VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
NYSE:V - New York Stock Exchange, Inc. - US92826C8394 - Common Stock - Currency: USD
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 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. V is quite expensive at the moment. It does show a decent growth rate. With these ratings, V could be worth investigating further for 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.
V had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of V (21.44%) is better than 98.02% of its industry peers.
V has a better Return On Equity (51.45%) than 97.03% of its industry peers.
Looking at the Return On Invested Capital, with a value of 31.95%, V belongs to the top of the industry, outperforming 99.01% of the companies in the same industry.
V had an Average Return On Invested Capital over the past 3 years of 27.02%. This is significantly above the industry average of 7.57%.
The last Return On Invested Capital (31.95%) for V is above the 3 year average (27.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.44% | ||
| ROE | 51.45% | ||
| ROIC | 31.95% |
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
V has a Profit Margin of 53.54%. This is amongst the best in the industry. V outperforms 93.07% 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 has a Operating Margin of 66.22%. This is amongst the best in the industry. V outperforms 91.09% of its industry peers.
V's Operating Margin has been stable in the last couple of years.
V has a Gross Margin of 79.89%. This is amongst the best in the industry. V outperforms 88.12% 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 | 66.22% | ||
| PM (TTM) | 53.54% | ||
| GM | 79.89% |
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
V has a better debt/assets ratio than last year.
2.2 Solvency
V has an Altman-Z score of 9.50. 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 9.50, V belongs to the top of the industry, outperforming 93.07% of the companies in the same industry.
The Debt to FCF ratio of V is 1.01, which is an excellent value as it means it would take V, only 1.01 years of fcf income to pay off all of its debts.
V has a better Debt to FCF ratio (1.01) than 84.16% of its industry peers.
V has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of V (0.44) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 9.5 |
ROIC/WACC2.06
WACC15.5%
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.
The Current ratio of V (1.12) is comparable to the rest of the industry.
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 in line with its industry peers.
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
The Earnings Per Share has grown by an nice 15.57% over the past year.
V shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.02% yearly.
Looking at the last year, V shows a quite strong growth in Revenue. The Revenue has grown by 10.35% 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)15.57%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%14.11%
Revenue 1Y (TTM)10.35%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%10.15%
3.2 Future
The Earnings Per Share is expected to grow by 13.53% 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 Y14.68%
EPS Next 2Y13.77%
EPS Next 3Y13.47%
EPS Next 5Y13.53%
Revenue Next Year10.37%
Revenue Next 2Y10.39%
Revenue Next 3Y11.01%
Revenue Next 5Y10.65%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
V is valuated quite expensively with a Price/Earnings ratio of 34.82.
Based on the Price/Earnings ratio, V is valued a bit more expensive than 70.30% of the companies in the same industry.
When comparing the Price/Earnings ratio of V to the average of the S&P500 Index (29.75), we can say V is valued inline with the index average.
A Price/Forward Earnings ratio of 27.81 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 73.27% of the companies are valued more cheaply.
V's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.82 | ||
| Fwd PE | 27.81 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as V.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.65 | ||
| EV/EBITDA | 27.95 |
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.
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 13.47% in the coming years.
PEG (NY)2.37
PEG (5Y)2.67
EPS Next 2Y13.77%
EPS Next 3Y13.47%
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, V is not a good candidate for dividend investing.
V's Dividend Yield is comparable with the industry average which is at 3.88.
With a Dividend Yield of 0.66, V pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
On average, the dividend of V grows each year by 15.24%, which is quite nice.
V has paid a dividend for at least 10 years, which is a reliable track record.
V has decreased its dividend recently.
Dividend Growth(5Y)15.24%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
V pays out 21.96% 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.
DP21.96%
EPS Next 2Y13.77%
EPS Next 3Y13.47%
361.82
-0.89 (-0.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners89.97%
Inst Owner Change-0.02%
Ins Owners0.04%
Ins Owner Change-1.52%
Market Cap706.84B
Analysts82.13
Price Target382.45 (5.7%)
Short Float %1.36%
Short Ratio3.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend2.12
Dividend Growth(5Y)15.24%
DP21.96%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.14%
Min EPS beat(2)1.33%
Max EPS beat(2)2.94%
EPS beat(4)3
Avg EPS beat(4)0.85%
Min EPS beat(4)-1.88%
Max EPS beat(4)2.94%
EPS beat(8)7
Avg EPS beat(8)1.2%
EPS beat(12)11
Avg EPS beat(12)2.94%
EPS beat(16)15
Avg EPS beat(16)3.57%
Revenue beat(2)0
Avg Revenue beat(2)-0.43%
Min Revenue beat(2)-0.67%
Max Revenue beat(2)-0.19%
Revenue beat(4)0
Avg Revenue beat(4)-0.82%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)-0.19%
Revenue beat(8)1
Avg Revenue beat(8)-0.79%
Revenue beat(12)5
Avg Revenue beat(12)0%
Revenue beat(16)8
Avg Revenue beat(16)0.24%
PT rev (1m)9.36%
PT rev (3m)15.96%
EPS NQ rev (1m)0.11%
EPS NQ rev (3m)-0.24%
EPS NY rev (1m)1.04%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0.65%
Revenue NY rev (3m)0.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.82 | ||
| Fwd PE | 27.81 | ||
| P/S | 19.21 | ||
| P/FCF | 34.65 | ||
| P/OCF | 32.53 | ||
| P/B | 18.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.95 |
EPS(TTM)10.39
EY2.87%
EPS(NY)13.01
Fwd EY3.6%
FCF(TTM)10.44
FCFY2.89%
OCF(TTM)11.12
OCFY3.07%
SpS18.84
BVpS19.6
TBVpS-3.66
PEG (NY)2.37
PEG (5Y)2.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.44% | ||
| ROE | 51.45% | ||
| ROCE | 38.81% | ||
| ROIC | 31.95% | ||
| ROICexc | 41.4% | ||
| ROICexgc | 663.1% | ||
| OM | 66.22% | ||
| PM (TTM) | 53.54% | ||
| GM | 79.89% | ||
| FCFM | 55.42% |
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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.66 | ||
| Cap/Depr | 124.88% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 41.8 | ||
| Cash Conversion | 85.42% | ||
| Profit Quality | 103.51% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 9.5 |
F-Score8
WACC15.5%
ROIC/WACC2.06
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)15.57%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%14.11%
EPS Next Y14.68%
EPS Next 2Y13.77%
EPS Next 3Y13.47%
EPS Next 5Y13.53%
Revenue 1Y (TTM)10.35%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%10.15%
Revenue Next Year10.37%
Revenue Next 2Y10.39%
Revenue Next 3Y11.01%
Revenue Next 5Y10.65%
EBIT growth 1Y8.52%
EBIT growth 3Y15.03%
EBIT growth 5Y9.33%
EBIT Next Year15.79%
EBIT Next 3Y12.19%
EBIT Next 5Y10.74%
FCF growth 1Y14.96%
FCF growth 3Y8.78%
FCF growth 5Y9.22%
OCF growth 1Y15.67%
OCF growth 3Y9.42%
OCF growth 5Y9.31%