VISA INC-CLASS A SHARES (3V64.DE) Stock Fundamental Analysis
FRA:3V64 - Deutsche Boerse Ag - US92826C8394 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to 3V64. 3V64 was compared to 50 industry peers in the Financial Services industry. 3V64 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 3V64 is quite expensive at the moment. It does show a decent growth rate. These ratings could make 3V64 a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
3V64 had positive earnings in the past year.
3V64 had a positive operating cash flow in the past year.
3V64 had positive earnings in each of the past 5 years.
Each year in the past 5 years 3V64 had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 3V64 (20.59%) is better than 90.91% of its industry peers.
3V64 has a better Return On Equity (49.72%) than 95.45% of its industry peers.
The Return On Invested Capital of 3V64 (29.13%) is better than 95.45% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 3V64 is significantly above the industry average of 10.86%.
The last Return On Invested Capital (29.13%) for 3V64 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
3V64 has a Profit Margin of 54.16%. This is amongst the best in the industry. 3V64 outperforms 93.18% of its industry peers.
In the last couple of years the Profit Margin of 3V64 has remained more or less at the same level.
3V64 has a Operating Margin of 66.96%. This is amongst the best in the industry. 3V64 outperforms 95.45% of its industry peers.
In the last couple of years the Operating Margin of 3V64 has remained more or less at the same level.
Looking at the Gross Margin, with a value of 80.40%, 3V64 is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Gross Margin of 3V64 has remained more or less at the same level.
| 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
3V64 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
3V64 has less shares outstanding than it did 1 year ago.
3V64 has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 3V64 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.87 indicates that 3V64 is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 8.87, 3V64 belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
3V64 has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
3V64's Debt to FCF ratio of 1.11 is amongst the best of the industry. 3V64 outperforms 86.36% of its industry peers.
3V64 has a Debt/Equity ratio of 0.53. This is a neutral value indicating 3V64 is somewhat dependend on debt financing.
3V64 has a Debt to Equity ratio of 0.53. This is in the lower half of the industry: 3V64 underperforms 63.64% of its industry peers.
Even though the debt/equity ratio score it not favorable for 3V64, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 8.87 |
ROIC/WACC3.24
WACC8.98%
2.3 Liquidity
3V64 has a Current Ratio of 1.28. This is a normal value and indicates that 3V64 is financially healthy and should not expect problems in meeting its short term obligations.
3V64 has a Current ratio of 1.28. This is comparable to the rest of the industry: 3V64 outperforms 54.55% of its industry peers.
3V64 has a Quick Ratio of 1.28. This is a normal value and indicates that 3V64 is financially healthy and should not expect problems in meeting its short term obligations.
3V64 has a Quick ratio (1.28) which is in line with its industry peers.
The current and quick ratio evaluation for 3V64 is rather negative, while it does have 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
3V64 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.
3V64 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.02%.
Measured over the past years, 3V64 shows a quite strong growth in Revenue. The Revenue has been growing by 9.35% on average per year.
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, 3V64 will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.53% on average per year.
Based on estimates for the next years, 3V64 will show a quite strong growth in Revenue. The Revenue will grow by 10.65% on average per year.
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
Based on the Price/Earnings ratio of 33.19, the valuation of 3V64 can be described as expensive.
Based on the Price/Earnings ratio, 3V64 is valued a bit more expensive than the industry average as 65.91% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of 3V64 to the average of the S&P500 Index (28.47), we can say 3V64 is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 26.76, the valuation of 3V64 can be described as expensive.
3V64's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 3V64 is more expensive than 61.36% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 3V64 to the average of the S&P500 Index (92.74), we can say 3V64 is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.19 | ||
| Fwd PE | 26.76 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 3V64.
70.45% of the companies in the same industry are cheaper than 3V64, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.16 | ||
| EV/EBITDA | 26.96 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 3V64 does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of 3V64 may justify a higher PE ratio.
A more expensive valuation may be justified as 3V64'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%, 3V64 is not a good candidate for dividend investing.
3V64's Dividend Yield is comparable with the industry average which is at 4.17.
Compared to an average S&P500 Dividend Yield of 2.28, 3V64's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
The dividend of 3V64 is nicely growing with an annual growth rate of 15.24%!
Dividend Growth(5Y)15.24%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
3V64 pays out 21.67% of its income as dividend. This is a sustainable payout ratio.
3V64'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
FRA:3V64 (2/5/2025, 3:57:33 PM)
333.55
+1.05 (+0.32%)
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 Cap654.10B
Analysts82.08
Price Target331.32 (-0.67%)
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 Years6
Div Non Decr Years6
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)2.05%
PT rev (3m)13.92%
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 | 33.19 | ||
| Fwd PE | 26.76 | ||
| P/S | 18.82 | ||
| P/FCF | 36.16 | ||
| P/OCF | 33.89 | ||
| P/B | 17.27 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.96 |
EPS(TTM)10.05
EY3.01%
EPS(NY)12.47
Fwd EY3.74%
FCF(TTM)9.22
FCFY2.77%
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 | 8.87 |
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%