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 99 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. These ratings could make V a good candidate 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.
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
With an excellent Return On Assets value of 20.59%, V belongs to the best of the industry, outperforming 97.98% of the companies in the same industry.
With an excellent Return On Equity value of 49.72%, V belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
The Return On Invested Capital of V (29.13%) is better than 97.98% 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 7.84%.
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
Looking at the Profit Margin, with a value of 54.16%, V belongs to the top of the industry, outperforming 92.93% of the companies in the same industry.
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 90.91% of its industry peers.
V's Operating Margin has been stable in the last couple of years.
The Gross Margin of V (80.40%) is better than 87.88% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), V is creating value.
Compared to 1 year ago, V has less shares outstanding
Compared to 5 years ago, V has less shares outstanding
Compared to 1 year ago, V has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.38 indicates that V is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 8.38, V belongs to the top of the industry, outperforming 91.92% of the companies in the same industry.
V has a debt to FCF ratio of 1.11. This is a very positive value and a sign of high solvency as it would only need 1.11 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.11, V is in the better half of the industry, outperforming 79.80% of the companies in the same industry.
A Debt/Equity ratio of 0.53 indicates that 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 | 8.38 |
ROIC/WACC3.23
WACC9.01%
2.3 Liquidity
A Current Ratio of 1.28 indicates that V should not have too much problems paying its short term obligations.
The Current ratio of V (1.28) is better than 60.61% 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 has a Quick ratio of 1.28. This is in the better half of the industry: V outperforms 61.62% of its industry peers.
| 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.
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.
V shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.02%.
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
The Earnings Per Share is expected to grow by 15.24% on average over the next years. This is quite good.
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 5Y15.24%
Revenue Next Year9.77%
Revenue Next 2Y9.96%
Revenue Next 3Y9.93%
Revenue Next 5Y10.65%
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
With a Price/Earnings ratio of 31.91, V can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of V indicates a slightly more expensive valuation: V is more expensive than 64.65% of the companies listed in the same industry.
V is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.54, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 28.06 indicates a quite expensive valuation of V.
Based on the Price/Forward Earnings ratio, V is valued a bit more expensive than the industry average as 72.73% of the companies are valued more cheaply.
V's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.91 | ||
| Fwd PE | 28.06 |
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.
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 | 33.64 | ||
| EV/EBITDA | 25.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 13.28% in the coming years.
PEG (NY)2.33
PEG (5Y)2.45
EPS Next 2Y13.29%
EPS Next 3Y13.28%
5. Dividend
5.1 Amount
With a yearly dividend of 0.75%, V is not a good candidate for dividend investing.
V's Dividend Yield is comparable with the industry average which is at 3.79.
With a Dividend Yield of 0.75, V pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
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.
The dividend of V decreased recently.
Dividend Growth(5Y)15.23%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
21.67% of the earnings are spent on dividend by V. This is a low number and sustainable payout ratio.
V's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP21.67%
EPS Next 2Y13.29%
EPS Next 3Y13.28%
VISA INC-CLASS A SHARES
NYSE:V (12/24/2024, 7:43:42 PM)
After market: 320.65 0 (0%)320.65
+3.43 (+1.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners93.06%
Inst Owner Change0.19%
Ins Owners0.04%
Ins Owner Change-0.84%
Market Cap628.80B
Analysts81.67
Price Target332.66 (3.75%)
Short Float %1.36%
Short Ratio4.08
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.75% |
Dividend Growth(5Y)15.23%
DP21.67%
Div Incr Years1
Div Non Decr Years1
Ex-Date
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)5.02%
PT rev (3m)7.27%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.04%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.21%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.91 | ||
| Fwd PE | 28.06 | ||
| P/S | 17.5 | ||
| P/FCF | 33.64 | ||
| P/OCF | 31.52 | ||
| P/B | 16.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.16 |
EPS(TTM)10.05
EY3.13%
EPS(NY)11.43
Fwd EY3.56%
FCF(TTM)9.53
FCFY2.97%
OCF(TTM)10.17
OCFY3.17%
SpS18.32
BVpS19.96
TBVpS-3.41
PEG (NY)2.33
PEG (5Y)2.45
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 | 8.38 |
F-Score8
WACC9.01%
ROIC/WACC3.23
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 5Y15.24%
Revenue 1Y (TTM)10.02%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%11.71%
Revenue Next Year9.77%
Revenue Next 2Y9.96%
Revenue Next 3Y9.93%
Revenue Next 5Y10.65%
EBIT growth 1Y9.71%
EBIT growth 3Y15.03%
EBIT growth 5Y9.33%
EBIT Next Year15.33%
EBIT Next 3Y11.9%
EBIT Next 5Y12.24%
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%