VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
NYSE:V - US92826C8394 - Common Stock
350.67 USD
+0.32 (+0.09%)
Taking everything into account, V scores 7 out of 10 in our fundamental rating. V was compared to 100 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. While showing a medium growth rate, V is valued expensive at the moment. This makes V very considerable for quality investing!
1. Profitability
1.1 Basic Checks
V had positive earnings in the past year.
In the past year V had a positive cash flow from operations.
Each year in the past 5 years V has been profitable.
In the past 5 years V always reported a positive cash flow from operatings.
1.2 Ratios
V's Return On Assets of 20.06% is amongst the best of the industry. V outperforms 98.00% of its industry peers.
Looking at the Return On Equity, with a value of 51.89%, V belongs to the top of the industry, outperforming 97.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 32.46%, V belongs to the top of the industry, outperforming 97.00% 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 7.71%.
The last Return On Invested Capital (32.46%) for V is above the 3 year average (27.02%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.06% | ||
| ROE | 51.89% | ||
| ROIC | 32.46% |
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
With an excellent Profit Margin value of 51.58%, V belongs to the best of the industry, outperforming 93.00% of the companies in the same industry.
In the last couple of years the Profit Margin of V has remained more or less at the same level.
With an excellent Operating Margin value of 66.50%, V belongs to the best of the industry, outperforming 91.00% of the companies in the same industry.
V's Operating Margin has been stable in the last couple of years.
The Gross Margin of V (80.23%) is better than 86.00% of its industry peers.
V's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 66.5% | ||
| PM (TTM) | 51.58% | ||
| GM | 80.23% |
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.
V has less shares outstanding than it did 1 year ago.
V has less shares outstanding than it did 5 years ago.
The debt/assets ratio for V has been reduced compared to a year ago.
2.2 Solvency
V has an Altman-Z score of 8.11. This indicates that V is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 8.11, V belongs to the best of the industry, outperforming 91.00% of the companies in the same industry.
The Debt to FCF ratio of V is 1.14, which is an excellent value as it means it would take V, only 1.14 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.14, V belongs to the top of the industry, outperforming 82.00% of the companies in the same industry.
V has a Debt/Equity ratio of 0.51. This is a neutral value indicating V is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.51, V perfoms like the industry average, outperforming 59.00% of the companies in the same industry.
Even though the debt/equity ratio score it not favorable for V, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 8.11 |
ROIC/WACC3.73
WACC8.7%
2.3 Liquidity
A Current Ratio of 1.12 indicates that V should not have too much problems paying its short term obligations.
V has a Current ratio (1.12) which is in line with its industry peers.
V has a Quick 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.
With a Quick ratio value of 1.12, V perfoms like the industry average, outperforming 54.00% of the companies in the same industry.
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
V shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.82%, which is quite good.
The Earnings Per Share has been growing by 13.02% on average over the past years. This is quite good.
The Revenue has grown by 11.38% 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 9.35% yearly.
EPS 1Y (TTM)15.82%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%23.14%
Revenue 1Y (TTM)11.38%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%14.29%
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 13.72% yearly.
Based on estimates for the next years, V will show a quite strong growth in Revenue. The Revenue will grow by 10.28% on average per year.
EPS Next Y16.1%
EPS Next 2Y14.18%
EPS Next 3Y13.78%
EPS Next 5Y13.72%
Revenue Next Year11.12%
Revenue Next 2Y10.94%
Revenue Next 3Y10.67%
Revenue Next 5Y10.28%
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.
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
With a Price/Earnings ratio of 31.31, V can be considered very expensive at the moment.
Based on the Price/Earnings ratio, V is valued a bit more expensive than the industry average as 67.00% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.14. V is around the same levels.
A Price/Forward Earnings ratio of 26.76 indicates a quite expensive valuation of V.
V's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. V is more expensive than 72.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.80, V is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.31 | ||
| Fwd PE | 26.76 |
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 | 30.59 | ||
| EV/EBITDA | 25.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
V has an outstanding profitability rating, which may justify a higher PE ratio.
