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. Both the health and profitability get an excellent rating, making V a very profitable company, without any liquidiy or solvency issues. V is quite expensive at the moment. 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.
V had a positive operating cash flow in the past year.
In the past 5 years V has always been profitable.
Each year in the past 5 years V had a positive operating cash flow.
1.2 Ratios
The Return On Assets of V (20.06%) is better than 98.02% of its industry peers.
The Return On Equity of V (51.89%) is better than 96.04% of its industry peers.
V has a Return On Invested Capital of 32.46%. This is amongst the best in the industry. V outperforms 98.02% 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 7.77%.
The 3 year average ROIC (27.02%) for V is below the current ROIC(32.46%), indicating increased profibility in the last year.
| 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
V's Profit Margin of 51.58% is amongst the best of the industry. V outperforms 93.07% of its industry peers.
V's Profit Margin has been stable in the last couple of years.
V's Operating Margin of 66.50% is amongst the best of the industry. V outperforms 91.09% 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 80.23%, V belongs to the top of the industry, outperforming 87.13% 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 | 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
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
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 7.97. This indicates that V is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of V (7.97) is better than 91.09% of its industry peers.
V has a debt to FCF ratio of 1.14. This is a very positive value and a sign of high solvency as it would only need 1.14 years to pay back of 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 83.17% 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 decent Debt to Equity ratio value of 0.51, V is doing good in the industry, outperforming 60.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.51 | ||
| Debt/FCF | 1.14 | ||
| Altman-Z | 7.97 |
ROIC/WACC3.74
WACC8.67%
2.3 Liquidity
V has a Current 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.
V has a Current ratio (1.12) which is comparable to the rest of the industry.
A Quick Ratio of 1.12 indicates that V should not have too much problems paying its short term obligations.
V has a Quick ratio of 1.12. This is comparable to the rest of the industry: V outperforms 56.44% of its industry peers.
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
The Earnings Per Share has grown by an nice 15.82% over the past year.
V shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.02% yearly.
The Revenue has grown by 11.38% in the past year. This is quite good.
The Revenue has been growing by 9.35% on average over the past years. This is quite good.
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 11.16% on average per year.
EPS Next Y15%
EPS Next 2Y13.57%
EPS Next 3Y13.34%
EPS Next 5Y13.72%
Revenue Next Year10.31%
Revenue Next 2Y10.38%
Revenue Next 3Y10.18%
Revenue Next 5Y11.16%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
V is valuated quite expensively with a Price/Earnings ratio of 30.55.
68.32% of the companies in the same industry are cheaper than V, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.24. V is around the same levels.
The Price/Forward Earnings ratio is 26.40, which means the current valuation is very expensive for V.
70.30% of the companies in the same industry are cheaper than V, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.42, V is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.55 | ||
| Fwd PE | 26.4 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of V is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as V.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.9 | ||
| EV/EBITDA | 24.56 |
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 13.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.04
PEG (5Y)2.35
EPS Next 2Y13.57%
EPS Next 3Y13.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.70%, V is not a good candidate for dividend investing.
V's Dividend Yield is comparable with the industry average which is at 4.75.
With a Dividend Yield of 0.70, V pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
5.2 History
On average, the dividend of V grows each year by 15.24%, which is quite nice.
V has paid a dividend for at least 10 years, which is 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 22.58% 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.
DP22.58%
EPS Next 2Y13.57%
EPS Next 3Y13.34%
342.15
+2.8 (+0.83%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.44%
Inst Owner Change-1.12%
Ins Owners0.04%
Ins Owner Change-1.13%
Market Cap660.32B
Analysts80.87
Price Target392.77 (14.79%)
Short Float %1.6%
Short Ratio4.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.7% |
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)0.35%
PT rev (3m)2.04%
EPS NQ rev (1m)-0.94%
EPS NQ rev (3m)-2.46%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.41%
Revenue NQ rev (1m)0.16%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.55 | ||
| Fwd PE | 26.4 | ||
| P/S | 16.98 | ||
| P/FCF | 29.9 | ||
| P/OCF | 28.12 | ||
| P/B | 17.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.56 |
EPS(TTM)11.2
EY3.27%
EPS(NY)12.96
Fwd EY3.79%
FCF(TTM)11.44
FCFY3.34%
OCF(TTM)12.17
OCFY3.56%
SpS20.15
BVpS20.03
TBVpS-4.6
PEG (NY)2.04
PEG (5Y)2.35
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 | 7.97 |
F-Score7
WACC8.67%
ROIC/WACC3.74
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 Y15%
EPS Next 2Y13.57%
EPS Next 3Y13.34%
EPS Next 5Y13.72%
Revenue 1Y (TTM)11.38%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%14.29%
Revenue Next Year10.31%
Revenue Next 2Y10.38%
Revenue Next 3Y10.18%
Revenue Next 5Y11.16%
EBIT growth 1Y10.64%
EBIT growth 3Y15.03%
EBIT growth 5Y9.33%
EBIT Next Year14.33%
EBIT Next 3Y12%
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%