VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:V - US92826C8394 - Common Stock
350.71 USD
-2.91 (-0.82%)
351.2 USD
+0.49 (+0.14%)
Overall V gets a fundamental rating of 7 out of 10. We evaluated V against 98 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. 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.
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
Looking at the Return On Assets, with a value of 19.93%, V belongs to the top of the industry, outperforming 96.94% of the companies in the same industry.
With an excellent Return On Equity value of 52.38%, V belongs to the best of the industry, outperforming 95.92% of the companies in the same industry.
V has a Return On Invested Capital of 34.02%. This is amongst the best in the industry. V outperforms 97.96% of its industry peers.
The Average Return On Invested Capital over the past 3 years for V is significantly above the industry average of 8.44%.
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 | 19.93% | ||
| 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
V has a Profit Margin of 49.64%. This is amongst the best in the industry. V outperforms 89.80% of its industry peers.
In the last couple of years the Profit Margin of V has remained more or less at the same level.
Looking at the Operating Margin, with a value of 66.39%, V belongs to the top of the industry, outperforming 89.80% of the companies in the same industry.
In the last couple of years the Operating Margin of V has remained more or less at the same level.
The Gross Margin of V (80.36%) is better than 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) | 49.64% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so V is creating value.
V has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, V has less shares outstanding
V has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 8.11 indicates that V is not in any danger for bankruptcy at the moment.
V's Altman-Z score of 8.11 is amongst the best of the industry. V outperforms 91.84% 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 78.57% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that V is somewhat dependend on debt financing.
V has a Debt to Equity ratio (0.52) which is in line with its industry peers.
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 | 8.11 |
ROIC/WACC3.97
WACC8.56%
2.3 Liquidity
A Current Ratio of 1.08 indicates that V should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.08, V is in line with its industry, outperforming 51.02% 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.
The Quick ratio of V (1.08) is comparable to the rest of the 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 | 1.08 | ||
| 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.
V shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.34%.
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
The Earnings Per Share is expected to grow by 13.62% 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 10.38% yearly.
EPS Next Y13.67%
EPS Next 2Y13.26%
EPS Next 3Y12.92%
EPS Next 5Y13.62%
Revenue Next Year11.43%
Revenue Next 2Y10.79%
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 30.58, which means the current valuation is very expensive for V.
Based on the Price/Earnings ratio, V is valued a bit more expensive than 67.35% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.51, V is valued at the same level.
The Price/Forward Earnings ratio is 26.90, which means the current valuation is very expensive for V.
Based on the Price/Forward Earnings ratio, V is valued a bit more expensive than 67.35% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.13, V is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.58 | ||
| Fwd PE | 26.9 |
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.
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 | 31.11 | ||
| EV/EBITDA | 24.52 |
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.
A more expensive valuation may be justified as V's earnings are expected to grow with 12.92% in the coming years.
PEG (NY)2.24
PEG (5Y)1.71
EPS Next 2Y13.26%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
With a yearly dividend of 0.58%, V is not a good candidate for dividend investing.
V's Dividend Yield is comparable with the industry average which is at 2.36.
Compared to an average S&P500 Dividend Yield of 2.00, V's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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 23.34% 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.
DP23.34%
EPS Next 2Y13.26%
EPS Next 3Y12.92%
350.71
-2.91 (-0.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.45%
Inst Owner Change-0.91%
Ins Owners0.04%
Ins Owner Change4.54%
Market Cap671.29B
Revenue(TTM)40.00B
Net Income(TTM)19.86B
Analysts81.7
Price Target404.29 (15.28%)
Short Float %1.48%
Short Ratio3.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend2.38
Dividend Growth(5Y)13.82%
DP23.34%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
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)0.14%
PT rev (3m)0.92%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.55%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)0.94%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.58 | ||
| Fwd PE | 26.9 | ||
| P/S | 16.78 | ||
| P/FCF | 31.11 | ||
| P/OCF | 29.11 | ||
| P/B | 17.71 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.52 |
EPS(TTM)11.47
EY3.27%
EPS(NY)13.04
Fwd EY3.72%
FCF(TTM)11.27
FCFY3.21%
OCF(TTM)12.05
OCFY3.44%
SpS20.9
BVpS19.81
TBVpS-5.02
PEG (NY)2.24
PEG (5Y)1.71
Graham Number71.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.93% | ||
| ROE | 52.38% | ||
| ROCE | 41.12% | ||
| ROIC | 34.02% | ||
| ROICexc | 48.2% | ||
| ROICexgc | N/A | ||
| OM | 66.39% | ||
| PM (TTM) | 49.64% | ||
| GM | 80.36% | ||
| FCFM | 53.94% |
ROA(3y)19.76%
ROA(5y)18.18%
ROE(3y)48.65%
ROE(5y)43.8%
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 3Y-0.19%
PM growth 5Y0.69%
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 | 108.67% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 8.11 |
F-Score6
WACC8.56%
ROIC/WACC3.97
Cap/Depr(3y)118.45%
Cap/Depr(5y)111.14%
Cap/Sales(3y)3.48%
Cap/Sales(5y)3.34%
Profit Quality(3y)106.9%
Profit Quality(5y)112.77%
High Growth Momentum
Growth
EPS 1Y (TTM)14.13%
EPS 3Y15.16%
EPS 5Y17.92%
EPS Q2Q%9.96%
EPS Next Y13.67%
EPS Next 2Y13.26%
EPS Next 3Y12.92%
EPS Next 5Y13.62%
Revenue 1Y (TTM)11.34%
Revenue growth 3Y10.92%
Revenue growth 5Y12.86%
Sales Q2Q%11.51%
Revenue Next Year11.43%
Revenue Next 2Y10.79%
Revenue Next 3Y10.38%
Revenue Next 5YN/A
EBIT growth 1Y10.39%
EBIT growth 3Y10.39%
EBIT growth 5Y13.51%
EBIT Next Year15.85%
EBIT Next 3Y11.99%
EBIT Next 5Y11.45%
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.
Can you provide the valuation status for VISA INC-CLASS A SHARES?
ChartMill assigns a valuation rating of 2 / 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 are the PE and PB ratios of VISA INC-CLASS A SHARES (V) stock?
The Price/Earnings (PE) ratio for VISA INC-CLASS A SHARES (V) is 30.58 and the Price/Book (PB) ratio is 17.71.
How sustainable is the dividend of VISA INC-CLASS A SHARES (V) stock?
The dividend rating of VISA INC-CLASS A SHARES (V) is 4 / 10 and the dividend payout ratio is 23.34%.