VISA INC-CLASS A SHARES (1V.MI) Stock Fundamental Analysis
BIT:1V - Borsa Italiana Milan - US92826C8394 - Common Stock - Currency: EUR
Overall 1V gets a fundamental rating of 7 out of 10. We evaluated 1V against 50 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making 1V a very profitable company, without any liquidiy or solvency issues. 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.
1V had positive earnings in each of the past 5 years.
1V had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 20.59%, 1V belongs to the best of the industry, outperforming 88.64% of the companies in the same industry.
1V's Return On Equity of 49.72% is amongst the best of the industry. 1V outperforms 93.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 29.13%, 1V belongs to the top of the industry, outperforming 93.18% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1V is significantly above the industry average of 10.86%.
The last Return On Invested Capital (29.13%) for 1V is above the 3 year average (27.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.59% | ||
| ROE | 49.72% | ||
| ROIC | 29.13% |
ROA(3y)18.82%
ROA(5y)16.78%
ROE(3y)44.9%
ROE(5y)39.11%
ROIC(3y)27.02%
ROIC(5y)23.58%
1.3 Margins
1V has a better Profit Margin (54.16%) than 90.91% of its industry peers.
1V's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 66.96%, 1V belongs to the best of the industry, outperforming 93.18% of the companies in the same industry.
In the last couple of years the Operating Margin of 1V has remained more or less at the same level.
Looking at the Gross Margin, with a value of 80.40%, 1V is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
1V's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 66.96% | ||
| PM (TTM) | 54.16% | ||
| GM | 80.4% |
OM growth 3Y0.7%
OM growth 5Y-0.02%
PM growth 3Y2.83%
PM growth 5Y1.33%
GM growth 3Y0.43%
GM growth 5Y-0.36%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1V is creating value.
The number of shares outstanding for 1V has been reduced compared to 1 year ago.
1V has less shares outstanding than it did 5 years ago.
1V has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.91 indicates that 1V is not in any danger for bankruptcy at the moment.
1V has a better Altman-Z score (8.91) than 88.64% of its industry peers.
The Debt to FCF ratio of 1V is 1.11, which is an excellent value as it means it would take 1V, only 1.11 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of 1V (1.11) is better than 84.09% of its industry peers.
1V has a Debt/Equity ratio of 0.53. This is a neutral value indicating 1V is somewhat dependend on debt financing.
1V's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. 1V is outperformed by 65.91% of its industry peers.
Although 1V does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 8.91 |
ROIC/WACC3.24
WACC8.98%
2.3 Liquidity
A Current Ratio of 1.28 indicates that 1V should not have too much problems paying its short term obligations.
1V has a Current ratio (1.28) which is in line with its industry peers.
1V has a Quick Ratio of 1.28. This is a normal value and indicates that 1V is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1V (1.28) is comparable to the rest of the industry.
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 | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
1V shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.57%, which is quite good.
The Earnings Per Share has been growing by 13.02% on average over the past years. This is quite good.
The Revenue has grown by 10.02% in the past year. This is quite good.
The Revenue has been growing by 9.35% on average over the past years. This is quite good.
EPS 1Y (TTM)15.57%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%14.11%
Revenue 1Y (TTM)10.02%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%10.15%
3.2 Future
Based on estimates for the next years, 1V will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.53% on average per year.
The Revenue is expected to grow by 10.65% on average over the next years. This is quite good.
EPS Next Y13.49%
EPS Next 2Y13.22%
EPS Next 3Y13.11%
EPS Next 5Y13.53%
Revenue Next Year9.65%
Revenue Next 2Y9.93%
Revenue Next 3Y9.83%
Revenue Next 5Y10.65%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 33.23, which means the current valuation is very expensive for 1V.
1V's Price/Earnings ratio is a bit more expensive when compared to the industry. 1V is more expensive than 68.18% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.47. 1V is around the same levels.
Based on the Price/Forward Earnings ratio of 26.79, the valuation of 1V can be described as expensive.
Based on the Price/Forward Earnings ratio, 1V is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
1V's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 92.74.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.23 | ||
| Fwd PE | 26.79 |
4.2 Price Multiples
1V's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, 1V is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.21 | ||
| EV/EBITDA | 27.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1V does not grow enough to justify the current Price/Earnings ratio.
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 13.11% in the coming years.
PEG (NY)2.46
PEG (5Y)2.55
EPS Next 2Y13.22%
EPS Next 3Y13.11%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, 1V is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.17, 1V has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, 1V's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
On average, the dividend of 1V grows each year by 15.24%, which is quite nice.
