VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
USA - NYSE:V - US92826C8394 - Common Stock
336.02 USD
-0.94 (-0.28%)
336.35 USD
+0.33 (+0.1%)
Taking everything into account, V scores 7 out of 10 in our fundamental rating. V was compared to 97 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. While showing a medium growth rate, V is valued expensive at the moment. These ratings could make V a good candidate 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.
V had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
V has a Return On Assets of 19.98%. This is amongst the best in the industry. V outperforms 97.96% of its industry peers.
V's Return On Equity of 52.50% is amongst the best of the industry. V outperforms 96.94% of its industry peers.
With an excellent Return On Invested Capital value of 34.02%, V belongs to the best of the industry, outperforming 97.96% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for V is significantly above the industry average of 7.89%.
The last Return On Invested Capital (34.02%) for V is above the 3 year average (30.07%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.98% | ||
| ROE | 52.5% | ||
| ROIC | 34.02% |
ROA(3y)19.83%
ROA(5y)18.22%
ROE(3y)48.83%
ROE(5y)43.91%
ROIC(3y)30.07%
ROIC(5y)26.99%
1.3 Margins
The Profit Margin of V (49.76%) is better than 92.86% of its industry peers.
V's Profit Margin has been stable in the last couple of years.
V's Operating Margin of 66.39% is amongst the best of the industry. V outperforms 90.82% 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 Gross Margin of 80.36%. This is amongst the best in the industry. V outperforms 84.69% of its industry peers.
V's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 66.39% | ||
| PM (TTM) | 49.76% | ||
| GM | 80.36% |
OM growth 3Y-0.48%
OM growth 5Y0.58%
PM growth 3Y0.15%
PM growth 5Y0.9%
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), V is creating value.
Compared to 1 year ago, V has less shares outstanding
Compared to 5 years ago, V has less shares outstanding
Compared to 1 year ago, V has a worse debt to assets ratio.
2.2 Solvency
V has an Altman-Z score of 7.82. This indicates that V is financially healthy and has little risk of bankruptcy at the moment.
V has a Altman-Z score of 7.82. This is amongst the best in the industry. V outperforms 89.80% of its industry peers.
V 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.
The Debt to FCF ratio of V (1.17) is better than 77.55% of its industry peers.
V has a Debt/Equity ratio of 0.52. This is a neutral value indicating V is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.52, V perfoms like the industry average, outperforming 57.14% 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 | 0.52 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | 7.82 |
ROIC/WACC3.99
WACC8.52%
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.
With a Current ratio value of 1.08, V perfoms like the industry average, outperforming 52.04% of the companies in the same industry.
A Quick Ratio of 1.08 indicates that V should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.08, V perfoms like the industry average, outperforming 52.04% 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 14.13%, which is quite good.
V 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.
V 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
V is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.62% yearly.
V is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.26% yearly.
EPS Next Y13.74%
EPS Next 2Y13.27%
EPS Next 3Y12.96%
EPS Next 5Y13.62%
Revenue Next Year11.42%
Revenue Next 2Y10.77%
Revenue Next 3Y10.26%
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 estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 29.30 indicates a quite expensive valuation of V.
Compared to the rest of the industry, the Price/Earnings ratio of V indicates a slightly more expensive valuation: V is more expensive than 69.39% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of V to the average of the S&P500 Index (26.06), we can say V is valued inline with the index average.
With a Price/Forward Earnings ratio of 25.76, V can be considered very expensive at the moment.
68.37% of the companies in the same industry are cheaper than V, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 32.73. V is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.3 | ||
| Fwd PE | 25.76 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as V.
V's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30 | ||
| EV/EBITDA | 23.46 |
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.
V's earnings are expected to grow with 12.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.13
PEG (5Y)1.63
EPS Next 2Y13.27%
EPS Next 3Y12.96%
5. Dividend
5.1 Amount
V has a yearly dividend return of 0.80%, which is pretty low.
Compared to an average industry Dividend Yield of 4.50, V has a dividend in line with its industry peers.
With a Dividend Yield of 0.80, V pays less dividend than the S&P500 average, which is at 2.37.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
5.2 History
On average, the dividend of V grows each year by 13.82%, which is quite nice.
V has been paying a dividend for at least 10 years, so it has a reliable track record.
V has decreased its dividend recently.
Dividend Growth(5Y)13.82%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
V pays out 23.28% of its income as dividend. This is a sustainable payout ratio.
