VISA INC-CLASS A SHARES (V)
US92826C8394 - Common Stock
Overall V gets a fundamental rating of 6 out of 10. We evaluated V against 100 industry peers in the Financial Services industry. V gets an excellent profitability rating and is at the same time showing great financial health properties. V is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make V suitable 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.
Of the past 5 years V 4 years were profitable.
V had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 20.59%, V belongs to the best of the industry, outperforming 99.00% of the companies in the same industry.
V has a Return On Equity of 49.72%. This is amongst the best in the industry. V outperforms 97.00% of its industry peers.
V has a better Return On Invested Capital (29.11%) than 99.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for V is significantly above the industry average of 7.54%.
The last Return On Invested Capital (29.11%) for V is above the 3 year average (23.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.59% | ||
| ROE | 49.72% | ||
| ROIC | 29.11% |
ROA(3y)16.79%
ROA(5y)15.87%
ROE(3y)38.97%
ROE(5y)35.89%
ROIC(3y)23.76%
ROIC(5y)22.03%
1.3 Margins
V has a better Profit Margin (54.16%) than 93.00% of its industry peers.
V's Profit Margin has improved in the last couple of years.
The Operating Margin of V (66.96%) is better than 91.00% of its industry peers.
In the last couple of years the Operating Margin of V has remained more or less at the same level.
The Gross Margin of V (80.40%) is better than 87.00% of its industry peers.
In the last couple of years the Gross Margin of V has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 66.96% | ||
| PM (TTM) | 54.16% | ||
| GM | 80.4% |
OM growth 3Y1.35%
OM growth 5Y0.41%
PM growth 3Y2.76%
PM growth 5Y1.52%
GM growth 3Y0.23%
GM growth 5Y-0.35%
2. Health
2.1 Basic Checks
V has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
V has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
V has an Altman-Z score of 8.17. 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 8.17, V belongs to the top of the industry, outperforming 93.00% of the companies in the same industry.
The Debt to FCF ratio of V is 1.06, which is an excellent value as it means it would take V, only 1.06 years of fcf income to pay off all of its debts.
V's Debt to FCF ratio of 1.06 is amongst the best of the industry. V outperforms 84.00% of its industry peers.
V has a Debt/Equity ratio of 0.53. This is a neutral value indicating V is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.53, V is in line with its industry, outperforming 58.00% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for V, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | 8.17 |
ROIC/WACC3.29
WACC8.84%
2.3 Liquidity
A Current Ratio of 1.28 indicates that V should not have too much problems paying its short term obligations.
V's Current ratio of 1.28 is in line compared to the rest of the industry. V outperforms 60.00% of its industry peers.
V has a Quick Ratio of 1.28. 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 1.28 is fine compared to the rest of the industry. V outperforms 61.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
V shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.73%, which is quite good.
Measured over the past years, V shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.02% on average per year.
Looking at the last year, V shows a quite strong growth in Revenue. The Revenue has grown by 10.02% in the last year.
EPS 1Y (TTM)14.73%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%16.31%
Revenue 1Y (TTM)10.02%
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%11.71%
3.2 Future
The Earnings Per Share is expected to grow by 14.78% on average over the next years. This is quite good.
Based on estimates for the next years, V will show a quite strong growth in Revenue. The Revenue will grow by 9.87% on average per year.
EPS Next Y13.74%
EPS Next 2Y13.36%
EPS Next 3Y13.36%
EPS Next 5Y14.78%
Revenue Next Year9.78%
Revenue Next 2Y9.98%
Revenue Next 3Y9.87%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS 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
Based on the Price/Earnings ratio of 30.84, the valuation of V can be described as expensive.
Based on the Price/Earnings ratio, V is valued a bit more expensive than 65.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. V is around the same levels.
A Price/Forward Earnings ratio of 27.11 indicates a quite expensive valuation of V.
Based on the Price/Forward Earnings ratio, V is valued a bit more expensive than 71.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of V to the average of the S&P500 Index (23.82), we can say V is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.84 | ||
| Fwd PE | 27.11 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as V.
V's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.93 | ||
| EV/EBITDA | 24.47 |
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.
The excellent profitability rating of V may justify a higher PE ratio.
V's earnings are expected to grow with 13.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.24
PEG (5Y)2.37
EPS Next 2Y13.36%
EPS Next 3Y13.36%
5. Dividend
5.1 Amount
V has a yearly dividend return of 0.77%, which is pretty low.
Compared to an average industry Dividend Yield of 3.55, V has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, V's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
5.2 History
The dividend of V is nicely growing with an annual growth rate of 16.40%!
V has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
19.28% of the earnings are spent on dividend by V. This is a low number and sustainable payout ratio.
V's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.28%
EPS Next 2Y13.36%
EPS Next 3Y13.36%
VISA INC-CLASS A SHARES
NYSE:V (11/22/2024, 4:41:41 PM)
After market: 309.92 0 (0%)309.92
+0.02 (+0.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap609.27B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.77% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.84 | ||
| Fwd PE | 27.11 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.24
PEG (5Y)2.37
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.59% | ||
| ROE | 49.72% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 66.96% | ||
| PM (TTM) | 54.16% | ||
| GM | 80.4% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.73%
EPS 3Y19.36%
EPS 5Y
EPS Q2Q%
EPS Next Y13.74%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.02%
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y