VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:V - US92826C8394 - Common Stock
331.24 USD
+4.14 (+1.27%)
331.2 USD
-0.04 (-0.01%)
Taking everything into account, V scores 7 out of 10 in our fundamental rating. 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. 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.
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 19.93% is amongst the best of the industry. V outperforms 96.94% of its industry peers.
The Return On Equity of V (52.38%) is better than 95.92% 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.
Measured over the past 3 years, the Average Return On Invested Capital for V is significantly above the industry average of 8.20%.
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 | 19.93% | ||
| ROE | 52.38% | ||
| ROIC | 34.02% |
ROA(3y)19.76%
ROA(5y)18.18%
ROE(3y)48.65%
ROE(5y)43.8%
ROIC(3y)30.07%
ROIC(5y)26.99%
1.3 Margins
The Profit Margin of V (49.64%) is better than 89.80% of its industry peers.
In the last couple of years the Profit Margin of V has remained more or less at the same level.
V's Operating Margin of 66.39% is amongst the best of the industry. V outperforms 89.80% 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's Gross Margin of 80.36% is amongst the best of the industry. V outperforms 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) | 49.64% | ||
| GM | 80.36% |
OM growth 3Y-0.48%
OM growth 5Y0.58%
PM growth 3Y-0.19%
PM growth 5Y0.69%
GM growth 3Y-0.07%
GM growth 5Y0.25%
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.
Compared to 5 years ago, V has less shares outstanding
Compared to 1 year ago, V has a worse debt to assets ratio.
2.2 Solvency
V has an Altman-Z score of 7.69. This indicates that V is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.69, V belongs to the best of the industry, outperforming 90.82% of the companies in the same industry.
The Debt to FCF ratio of V is 1.17, which is an excellent value as it means it would take V, only 1.17 years of fcf income to pay off all of its debts.
V's Debt to FCF ratio of 1.17 is fine compared to the rest of the industry. V outperforms 77.55% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that V is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.52, V is in line with its industry, outperforming 56.12% of the companies in the same 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 | 7.69 |
ROIC/WACC3.98
WACC8.55%
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's Current ratio of 1.08 is in line compared 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.
V has a Quick ratio of 1.08. This is comparable to the rest of the industry: V outperforms 51.02% of its industry peers.
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
V shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.13%, which is quite good.
The Earnings Per Share has been growing by 17.92% on average over the past years. This is quite good.
V shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.34%.
Measured over the past years, V shows a quite strong growth in Revenue. The Revenue has been growing by 12.86% on average per year.
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 10.44% on average per year.
EPS Next Y13.74%
EPS Next 2Y13.3%
EPS Next 3Y12.97%
EPS Next 5Y13.62%
Revenue Next Year11.47%
Revenue Next 2Y10.83%
Revenue Next 3Y10.44%
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
V is valuated quite expensively with a Price/Earnings ratio of 28.88.
V's Price/Earnings ratio is a bit more expensive when compared to the industry. V is more expensive than 68.37% 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 26.46, which is the current average of the S&P500 Index.
V is valuated quite expensively with a Price/Forward Earnings ratio of 25.39.
67.35% 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 36.10, V is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.88 | ||
| Fwd PE | 25.39 |
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 | 29.38 | ||
| EV/EBITDA | 22.98 |
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.
V's earnings are expected to grow with 12.97% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.1
PEG (5Y)1.61
EPS Next 2Y13.3%
EPS Next 3Y12.97%
5. Dividend
5.1 Amount
V has a yearly dividend return of 0.82%, which is pretty low.
Compared to an average industry Dividend Yield of 4.73, V has a dividend in line with its industry peers.
With a Dividend Yield of 0.82, V pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
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 23.34% 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.
DP23.34%
EPS Next 2Y13.3%
EPS Next 3Y12.97%
331.24
+4.14 (+1.27%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.45%
Inst Owner Change-0.93%
Ins Owners0.04%
Ins Owner Change1.82%
Market Cap634.03B
Revenue(TTM)40.00B
Net Income(TTM)19.86B
Analysts81.7
Price Target403.71 (21.88%)
Short Float %1.32%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
Yearly Dividend2.38
Dividend Growth(5Y)13.82%
DP23.34%
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)0.52%
PT rev (3m)0.93%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.55%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.44%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.88 | ||
| Fwd PE | 25.39 | ||
| P/S | 15.85 | ||
| P/FCF | 29.38 | ||
| P/OCF | 27.5 | ||
| P/B | 16.72 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.98 |
EPS(TTM)11.47
EY3.46%
EPS(NY)13.05
Fwd EY3.94%
FCF(TTM)11.27
FCFY3.4%
OCF(TTM)12.05
OCFY3.64%
SpS20.9
BVpS19.81
TBVpS-5.02
PEG (NY)2.1
PEG (5Y)1.61
Graham Number71.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.93% | ||
| ROE | 52.38% | ||
| ROCE | 41.12% | ||
| ROIC | 34.02% | ||
| ROICexc | 48.2% | ||
| ROICexgc | N/A | ||
| OM | 66.39% | ||
| PM (TTM) | 49.64% | ||
| GM | 80.36% | ||
| FCFM | 53.94% |
ROA(3y)19.76%
ROA(5y)18.18%
ROE(3y)48.65%
ROE(5y)43.8%
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 3Y-0.19%
PM growth 5Y0.69%
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 | 108.67% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 7.69 |
F-Score6
WACC8.55%
ROIC/WACC3.98
Cap/Depr(3y)118.45%
Cap/Depr(5y)111.14%
Cap/Sales(3y)3.48%
Cap/Sales(5y)3.34%
Profit Quality(3y)106.9%
Profit Quality(5y)112.77%
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 2Y13.3%
EPS Next 3Y12.97%
EPS Next 5Y13.62%
Revenue 1Y (TTM)11.34%
Revenue growth 3Y10.92%
Revenue growth 5Y12.86%
Sales Q2Q%11.51%
Revenue Next Year11.47%
Revenue Next 2Y10.83%
Revenue Next 3Y10.44%
Revenue Next 5YN/A
EBIT growth 1Y10.39%
EBIT growth 3Y10.39%
EBIT growth 5Y13.51%
EBIT Next Year15.79%
EBIT Next 3Y11.96%
EBIT Next 5Y11.45%
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 3 / 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 28.88 and the Price/Book (PB) ratio is 16.72.
How financially healthy is VISA INC-CLASS A SHARES?
The financial health rating of VISA INC-CLASS A SHARES (V) is 8 / 10.