VISA INC-CLASS A SHARES (3V64.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:3V64 - US92826C8394 - Common Stock
276.6 EUR
+1.8 (+0.66%)
We assign a fundamental rating of 7 out of 10 to 3V64. 3V64 was compared to 59 industry peers in the Financial Services industry. 3V64 has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 3V64 is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, 3V64 could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
- 3V64 had positive earnings in the past year.
- 3V64 had a positive operating cash flow in the past year.
- In the past 5 years 3V64 has always been profitable.
- Each year in the past 5 years 3V64 had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 19.93%, 3V64 belongs to the top of the industry, outperforming 96.61% of the companies in the same industry.
- With an excellent Return On Equity value of 52.38%, 3V64 belongs to the best of the industry, outperforming 94.92% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 34.02%, 3V64 belongs to the best of the industry, outperforming 96.61% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for 3V64 is significantly above the industry average of 10.02%.
- The last Return On Invested Capital (34.02%) for 3V64 is above the 3 year average (30.07%), which is a sign of increasing profitability.
| 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
- With an excellent Profit Margin value of 49.64%, 3V64 belongs to the best of the industry, outperforming 94.92% of the companies in the same industry.
- 3V64's Profit Margin has been stable in the last couple of years.
- 3V64's Operating Margin of 66.39% is amongst the best of the industry. 3V64 outperforms 94.92% of its industry peers.
- 3V64's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 80.36%, 3V64 belongs to the top of the industry, outperforming 81.36% of the companies in the same industry.
- 3V64's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 3V64 is creating value.
- Compared to 1 year ago, 3V64 has less shares outstanding
- 3V64 has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for 3V64 is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.58 indicates that 3V64 is not in any danger for bankruptcy at the moment.
- 3V64 has a Altman-Z score of 7.58. This is amongst the best in the industry. 3V64 outperforms 86.44% of its industry peers.
- 3V64 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.
- Looking at the Debt to FCF ratio, with a value of 1.17, 3V64 belongs to the top of the industry, outperforming 84.75% of the companies in the same industry.
- A Debt/Equity ratio of 0.52 indicates that 3V64 is somewhat dependend on debt financing.
- The Debt to Equity ratio of 3V64 (0.52) is comparable to the rest of the industry.
- Even though the debt/equity ratio score it not favorable for 3V64, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | 7.58 |
ROIC/WACC3.96
WACC8.6%
2.3 Liquidity
- A Current Ratio of 1.08 indicates that 3V64 should not have too much problems paying its short term obligations.
- The Current ratio of 3V64 (1.08) is worse than 61.02% of its industry peers.
- 3V64 has a Quick Ratio of 1.08. This is a normal value and indicates that 3V64 is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 1.08, 3V64 is doing worse than 61.02% of the companies in the same industry.
- 3V64 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.
- 3V64 shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.92% yearly.
- The Revenue has grown by 11.34% in the past year. This is quite good.
- 3V64 shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.86% yearly.
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
- The Earnings Per Share is expected to grow by 13.16% on average over the next years. This is quite good.
- The Revenue is expected to grow by 10.38% on average over the next years. This is quite good.
EPS Next Y13.7%
EPS Next 2Y13.29%
EPS Next 3Y12.87%
EPS Next 5Y13.16%
Revenue Next Year11.48%
Revenue Next 2Y10.84%
Revenue Next 3Y10.38%
Revenue Next 5YN/A
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
- The Price/Earnings ratio is 28.54, which means the current valuation is very expensive for 3V64.
- Compared to the rest of the industry, the Price/Earnings ratio of 3V64 is on the same level as its industry peers.
- 3V64 is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 25.10, 3V64 can be considered very expensive at the moment.
- 3V64's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, 3V64 is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.54 | ||
| Fwd PE | 25.1 |
4.2 Price Multiples
- 3V64's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of 3V64 is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.04 | ||
| EV/EBITDA | 22.57 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- 3V64 has an outstanding profitability rating, which may justify a higher PE ratio.
- 3V64's earnings are expected to grow with 12.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.08
PEG (5Y)1.59
EPS Next 2Y13.29%
EPS Next 3Y12.87%
5. Dividend
5.1 Amount
- 3V64 has a yearly dividend return of 0.82%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.97, 3V64 has a dividend in line with its industry peers.
- With a Dividend Yield of 0.82, 3V64 pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.82% |
5.2 History
- On average, the dividend of 3V64 grows each year by 13.82%, which is quite nice.
Dividend Growth(5Y)13.82%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
- 3V64 pays out 23.34% of its income as dividend. This is a sustainable payout ratio.
- The dividend of 3V64 is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP23.34%
EPS Next 2Y13.29%
EPS Next 3Y12.87%
VISA INC-CLASS A SHARES / 3V64.DE FAQ
What is the fundamental rating for 3V64 stock?
ChartMill assigns a fundamental rating of 7 / 10 to 3V64.DE.
What is the valuation status of VISA INC-CLASS A SHARES (3V64.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to VISA INC-CLASS A SHARES (3V64.DE). This can be considered as Overvalued.
How profitable is VISA INC-CLASS A SHARES (3V64.DE) stock?
VISA INC-CLASS A SHARES (3V64.DE) has a profitability rating of 9 / 10.
How financially healthy is VISA INC-CLASS A SHARES?
The financial health rating of VISA INC-CLASS A SHARES (3V64.DE) is 8 / 10.
What is the expected EPS growth for VISA INC-CLASS A SHARES (3V64.DE) stock?
The Earnings per Share (EPS) of VISA INC-CLASS A SHARES (3V64.DE) is expected to grow by 13.7% in the next year.