NYSE:V

Stock Analysis Report

Executive Summary

Visa Inc. operates as a payments technology company worldwide.

Snowflake

Fundamentals

Outstanding track record with moderate growth potential.


Similar Companies

Share Price & News

How has Visa's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.3%

V

-1.8%

US IT

1.0%

US Market


1 Year Return

26.8%

V

20.6%

US IT

8.0%

US Market

Return vs Industry: V exceeded the US IT industry which returned 20.6% over the past year.

Return vs Market: V exceeded the US Market which returned 8% over the past year.


Shareholder returns

VIndustryMarket
7 Day-1.3%-1.8%1.0%
30 Day1.4%-0.9%-0.07%
90 Day-3.8%-5.5%-1.0%
1 Year27.6%26.8%21.9%20.6%10.4%8.0%
3 Year119.5%115.1%93.3%85.4%46.2%36.7%
5 Year237.2%225.7%146.1%123.5%64.3%46.2%

Price Volatility Vs. Market

How volatile is Visa's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Visa undervalued compared to its fair value and its price relative to the market?

33.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: V ($176.43) is trading above our estimate of fair value ($173.96)

Significantly Below Fair Value: V is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: V is good value based on its PE Ratio (33.8x) compared to the IT industry average (37.1x).

PE vs Market: V is poor value based on its PE Ratio (33.8x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: V is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: V is overvalued based on its PB Ratio (13x) compared to the US IT industry average (4.3x).


Next Steps

Future Growth

How is Visa forecast to perform in the next 1 to 3 years based on estimates from 35 analysts?

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: V's forecast earnings growth (12.4% per year) is above the savings rate (2.7%).

Earnings vs Market: V's earnings (12.4% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: V's earnings are forecast to grow, but not significantly.

Revenue vs Market: V's revenue (9.7% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: V's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: V's Return on Equity is forecast to be high in 3 years time (39%)


Next Steps

Past Performance

How has Visa performed over the past 5 years?

15.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: V's earnings have grown by 15.2% per year over the past 5 years.

Accelerating Growth: V's earnings growth over the past year (23.9%) exceeds its 5-year average (15.2% per year).

Earnings vs Industry: V earnings growth over the past year (23.9%) exceeded the IT industry 9.8%.


Return on Equity

High ROE: V's Return on Equity (34%) is considered high.


Return on Assets

ROA vs Industry: V has a higher Return on Assets than the IT industry average last year.


Return on Capital Employed

ROCE Improving: V has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Visa's financial position?


Financial Position Analysis

Short Term Liabilities: V's short term assets ($18.3B) exceeds its short term liabilities ($10.8B)

Long Term Liabilities: V's short term assets (18.3B) do not cover its long term liabilities (24.4B)


Debt to Equity History and Analysis

Debt Level: V's debt to equity ratio (47.7%) is considered high

Reducing Debt: Insufficient data to determine if V's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: V's debt is well covered by operating cash flow (71.8%).

Interest Coverage: V's interest payments on its debt are well covered by EBIT (58.4x coverage).


Balance Sheet

Inventory Level: V has a low level of unsold assets or inventory.

Debt Coverage by Assets: V's debt is covered by short term assets (assets are 1.096500x debt).


Next Steps

Dividend

What is Visa's current dividend yield, its reliability and sustainability?

0.57%

Current Dividend Yield


Dividend Yield vs Market

company0.6%marketbottom25%1.4%markettop25%3.7%industryaverage1.3%forecastin3Years0.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: V's dividend (0.57%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: V's dividend (0.57%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: V is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: V is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: V is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of V's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Visa's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Al Kelly (61yo)

2.8yrs

Tenure

US$19,493,946

Compensation

Mr. Alfred Francis Kelly Jr., also known as Al, has been Chairman of the Board at Visa Inc. since April 16, 2019. He has been the Chief Executive Officer of Visa Inc. since December 1, 2016. Mr. Kelly ser ...


CEO Compensation Analysis

Compensation vs. Market: Al's total compensation ($USD19.49M) is about average for companies of similar size in the US market ($USD11.18M).

Compensation vs Earnings: Al's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.6yrs

Average Tenure

53yo

Average Age

Experienced Management: V's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

8.2yrs

Average Tenure

64yo

Average Age

Experienced Board: V's board of directors are considered experienced (8.2 years average tenure).


