VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
USA - NYSE:V - US92826C8394 - Common Stock
340.03 USD
+0.98 (+0.29%)
340 USD
-0.03 (-0.01%)
V gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. V scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
In the past year V was profitable.
In the past year V had a positive cash flow from operations.
In the past 5 years V has always been profitable.
Each year in the past 5 years V had a positive operating cash flow.
1.2 Ratios
V's Return On Assets of 20.06% is amongst the best of the industry. V outperforms 98.02% of its industry peers.
Looking at the Return On Equity, with a value of 51.89%, V belongs to the top of the industry, outperforming 97.03% of the companies in the same industry.
V's Return On Invested Capital of 32.46% is amongst the best of the industry. V outperforms 97.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for V is significantly above the industry average of 7.64%.
The last Return On Invested Capital (32.46%) for V is above the 3 year average (27.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.06% | ||
| ROE | 51.89% | ||
| ROIC | 32.46% |
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 51.58%, V belongs to the top of the industry, outperforming 92.08% of the companies in the same industry.
V's Profit Margin has been stable in the last couple of years.
V has a better Operating Margin (66.50%) than 91.09% of its industry peers.
In the last couple of years the Operating Margin of V has remained more or less at the same level.
Looking at the Gross Margin, with a value of 80.23%, V belongs to the top of the industry, outperforming 85.15% of the companies in the same industry.
V's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 66.5% | ||
| PM (TTM) | 51.58% | ||
| GM | 80.23% |
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.
The number of shares outstanding for V has been reduced compared to 1 year ago.
V has less shares outstanding than it did 5 years ago.
The debt/assets ratio for V has been reduced compared to a year ago.
2.2 Solvency
V has an Altman-Z score of 7.90. This indicates that V is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.90, V belongs to the top of the industry, outperforming 91.09% of the companies in the same industry.
V has a debt to FCF ratio of 1.14. This is a very positive value and a sign of high solvency as it would only need 1.14 years to pay back of all of its debts.
V has a Debt to FCF ratio of 1.14. This is amongst the best in the industry. V outperforms 81.19% of its industry peers.
V has a Debt/Equity ratio of 0.51. This is a neutral value indicating V is somewhat dependend on debt financing.
V has a Debt to Equity ratio (0.51) 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 | 0.51 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 7.9 |
ROIC/WACC3.82
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.12 indicates that V should not have too much problems paying its short term obligations.
V's Current ratio of 1.12 is in line compared to the rest of the industry. V outperforms 55.45% of its industry peers.
A Quick Ratio of 1.12 indicates that V should not have too much problems paying its short term obligations.
V has a Quick ratio (1.12) which is comparable to the rest of the industry.
The current and quick ratio evaluation for V is rather negative, while it does have 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 | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
V shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.82%, which is quite good.
The Earnings Per Share has been growing by 13.02% 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 11.38% in the last year.
The Revenue has been growing by 9.35% on average over the past years. This is quite good.
EPS 1Y (TTM)15.82%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%23.14%
Revenue 1Y (TTM)11.38%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%14.29%
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.
Based on estimates for the next years, V will show a quite strong growth in Revenue. The Revenue will grow by 10.28% on average per year.
EPS Next Y16.1%
EPS Next 2Y14.18%
EPS Next 3Y13.78%
EPS Next 5Y13.72%
Revenue Next Year11.11%
Revenue Next 2Y10.89%
Revenue Next 3Y10.58%
Revenue Next 5Y10.28%
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
The Price/Earnings ratio is 30.36, 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 66.34% of the companies in the same industry.
V's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.20.
Based on the Price/Forward Earnings ratio of 25.95, 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 69.31% of the companies in the same industry.
V's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 25.95 |
4.2 Price Multiples
V's Enterprise Value to EBITDA ratio is in line with 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 | 29.67 | ||
| EV/EBITDA | 24.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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 13.78% in the coming years.
