VISA INC-CLASS A SHARES (3V64.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:3V64 - US92826C8394 - Common Stock
272.15 EUR
-2.65 (-0.96%)
We assign a fundamental rating of 7 out of 10 to 3V64. 3V64 was compared to 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 valied quite expensively at the moment, while it does show a decent growth rate. This makes 3V64 very considerable 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
- Looking at the Return On Assets, with a value of 19.93%, 3V64 belongs to the top of the industry, outperforming 96.61% of the companies in the same industry.
- 3V64 has a Return On Equity of 52.38%. This is amongst the best in the industry. 3V64 outperforms 94.92% of its industry peers.
- 3V64's Return On Invested Capital of 34.02% is amongst the best of the industry. 3V64 outperforms 96.61% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for 3V64 is significantly above the industry average of 10.02%.
- 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 94.92% of its industry peers.
- 3V64's Profit Margin has been stable in the last couple of years.
- The Operating Margin of 3V64 (66.39%) is better than 94.92% of its industry peers.
- 3V64's Operating Margin has been stable in the last couple of years.
- 3V64 has a Gross Margin of 80.36%. This is amongst the best in the industry. 3V64 outperforms 81.36% of its industry peers.
- 3V64's Gross Margin has been stable in the last couple of years.
| 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.
- 3V64 has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, 3V64 has less shares outstanding
- The debt/assets ratio for 3V64 is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.57 indicates that 3V64 is not in any danger for bankruptcy at the moment.
- 3V64 has a better Altman-Z score (7.57) than 86.44% 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.
- 3V64 has a better Debt to FCF ratio (1.17) than 84.75% 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 50.85% 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 | 7.57 |
ROIC/WACC3.97
WACC8.57%
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 worse than 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.
- With a Quick ratio value of 1.08, 3V64 is not doing good in the industry: 61.02% of the companies in the same industry are doing better.
- 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.
- 3V64 shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.34%.
- 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.
- 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
- Based on the Price/Earnings ratio of 28.29, the valuation of 3V64 can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of 3V64 is on the same level as its industry peers.
- 3V64 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.87, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 24.89, which indicates a rather expensive current valuation of 3V64.
- 3V64's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, 3V64 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.29 | ||
| Fwd PE | 24.89 |
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 | 28.8 | ||
| EV/EBITDA | 22.53 |
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)2.07
PEG (5Y)1.58
EPS Next 2Y13.29%
EPS Next 3Y12.87%
5. Dividend
5.1 Amount
- 3V64 has a yearly dividend return of 0.82%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.97, 3V64 has a dividend in line with its industry peers.
- 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
- 3V64 pays out 23.34% 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.
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.