1V is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.38 | ||
| Fwd PE | 24.96 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1V is on the same level as its industry peers.
- 1V's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.87 | ||
| EV/EBITDA | 22.59 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 1V has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as 1V's earnings are expected to grow with 12.87% in the coming years.
PEG (NY)2.07
PEG (5Y)1.58
EPS Next 2Y13.29%
EPS Next 3Y12.87%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.82%, 1V is not a good candidate for dividend investing.
- 1V's Dividend Yield is comparable with the industry average which is at 1.97.
- Compared to an average S&P500 Dividend Yield of 1.82, 1V's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
- The dividend of 1V is nicely growing with an annual growth rate of 13.82%!
Dividend Growth(5Y)13.82%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 23.34% of the earnings are spent on dividend by 1V. This is a low number and sustainable payout ratio.
- The dividend of 1V is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP23.34%
EPS Next 2Y13.29%
EPS Next 3Y12.87%
VISA INC-CLASS A SHARES / 1V.MI FAQ
Can you provide the ChartMill fundamental rating for VISA INC-CLASS A SHARES?
ChartMill assigns a fundamental rating of 7 / 10 to 1V.MI.
What is the valuation status of VISA INC-CLASS A SHARES (1V.MI) stock?
ChartMill assigns a valuation rating of 3 / 10 to VISA INC-CLASS A SHARES (1V.MI). This can be considered as Overvalued.
What is the profitability of 1V stock?
VISA INC-CLASS A SHARES (1V.MI) has a profitability rating of 9 / 10.
Can you provide the financial health for 1V stock?
The financial health rating of VISA INC-CLASS A SHARES (1V.MI) is 8 / 10.
How sustainable is the dividend of VISA INC-CLASS A SHARES (1V.MI) stock?
The dividend rating of VISA INC-CLASS A SHARES (1V.MI) is 3 / 10 and the dividend payout ratio is 23.34%.