PEG (NY)1.89
PEG (5Y)2.33
EPS Next 2Y14.18%
EPS Next 3Y13.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, V is not a good candidate for dividend investing.
V's Dividend Yield is comparable with the industry average which is at 4.86.
Compared to an average S&P500 Dividend Yield of 2.38, V's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
The dividend of V is nicely growing with an annual growth rate of 15.24%!
V has paid a dividend for at least 10 years, which is a reliable track record.
The dividend of V decreased recently.
Dividend Growth(5Y)15.24%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
V pays out 22.58% 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.
DP22.58%
EPS Next 2Y14.18%
EPS Next 3Y13.78%
340.03
+0.98 (+0.29%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.96%
Inst Owner Change-2.27%
Ins Owners0.04%
Ins Owner Change0.68%
Market Cap655.10B
Analysts80.91
Price Target400.6 (17.81%)
Short Float %1.54%
Short Ratio4.51
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend2.12
Dividend Growth(5Y)15.24%
DP22.58%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.8%
Min EPS beat(2)0.92%
Max EPS beat(2)2.69%
EPS beat(4)4
Avg EPS beat(4)1.97%
Min EPS beat(4)0.92%
Max EPS beat(4)2.94%
EPS beat(8)7
Avg EPS beat(8)1.24%
EPS beat(12)11
Avg EPS beat(12)1.75%
EPS beat(16)15
Avg EPS beat(16)2.88%
Revenue beat(2)1
Avg Revenue beat(2)-0.09%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)1.32%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-1.51%
Max Revenue beat(4)1.32%
Revenue beat(8)1
Avg Revenue beat(8)-0.72%
Revenue beat(12)4
Avg Revenue beat(12)-0.36%
Revenue beat(16)7
Avg Revenue beat(16)0.01%
PT rev (1m)0.31%
PT rev (3m)3.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.82%
EPS NY rev (1m)0.96%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0.73%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.36 | ||
| Fwd PE | 25.95 | ||
| P/S | 16.84 | ||
| P/FCF | 29.67 | ||
| P/OCF | 27.89 | ||
| P/B | 16.94 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.3 |
EPS(TTM)11.2
EY3.29%
EPS(NY)13.1
Fwd EY3.85%
FCF(TTM)11.46
FCFY3.37%
OCF(TTM)12.19
OCFY3.58%
SpS20.19
BVpS20.07
TBVpS-4.61
PEG (NY)1.89
PEG (5Y)2.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.06% | ||
| ROE | 51.89% | ||
| ROCE | 39.43% | ||
| ROIC | 32.46% | ||
| ROICexc | 45.87% | ||
| ROICexgc | N/A | ||
| OM | 66.5% | ||
| PM (TTM) | 51.58% | ||
| GM | 80.23% | ||
| FCFM | 56.78% |
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-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.14 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 119.02% | ||
| Cap/Sales | 3.6% | ||
| Interest Coverage | 43.99 | ||
| Cash Conversion | 86.85% | ||
| Profit Quality | 110.08% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 7.9 |
F-Score7
WACC8.5%
ROIC/WACC3.82
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)15.82%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%23.14%
EPS Next Y16.1%
EPS Next 2Y14.18%
EPS Next 3Y13.78%
EPS Next 5Y13.72%
Revenue 1Y (TTM)11.38%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%14.29%
Revenue Next Year11.11%
Revenue Next 2Y10.89%
Revenue Next 3Y10.58%
Revenue Next 5Y10.28%
EBIT growth 1Y10.64%
EBIT growth 3Y15.03%
EBIT growth 5Y9.33%
EBIT Next Year15.6%
EBIT Next 3Y12.56%
EBIT Next 5Y11.53%
FCF growth 1Y18.38%
FCF growth 3Y8.78%
FCF growth 5Y9.22%
OCF growth 1Y19.19%
OCF growth 3Y9.42%
OCF growth 5Y9.31%