VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
NYSE:V - New York Stock Exchange, Inc. - US92826C8394 - Common Stock - Currency: USD
Taking everything into account, V scores 7 out of 10 in our fundamental rating. V was compared to 100 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. With these ratings, V could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
V had positive earnings in the past year.
V had a positive operating cash flow in the past year.
In the past 5 years V has always been profitable.
In the past 5 years V always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 21.15%, V belongs to the top of the industry, outperforming 98.00% of the companies in the same industry.
With an excellent Return On Equity value of 51.65%, V belongs to the best of the industry, outperforming 96.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 32.98%, V belongs to the top of the industry, outperforming 97.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for V is significantly above the industry average of 11.84%.
The 3 year average ROIC (27.02%) for V is below the current ROIC(32.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.15% | ||
| ROE | 51.65% | ||
| ROIC | 32.98% |
ROA(3y)18.82%
ROA(5y)16.78%
ROE(3y)44.9%
ROE(5y)39.11%
ROIC(3y)27.02%
ROIC(5y)23.58%
1.3 Margins
Looking at the Profit Margin, with a value of 52.21%, V belongs to the top of the industry, outperforming 93.00% 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.
V has a better Operating Margin (66.51%) 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.
V has a better Gross Margin (80.09%) than 87.00% of its industry peers.
V's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 66.51% | ||
| PM (TTM) | 52.21% | ||
| GM | 80.09% |
OM growth 3Y0.7%
OM growth 5Y-0.02%
PM growth 3Y2.83%
PM growth 5Y1.33%
GM growth 3Y0.43%
GM growth 5Y-0.36%
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.
V has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, V has an improved debt to assets ratio.
2.2 Solvency
V has an Altman-Z score of 8.94. This indicates that V is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.94, V belongs to the best of the industry, outperforming 91.00% of the companies in the same industry.
The Debt to FCF ratio of V is 1.01, which is an excellent value as it means it would take V, only 1.01 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.01, V belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
A Debt/Equity ratio of 0.44 indicates that V is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.44, V is in the better half of the industry, outperforming 61.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 8.94 |
ROIC/WACC3.72
WACC8.87%
2.3 Liquidity
V has a Current 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 has a Current ratio of 1.08. This is comparable to the rest of the industry: V outperforms 50.00% 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.
Looking at the Quick ratio, with a value of 1.08, V is in line with its industry, outperforming 52.00% of the companies in the same industry.
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 13.07% over the past year.
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 10.19% in the last year.
Measured over the past years, V shows a quite strong growth in Revenue. The Revenue has been growing by 9.35% on average per year.
EPS 1Y (TTM)13.07%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%9.96%
Revenue 1Y (TTM)10.19%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%9.33%
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 13.72% yearly.
V is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.16% yearly.
EPS Next Y15%
EPS Next 2Y13.57%
EPS Next 3Y13.34%
EPS Next 5Y13.72%
Revenue Next Year10.1%
Revenue Next 2Y10.2%
Revenue Next 3Y10.09%
Revenue Next 5Y11.16%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last 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
A Price/Earnings ratio of 32.91 indicates a quite expensive valuation of V.
72.00% of the companies in the same industry are cheaper than V, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.18. V is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 27.01, the valuation of V can be described as expensive.
69.00% of the companies in the same industry are cheaper than V, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.34, V is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.91 | ||
| Fwd PE | 27.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of V is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as V.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.11 | ||
| EV/EBITDA | 25.93 |
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 13.34% in the coming years.
PEG (NY)2.19
PEG (5Y)2.53
EPS Next 2Y13.57%
EPS Next 3Y13.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, V is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.86, V has a dividend in line with its industry peers.
With a Dividend Yield of 0.66, V pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
On average, the dividend of V grows each year by 15.24%, which is quite nice.
V has paid a dividend for at least 10 years, which is a reliable track record.
V has decreased its dividend recently.
Dividend Growth(5Y)15.24%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
V pays out 22.56% 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.