V's earnings are expected to grow with 13.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.94
PEG (5Y)2.4
EPS Next 2Y14.18%
EPS Next 3Y13.78%
5. Dividend
5.1 Amount
With a yearly dividend of 0.69%, V is not a good candidate for dividend investing.
V's Dividend Yield is comparable with the industry average which is at 4.27.
With a Dividend Yield of 0.69, V pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
5.2 History
On average, the dividend of V grows each year by 15.24%, 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)15.24%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
V pays out 22.58% 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.
DP22.58%
EPS Next 2Y14.18%
EPS Next 3Y13.78%
NYSE:V (8/28/2025, 10:26:09 AM)
350.67
+0.32 (+0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.96%
Inst Owner Change-2.28%
Ins Owners0.04%
Ins Owner Change0.68%
Market Cap675.60B
Analysts80.87
Price Target399.76 (14%)
Short Float %1.66%
Short Ratio4.13
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.69% |
Yearly Dividend2.12
Dividend Growth(5Y)15.24%
DP22.58%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.8%
Min EPS beat(2)0.92%
Max EPS beat(2)2.69%
EPS beat(4)4
Avg EPS beat(4)1.97%
Min EPS beat(4)0.92%
Max EPS beat(4)2.94%
EPS beat(8)7
Avg EPS beat(8)1.24%
EPS beat(12)11
Avg EPS beat(12)1.75%
EPS beat(16)15
Avg EPS beat(16)2.88%
Revenue beat(2)1
Avg Revenue beat(2)-0.09%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)1.32%
Revenue beat(4)1
Avg Revenue beat(4)-0.26%
Min Revenue beat(4)-1.51%
Max Revenue beat(4)1.32%
Revenue beat(8)1
Avg Revenue beat(8)-0.72%
Revenue beat(12)4
Avg Revenue beat(12)-0.36%
Revenue beat(16)7
Avg Revenue beat(16)0.01%
PT rev (1m)1.78%
PT rev (3m)3.9%
EPS NQ rev (1m)-1.64%
EPS NQ rev (3m)-2.82%
EPS NY rev (1m)0.96%
EPS NY rev (3m)0.91%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)0.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.31 | ||
| Fwd PE | 26.76 | ||
| P/S | 17.37 | ||
| P/FCF | 30.59 | ||
| P/OCF | 28.77 | ||
| P/B | 17.47 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.1 |
EPS(TTM)11.2
EY3.19%
EPS(NY)13.1
Fwd EY3.74%
FCF(TTM)11.46
FCFY3.27%
OCF(TTM)12.19
OCFY3.48%
SpS20.19
BVpS20.07
TBVpS-4.61
PEG (NY)1.94
PEG (5Y)2.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.06% | ||
| ROE | 51.89% | ||
| ROCE | 39.43% | ||
| ROIC | 32.46% | ||
| ROICexc | 45.87% | ||
| ROICexgc | N/A | ||
| OM | 66.5% | ||
| PM (TTM) | 51.58% | ||
| GM | 80.23% | ||
| FCFM | 56.78% |
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-Score7
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.14 | ||
| Debt/EBITDA | 0.72 | ||
| Cap/Depr | 119.02% | ||
| Cap/Sales | 3.6% | ||
| Interest Coverage | 43.99 | ||
| Cash Conversion | 86.85% | ||
| Profit Quality | 110.08% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 8.11 |
F-Score7
WACC8.7%
ROIC/WACC3.73
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)15.82%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%23.14%
EPS Next Y16.1%
EPS Next 2Y14.18%
EPS Next 3Y13.78%
EPS Next 5Y13.72%
Revenue 1Y (TTM)11.38%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%14.29%
Revenue Next Year11.12%
Revenue Next 2Y10.94%
Revenue Next 3Y10.67%
Revenue Next 5Y10.28%
EBIT growth 1Y10.64%
EBIT growth 3Y15.03%
EBIT growth 5Y9.33%
EBIT Next Year15.6%
EBIT Next 3Y12.56%
EBIT Next 5Y11.53%
FCF growth 1Y18.38%
FCF growth 3Y8.78%
FCF growth 5Y9.22%
OCF growth 1Y19.19%
OCF growth 3Y9.42%
OCF growth 5Y9.31%