VISA INC-CLASS A SHARES (V)
US92826C8394 - Common Stock
We assign a fundamental rating of 7 out of 10 to V. V was compared to 102 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 quite expensive at the moment. It does show a decent growth rate. With these ratings, V could be worth investigating further 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.
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
V has a better Return On Assets (19.36%) than 99.02% of its industry peers.
V has a better Return On Equity (44.55%) than 97.06% of its industry peers.
V has a Return On Invested Capital of 26.87%. This is amongst the best in the industry. V outperforms 97.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for V is significantly above the industry average of 7.93%.
The 3 year average ROIC (23.76%) for V is below the current ROIC(26.87%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.36% | ||
| ROE | 44.55% | ||
| ROIC | 26.87% |
ROA(3y)16.79%
ROA(5y)15.87%
ROE(3y)38.97%
ROE(5y)35.89%
ROIC(3y)23.76%
ROIC(5y)22.03%
1.3 Margins
V has a Profit Margin of 53.07%. This is amongst the best in the industry. V outperforms 93.14% of its industry peers.
V's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 67.34%, V belongs to the top of the industry, outperforming 92.16% of the companies in the same industry.
V's Operating Margin has been stable in the last couple of years.
V's Gross Margin of 79.87% is amongst the best of the industry. V outperforms 88.24% of its industry peers.
V's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 67.34% | ||
| PM (TTM) | 53.07% | ||
| GM | 79.87% |
OM growth 3Y1.35%
OM growth 5Y0.41%
PM growth 3Y2.76%
PM growth 5Y1.52%
GM growth 3Y0.23%
GM growth 5Y-0.35%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), V is creating value.
Compared to 1 year ago, V has less shares outstanding
The number of shares outstanding for V has been reduced compared to 5 years ago.
Compared to 1 year ago, V has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.98 indicates that V is not in any danger for bankruptcy at the moment.
V's Altman-Z score of 7.98 is amongst the best of the industry. V outperforms 94.12% of its industry peers.
V has a debt to FCF ratio of 1.08. This is a very positive value and a sign of high solvency as it would only need 1.08 years to pay back of all of its debts.
V's Debt to FCF ratio of 1.08 is amongst the best of the industry. V outperforms 85.29% of its industry peers.
V has a Debt/Equity ratio of 0.52. This is a neutral value indicating V is somewhat dependend on debt financing.
V has a Debt to Equity ratio (0.52) which is comparable to the rest of the industry.
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 | 1.08 | ||
| Altman-Z | 7.98 |
ROIC/WACC2.99
WACC9%
2.3 Liquidity
A Current Ratio of 1.45 indicates that V should not have too much problems paying its short term obligations.
V has a better Current ratio (1.45) than 63.73% of its industry peers.
A Quick Ratio of 1.45 indicates that V should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.45, V is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 |
3. Growth
3.1 Past
V shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.09%, 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 13.75% on average per year.
The Revenue has grown by 10.48% in the past year. This is quite good.
Measured over the past years, V shows a quite strong growth in Revenue. The Revenue has been growing by 9.64% on average per year.
EPS 1Y (TTM)14.09%
EPS 3Y20.31%
EPS 5Y13.75%
EPS growth Q2Q10.55%
Revenue 1Y (TTM)10.48%
Revenue growth 3Y14.34%
Revenue growth 5Y9.64%
Revenue growth Q2Q8.8%
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 12.51% on average per year.
Based on estimates for the next years, V will show a quite strong growth in Revenue. The Revenue will grow by 9.96% on average per year.
EPS Next Y15.43%
EPS Next 2Y13.93%
EPS Next 3Y14.12%
EPS Next 5Y12.51%
Revenue Next Year9.93%
Revenue Next 2Y10.16%
Revenue Next 3Y10.43%
Revenue Next 5Y9.96%
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.
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
With a Price/Earnings ratio of 31.03, V can be considered very expensive at the moment.
V's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.20, V is valued a bit more expensive.
With a Price/Forward Earnings ratio of 24.53, V is valued on the expensive side.
Based on the Price/Forward Earnings ratio, V is valued a bit more expensive than 62.75% of the companies in the same industry.
V's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.60.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 24.53 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as V.
V's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.31 | ||
| EV/EBITDA | 23.39 |
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 14.12% in the coming years.
PEG (NY)2.01
PEG (5Y)2.26
EPS Next 2Y13.93%
EPS Next 3Y14.12%
5. Dividend
5.1 Amount
V has a yearly dividend return of 0.76%, which is pretty low.
Compared to an average industry Dividend Yield of 3.65, V has a dividend in line with its industry peers.
With a Dividend Yield of 0.76, V pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
5.2 History
On average, the dividend of V grows each year by 16.40%, which is quite nice.
V has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)16.4%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
V pays out 21.84% 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.
DP21.84%
EPS Next 2Y13.93%
EPS Next 3Y14.12%
VISA INC-CLASS A SHARES
NYSE:V (4/24/2024, 9:06:09 AM)
278.924
+4.81 (+1.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap560.35B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.03 | ||
| Fwd PE | 24.53 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.01
PEG (5Y)2.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.36% | ||
| ROE | 44.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 67.34% | ||
| PM (TTM) | 53.07% | ||
| GM | 79.87% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.52 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.45 | ||
| Quick Ratio | 1.45 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)14.09%
EPS 3Y20.31%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.43%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.48%
Revenue growth 3Y14.34%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y