VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:V - US92826C8394 - Common Stock
327.98 USD
+4.21 (+1.3%)
328.4 USD
+0.42 (+0.13%)
We assign a fundamental rating of 7 out of 10 to V. V was compared to 99 industry peers in the Financial Services industry. V has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. V is quite expensive at the moment. It does show a decent growth rate. With these ratings, V could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
In the past year V was profitable.
In the past year V had a positive cash flow from operations.
V had positive earnings in each of the past 5 years.
In the past 5 years V always reported a positive cash flow from operatings.
1.2 Ratios
V's Return On Assets of 19.93% is amongst the best of the industry. V outperforms 97.98% of its industry peers.
V has a better Return On Equity (52.38%) than 96.97% of its industry peers.
V has a Return On Invested Capital of 34.02%. This is amongst the best in the industry. V outperforms 97.98% of its industry peers.
The Average Return On Invested Capital over the past 3 years for V is significantly above the industry average of 8.14%.
The last Return On Invested Capital (34.02%) for V 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
With an excellent Profit Margin value of 49.64%, V belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
In the last couple of years the Profit Margin of V has remained more or less at the same level.
The Operating Margin of V (66.39%) is better than 89.90% of its industry peers.
V's Operating Margin has been stable in the last couple of years.
The Gross Margin of V (80.36%) is better than 84.85% of its industry peers.
V'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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), V is creating value.
V has less shares outstanding than it did 1 year ago.
The number of shares outstanding for V has been reduced compared to 5 years ago.
The debt/assets ratio for V is higher compared to a year ago.
2.2 Solvency
V has an Altman-Z score of 7.63. This indicates that V is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.63, V belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
The Debt to FCF ratio of V is 1.17, which is an excellent value as it means it would take V, only 1.17 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of V (1.17) is better than 78.79% of its industry peers.
V has a Debt/Equity ratio of 0.52. This is a neutral value indicating V is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, V perfoms like the industry average, outperforming 56.57% of the companies in the same industry.
Although V 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 | 7.63 |
ROIC/WACC4.02
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.08 indicates that V should not have too much problems paying its short term obligations.
V's Current ratio of 1.08 is in line compared to the rest of the industry. V outperforms 51.52% of its industry peers.
V has a Quick Ratio of 1.08. This is a normal value and indicates that V is financially healthy and should not expect problems in meeting its short term obligations.
V's Quick ratio of 1.08 is in line compared to the rest of the industry. V outperforms 51.52% of its industry peers.
V 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
The Earnings Per Share has grown by an nice 14.13% over the past year.
V shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.92% yearly.
V 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
V is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.62% yearly.
V is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.28% yearly.
EPS Next Y13.74%
EPS Next 2Y13.27%
EPS Next 3Y12.99%
EPS Next 5Y13.62%
Revenue Next Year11.42%
Revenue Next 2Y10.77%
Revenue Next 3Y10.28%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 28.59, V can be considered very expensive at the moment.
V's Price/Earnings ratio is a bit more expensive when compared to the industry. V is more expensive than 67.68% of the companies in the same industry.
When comparing the Price/Earnings ratio of V to the average of the S&P500 Index (25.45), we can say V is valued inline with the index average.
With a Price/Forward Earnings ratio of 25.14, V can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, V is valued a bit more expensive than 68.69% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of V to the average of the S&P500 Index (34.46), we can say V is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 25.14 |
4.2 Price Multiples
V's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of V is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.1 | ||
| EV/EBITDA | 22.76 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates V does not grow enough to justify the current Price/Earnings ratio.
V has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as V's earnings are expected to grow with 12.99% in the coming years.
PEG (NY)2.08
PEG (5Y)1.6
EPS Next 2Y13.27%
EPS Next 3Y12.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.83%, V is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.63, V has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.42, V's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
5.2 History
On average, the dividend of V grows each year by 13.82%, which is quite nice.
V has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of V decreased recently.
Dividend Growth(5Y)13.82%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
V pays out 23.34% of its income as dividend. This is a sustainable payout ratio.