Dividend Growth(5Y)15.24%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
21.67% of the earnings are spent on dividend by 1V. This is a low number and sustainable payout ratio.
1V's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP21.67%
EPS Next 2Y13.22%
EPS Next 3Y13.11%
VISA INC-CLASS A SHARES
BIT:1V (2/3/2025, 7:00:00 PM)
334
+11.75 (+3.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners93.06%
Inst Owner ChangeN/A
Ins Owners0.04%
Ins Owner ChangeN/A
Market Cap654.98B
Analysts82.08
Price Target331.58 (-0.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend2.12
Dividend Growth(5Y)15.24%
DP21.67%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.53%
Min EPS beat(2)-1.88%
Max EPS beat(2)2.94%
EPS beat(4)3
Avg EPS beat(4)0.8%
Min EPS beat(4)-1.88%
Max EPS beat(4)2.94%
EPS beat(8)7
Avg EPS beat(8)1.83%
EPS beat(12)11
Avg EPS beat(12)3.18%
EPS beat(16)15
Avg EPS beat(16)4.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)-0.67%
Revenue beat(4)0
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)-0.27%
Revenue beat(8)2
Avg Revenue beat(8)-0.63%
Revenue beat(12)6
Avg Revenue beat(12)0.17%
Revenue beat(16)9
Avg Revenue beat(16)0.31%
PT rev (1m)3.43%
PT rev (3m)14.16%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-2.07%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)1.01%
Revenue NQ rev (1m)-0.06%
Revenue NQ rev (3m)-2.27%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.23 | ||
| Fwd PE | 26.79 | ||
| P/S | 18.84 | ||
| P/FCF | 36.21 | ||
| P/OCF | 33.93 | ||
| P/B | 17.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.08 |
EPS(TTM)10.05
EY3.01%
EPS(NY)12.47
Fwd EY3.73%
FCF(TTM)9.22
FCFY2.76%
OCF(TTM)9.84
OCFY2.95%
SpS17.73
BVpS19.31
TBVpS-3.3
PEG (NY)2.46
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.59% | ||
| ROE | 49.72% | ||
| ROCE | 35.38% | ||
| ROIC | 29.13% | ||
| ROICexc | 37.5% | ||
| ROICexgc | 283.39% | ||
| OM | 66.96% | ||
| PM (TTM) | 54.16% | ||
| GM | 80.4% | ||
| FCFM | 52.03% |
ROA(3y)18.82%
ROA(5y)16.78%
ROE(3y)44.9%
ROE(5y)39.11%
ROIC(3y)27.02%
ROIC(5y)23.58%
ROICexc(3y)36.97%
ROICexc(5y)32.54%
ROICexgc(3y)449.64%
ROICexgc(5y)409.16%
ROCE(3y)32.82%
ROCE(5y)28.64%
ROICexcg growth 3Y3.03%
ROICexcg growth 5Y0.77%
ROICexc growth 3Y11.91%
ROICexc growth 5Y6.85%
OM growth 3Y0.7%
OM growth 5Y-0.02%
PM growth 3Y2.83%
PM growth 5Y1.33%
GM growth 3Y0.43%
GM growth 5Y-0.36%
F-Score8
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 121.57% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 41.26 | ||
| Cash Conversion | 79.51% | ||
| Profit Quality | 96.07% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 8.91 |
F-Score8
WACC8.98%
ROIC/WACC3.24
Cap/Depr(3y)115.51%
Cap/Depr(5y)106.03%
Cap/Sales(3y)3.35%
Cap/Sales(5y)3.27%
Profit Quality(3y)111.41%
Profit Quality(5y)109.56%
High Growth Momentum
Growth
EPS 1Y (TTM)15.57%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%14.11%
EPS Next Y13.49%
EPS Next 2Y13.22%
EPS Next 3Y13.11%
EPS Next 5Y13.53%
Revenue 1Y (TTM)10.02%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%10.15%
Revenue Next Year9.65%
Revenue Next 2Y9.93%
Revenue Next 3Y9.83%
Revenue Next 5Y10.65%
EBIT growth 1Y9.71%
EBIT growth 3Y15.03%
EBIT growth 5Y9.33%
EBIT Next Year15.43%
EBIT Next 3Y11.81%
EBIT Next 5Y10.74%
FCF growth 1Y-5.09%
FCF growth 3Y8.78%
FCF growth 5Y9.22%
OCF growth 1Y-3.88%
OCF growth 3Y9.42%
OCF growth 5Y9.31%