VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:V - US92826C8394 - Common Stock
346.48 USD
-4.23 (-1.21%)
346.6 USD
+0.12 (+0.03%)
V gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals 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. This makes V very considerable 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.
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
The Return On Assets of V (19.93%) is better than 96.94% of its industry peers.
The Return On Equity of V (52.38%) is better than 95.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 34.02%, V belongs to the top of the industry, outperforming 97.96% of the companies in the same industry.
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.
V's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 66.39%, V belongs to the best 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.
V has a better Gross Margin (80.36%) 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
V has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for V has been reduced compared to 1 year ago.
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
An Altman-Z score of 8.05 indicates that V is not in any danger for bankruptcy at the moment.
The Altman-Z score of V (8.05) is better than 91.84% of its industry peers.
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.
V has a better Debt to FCF ratio (1.17) than 78.57% of its industry peers.
A Debt/Equity ratio of 0.52 indicates that V is somewhat dependend on debt financing.
The Debt to Equity ratio of V (0.52) is comparable to the rest of the 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 | 0.52 | ||
| Debt/FCF | 1.17 | ||
| Altman-Z | 8.05 |
ROIC/WACC3.96
WACC8.6%
2.3 Liquidity
A Current Ratio of 1.08 indicates that V should not have too much problems paying its short term obligations.
V has a Current ratio (1.08) which is comparable to the rest of the industry.
V has a Quick 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 Quick ratio value of 1.08, V perfoms like the industry average, outperforming 52.04% 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 | 1.08 | ||
| 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.
Measured over the past years, V shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.92% on average per year.
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
Based on estimates for the next years, V will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.62% on average per year.
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
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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
With a Price/Earnings ratio of 30.21, V can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of V indicates a slightly more expensive valuation: V is more expensive than 67.35% of the companies listed in the same industry.
V is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.57, which means the current valuation is very expensive for V.
Compared to the rest of the industry, the Price/Forward Earnings ratio of V indicates a slightly more expensive valuation: V is more expensive than 67.35% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.23. V is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.21 | ||
| Fwd PE | 26.57 |
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 | 30.74 | ||
| EV/EBITDA | 24.32 |
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 12.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.21
PEG (5Y)1.69
EPS Next 2Y13.26%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
V has a yearly dividend return of 0.58%, which is pretty low.
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
The dividend of V is nicely growing with an annual growth rate of 13.82%!
V has paid a dividend for at least 10 years, which is 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%
346.48
-4.23 (-1.21%)
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 Cap663.20B
Revenue(TTM)40.00B
Net Income(TTM)19.86B
Analysts81.7
Price Target404.29 (16.68%)
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 | 30.21 | ||
| Fwd PE | 26.57 | ||
| P/S | 16.58 | ||
| P/FCF | 30.74 | ||
| P/OCF | 28.76 | ||
| P/B | 17.49 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.32 |
EPS(TTM)11.47
EY3.31%
EPS(NY)13.04
Fwd EY3.76%
FCF(TTM)11.27
FCFY3.25%
OCF(TTM)12.05
OCFY3.48%
SpS20.9
BVpS19.81
TBVpS-5.02
PEG (NY)2.21
PEG (5Y)1.69
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 | 8.05 |
F-Score6
WACC8.6%
ROIC/WACC3.96
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 30.21 and the Price/Book (PB) ratio is 17.49.
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%.