VISA INC-CLASS A SHARES (V)
US92826C8394 - Common Stock
V gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 102 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
In the past year V was profitable.
In the past year V had a positive cash flow from operations.
V had positive earnings in each of the past 5 years.
Each year in the past 5 years V had a positive operating cash flow.
1.2 Ratios
V has a Return On Assets of 19.60%. This is amongst the best in the industry. V outperforms 99.02% of its industry peers.
The Return On Equity of V (44.73%) is better than 97.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 27.34%, V belongs to the top of the industry, outperforming 97.06% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for V is significantly above the industry average of 8.07%.
The 3 year average ROIC (23.76%) for V is below the current ROIC(27.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.6% | ||
| ROE | 44.73% | ||
| ROIC | 27.34% |
ROA(3y)16.79%
ROA(5y)15.87%
ROE(3y)38.97%
ROE(5y)35.89%
ROIC(3y)23.76%
ROIC(5y)22.03%
1.3 Margins
V has a Profit Margin of 53.04%. This is amongst the best in the industry. V outperforms 93.14% of its industry peers.
V's Profit Margin has improved in the last couple of years.
V has a Operating Margin of 67.10%. This is amongst the best in the industry. V outperforms 91.18% of its industry peers.
V's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 80.05%, V belongs to the top of the industry, outperforming 87.25% 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 | 67.1% | ||
| PM (TTM) | 53.04% | ||
| GM | 80.05% |
OM growth 3Y1.35%
OM growth 5Y0.41%
PM growth 3Y2.76%
PM growth 5Y1.52%
GM growth 3Y0.23%
GM growth 5Y-0.35%
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.
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.
Compared to 1 year ago, V has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 8.01 indicates that V is not in any danger for bankruptcy at the moment.
V has a Altman-Z score of 8.01. This is amongst the best in the industry. V outperforms 94.12% of its industry peers.
The Debt to FCF ratio of V is 1.04, which is an excellent value as it means it would take V, only 1.04 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.04, V belongs to the top of the industry, outperforming 84.31% of the companies in the same industry.
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 53.92% 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 | 1.04 | ||
| Altman-Z | 8.01 |
ROIC/WACC3.09
WACC8.86%
2.3 Liquidity
V has a Current Ratio of 1.40. 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 better Current ratio (1.40) than 62.75% of its industry peers.
V has a Quick Ratio of 1.40. 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 decent Quick ratio value of 1.40, V is doing good in the industry, outperforming 65.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.04% 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 13.75% on average per year.
Looking at the last year, V shows a quite strong growth in Revenue. The Revenue has grown by 10.19% in the last year.
The Revenue has been growing by 9.64% on average over the past years. This is quite good.
EPS 1Y (TTM)15.04%
EPS 3Y20.31%
EPS 5Y13.75%
EPS growth Q2Q20.1%
Revenue 1Y (TTM)10.19%
Revenue growth 3Y14.34%
Revenue growth 5Y9.64%
Revenue growth Q2Q9.89%
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 14.69% yearly.
Based on estimates for the next years, V will show a quite strong growth in Revenue. The Revenue will grow by 9.47% on average per year.
EPS Next Y15.43%
EPS Next 2Y13.93%
EPS Next 3Y14.12%
EPS Next 5Y14.69%
Revenue Next Year9.93%
Revenue Next 2Y10.16%
Revenue Next 3Y10.43%
Revenue Next 5Y9.47%
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.
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
With a Price/Earnings ratio of 29.46, V can be considered very expensive at the moment.
V's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of V to the average of the S&P500 Index (28.05), we can say V is valued inline with the index average.
A Price/Forward Earnings ratio of 24.38 indicates a rather expensive valuation of V.
Based on the Price/Forward Earnings ratio, V is valued a bit more expensive than the industry average as 63.73% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 20.30. V is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.46 | ||
| Fwd PE | 24.38 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as V.
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 | 28.12 | ||
| EV/EBITDA | 23.15 |
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 14.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.91
PEG (5Y)2.14
EPS Next 2Y13.93%
EPS Next 3Y14.12%
5. Dividend
5.1 Amount
V has a yearly dividend return of 0.78%, which is pretty low.
Compared to an average industry Dividend Yield of 3.54, V has a dividend in line with its industry peers.
With a Dividend Yield of 0.78, V pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
5.2 History
On average, the dividend of V grows each year by 16.40%, which is quite nice.
V has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)16.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
22.01% 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.
DP22.01%
EPS Next 2Y13.93%
EPS Next 3Y14.12%
VISA INC-CLASS A SHARES
NYSE:V (5/8/2024, 7:24:53 PM)
After market: 277.23 +0.04 (+0.01%)277.19
+0.73 (+0.26%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap554.66B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.78% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.46 | ||
| Fwd PE | 24.38 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.91
PEG (5Y)2.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.6% | ||
| ROE | 44.73% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 67.1% | ||
| PM (TTM) | 53.04% | ||
| GM | 80.05% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.37
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.4 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.04%
EPS 3Y20.31%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.19%
Revenue growth 3Y14.34%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y