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%)
Overall 3V64 gets a fundamental rating of 7 out of 10. We evaluated 3V64 against 59 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 would make 3V64 suitable 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.
- In the past 5 years 3V64 has always been profitable.
- Each year in the past 5 years 3V64 had a positive operating cash flow.
1.2 Ratios
- 3V64 has a better Return On Assets (19.93%) than 95.08% of its industry peers.
- 3V64's Return On Equity of 52.38% is amongst the best of the industry. 3V64 outperforms 93.44% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 34.02%, 3V64 belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for 3V64 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
- The Profit Margin of 3V64 (49.64%) is better than 95.08% of its industry peers.
- In the last couple of years the Profit Margin of 3V64 has remained more or less at the same level.
- The Operating Margin of 3V64 (66.39%) is better than 95.08% 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 78.69% 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 3V64 is creating value.
- Compared to 1 year ago, 3V64 has less shares outstanding
- 3V64 has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for 3V64 is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.59 indicates that 3V64 is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.59, 3V64 belongs to the best of the industry, outperforming 85.25% of the companies in the same industry.
- 3V64 has a debt to FCF ratio of 1.17. This is a very positive value and a sign of high solvency as it would only need 1.17 years to pay back of all of its debts.
- 3V64's Debt to FCF ratio of 1.17 is amongst the best of the industry. 3V64 outperforms 85.25% of its industry peers.
- 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 54.10% of the companies in the same industry.
- 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
- 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.
- The Current ratio of 3V64 (1.08) is comparable to the rest of the industry.
- 3V64 has a Quick 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 Quick ratio of 1.08. This is comparable to the rest of the industry: 3V64 outperforms 40.98% 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.
- The Earnings Per Share has been growing by 17.92% 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 11.34%.
- The Revenue has been growing by 12.86% on average over the past years. This is quite good.
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
- The Earnings Per Share is expected to grow by 13.16% on average over the next years. This is quite good.
- Based on estimates for the next years, 3V64 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.
- 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 28.43, which means the current valuation is very expensive for 3V64.
- 3V64's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of 3V64 to the average of the S&P500 Index (27.21), we can say 3V64 is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 25.01, the valuation of 3V64 can be described as expensive.
- The rest of the industry has a similar Price/Forward Earnings ratio as 3V64.
- 3V64 is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.43 | ||
| Fwd PE | 25.01 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 3V64 is on the same level as its industry peers.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 3V64 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.93 | ||
| 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.
- 3V64 has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as 3V64's earnings are expected to grow with 12.87% in the coming years.
PEG (NY)2.08
PEG (5Y)1.59
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 1.81.
| 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.
- 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.