DP22.56%
EPS Next 2Y13.57%
EPS Next 3Y13.34%
NYSE:V (7/16/2025, 2:47:10 PM)
350.12
+3.1 (+0.89%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.44%
Inst Owner Change0.01%
Ins Owners0.04%
Ins Owner Change-0.78%
Market Cap678.94B
Analysts81.28
Price Target391.4 (11.79%)
Short Float %1.56%
Short Ratio4.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend2.12
Dividend Growth(5Y)15.24%
DP22.56%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.12%
Min EPS beat(2)0.92%
Max EPS beat(2)1.33%
EPS beat(4)3
Avg EPS beat(4)0.83%
Min EPS beat(4)-1.88%
Max EPS beat(4)2.94%
EPS beat(8)7
Avg EPS beat(8)0.92%
EPS beat(12)11
Avg EPS beat(12)2.46%
EPS beat(16)15
Avg EPS beat(16)3.22%
Revenue beat(2)0
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)-0.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)-0.19%
Revenue beat(8)0
Avg Revenue beat(8)-1.04%
Revenue beat(12)4
Avg Revenue beat(12)-0.39%
Revenue beat(16)7
Avg Revenue beat(16)0.07%
PT rev (1m)0.91%
PT rev (3m)1.57%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)0.36%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.39%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.91 | ||
| Fwd PE | 27.01 | ||
| P/S | 18.05 | ||
| P/FCF | 33.11 | ||
| P/OCF | 31.02 | ||
| P/B | 17.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.93 |
EPS(TTM)10.64
EY3.04%
EPS(NY)12.96
Fwd EY3.7%
FCF(TTM)10.58
FCFY3.02%
OCF(TTM)11.29
OCFY3.22%
SpS19.4
BVpS19.61
TBVpS-4.14
PEG (NY)2.19
PEG (5Y)2.53
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.15% | ||
| ROE | 51.65% | ||
| ROCE | 40.05% | ||
| ROIC | 32.98% | ||
| ROICexc | 42.28% | ||
| ROICexgc | 771.01% | ||
| OM | 66.51% | ||
| PM (TTM) | 52.21% | ||
| GM | 80.09% | ||
| FCFM | 54.51% |
ROA(3y)18.82%
ROA(5y)16.78%
ROE(3y)44.9%
ROE(5y)39.11%
ROIC(3y)27.02%
ROIC(5y)23.58%
ROICexc(3y)36.97%
ROICexc(5y)32.54%
ROICexgc(3y)449.64%
ROICexgc(5y)409.16%
ROCE(3y)32.82%
ROCE(5y)28.64%
ROICexcg growth 3Y3.03%
ROICexcg growth 5Y0.77%
ROICexc growth 3Y11.91%
ROICexc growth 5Y6.85%
OM growth 3Y0.7%
OM growth 5Y-0.02%
PM growth 3Y2.83%
PM growth 5Y1.33%
GM growth 3Y0.43%
GM growth 5Y-0.36%
F-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 122.76% | ||
| Cap/Sales | 3.67% | ||
| Interest Coverage | 42.92 | ||
| Cash Conversion | 83.71% | ||
| Profit Quality | 104.41% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 8.94 |
F-Score8
WACC8.87%
ROIC/WACC3.72
Cap/Depr(3y)115.51%
Cap/Depr(5y)106.03%
Cap/Sales(3y)3.35%
Cap/Sales(5y)3.27%
Profit Quality(3y)111.41%
Profit Quality(5y)109.56%
High Growth Momentum
Growth
EPS 1Y (TTM)13.07%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%9.96%
EPS Next Y15%
EPS Next 2Y13.57%
EPS Next 3Y13.34%
EPS Next 5Y13.72%
Revenue 1Y (TTM)10.19%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%9.33%
Revenue Next Year10.1%
Revenue Next 2Y10.2%
Revenue Next 3Y10.09%
Revenue Next 5Y11.16%
EBIT growth 1Y9.24%
EBIT growth 3Y15.03%
EBIT growth 5Y9.33%
EBIT Next Year14.33%
EBIT Next 3Y12%
EBIT Next 5Y11.53%
FCF growth 1Y12.87%
FCF growth 3Y8.78%
FCF growth 5Y9.22%
OCF growth 1Y14.25%
OCF growth 3Y9.42%
OCF growth 5Y9.31%