Insider Trading

Insider Buying: V insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$4,537,64023 Aug 19
Vasant Prabhu
EntityIndividual
Role
Vice Chairman
Vice Chairman & CFO
Shares25,051
Max PriceUS$181.14
BuyUS$171,13007 Aug 19
Denise Morrison
EntityIndividual
Shares1,000
Max PriceUS$171.13
SellUS$639,55729 Jul 19
Lloyd Carney
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$182.73
SellUS$2,536,28519 Mar 19
Kelly Tullier
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares16,228
Max PriceUS$156.29
SellUS$325,54104 Dec 18
James Hoffmeister
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares2,252
Max PriceUS$144.56

Ownership Breakdown


Management Team

  • Al Kelly (61yo)

    Chairman of the Board & CEO

    • Tenure: 2.8yrs
    • Compensation: US$19.49m
  • Vasant Prabhu (59yo)

    Vice Chairman & CFO

    • Tenure: 0.4yrs
    • Compensation: US$12.57m
  • Kelly Tullier (53yo)

    Executive VP

    • Tenure: 5yrs
    • Compensation: US$6.42m
  • Bill Sheedy (52yo)

    Executive Vice President of The Strategy Group

    • Tenure: 0yrs
    • Compensation: US$1.97m
  • Rajat Taneja (55yo)

    Executive Vice President of Technology & Operations

    • Tenure: 0yrs
    • Compensation: US$13.15m
  • Ryan McInerney (44yo)

    President

    • Tenure: 6.3yrs
    • Compensation: US$13.29m
  • Jennifer Grant (47yo)

    Executive VP of Human Resources & Chief Human Resources Officer

    • Tenure: 1.2yrs
  • Lynne Biggar (56yo)

    Executive VP and Chief Marketing & Communications Officer

    • Tenure: 3.7yrs
  • James Hoffmeister (46yo)

    Senior VP

    • Tenure: 3.5yrs
  • Mike Milotich

    Senior Vice President of Investor Relations

    • Tenure: 1.5yrs

Board Members

  • Al Kelly (61yo)

    Chairman of the Board & CEO

    • Tenure: 2.8yrs
    • Compensation: US$19.49m
  • John Lundgren (68yo)

    Lead Independent Director

    • Tenure: 0.5yrs
    • Compensation: US$284.19k
  • Vasant Prabhu (59yo)

    Vice Chairman & CFO

    • Tenure: 0.4yrs
    • Compensation: US$12.57m
  • Bob Matschullat (71yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$507.55k
  • Mary Cranston (71yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$355.05k
  • Francisco Javier Fernández Carbajal (64yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$310.05k
  • Suzanne Nora Johnson (62yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$345.05k
  • Lloyd Carney (57yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$315.05k
  • John A. Swainson (65yo)

    Independent Director

    • Tenure: 12yrs
    • Compensation: US$353.91k
  • Riko Abdurrahman

    President Director of PT Visa Worldwide Indonesia

    • Tenure: 1.7yrs

Company Information

Visa Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Visa Inc.
  • Ticker: V
  • Exchange: NYSE
  • Founded: 1970
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$383.352b
  • Shares outstanding: 2.17b
  • Website: https://usa.visa.com

Number of Employees


Location

  • Visa Inc.
  • PO Box 8999
  • San Francisco
  • California
  • 941282-8999
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VSWX (SIX Swiss Exchange)YesClass A Common StockCHCHFMar 2008
3V64DB (Deutsche Boerse AG)YesClass A Common StockDEEURMar 2008
3V64XTRA (XETRA Trading Platform)YesClass A Common StockDEEURMar 2008
V *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNMar 2008
VISAWBAG (Wiener Boerse AG)YesClass A Common StockATEURMar 2008
VSNSE (Santiago Stock Exchange)YesClass A Common StockCLUSDMar 2008
VNYSE (New York Stock Exchange)YesClass A Common StockUSUSDMar 2008
0QZ0LSE (London Stock Exchange)YesClass A Common StockGBUSDMar 2008
VBVL (Bolsa de Valores de Lima)YesClass A Common StockPEUSDMar 2008
3V64DBATS-CHIXE (BATS 'Chi-X Europe')YesClass A Common StockGBEURMar 2008
VISA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHSBRBRLFeb 2012
VBASE (Buenos Aires Stock Exchange)CEDEARS (EACH 6 REP 1 COM USD0.0001)ARARSApr 2019

Biography

Visa Inc. operates as a payments technology company worldwide. The company facilitates commerce through the transfer of value and information among consumers, merchants, financial institutions, businesses, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:07
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.