V's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP23.28%
EPS Next 2Y13.27%
EPS Next 3Y12.96%
336.02
-0.94 (-0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change-1.24%
Ins Owners0.04%
Ins Owner Change0.66%
Market Cap647.38B
Revenue(TTM)40.00B
Net Income(TTM)19.90B
Analysts81.7
Price Target401.6 (19.52%)
Short Float %1.57%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend2.38
Dividend Growth(5Y)13.82%
DP23.28%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.59%
Min EPS beat(2)-1.51%
Max EPS beat(2)2.69%
EPS beat(4)3
Avg EPS beat(4)0.86%
Min EPS beat(4)-1.51%
Max EPS beat(4)2.69%
EPS beat(8)6
Avg EPS beat(8)0.83%
EPS beat(12)10
Avg EPS beat(12)1.5%
EPS beat(16)14
Avg EPS beat(16)2.6%
Revenue beat(2)1
Avg Revenue beat(2)0.19%
Min Revenue beat(2)-0.94%
Max Revenue beat(2)1.32%
Revenue beat(4)1
Avg Revenue beat(4)-0.33%
Min Revenue beat(4)-1.51%
Max Revenue beat(4)1.32%
Revenue beat(8)1
Avg Revenue beat(8)-0.67%
Revenue beat(12)3
Avg Revenue beat(12)-0.53%
Revenue beat(16)7
Avg Revenue beat(16)0.05%
PT rev (1m)0.6%
PT rev (3m)0.56%
EPS NQ rev (1m)1.56%
EPS NQ rev (3m)1.58%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)0.96%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.3 | ||
| Fwd PE | 25.76 | ||
| P/S | 16.18 | ||
| P/FCF | 30 | ||
| P/OCF | 28.07 | ||
| P/B | 17.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.46 |
EPS(TTM)11.47
EY3.41%
EPS(NY)13.05
Fwd EY3.88%
FCF(TTM)11.2
FCFY3.33%
OCF(TTM)11.97
OCFY3.56%
SpS20.76
BVpS19.68
TBVpS-4.99
PEG (NY)2.13
PEG (5Y)1.63
Graham Number71.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.98% | ||
| ROE | 52.5% | ||
| ROCE | 41.12% | ||
| ROIC | 34.02% | ||
| ROICexc | 48.2% | ||
| ROICexgc | N/A | ||
| OM | 66.39% | ||
| PM (TTM) | 49.76% | ||
| GM | 80.36% | ||
| FCFM | 53.94% |
ROA(3y)19.83%
ROA(5y)18.22%
ROE(3y)48.83%
ROE(5y)43.91%
ROIC(3y)30.07%
ROIC(5y)26.99%
ROICexc(3y)41.42%
ROICexc(5y)37.31%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)36.35%
ROCE(5y)32.62%
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3Y10.83%
ROICexc growth 5Y13.9%
OM growth 3Y-0.48%
OM growth 5Y0.58%
PM growth 3Y0.15%
PM growth 5Y0.9%
GM growth 3Y-0.07%
GM growth 5Y0.25%
F-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | 1.17 | ||
| Debt/EBITDA | 0.71 | ||
| Cap/Depr | 121.48% | ||
| Cap/Sales | 3.71% | ||
| Interest Coverage | 45.24 | ||
| Cash Conversion | 83.02% | ||
| Profit Quality | 108.41% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 7.82 |
F-Score6
WACC8.52%
ROIC/WACC3.99
Cap/Depr(3y)118.45%
Cap/Depr(5y)111.14%
Cap/Sales(3y)3.48%
Cap/Sales(5y)3.34%
Profit Quality(3y)106.53%
Profit Quality(5y)112.55%
High Growth Momentum
Growth
EPS 1Y (TTM)14.13%
EPS 3Y15.16%
EPS 5Y17.92%
EPS Q2Q%9.96%
EPS Next Y13.74%
EPS Next 2Y13.27%
EPS Next 3Y12.96%
EPS Next 5Y13.62%
Revenue 1Y (TTM)11.34%
Revenue growth 3Y10.92%
Revenue growth 5Y12.86%
Sales Q2Q%11.51%
Revenue Next Year11.42%
Revenue Next 2Y10.77%
Revenue Next 3Y10.26%
Revenue Next 5YN/A
EBIT growth 1Y10.39%
EBIT growth 3Y10.39%
EBIT growth 5Y13.51%
EBIT Next Year15.64%
EBIT Next 3Y12.15%
EBIT Next 5Y11.5%
FCF growth 1Y15.43%
FCF growth 3Y6.47%
FCF growth 5Y17.33%
OCF growth 1Y15.58%
OCF growth 3Y6.95%
OCF growth 5Y17.17%
VISA INC-CLASS A SHARES / V FAQ
What is the ChartMill fundamental rating of VISA INC-CLASS A SHARES (V) stock?
ChartMill assigns a fundamental rating of 7 / 10 to V.
What is the valuation status for V stock?
ChartMill assigns a valuation rating of 3 / 10 to VISA INC-CLASS A SHARES (V). This can be considered as Overvalued.
Can you provide the profitability details for VISA INC-CLASS A SHARES?
VISA INC-CLASS A SHARES (V) has a profitability rating of 9 / 10.
What is the valuation of VISA INC-CLASS A SHARES based on its PE and PB ratios?
The Price/Earnings (PE) ratio for VISA INC-CLASS A SHARES (V) is 29.3 and the Price/Book (PB) ratio is 17.08.
How financially healthy is VISA INC-CLASS A SHARES?
The financial health rating of VISA INC-CLASS A SHARES (V) is 8 / 10.