Market Cap
US$458.3b
Last Updated
2020/02/20 01:23 UTC
Data Sources
Company Financials +
Executive Summary
Visa Inc. operates as a payments technology company worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record with adequate balance sheet.
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
Stable Share Price: V has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.9%
V
2.0%
US IT
0.5%
US Market
1 Year Return
48.1%
V
39.2%
US IT
20.3%
US Market
Return vs Industry: V exceeded the US IT industry which returned 39.2% over the past year.
Return vs Market: V exceeded the US Market which returned 20.3% over the past year.
Shareholder returns
| V | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.9% | 2.0% | 0.5% |
| 30 Day | 2.9% | 5.3% | 2.0% |
| 90 Day | 18.9% | 16.6% | 9.4% |
| 1 Year | 49.0%48.1% | 40.7%39.2% | 22.8%20.3% |
| 3 Year | 146.7%141.9% | 112.1%102.9% | 50.1%40.4% |
| 5 Year | 222.6%211.7% | 151.0%128.7% | 73.1%54.1% |
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
1 week ago | Simply Wall St
Do Institutions Own Visa Inc. (NYSE:V) Shares?2 weeks ago | Simply Wall St
Should You Be Adding Visa (NYSE:V) To Your Watchlist Today?4 weeks ago | Simply Wall St
Is Visa Inc.'s (NYSE:V) High P/E Ratio A Problem For Investors?Valuation
Is Visa undervalued compared to its fair value and its price relative to the market?
38.88x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: V ($213.31) is trading above our estimate of fair value ($191.48)
Significantly Below Fair Value: V is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: V is poor value based on its PE Ratio (38.9x) compared to the IT industry average (33.5x).
PE vs Market: V is poor value based on its PE Ratio (38.9x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: V is poor value based on its PEG Ratio (3.5x)
Price to Book Ratio
PB vs Industry: V is overvalued based on its PB Ratio (15.4x) 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 32 analysts?
11.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: V's forecast earnings growth (11.1% per year) is above the savings rate (1.7%).
Earnings vs Market: V's earnings (11.1% per year) are forecast to grow slower than the US market (14.2% per year).
High Growth Earnings: V's earnings are forecast to grow, but not significantly.
Revenue vs Market: V's revenue (10.3% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: V's revenue (10.3% 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 very high in 3 years time (54.2%).
Next Steps
Past Performance
How has Visa performed over the past 5 years?
17.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: V has high quality earnings.
Growing Profit Margin: V's current net profit margins (50.7%) are higher than last year (48.8%).
Past Earnings Growth Analysis
Earnings Trend: V's earnings have grown by 17.4% per year over the past 5 years.
Accelerating Growth: V's earnings growth over the past year (15%) is below its 5-year average (17.4% per year).
Earnings vs Industry: V earnings growth over the past year (15%) exceeded the IT industry 12%.
Return on Equity
High ROE: V's Return on Equity (35.1%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Visa's financial position?
Financial Position Analysis
Short Term Liabilities: V's short term assets ($22.3B) exceed its short term liabilities ($17.6B).
Long Term Liabilities: V's short term assets ($22.3B) exceed its long term liabilities ($21.9B).
Debt to Equity History and Analysis
Debt Level: V's debt to equity ratio (47.3%) 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 (80.1%).
Interest Coverage: V's interest payments on its debt are well covered by EBIT (65.3x 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 1.3x debt).
Next Steps
Dividend
What is Visa's current dividend yield, its reliability and sustainability?
0.56%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: V's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: V's dividend (0.56%) is low compared to the top 25% of dividend payers in the US market (3.73%).
Stability and Growth of Payments
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
How experienced are the management team and are they aligned to shareholders interests?
4.5yrs
Average management tenure
CEO
Al Kelly (61yo)
3.2yrs
Tenure
US$24,265,771
Compensation
Mr. Alfred Francis Kelly Jr., also known as Al, has been Chairman of the Board at Visa Inc. since April 16, 2019. He has been the Chief Executive Officer of Visa Inc. since December 1, 2016. Mr. Kelly ser ...
CEO Compensation Analysis
Compensation vs Market: Al's total compensation ($USD24.27M) is above average for companies of similar size in the US market ($USD10.78M).
