VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
NYSE:V - New York Stock Exchange, Inc. - US92826C8394 - Common Stock - Currency: USD
V gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 102 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. While showing a medium growth rate, V is valued expensive at the moment. These ratings would make V suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year V was profitable.
V had a positive operating cash flow in the past year.
V had positive earnings in each of the past 5 years.
V had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of V (20.59%) is better than 98.04% of its industry peers.
V has a better Return On Equity (49.72%) than 97.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 29.13%, V belongs to the top of the industry, outperforming 98.04% 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 7.84%.
The last Return On Invested Capital (29.13%) for V is above the 3 year average (27.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.59% | ||
| ROE | 49.72% | ||
| ROIC | 29.13% |
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
V's Profit Margin of 54.16% is amongst the best of the industry. V outperforms 93.14% of its industry peers.
V's Profit Margin has been stable in the last couple of years.
V's Operating Margin of 66.96% is amongst the best of the industry. V outperforms 91.18% of its industry peers.
V's Operating Margin has been stable in the last couple of years.
V's Gross Margin of 80.40% is amongst the best of the industry. V outperforms 88.24% of its industry peers.
V's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 66.96% | ||
| PM (TTM) | 54.16% | ||
| GM | 80.4% |
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
V has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for V has been reduced compared to 1 year ago.
The number of shares outstanding for V has been reduced compared to 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 8.68. This indicates that V is financially healthy and has little risk of bankruptcy at the moment.
V's Altman-Z score of 8.68 is amongst the best of the industry. V outperforms 92.16% of its industry peers.
The Debt to FCF ratio of V is 1.11, which is an excellent value as it means it would take V, only 1.11 years of fcf income to pay off all of its debts.
V has a better Debt to FCF ratio (1.11) than 80.39% 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.
V has a Debt to Equity ratio (0.53) which is in line with its industry peers.
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 | 0.53 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 8.68 |
ROIC/WACC3.25
WACC8.96%
2.3 Liquidity
V has a Current 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.
With a decent Current ratio value of 1.28, V is doing good in the industry, outperforming 61.76% of the companies in the same industry.
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.
With a decent Quick ratio value of 1.28, V is doing good in the industry, outperforming 62.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.73% over the past year.
The Earnings Per Share has been growing by 13.02% on average over the past years. This is quite good.
The Revenue has grown by 10.02% in the past year. This is quite good.
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)14.73%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%16.31%
Revenue 1Y (TTM)10.02%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%11.71%
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 13.53% on average per year.
The Revenue is expected to grow by 10.65% on average over the next years. This is quite good.
EPS Next Y13.7%
EPS Next 2Y13.29%
EPS Next 3Y13.28%
EPS Next 5Y13.53%
Revenue Next Year9.65%
Revenue Next 2Y9.93%
Revenue Next 3Y9.83%
Revenue Next 5Y10.65%
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
Based on the Price/Earnings ratio of 33.28, the valuation of V can be described as expensive.
Based on the Price/Earnings ratio, V is valued a bit more expensive than 64.71% of the companies in the same industry.
When comparing the Price/Earnings ratio of V to the average of the S&P500 Index (28.42), we can say V is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 29.27, the valuation of V can be described as expensive.
V's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. V is more expensive than 72.55% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of V to the average of the S&P500 Index (24.39), we can say V is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.28 | ||
| Fwd PE | 29.27 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.09 | ||
| EV/EBITDA | 26.24 |
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 13.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.43
PEG (5Y)2.56
EPS Next 2Y13.29%
EPS Next 3Y13.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, V is not a good candidate for dividend investing.
V's Dividend Yield is comparable with the industry average which is at 3.84.
With a Dividend Yield of 0.72, V pays less dividend than the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
5.2 History
On average, the dividend of V grows each year by 15.23%, 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)15.23%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
V pays out 21.67% 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.
DP21.67%
EPS Next 2Y13.29%
EPS Next 3Y13.28%
VISA INC-CLASS A SHARES
NYSE:V (1/28/2025, 8:10:06 PM)
After market: 334.6 +0.12 (+0.04%)334.48
-0.06 (-0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners93.06%
Inst Owner Change-0.9%
Ins Owners0.04%
Ins Owner Change-0.86%
Market Cap655.93B
Analysts82.08
Price Target337.65 (0.95%)
Short Float %1.76%
Short Ratio4.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend2.11
Dividend Growth(5Y)15.23%
DP21.67%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.53%
Min EPS beat(2)-1.88%
Max EPS beat(2)2.94%
EPS beat(4)3
Avg EPS beat(4)0.8%
Min EPS beat(4)-1.88%
Max EPS beat(4)2.94%
EPS beat(8)7
Avg EPS beat(8)1.83%
EPS beat(12)11
Avg EPS beat(12)3.18%
EPS beat(16)15
Avg EPS beat(16)4.05%
Revenue beat(2)0
Avg Revenue beat(2)-1.42%
Min Revenue beat(2)-2.17%
Max Revenue beat(2)-0.67%
Revenue beat(4)0
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)-0.27%
Revenue beat(8)2
Avg Revenue beat(8)-0.63%
Revenue beat(12)6
Avg Revenue beat(12)0.17%
Revenue beat(16)9
Avg Revenue beat(16)0.31%
PT rev (1m)1.5%
PT rev (3m)7.55%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.04%
EPS NY rev (1m)0%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.21%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.28 | ||
| Fwd PE | 29.27 | ||
| P/S | 18.26 | ||
| P/FCF | 35.09 | ||
| P/OCF | 32.88 | ||
| P/B | 16.76 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.24 |
EPS(TTM)10.05
EY3%
EPS(NY)11.43
Fwd EY3.42%
FCF(TTM)9.53
FCFY2.85%
OCF(TTM)10.17
OCFY3.04%
SpS18.32
BVpS19.96
TBVpS-3.41
PEG (NY)2.43
PEG (5Y)2.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.59% | ||
| ROE | 49.72% | ||
| ROCE | 35.38% | ||
| ROIC | 29.13% | ||
| ROICexc | 37.5% | ||
| ROICexgc | 283.39% | ||
| OM | 66.96% | ||
| PM (TTM) | 54.16% | ||
| GM | 80.4% | ||
| FCFM | 52.03% |
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 Turnover0.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 121.57% | ||
| Cap/Sales | 3.5% | ||
| Interest Coverage | 41.26 | ||
| Cash Conversion | 79.51% | ||
| Profit Quality | 96.07% | ||
| Current Ratio | 1.28 | ||
| Quick Ratio | 1.28 | ||
| Altman-Z | 8.68 |
F-Score8
WACC8.96%
ROIC/WACC3.25
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)14.73%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%16.31%
EPS Next Y13.7%
EPS Next 2Y13.29%
EPS Next 3Y13.28%
EPS Next 5Y13.53%
Revenue 1Y (TTM)10.02%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%11.71%
Revenue Next Year9.65%
Revenue Next 2Y9.93%
Revenue Next 3Y9.83%
Revenue Next 5Y10.65%
EBIT growth 1Y9.71%
EBIT growth 3Y15.03%
EBIT growth 5Y9.33%
EBIT Next Year15.43%
EBIT Next 3Y11.81%
EBIT Next 5Y10.74%
FCF growth 1Y-5.09%
FCF growth 3Y8.78%
FCF growth 5Y9.22%
OCF growth 1Y-3.88%
OCF growth 3Y9.42%
OCF growth 5Y9.31%