VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
USA - NYSE:V - US92826C8394 - Common Stock
330.02 USD
-6.06 (-1.8%)
330.56 USD
+0.54 (+0.16%)
We assign a fundamental rating of 7 out of 10 to V. V was compared to 99 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. 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.
Each year in the past 5 years V had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 19.93%, V belongs to the best of the industry, outperforming 97.94% of the companies in the same industry.
V has a better Return On Equity (52.38%) than 96.91% of its industry peers.
With an excellent Return On Invested Capital value of 34.02%, V belongs to the best of the industry, outperforming 97.94% 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 8.10%.
The 3 year average ROIC (30.07%) for V is below the current ROIC(34.02%), indicating increased profibility in the last year.
| 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's Profit Margin of 49.64% is amongst the best of the industry. V outperforms 90.72% 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 89.69% 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 (80.36%) than 84.54% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), V 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.
Compared to 1 year ago, V has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.71 indicates that V is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.71, V belongs to the top of the industry, outperforming 91.75% of the companies in the same industry.
The Debt to FCF ratio of V is 1.17, which is an excellent value as it means it would take V, only 1.17 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.17, V belongs to the best of the industry, outperforming 80.41% of the companies in the same industry.
V has a Debt/Equity ratio of 0.52. This is a neutral value indicating V is somewhat dependend on debt financing.
V's Debt to Equity ratio of 0.52 is in line compared to the rest of the industry. V outperforms 57.73% of 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 | 7.71 |
ROIC/WACC3.98
WACC8.55%
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 52.58% 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
The Earnings Per Share has grown by an nice 14.13% 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 17.92% yearly.
Looking at the last year, V shows a quite strong growth in Revenue. The Revenue has grown by 11.34% in the last year.
The Revenue has been growing by 12.86% on average over the past years. This is quite good.
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 10.26% 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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
V is valuated quite expensively with a Price/Earnings ratio of 28.77.
67.01% of the companies in the same industry are cheaper than V, based on the Price/Earnings ratio.
V is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 25.30, 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 70.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.59. V is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.77 | ||
| Fwd PE | 25.3 |
4.2 Price Multiples
V's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as V.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.47 | ||
| EV/EBITDA | 23.05 |
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 12.96% in the coming years.
PEG (NY)2.09
PEG (5Y)1.61
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 4.67, V has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, V's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
5.2 History
The dividend of V is nicely growing with an annual growth rate of 13.82%!
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
23.34% of the earnings are spent on dividend by V. This is a low number and sustainable payout ratio.
The dividend of V is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP23.34%
EPS Next 2Y13.27%
EPS Next 3Y12.96%
330.02
-6.06 (-1.8%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.3%
Inst Owner Change-0.95%
Ins Owners0.04%
Ins Owner Change1.32%
Market Cap635.82B
Revenue(TTM)40.00B
Net Income(TTM)19.86B
Analysts81.7
Price Target401.6 (21.69%)
Short Float %1.57%
Short Ratio4.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.8% |
Yearly Dividend2.38
Dividend Growth(5Y)13.82%
DP23.34%
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)1.55%
EPS NY rev (1m)-0.36%
EPS NY rev (3m)0.64%
Revenue NQ rev (1m)0.96%
Revenue NQ rev (3m)0.96%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.77 | ||
| Fwd PE | 25.3 | ||
| P/S | 15.9 | ||
| P/FCF | 29.47 | ||
| P/OCF | 27.57 | ||
| P/B | 16.77 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.05 |
EPS(TTM)11.47
EY3.48%
EPS(NY)13.05
Fwd EY3.95%
FCF(TTM)11.2
FCFY3.39%
OCF(TTM)11.97
OCFY3.63%
SpS20.76
BVpS19.68
TBVpS-4.99
PEG (NY)2.09
PEG (5Y)1.61
Graham Number71.26
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 | 7.71 |
F-Score6
WACC8.55%
ROIC/WACC3.98
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 Y13.74%
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 28.77 and the Price/Book (PB) ratio is 16.77.
How financially healthy is VISA INC-CLASS A SHARES?
The financial health rating of VISA INC-CLASS A SHARES (V) is 9 / 10.