VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
NYSE:V - New York Stock Exchange, Inc. - US92826C8394 - Common Stock - Currency: USD
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. 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.
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
With an excellent Return On Assets value of 21.15%, V belongs to the best of the industry, outperforming 97.98% of the companies in the same industry.
V's Return On Equity of 51.65% is amongst the best of the industry. V outperforms 96.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 32.98%, V belongs to the top of the industry, outperforming 96.97% 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 11.83%.
The 3 year average ROIC (27.02%) for V is below the current ROIC(32.98%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.15% | ||
| ROE | 51.65% | ||
| ROIC | 32.98% |
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 52.21%, V belongs to the best of the industry, outperforming 92.93% of the companies in the same industry.
V's Profit Margin has been stable in the last couple of years.
V has a Operating Margin of 66.51%. This is amongst the best in the industry. V outperforms 90.91% of its industry peers.
V's Operating Margin has been stable in the last couple of years.
V has a better Gross Margin (80.09%) than 87.88% of its industry peers.
In the last couple of years the Gross Margin of V has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 66.51% | ||
| PM (TTM) | 52.21% | ||
| GM | 80.09% |
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.
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
The debt/assets ratio for V has been reduced compared to a year ago.
2.2 Solvency
V has an Altman-Z score of 9.06. This indicates that V is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 9.06, V belongs to the top of the industry, outperforming 91.92% of the companies in the same industry.
V has a debt to FCF ratio of 1.01. This is a very positive value and a sign of high solvency as it would only need 1.01 years to pay back of all of its debts.
V has a better Debt to FCF ratio (1.01) than 85.86% of its industry peers.
V has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of V (0.44) is better than 61.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.01 | ||
| Altman-Z | 9.06 |
ROIC/WACC3.73
WACC8.85%
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 in line with its industry peers.
A Quick Ratio of 1.08 indicates that V should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.08, V perfoms like the industry average, outperforming 52.53% 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 13.07%, 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 10.19% 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)13.07%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%9.96%
Revenue 1Y (TTM)10.19%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%9.33%
3.2 Future
The Earnings Per Share is expected to grow by 13.53% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.16% on average over the next years. This is quite good.
EPS Next Y15.05%
EPS Next 2Y13.64%
EPS Next 3Y13.39%
EPS Next 5Y13.53%
Revenue Next Year10.11%
Revenue Next 2Y10.21%
Revenue Next 3Y10.11%
Revenue Next 5Y11.16%
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.
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
The Price/Earnings ratio is 33.16, which means the current valuation is very expensive for V.
72.73% of the companies in the same industry are cheaper than V, based on the Price/Earnings ratio.
V's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.31.
With a Price/Forward Earnings ratio of 27.19, V can be considered very expensive at the moment.
V's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. V is more expensive than 70.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.13, V is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.16 | ||
| Fwd PE | 27.19 |
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.
V's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.36 | ||
| EV/EBITDA | 26.36 |
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.
A more expensive valuation may be justified as V's earnings are expected to grow with 13.39% in the coming years.
PEG (NY)2.2
PEG (5Y)2.55
EPS Next 2Y13.64%
EPS Next 3Y13.39%
5. Dividend
5.1 Amount
With a yearly dividend of 0.64%, V is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 5.10, V has a dividend in line with its industry peers.
With a Dividend Yield of 0.64, V pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
5.2 History
The dividend of V is nicely growing with an annual growth rate of 15.24%!
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
22.56% 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.
DP22.56%
EPS Next 2Y13.64%
EPS Next 3Y13.39%
352.85
-18.55 (-4.99%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.44%
Inst Owner Change1.07%
Ins Owners0.04%
Ins Owner Change-0.78%
Market Cap684.23B
Analysts80.83
Price Target387.87 (9.92%)
Short Float %1.67%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.64% |
Yearly Dividend2.12
Dividend Growth(5Y)15.24%
DP22.56%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.12%
Min EPS beat(2)0.92%
Max EPS beat(2)1.33%
EPS beat(4)3
Avg EPS beat(4)0.83%
Min EPS beat(4)-1.88%
Max EPS beat(4)2.94%
EPS beat(8)7
Avg EPS beat(8)0.92%
EPS beat(12)11
Avg EPS beat(12)2.46%
EPS beat(16)15
Avg EPS beat(16)3.22%
Revenue beat(2)0
Avg Revenue beat(2)-0.85%
Min Revenue beat(2)-1.51%
Max Revenue beat(2)-0.19%
Revenue beat(4)0
Avg Revenue beat(4)-1.13%
Min Revenue beat(4)-2.17%
Max Revenue beat(4)-0.19%
Revenue beat(8)0
Avg Revenue beat(8)-1.04%
Revenue beat(12)4
Avg Revenue beat(12)-0.39%
Revenue beat(16)7
Avg Revenue beat(16)0.07%
PT rev (1m)0.81%
PT rev (3m)0.77%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)0.29%
EPS NY rev (1m)0%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)-0.03%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.16 | ||
| Fwd PE | 27.19 | ||
| P/S | 18.19 | ||
| P/FCF | 33.36 | ||
| P/OCF | 31.26 | ||
| P/B | 17.99 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.36 |
EPS(TTM)10.64
EY3.02%
EPS(NY)12.98
Fwd EY3.68%
FCF(TTM)10.58
FCFY3%
OCF(TTM)11.29
OCFY3.2%
SpS19.4
BVpS19.61
TBVpS-4.14
PEG (NY)2.2
PEG (5Y)2.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.15% | ||
| ROE | 51.65% | ||
| ROCE | 40.05% | ||
| ROIC | 32.98% | ||
| ROICexc | 42.28% | ||
| ROICexgc | 771.01% | ||
| OM | 66.51% | ||
| PM (TTM) | 52.21% | ||
| GM | 80.09% | ||
| FCFM | 54.51% |
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-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.01 | ||
| Debt/EBITDA | 0.64 | ||
| Cap/Depr | 122.76% | ||
| Cap/Sales | 3.67% | ||
| Interest Coverage | 42.92 | ||
| Cash Conversion | 83.71% | ||
| Profit Quality | 104.41% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 1.08 | ||
| Altman-Z | 9.06 |
F-Score8
WACC8.85%
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)13.07%
EPS 3Y19.36%
EPS 5Y13.02%
EPS Q2Q%9.96%
EPS Next Y15.05%
EPS Next 2Y13.64%
EPS Next 3Y13.39%
EPS Next 5Y13.53%
Revenue 1Y (TTM)10.19%
Revenue growth 3Y14.23%
Revenue growth 5Y9.35%
Sales Q2Q%9.33%
Revenue Next Year10.11%
Revenue Next 2Y10.21%
Revenue Next 3Y10.11%
Revenue Next 5Y11.16%
EBIT growth 1Y9.24%
EBIT growth 3Y15.03%
EBIT growth 5Y9.33%
EBIT Next Year14.33%
EBIT Next 3Y12%
EBIT Next 5Y10.74%
FCF growth 1Y12.87%
FCF growth 3Y8.78%
FCF growth 5Y9.22%
OCF growth 1Y14.25%
OCF growth 3Y9.42%
OCF growth 5Y9.31%