VISA INC-CLASS A SHARES (3V64.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:3V64 - US92826C8394 - Common Stock
277.75 EUR
+1.15 (+0.42%)
3V64 gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 60 industry peers in the Financial Services industry. 3V64 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
- In the past year 3V64 was profitable.
- In the past year 3V64 had a positive cash flow from operations.
- In the past 5 years 3V64 has always been profitable.
- 3V64 had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 3V64 has a better Return On Assets (19.93%) than 95.00% of its industry peers.
- 3V64 has a Return On Equity of 52.38%. This is amongst the best in the industry. 3V64 outperforms 93.33% of its industry peers.
- 3V64's Return On Invested Capital of 34.02% is amongst the best of the industry. 3V64 outperforms 95.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 3V64 is significantly above the industry average of 10.51%.
- The last Return On Invested Capital (34.02%) for 3V64 is above the 3 year average (30.07%), which is a sign of increasing profitability.
| 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
- 3V64 has a Profit Margin of 49.64%. This is amongst the best in the industry. 3V64 outperforms 95.00% of its industry peers.
- In the last couple of years the Profit Margin of 3V64 has remained more or less at the same level.
- With an excellent Operating Margin value of 66.39%, 3V64 belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
- In the last couple of years the Operating Margin of 3V64 has remained more or less at the same level.
- 3V64 has a better Gross Margin (80.36%) than 78.33% 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.
- Compared to 1 year ago, 3V64 has less shares outstanding
- 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 7.55. This indicates that 3V64 is financially healthy and has little risk of bankruptcy at the moment.
- 3V64's Altman-Z score of 7.55 is amongst the best of the industry. 3V64 outperforms 86.67% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 1.17, 3V64 belongs to the top of the industry, outperforming 86.67% of the companies in the same industry.
- A Debt/Equity ratio of 0.52 indicates that 3V64 is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.52, 3V64 is in line with its industry, outperforming 55.00% of the companies in the same industry.
- Although 3V64 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 | 0.52 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | 7.55 |
ROIC/WACC3.96
WACC8.6%
2.3 Liquidity
- 3V64 has a Current Ratio of 1.08. 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 1.08. This is comparable to the rest of the industry: 3V64 outperforms 41.67% 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's Quick ratio of 1.08 is in line compared to the rest of the industry. 3V64 outperforms 41.67% 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.
- The Revenue has grown by 11.34% in the past year. This is quite good.
- 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
- 3V64 is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.16% yearly.
- The Revenue is expected to grow by 10.37% on average over the next years. This is quite good.
EPS Next Y13.7%
EPS Next 2Y13.29%
EPS Next 3Y12.87%
EPS Next 5Y13.16%
Revenue Next Year11.46%
Revenue Next 2Y10.82%
Revenue Next 3Y10.37%
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
- 3V64 is valuated quite expensively with a Price/Earnings ratio of 28.34.
- 3V64's Price/Earnings is on the same level as the industry average.
- 3V64's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.21.
- With a Price/Forward Earnings ratio of 24.93, 3V64 is valued on the expensive side.
- 3V64's Price/Forward Earnings is on the same level as the industry average.
- 3V64 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.34 | ||
| Fwd PE | 24.93 |
4.2 Price Multiples
- 3V64's Enterprise Value to EBITDA is on the same level as the industry average.
- 3V64's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.84 | ||
| EV/EBITDA | 22.47 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 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)2.07
PEG (5Y)1.58
EPS Next 2Y13.29%
EPS Next 3Y12.87%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.82%, 3V64 is not a good candidate for dividend investing.
- Compared to an average industry Dividend Yield of 1.95, 3V64 has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, 3V64's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
- The dividend of 3V64 is nicely growing with an annual growth rate of 13.82%!
Dividend Growth(5Y)13.82%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 3V64 pays out 23.34% of its income as dividend. This is a sustainable payout ratio.
- The dividend of 3V64 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 / 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 9 / 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.