Compensation vs Earnings: Al's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3.2yrs | US$24.27m | 0.0066% $30.1m | |
| President | 6.7yrs | US$12.09m | 0.0062% $28.5m | |
| Vice Chairman & CFO | 5yrs | US$11.59m | 0.0037% $17.0m | |
| President of Technology | 6.3yrs | US$11.81m | 0.010% $46.5m | |
| Executive VP | 5.3yrs | US$6.34m | 0.0025% $11.4m | |
| Senior VP | 3.8yrs | no data | 0.00010% $458.3k | |
| Senior Vice President of Investor Relations | 1.8yrs | no data | no data | |
| Executive VP and Chief Marketing & Communications Officer | 4yrs | no data | 0.00065% $3.0m | |
| Executive VP of Human Resources & Chief Human Resources Officer | 1.5yrs | no data | no data | |
| Executive VP & Regional President of North America | 8.9yrs | no data | no data |
4.5yrs
Average Tenure
53yo
Average Age
Experienced Management: V's management team is considered experienced (4.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 3.2yrs | US$24.27m | 0.0066% $30.1m | |
| Lead Independent Director | 0.8yrs | US$348.69k | 0.00018% $824.9k | |
| Independent Director | 6.1yrs | US$329.94k | 0.000070% $320.8k | |
| Independent Director | 12.3yrs | US$468.69k | 0.0028% $12.8m | |
| Independent Director | 12.3yrs | US$368.69k | 0.00086% $3.9m | |
| Independent Director | 12.3yrs | US$339.94k | 0.0013% $5.9m | |
| Independent Director | 12.3yrs | US$364.94k | 0.0051% $23.6m | |
| Independent Director | 4.7yrs | US$336.19k | 0.00021% $962.3k | |
| Independent Director | 12.3yrs | US$359.94k | 0.0033% $15.2m | |
| President Director of PT Visa Worldwide Indonesia | 2yrs | no data | no data |
9.2yrs
Average Tenure
64yo
Average Age
Experienced Board: V's board of directors are considered experienced (9.2 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: V insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Visa Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Visa Inc.
- Ticker: V
- Exchange: NYSE
- Founded: 2007
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$458.258b
- Shares outstanding: 2.15b
- Website: https://usa.visa.com
Number of Employees
Location
- Visa Inc.
- PO Box 8999
- San Francisco
- California
- 94128
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 3V64 | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | Mar 2008 |
| V | NYSE (New York Stock Exchange) | Yes | Class A Common Stock | US | USD | Mar 2008 |
| 3V64 | XTRA (XETRA Trading Platform) | Yes | Class A Common Stock | DE | EUR | Mar 2008 |
| V * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | Mar 2008 |
| V | SNSE (Santiago Stock Exchange) | Yes | Class A Common Stock | CL | USD | Mar 2008 |
| V | SWX (SIX Swiss Exchange) | Yes | Class A Common Stock | CH | CHF | Mar 2008 |
| 0QZ0 | LSE (London Stock Exchange) | Yes | Class A Common Stock | GB | USD | Mar 2008 |
| V | BVL (Bolsa de Valores de Lima) | Yes | Class A Common Stock | PE | USD | Mar 2008 |
| 3V64D | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Class A Common Stock | GB | EUR | Mar 2008 |
| VISA | WBAG (Wiener Boerse AG) | Yes | Class A Common Stock | AT | EUR | Mar 2008 |
| 3V64 | ETLX (Eurotlx) | Yes | Class A Common Stock | IT | EUR | Mar 2008 |
| VISA34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM SHS | BR | BRL | Feb 2012 | |
| V | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH 6 R 1 COM (USD) | AR | ARS | Apr 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, strategic partners, and government entities. It operates VisaNet, a processing network that enables authorization, clearing, and settlement of payment transactions. In addition, the company offers card products, as well as value-added services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brands. Visa Inc. has a strategic partnership with NovoPayment to enable financial institutions and merchants to deploy Visa’s digital solutions in Latin America and the Caribbean. The company was incorporated in 2007 and is headquartered in San Francisco, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/20 01:23 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/09/30 |
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.