VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
USA - NYSE:V - US92826C8394 - Common Stock
338.88 USD
-0.04 (-0.01%)
338.75 USD
-0.13 (-0.04%)
Taking everything into account, V scores 7 out of 10 in our fundamental rating. V was compared to 97 industry peers in the Financial Services industry. V gets an excellent profitability rating and is at the same time showing great financial health properties. 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.
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 97.94% of its industry peers.
V has a better Return On Equity (52.50%) than 96.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 34.02%, V belongs to the top of the industry, outperforming 97.94% of the companies in the same industry.
V had an Average Return On Invested Capital over the past 3 years of 30.07%. This is significantly above the industry average of 8.15%.
The last Return On Invested Capital (34.02%) for V is above the 3 year average (30.07%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 49.76%, V belongs to the top of the industry, outperforming 90.72% of the companies in the same industry.
V's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 66.39%, V belongs to the top of the industry, outperforming 88.66% 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.
V has a Gross Margin of 80.36%. This is amongst the best in the industry. V outperforms 84.54% of its industry peers.
V's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 1 year ago, V has less shares outstanding
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
An Altman-Z score of 7.87 indicates that V is not in any danger for bankruptcy at the moment.
V's Altman-Z score of 7.87 is amongst the best of the industry. V outperforms 90.72% 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.
With an excellent Debt to FCF ratio value of 1.17, V belongs to the best of the industry, outperforming 80.41% of the companies in the same industry.
A Debt/Equity ratio of 0.52 indicates that V is somewhat dependend on debt financing.
V has a Debt to Equity ratio of 0.52. This is comparable to the rest of the industry: V outperforms 57.73% of 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 | 0.52 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | 7.87 |
ROIC/WACC3.98
WACC8.54%
2.3 Liquidity
A Current Ratio of 1.08 indicates that V should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, V is in line with its industry, outperforming 52.58% of the companies in the same industry.
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 52.58% 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.
The Earnings Per Share has been growing by 17.92% on average over the past years. This is quite good.
The Revenue has grown by 11.34% in the past year. This is quite good.
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.
V is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.26% yearly.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 29.54, V can be considered very expensive at the moment.
Based on the Price/Earnings ratio, V is valued a bit more expensive than 67.01% of the companies in the same industry.
When comparing the Price/Earnings ratio of V to the average of the S&P500 Index (26.34), we can say V is valued inline with the index average.
A Price/Forward Earnings ratio of 25.98 indicates a quite expensive valuation of V.
V's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. V is more expensive than 70.10% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of V to the average of the S&P500 Index (34.43), we can say V is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.54 | ||
| Fwd PE | 25.98 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as V.
The rest of the industry has a similar Price/Free Cash Flow ratio as V.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.26 | ||
| EV/EBITDA | 23.66 |
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.
V's earnings are expected to grow with 12.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.15
PEG (5Y)1.65
EPS Next 2Y13.27%
EPS Next 3Y12.96%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, V is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.47, V has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, V's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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
23.28% of the earnings are spent on dividend by V. This is a low number and 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%
338.88
-0.04 (-0.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change-1.24%
Ins Owners0.04%
Ins Owner Change0.66%
Market Cap652.89B
Revenue(TTM)40.00B
Net Income(TTM)19.90B
Analysts81.7
Price Target401.6 (18.51%)
Short Float %1.57%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
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)0.6%
PT rev (3m)0.56%
EPS NQ rev (1m)1.56%
EPS NQ rev (3m)1.58%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)0.96%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.54 | ||
| Fwd PE | 25.98 | ||
| P/S | 16.32 | ||
| P/FCF | 30.26 | ||
| P/OCF | 28.31 | ||
| P/B | 17.22 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.66 |
EPS(TTM)11.47
EY3.38%
EPS(NY)13.05
Fwd EY3.85%
FCF(TTM)11.2
FCFY3.3%
OCF(TTM)11.97
OCFY3.53%
SpS20.76
BVpS19.68
TBVpS-4.99
PEG (NY)2.15
PEG (5Y)1.65
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 | 7.87 |
F-Score6
WACC8.54%
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)106.53%
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 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 29.54 and the Price/Book (PB) ratio is 17.22.
How financially healthy is VISA INC-CLASS A SHARES?
The financial health rating of VISA INC-CLASS A SHARES (V) is 9 / 10.