VISA INC-CLASS A SHARES (3V64.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:3V64 - US92826C8394 - Common Stock
275.1 EUR
-2.65 (-0.95%)
Taking everything into account, 3V64 scores 7 out of 10 in our fundamental rating. 3V64 was compared to 59 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making 3V64 a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, 3V64 is valued expensive at the moment. This makes 3V64 very considerable for quality investing!
1. Profitability
1.1 Basic Checks
- 3V64 had positive earnings in the past year.
- In the past year 3V64 had a positive cash flow from operations.
- In the past 5 years 3V64 has always been profitable.
- In the past 5 years 3V64 always reported a positive cash flow from operatings.
1.2 Ratios
- The Return On Assets of 3V64 (19.93%) is better than 96.61% of its industry peers.
- With an excellent Return On Equity value of 52.38%, 3V64 belongs to the best of the industry, outperforming 94.92% of the companies in the same industry.
- 3V64 has a Return On Invested Capital of 34.02%. This is amongst the best in the industry. 3V64 outperforms 96.61% of its industry peers.
- 3V64 had an Average Return On Invested Capital over the past 3 years of 30.07%. This is significantly above the industry average of 10.02%.
- The 3 year average ROIC (30.07%) for 3V64 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
- Looking at the Profit Margin, with a value of 49.64%, 3V64 belongs to the top of the industry, outperforming 94.92% of the companies in the same industry.
- 3V64's Profit Margin has been stable in the last couple of years.
- 3V64 has a better Operating Margin (66.39%) than 94.92% of its industry peers.
- 3V64's Operating Margin has been stable in the last couple of years.
- 3V64 has a better Gross Margin (80.36%) than 81.36% of its industry peers.
- 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 | 66.39% | ||
| 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
- 3V64 has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
- The number of shares outstanding for 3V64 has been reduced compared to 1 year ago.
- 3V64 has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, 3V64 has a worse debt to assets ratio.
2.2 Solvency
- 3V64 has an Altman-Z score of 7.59. This indicates that 3V64 is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.59, 3V64 belongs to the best of the industry, outperforming 86.44% of the companies in the same industry.
- The Debt to FCF ratio of 3V64 is 1.17, which is an excellent value as it means it would take 3V64, only 1.17 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of 3V64 (1.17) is better than 84.75% of its industry peers.
- A Debt/Equity ratio of 0.52 indicates that 3V64 is somewhat dependend on debt financing.
- 3V64's Debt to Equity ratio of 0.52 is in line compared to the rest of the industry. 3V64 outperforms 50.85% 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 | 0.52 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | 7.59 |
ROIC/WACC3.96
WACC8.6%
2.3 Liquidity
- A Current Ratio of 1.08 indicates that 3V64 should not have too much problems paying its short term obligations.
- 3V64 has a Current ratio of 1.08. This is in the lower half of the industry: 3V64 underperforms 61.02% of its industry peers.
- A Quick Ratio of 1.08 indicates that 3V64 should not have too much problems paying its short term obligations.
- 3V64 has a worse Quick ratio (1.08) than 61.02% of its industry peers.
- 3V64 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
- 3V64 shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.13%, which is quite good.
- 3V64 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.92% yearly.
- Looking at the last year, 3V64 shows a quite strong growth in Revenue. The Revenue has grown by 11.34% in the last year.
- 3V64 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
- Based on estimates for the next years, 3V64 will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.16% on average per year.
- 3V64 is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.38% yearly.
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 28.16 indicates a quite expensive valuation of 3V64.
- The rest of the industry has a similar Price/Earnings ratio as 3V64.
- The average S&P500 Price/Earnings ratio is at 27.25. 3V64 is around the same levels.
- 3V64 is valuated rather expensively with a Price/Forward Earnings ratio of 24.77.
- 3V64's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 3V64 is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.16 | ||
| Fwd PE | 24.77 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as 3V64.
- 3V64's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.66 | ||
| EV/EBITDA | 22.63 |
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.
- 3V64's earnings are expected to grow with 12.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.06
PEG (5Y)1.57
EPS Next 2Y13.29%
EPS Next 3Y12.87%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.82%, 3V64 is not a good candidate for dividend investing.
- 3V64's Dividend Yield is comparable with the industry average which is at 1.97.
- With a Dividend Yield of 0.82, 3V64 pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
- On average, the dividend of 3V64 grows each year by 13.82%, which is quite nice.
Dividend Growth(5Y)13.82%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 23.34% of the earnings are spent on dividend by 3V64. This is a low number and sustainable payout ratio.
- 3V64's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP23.34%
EPS Next 2Y13.29%
EPS Next 3Y12.87%
VISA INC-CLASS A SHARES / 3V64.DE FAQ
What is the fundamental rating for 3V64 stock?
ChartMill assigns a fundamental rating of 7 / 10 to 3V64.DE.
What is the valuation status of VISA INC-CLASS A SHARES (3V64.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to VISA INC-CLASS A SHARES (3V64.DE). This can be considered as Overvalued.
How profitable is VISA INC-CLASS A SHARES (3V64.DE) stock?
VISA INC-CLASS A SHARES (3V64.DE) has a profitability rating of 9 / 10.
How financially healthy is VISA INC-CLASS A SHARES?
The financial health rating of VISA INC-CLASS A SHARES (3V64.DE) is 8 / 10.
What is the expected EPS growth for VISA INC-CLASS A SHARES (3V64.DE) stock?
The Earnings per Share (EPS) of VISA INC-CLASS A SHARES (3V64.DE) is expected to grow by 13.7% in the next year.