VISA INC-CLASS A SHARES (V)
US92826C8394 - Common Stock
We assign a fundamental rating of 7 out of 10 to V. V was compared to 102 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making V a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, V is valued expensive at the moment. This makes V very considerable 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.
Each year in the past 5 years V has been profitable.
Each year in the past 5 years V had a positive operating cash flow.
1.2 Ratios
The Return On Assets of V (19.60%) is better than 99.02% of its industry peers.
V has a Return On Equity of 44.73%. This is amongst the best in the industry. V outperforms 97.06% of its industry peers.
With an excellent Return On Invested Capital value of 27.34%, V belongs to the best of the industry, outperforming 97.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for V is significantly above the industry average of 7.98%.
The last Return On Invested Capital (27.34%) for V is above the 3 year average (23.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.6% | ||
| ROE | 44.73% | ||
| ROIC | 27.34% |
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
The Profit Margin of V (53.04%) is better than 92.16% of its industry peers.
V's Profit Margin has improved in the last couple of years.
The Operating Margin of V (67.10%) is better than 90.20% of its industry peers.
V's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 80.05%, V belongs to the best of the industry, outperforming 87.25% of the companies in the same industry.
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 | 67.1% | ||
| PM (TTM) | 53.04% | ||
| GM | 80.05% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so V is creating value.
The number of shares outstanding for V has been reduced compared to 1 year ago.
Compared to 5 years ago, V has less shares outstanding
The debt/assets ratio for V has been reduced compared to a year ago.
2.2 Solvency
V has an Altman-Z score of 8.03. This indicates that V is financially healthy and has little risk of bankruptcy at the moment.
V has a better Altman-Z score (8.03) than 94.12% of its industry peers.
The Debt to FCF ratio of V is 1.04, which is an excellent value as it means it would take V, only 1.04 years of fcf income to pay off all of its debts.
V has a better Debt to FCF ratio (1.04) than 84.31% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that V is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, V perfoms like the industry average, outperforming 53.92% 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 | 0.51 | ||
| Debt/FCF | 1.04 | ||
| Altman-Z | 8.03 |
ROIC/WACC3.09
WACC8.84%
2.3 Liquidity
A Current Ratio of 1.40 indicates that V should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.40, V is doing good in the industry, outperforming 62.75% of the companies in the same industry.
A Quick Ratio of 1.40 indicates that V should not have too much problems paying its short term obligations.
The Quick ratio of V (1.40) is better than 65.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
V shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.04%, which is quite good.
The Earnings Per Share has been growing by 13.75% on average over the past years. This is quite good.
Looking at the last year, V shows a quite strong growth in Revenue. The Revenue has grown by 10.19% in the last year.
Measured over the past years, V shows a quite strong growth in Revenue. The Revenue has been growing by 9.64% on average per year.
EPS 1Y (TTM)15.04%
EPS 3Y20.31%
EPS 5Y13.75%
EPS growth Q2Q20.1%
Revenue 1Y (TTM)10.19%
Revenue growth 3Y14.34%
Revenue growth 5Y9.64%
Revenue growth Q2Q9.89%
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 14.69% yearly.
The Revenue is expected to grow by 9.47% on average over the next years. This is quite good.
EPS Next Y15.43%
EPS Next 2Y13.93%
EPS Next 3Y14.12%
EPS Next 5Y14.69%
Revenue Next Year9.93%
Revenue Next 2Y10.16%
Revenue Next 3Y10.43%
Revenue Next 5Y9.47%
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.
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
A Price/Earnings ratio of 29.91 indicates a quite expensive valuation of V.
Based on the Price/Earnings ratio, V is valued a bit more expensive than the industry average as 60.78% of the companies are valued more cheaply.
V is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 24.76, which indicates a rather expensive current valuation of V.
Compared to the rest of the industry, the Price/Forward Earnings ratio of V indicates a slightly more expensive valuation: V is more expensive than 63.73% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.51. V is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.91 | ||
| Fwd PE | 24.76 |
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 | 28.55 | ||
| EV/EBITDA | 23.19 |
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 14.12% in the coming years.
PEG (NY)1.94
PEG (5Y)2.18
EPS Next 2Y13.93%
EPS Next 3Y14.12%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, V is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.38, V has a dividend in line with its industry peers.
With a Dividend Yield of 0.75, V pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
5.2 History
On average, the dividend of V grows each year by 16.40%, which is quite nice.
V has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)16.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
V pays out 22.01% of its income as dividend. This is a sustainable payout ratio.
The dividend of V is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP22.01%
EPS Next 2Y13.93%
EPS Next 3Y14.12%
VISA INC-CLASS A SHARES
NYSE:V (5/15/2024, 7:14:55 PM)
After market: 281.8 +0.3 (+0.11%)281.5
+3.76 (+1.35%)
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 Cap563.28B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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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 | 29.91 | ||
| Fwd PE | 24.76 | ||
| 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)1.94
PEG (5Y)2.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.6% | ||
| ROE | 44.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 67.1% | ||
| PM (TTM) | 53.04% | ||
| GM | 80.05% | ||
| 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 Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 | ||
| 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)
Growth
EPS 1Y (TTM)15.04%
EPS 3Y20.31%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.19%
Revenue growth 3Y14.34%
Revenue growth 5Y
Revenue growth 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