VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
USA - NYSE:V - US92826C8394 - Common Stock
347.21 USD
+2.8 (+0.81%)
347.9 USD
+0.69 (+0.2%)
We assign a fundamental rating of 7 out of 10 to V. V was compared to 99 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 shows excellent growth, but is valued quite expensive already. These ratings would make V suitable for growth and 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.
Each year in the past 5 years V has been profitable.
In the past 5 years V always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of V (20.06%) is better than 97.98% of its industry peers.
V's Return On Equity of 51.89% is amongst the best of the industry. V outperforms 96.97% of its industry peers.
The Return On Invested Capital of V (32.46%) is better than 96.97% of its industry peers.
V had an Average Return On Invested Capital over the past 3 years of 27.02%. This is significantly above the industry average of 7.79%.
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 92.93% of the companies in the same industry.
V's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 66.50%, V belongs to the best of the industry, outperforming 90.91% 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.
With an excellent Gross Margin value of 80.23%, V belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
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 | 66.5% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so V is creating value.
V has less shares outstanding than it did 1 year ago.
V has less shares outstanding than it did 5 years ago.
V has a better debt/assets ratio than last year.
2.2 Solvency
V has an Altman-Z score of 8.05. This indicates that V is financially healthy and has little risk of bankruptcy at the moment.
V's Altman-Z score of 8.05 is amongst the best of the industry. V outperforms 91.92% of its industry peers.
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.
The Debt to FCF ratio of V (1.14) is better than 79.80% of its industry peers.
A Debt/Equity ratio of 0.51 indicates that V is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, V perfoms like the industry average, outperforming 57.58% 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 | 0.51 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 8.05 |
ROIC/WACC3.84
WACC8.45%
2.3 Liquidity
V has a Current Ratio of 1.12. 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 Current ratio value of 1.12, V perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
A Quick Ratio of 1.12 indicates that V should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, V is in line with its industry, outperforming 54.55% 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 | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.82% 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 11.38%.
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
Based on estimates for the next years, V will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.72% on average per year.
The Revenue is expected to grow by 12.13% on average over the next years. This is quite good.
EPS Next Y16.08%
EPS Next 2Y14.14%
EPS Next 3Y13.69%
EPS Next 5Y13.72%
Revenue Next Year11.12%
Revenue Next 2Y10.91%
Revenue Next 3Y10.62%
Revenue Next 5Y12.13%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
V is valuated quite expensively with a Price/Earnings ratio of 31.00.
V's Price/Earnings ratio is a bit more expensive when compared to the industry. V is more expensive than 63.64% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.77, V is valued at the same level.
Based on the Price/Forward Earnings ratio of 26.52, the valuation of V can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of V indicates a slightly more expensive valuation: V is more expensive than 70.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, V is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31 | ||
| Fwd PE | 26.52 |
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 | 30.29 | ||
| EV/EBITDA | 24.88 |
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.
A more expensive valuation may be justified as V's earnings are expected to grow with 13.69% in the coming years.
PEG (NY)1.93
PEG (5Y)2.38
EPS Next 2Y14.14%
EPS Next 3Y13.69%
5. Dividend
5.1 Amount
V has a yearly dividend return of 0.70%, which is pretty low.
Compared to an average industry Dividend Yield of 5.15, 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 | 0.7% |
5.2 History
On average, the dividend of V grows each year by 15.24%, 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)15.24%
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 2Y14.14%
EPS Next 3Y13.69%
347.21
+2.8 (+0.81%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change0.02%
Ins Owners0.04%
Ins Owner Change0.72%
Market Cap668.93B
Analysts80.89
Price Target399.2 (14.97%)
Short Float %1.58%
Short Ratio4.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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)-0.35%
PT rev (3m)1.99%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)0%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.21%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31 | ||
| Fwd PE | 26.52 | ||
| P/S | 17.2 | ||
| P/FCF | 30.29 | ||
| P/OCF | 28.48 | ||
| P/B | 17.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.88 |
EPS(TTM)11.2
EY3.23%
EPS(NY)13.09
Fwd EY3.77%
FCF(TTM)11.46
FCFY3.3%
OCF(TTM)12.19
OCFY3.51%
SpS20.19
BVpS20.07
TBVpS-4.61
PEG (NY)1.93
PEG (5Y)2.38
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 | 8.05 |
F-Score7
WACC8.45%
ROIC/WACC3.84
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 Y16.08%
EPS Next 2Y14.14%
EPS Next 3Y13.69%
EPS Next 5Y13.72%
Revenue 1Y (TTM)11.38%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%14.29%
Revenue Next Year11.12%
Revenue Next 2Y10.91%
Revenue Next 3Y10.62%
Revenue Next 5Y12.13%
EBIT growth 1Y10.64%
EBIT growth 3Y15.03%
EBIT growth 5Y9.33%
EBIT Next Year15.96%
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%