VISA INC-CLASS A SHARES (V) Stock Fundamental Analysis
USA - NYSE:V - US92826C8394 - Common Stock
325.75 USD
-4.27 (-1.29%)
326.5 USD
+0.75 (+0.23%)
V gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. V scores excellent points on both the profitability and health parts. This is a solid base for a good stock. V is quite expensive at the moment. It does show a decent growth rate. 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.
Each year in the past 5 years V has 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 19.93%, V belongs to the best of the industry, outperforming 97.98% of the companies in the same industry.
V has a better Return On Equity (52.38%) than 96.97% of its industry peers.
V has a Return On Invested Capital of 34.02%. This is amongst the best in the industry. V outperforms 97.98% of its industry peers.
V had an Average Return On Invested Capital over the past 3 years of 30.07%. This is significantly above the industry average of 8.15%.
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's Profit Margin of 49.64% is amongst the best of the industry. V outperforms 90.91% of its industry peers.
V's Profit Margin has been stable in the last couple of years.
The Operating Margin of V (66.39%) is better than 89.90% of its industry peers.
In the last couple of years the Operating Margin of V has remained more or less at the same level.
With an excellent Gross Margin value of 80.36%, V belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
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.
Compared to 1 year ago, V has less shares outstanding
Compared to 5 years ago, V has less shares outstanding
The debt/assets ratio for V is higher compared to a year ago.
2.2 Solvency
V has an Altman-Z score of 7.71. This indicates that V is financially healthy and has little risk of bankruptcy at the moment.
V's Altman-Z score of 7.71 is amongst the best of the industry. V outperforms 90.91% 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 78.79% 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.
With a Debt to Equity ratio value of 0.52, V perfoms like the industry average, outperforming 57.58% of the companies in the same 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 | 7.71 |
ROIC/WACC3.98
WACC8.54%
2.3 Liquidity
V has a Current 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.
V has a Current ratio of 1.08. This is comparable to the rest of the industry: V outperforms 52.53% of its industry peers.
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.
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.
The Revenue has grown by 11.34% 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 12.86% on average per year.
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 10.26% 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
A Price/Earnings ratio of 28.40 indicates a quite expensive valuation of V.
V's Price/Earnings ratio is a bit more expensive when compared to the industry. V is more expensive than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.56. V is around the same levels.
A Price/Forward Earnings ratio of 24.97 indicates a rather expensive valuation of V.
V's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. V is more expensive than 68.69% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.62, V is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.4 | ||
| Fwd PE | 24.97 |
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 | 29.09 | ||
| 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.
V has an outstanding profitability rating, which may justify a higher PE ratio.
V's earnings are expected to grow with 12.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.07
PEG (5Y)1.58
EPS Next 2Y13.27%
EPS Next 3Y12.96%
5. Dividend
5.1 Amount
With a yearly dividend of 0.80%, V is not a good candidate for dividend investing.
V's Dividend Yield is comparable with the industry average which is at 4.67.
With a Dividend Yield of 0.80, V pays less dividend than the S&P500 average, which is at 2.44.
| 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 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
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%
325.75
-4.27 (-1.29%)
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 Cap627.59B
Revenue(TTM)40.00B
Net Income(TTM)19.86B
Analysts81.7
Price Target401.6 (23.28%)
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 | 28.4 | ||
| Fwd PE | 24.97 | ||
| P/S | 15.69 | ||
| P/FCF | 29.09 | ||
| P/OCF | 27.22 | ||
| P/B | 16.56 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.05 |
EPS(TTM)11.47
EY3.52%
EPS(NY)13.05
Fwd EY4%
FCF(TTM)11.2
FCFY3.44%
OCF(TTM)11.97
OCFY3.67%
SpS20.76
BVpS19.68
TBVpS-4.99
PEG (NY)2.07
PEG (5Y)1.58
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
WACC8.54%
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 28.4 and the Price/Book (PB) ratio is 16.56.
How financially healthy is VISA INC-CLASS A SHARES?
The financial health rating of VISA INC-CLASS A SHARES (V) is 8 / 10.