V's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP23.34%
EPS Next 2Y13.27%
EPS Next 3Y12.99%
327.98
+4.21 (+1.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change-0.93%
Ins Owners0.04%
Ins Owner Change1.82%
Market Cap627.79B
Revenue(TTM)40.00B
Net Income(TTM)19.86B
Analysts81.7
Price Target403.71 (23.09%)
Short Float %1.42%
Short Ratio3.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.83% |
Yearly Dividend2.38
Dividend Growth(5Y)13.82%
DP23.34%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.59%
Min EPS beat(2)-1.51%
Max EPS beat(2)2.69%
EPS beat(4)3
Avg EPS beat(4)0.86%
Min EPS beat(4)-1.51%
Max EPS beat(4)2.69%
EPS beat(8)6
Avg EPS beat(8)0.83%
EPS beat(12)10
Avg EPS beat(12)1.5%
EPS beat(16)14
Avg EPS beat(16)2.6%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-0.94%
Max Revenue beat(2)1.32%
Revenue beat(4)1
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-1.51%
Max Revenue beat(4)1.32%
Revenue beat(8)1
Avg Revenue beat(8)-0.67%
Revenue beat(12)3
Avg Revenue beat(12)-0.53%
Revenue beat(16)7
Avg Revenue beat(16)0.05%
PT rev (1m)1.13%
PT rev (3m)1.09%
EPS NQ rev (1m)1.42%
EPS NQ rev (3m)1.55%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)0.9%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 25.14 | ||
| P/S | 15.69 | ||
| P/FCF | 29.1 | ||
| P/OCF | 27.23 | ||
| P/B | 16.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.76 |
EPS(TTM)11.47
EY3.5%
EPS(NY)13.05
Fwd EY3.98%
FCF(TTM)11.27
FCFY3.44%
OCF(TTM)12.05
OCFY3.67%
SpS20.9
BVpS19.81
TBVpS-5.02
PEG (NY)2.08
PEG (5Y)1.6
Graham Number71.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.93% | ||
| ROE | 52.38% | ||
| ROCE | 41.12% | ||
| ROIC | 34.02% | ||
| ROICexc | 48.2% | ||
| ROICexgc | N/A | ||
| OM | 66.39% | ||
| PM (TTM) | 49.64% | ||
| GM | 80.36% | ||
| FCFM | 53.94% |
ROA(3y)19.76%
ROA(5y)18.18%
ROE(3y)48.65%
ROE(5y)43.8%
ROIC(3y)30.07%
ROIC(5y)26.99%
ROICexc(3y)41.42%
ROICexc(5y)37.31%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)36.35%
ROCE(5y)32.62%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y10.83%
ROICexc growth 5Y13.9%
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%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.17 | ||
| Debt/EBITDA | 0.71 | ||
| Cap/Depr | 121.48% | ||
| Cap/Sales | 3.71% | ||
| Interest Coverage | 45.24 | ||
| Cash Conversion | 83.02% | ||
| Profit Quality | 108.67% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 7.63 |
F-Score6
WACC8.47%
ROIC/WACC4.02
Cap/Depr(3y)118.45%
Cap/Depr(5y)111.14%
Cap/Sales(3y)3.48%
Cap/Sales(5y)3.34%
Profit Quality(3y)106.9%
Profit Quality(5y)112.77%
High Growth Momentum
Growth
EPS 1Y (TTM)14.13%
EPS 3Y15.16%
EPS 5Y17.92%
EPS Q2Q%9.96%
EPS Next Y13.74%
EPS Next 2Y13.27%
EPS Next 3Y12.99%
EPS Next 5Y13.62%
Revenue 1Y (TTM)11.34%
Revenue growth 3Y10.92%
Revenue growth 5Y12.86%
Sales Q2Q%11.51%
Revenue Next Year11.42%
Revenue Next 2Y10.77%
Revenue Next 3Y10.28%
Revenue Next 5YN/A
EBIT growth 1Y10.39%
EBIT growth 3Y10.39%
EBIT growth 5Y13.51%
EBIT Next Year15.64%
EBIT Next 3Y12.15%
EBIT Next 5Y11.5%
FCF growth 1Y15.43%
FCF growth 3Y6.47%
FCF growth 5Y17.33%
OCF growth 1Y15.58%
OCF growth 3Y6.95%
OCF growth 5Y17.17%
VISA INC-CLASS A SHARES / V FAQ
What is the ChartMill fundamental rating of VISA INC-CLASS A SHARES (V) stock?
ChartMill assigns a fundamental rating of 7 / 10 to V.
What is the valuation status for V stock?
ChartMill assigns a valuation rating of 3 / 10 to VISA INC-CLASS A SHARES (V). This can be considered as Overvalued.
Can you provide the profitability details for VISA INC-CLASS A SHARES?
VISA INC-CLASS A SHARES (V) has a profitability rating of 9 / 10.
What is the valuation of VISA INC-CLASS A SHARES based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VISA INC-CLASS A SHARES (V) is 28.59 and the Price/Book (PB) ratio is 16.56.
How financially healthy is VISA INC-CLASS A SHARES?
The financial health rating of VISA INC-CLASS A SHARES (V) is 8 / 10.