VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
USA - NYSE:V - US92826C8394 - Common Stock
337.1 USD
-2.94 (-0.86%)
We assign a fundamental rating of 7 out of 10 to V. V was compared to 98 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 valied quite expensively at the moment, while it does show a decent growth rate. This makes V very considerable for quality investing!
1. Profitability
1.1 Basic Checks
V had positive earnings in the past year.
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 has a Return On Assets of 19.98%. This is amongst the best in the industry. V outperforms 97.96% of its industry peers.
V has a Return On Equity of 52.50%. This is amongst the best in the industry. V outperforms 96.94% of its industry peers.
With an excellent Return On Invested Capital value of 34.02%, V belongs to the best of the industry, outperforming 97.96% 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 7.85%.
The 3 year average ROIC (30.07%) for V is below the current ROIC(34.02%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.98% | ||
| ROE | 52.5% | ||
| ROIC | 34.02% |
ROA(3y)19.83%
ROA(5y)18.22%
ROE(3y)48.83%
ROE(5y)43.91%
ROIC(3y)30.07%
ROIC(5y)26.99%
1.3 Margins
The Profit Margin of V (49.76%) is better than 92.86% of its industry peers.
V's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 66.39%, V belongs to the best of the industry, outperforming 90.82% of the companies in the same industry.
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 (80.36%) is better than 84.69% 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 | 66.39% | ||
| PM (TTM) | 49.76% | ||
| GM | 80.36% |
OM growth 3Y-0.48%
OM growth 5Y0.58%
PM growth 3Y0.15%
PM growth 5Y0.9%
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.
V has a worse debt/assets ratio than last year.
2.2 Solvency
V has an Altman-Z score of 7.89. This indicates that V is financially healthy and has little risk of bankruptcy at the moment.
V has a better Altman-Z score (7.89) than 89.80% of its industry peers.
V has a debt to FCF ratio of 1.17. This is a very positive value and a sign of high solvency as it would only need 1.17 years to pay back of all of its debts.
The Debt to FCF ratio of V (1.17) is better than 77.55% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that V is somewhat dependend on debt financing.
V has a Debt to Equity ratio (0.52) which is comparable to the rest of the 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 | 7.89 |
ROIC/WACC3.99
WACC8.52%
2.3 Liquidity
A Current Ratio of 1.08 indicates that V should not have too much problems paying its short term obligations.
V has a Current ratio of 1.08. This is comparable to the rest of the industry: V outperforms 51.02% 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.
With a Quick ratio value of 1.08, V perfoms like the industry average, outperforming 51.02% 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 14.13% 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 17.92% on average per year.
Looking at the last year, V shows a quite strong growth in Revenue. The Revenue has grown by 11.34% in the last year.
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
Based on estimates for the next years, V will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.62% on average per year.
Based on estimates for the next years, V will show a quite strong growth in Revenue. The Revenue will grow by 10.26% on average per year.
EPS Next Y13.74%
EPS Next 2Y13.27%
EPS Next 3Y12.96%
EPS Next 5Y13.62%
Revenue Next Year11.42%
Revenue Next 2Y10.77%
Revenue Next 3Y10.26%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.39, which means the current valuation is very expensive for V.
V's Price/Earnings ratio is a bit more expensive when compared to the industry. V is more expensive than 69.39% of the companies in the same industry.
V is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.13, which is the current average of the S&P500 Index.
V is valuated quite expensively with a Price/Forward Earnings ratio of 25.84.
69.39% of the companies in the same industry are cheaper than V, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.35. V is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.39 | ||
| Fwd PE | 25.84 |
4.2 Price Multiples
V's Enterprise Value to EBITDA is on the same level as the industry average.
V's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.1 | ||
| EV/EBITDA | 23.74 |
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.
A more expensive valuation may be justified as V's earnings are expected to grow with 12.96% in the coming years.
PEG (NY)2.14
PEG (5Y)1.64
EPS Next 2Y13.27%
EPS Next 3Y12.96%
5. Dividend
5.1 Amount
V has a yearly dividend return of 0.79%, which is pretty low.
Compared to an average industry Dividend Yield of 4.91, V has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.39, V's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
5.2 History
On average, the dividend of V grows each year by 13.82%, which is quite nice.
V has been paying a dividend for at least 10 years, so it has a reliable track record.
V has decreased its dividend recently.
Dividend Growth(5Y)13.82%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
V pays out 23.28% 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.
DP23.28%
EPS Next 2Y13.27%
EPS Next 3Y12.96%
NYSE:V (11/6/2025, 9:41:08 AM)
337.1
-2.94 (-0.86%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change-0.72%
Ins Owners0.04%
Ins Owner Change0.72%
Market Cap649.46B
Revenue(TTM)40.00B
Net Income(TTM)19.90B
Analysts81.7
Price Target401.6 (19.13%)
Short Float %1.57%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
Yearly Dividend2.38
Dividend Growth(5Y)13.82%
DP23.28%
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)0.25%
PT rev (3m)2.25%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-1.56%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.98%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)0.12%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.39 | ||
| Fwd PE | 25.84 | ||
| P/S | 16.24 | ||
| P/FCF | 30.1 | ||
| P/OCF | 28.16 | ||
| P/B | 17.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.74 |
EPS(TTM)11.47
EY3.4%
EPS(NY)13.05
Fwd EY3.87%
FCF(TTM)11.2
FCFY3.32%
OCF(TTM)11.97
OCFY3.55%
SpS20.76
BVpS19.68
TBVpS-4.99
PEG (NY)2.14
PEG (5Y)1.64
Graham Number71.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.98% | ||
| ROE | 52.5% | ||
| ROCE | 41.12% | ||
| ROIC | 34.02% | ||
| ROICexc | 48.2% | ||
| ROICexgc | N/A | ||
| OM | 66.39% | ||
| PM (TTM) | 49.76% | ||
| GM | 80.36% | ||
| FCFM | 53.94% |
ROA(3y)19.83%
ROA(5y)18.22%
ROE(3y)48.83%
ROE(5y)43.91%
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 3Y0.15%
PM growth 5Y0.9%
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 | 108.41% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 7.89 |
F-Score6
WACC8.52%
ROIC/WACC3.99
Cap/Depr(3y)118.45%
Cap/Depr(5y)111.14%
Cap/Sales(3y)3.48%
Cap/Sales(5y)3.34%
Profit Quality(3y)106.53%
Profit Quality(5y)112.55%
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 3Y12.96%
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 3Y10.26%
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 2 / 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 29.39 and the Price/Book (PB) ratio is 17.13.
How financially healthy is VISA INC-CLASS A SHARES?
The financial health rating of VISA INC-CLASS A SHARES (V) is 8 / 10.