VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
NYSE:V - New York Stock Exchange, Inc. - US92826C8394 - Common Stock - Currency: USD
Overall V gets a fundamental rating of 7 out of 10. We evaluated V against 101 industry peers in the Financial Services industry. V gets an excellent profitability rating and is at the same time showing great financial health properties. V is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make V suitable 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.
In the past 5 years V has always been profitable.
V had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
V has a Return On Assets of 21.15%. This is amongst the best in the industry. V outperforms 98.02% of its industry peers.
The Return On Equity of V (51.65%) is better than 97.03% of its industry peers.
V has a Return On Invested Capital of 32.98%. This is amongst the best in the industry. V outperforms 97.03% 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 11.69%.
The last Return On Invested Capital (32.98%) for V is above the 3 year average (27.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.15% | ||
| ROE | 51.65% | ||
| ROIC | 32.98% |
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 better Profit Margin (52.21%) than 93.07% of its industry peers.
V's Profit Margin has been stable in the last couple of years.
V has a better Operating Margin (66.51%) than 91.09% of its industry peers.
In the last couple of years the Operating Margin of V has remained more or less at the same level.
V has a better Gross Margin (80.09%) than 87.13% 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 | 66.51% | ||
| PM (TTM) | 52.21% | ||
| GM | 80.09% |
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
V has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for V has been reduced compared to 1 year ago.
Compared to 5 years ago, V has less shares outstanding
Compared to 1 year ago, V has an improved debt to assets ratio.
2.2 Solvency
V has an Altman-Z score of 9.20. This indicates that V is financially healthy and has little risk of bankruptcy at the moment.
V's Altman-Z score of 9.20 is amongst the best of the industry. V outperforms 93.07% of its industry peers.
V has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
The Debt to FCF ratio of V (1.01) is better than 84.16% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that V is not too dependend on debt financing.
V's Debt to Equity ratio of 0.44 is fine compared to the rest of the industry. V outperforms 60.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 9.2 |
ROIC/WACC3.7
WACC8.92%
2.3 Liquidity
V has a Current 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.
The Current ratio of V (1.08) is comparable to the rest of the 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 53.47% 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
V shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.07%, which is quite good.
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 10.19%.
The Revenue has been growing by 9.35% on average over the past years. This is quite good.
EPS 1Y (TTM)13.07%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%9.96%
Revenue 1Y (TTM)10.19%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%9.33%
3.2 Future
The Earnings Per Share is expected to grow by 13.53% on average over the next years. This is quite good.
V is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.86% yearly.
EPS Next Y15.05%
EPS Next 2Y13.64%
EPS Next 3Y13.39%
EPS Next 5Y13.53%
Revenue Next Year10.11%
Revenue Next 2Y10.22%
Revenue Next 3Y10.11%
Revenue Next 5Y10.86%
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
The Price/Earnings ratio is 33.67, which means the current valuation is very expensive for V.
Based on the Price/Earnings ratio, V is valued a bit more expensive than the industry average as 71.29% of the companies are valued more cheaply.
V is valuated rather expensively when we compare the Price/Earnings ratio to 26.03, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 27.61, the valuation of V can be described as expensive.
Based on the Price/Forward Earnings ratio, V is valued a bit more expensive than 67.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of V to the average of the S&P500 Index (21.94), we can say V is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.67 | ||
| Fwd PE | 27.61 |
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 | 33.96 | ||
| EV/EBITDA | 26.83 |
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.
A more expensive valuation may be justified as V's earnings are expected to grow with 13.39% in the coming years.
PEG (NY)2.24
PEG (5Y)2.59
EPS Next 2Y13.64%
EPS Next 3Y13.39%
5. Dividend
5.1 Amount
With a yearly dividend of 0.65%, V is not a good candidate for dividend investing.
V's Dividend Yield is comparable with the industry average which is at 4.87.
With a Dividend Yield of 0.65, V pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
5.2 History
The dividend of V is nicely growing with an annual growth rate of 15.24%!
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 22.56% 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.
DP22.56%
EPS Next 2Y13.64%
EPS Next 3Y13.39%
358.3
-8.54 (-2.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners89.97%
Inst Owner Change0.95%
Ins Owners0.04%
Ins Owner Change-1.52%
Market Cap696.53B
Analysts80.82
Price Target384.75 (7.38%)
Short Float %1.52%
Short Ratio3.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
Yearly Dividend2.12
Dividend Growth(5Y)15.24%
DP22.56%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.12%
Min EPS beat(2)0.92%
Max EPS beat(2)1.33%
EPS beat(4)3
Avg EPS beat(4)0.83%
Min EPS beat(4)-1.88%
Max EPS beat(4)2.94%
EPS beat(8)7
Avg EPS beat(8)0.92%
EPS beat(12)11
Avg EPS beat(12)2.46%
EPS beat(16)15
Avg EPS beat(16)3.22%
Revenue beat(2)0
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)-0.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)-0.19%
Revenue beat(8)0
Avg Revenue beat(8)-1.04%
Revenue beat(12)4
Avg Revenue beat(12)-0.39%
Revenue beat(16)7
Avg Revenue beat(16)0.07%
PT rev (1m)-0.15%
PT rev (3m)10.02%
EPS NQ rev (1m)0.38%
EPS NQ rev (3m)0.33%
EPS NY rev (1m)0.46%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)-0.49%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.67 | ||
| Fwd PE | 27.61 | ||
| P/S | 18.51 | ||
| P/FCF | 33.96 | ||
| P/OCF | 31.82 | ||
| P/B | 18.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.83 |
EPS(TTM)10.64
EY2.97%
EPS(NY)12.98
Fwd EY3.62%
FCF(TTM)10.55
FCFY2.94%
OCF(TTM)11.26
OCFY3.14%
SpS19.35
BVpS19.56
TBVpS-4.13
PEG (NY)2.24
PEG (5Y)2.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.15% | ||
| ROE | 51.65% | ||
| ROCE | 40.05% | ||
| ROIC | 32.98% | ||
| ROICexc | 42.28% | ||
| ROICexgc | 771.01% | ||
| OM | 66.51% | ||
| PM (TTM) | 52.21% | ||
| GM | 80.09% | ||
| FCFM | 54.51% |
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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 122.76% | ||
| Cap/Sales | 3.67% | ||
| Interest Coverage | 42.92 | ||
| Cash Conversion | 83.71% | ||
| Profit Quality | 104.41% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 9.2 |
F-Score8
WACC8.92%
ROIC/WACC3.7
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)13.07%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%9.96%
EPS Next Y15.05%
EPS Next 2Y13.64%
EPS Next 3Y13.39%
EPS Next 5Y13.53%
Revenue 1Y (TTM)10.19%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%9.33%
Revenue Next Year10.11%
Revenue Next 2Y10.22%
Revenue Next 3Y10.11%
Revenue Next 5Y10.86%
EBIT growth 1Y9.24%
EBIT growth 3Y15.03%
EBIT growth 5Y9.33%
EBIT Next Year15.7%
EBIT Next 3Y12.32%
EBIT Next 5Y10.74%
FCF growth 1Y12.87%
FCF growth 3Y8.78%
FCF growth 5Y9.22%
OCF growth 1Y14.25%
OCF growth 3Y9.42%
OCF growth 5Y9.31%