NYSE:V

Stock Analysis Report

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Market Cap

US$491.4b

Last Updated

2021/06/20 22:25 UTC

Data Sources

Company Financials +

Executive Summary

Visa Inc. operates as a payments technology company worldwide. More Details


Snowflake Analysis

Reasonable growth potential 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: V's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-1.9%

V

1.1%

US IT

-1.9%

US Market


1 Year Return

19.9%

V

34.9%

US IT

38.2%

US Market

Return vs Industry: V underperformed the US IT industry which returned 34.9% over the past year.

Return vs Market: V underperformed the US Market which returned 38.2% over the past year.


Shareholder returns

VIndustryMarket
7 Day-1.9%1.1%-1.9%
30 Day1.6%4.5%1.1%
90 Day10.8%7.9%4.3%
1 Year20.6%19.9%36.0%34.9%40.4%38.2%
3 Year73.5%70.3%92.8%86.6%57.5%47.8%
5 Year217.3%207.0%228.0%205.2%127.2%101.7%

Long-Term 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?

47.52x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: V ($230.41) is trading above our estimate of fair value ($206.44)

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 (47.5x) compared to the US IT industry average (35.3x).

PE vs Market: V is poor value based on its PE Ratio (47.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: V is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: V is overvalued based on its PB Ratio (14.3x) compared to the US IT industry average (4.8x).


Future Growth

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

19.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: V's forecast earnings growth (19.9% per year) is above the savings rate (2%).

Earnings vs Market: V's earnings (19.9% per year) are forecast to grow faster than the US market (15.7% per year).

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

Revenue vs Market: V's revenue (14.1% per year) is forecast to grow faster than the US market (9.5% per year).

High Growth Revenue: V's revenue (14.1% 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 (40.3%).


Past Performance

How has Visa performed over the past 5 years?

15.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: V has high quality earnings.

Growing Profit Margin: V's current net profit margins (48.4%) are lower than last year (50.4%).


Past Earnings Growth Analysis

Earnings Trend: V's earnings have grown by 15.3% per year over the past 5 years.

Accelerating Growth: V's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: V had negative earnings growth (-14.1%) over the past year, making it difficult to compare to the IT industry average (16.3%).


Return on Equity

High ROE: V's Return on Equity (28.3%) is considered high.


Financial Health

How is Visa's financial position?


Financial Position Analysis

Short Term Liabilities: V's short term assets ($26.9B) exceed its short term liabilities ($12.7B).

Long Term Liabilities: V's short term assets ($26.9B) do not cover its long term liabilities ($29.8B).


Debt to Equity History and Analysis

Debt Level: V's debt to equity ratio (54.1%) is considered high.

Reducing Debt: V's debt to equity ratio has reduced from 54.4% to 54.1% over the past 5 years.

Debt Coverage: V's debt is well covered by operating cash flow (58.5%).

Interest Coverage: V's interest payments on its debt are well covered by EBIT (26.7x coverage).


Balance Sheet


Dividend

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

0.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: V's dividend (0.56%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: V's dividend (0.56%) is low compared to the top 25% of dividend payers in the US market (3.49%).


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?

5.3yrs

Average management tenure


CEO

Al Kelly (62 yo)

4.5yrs

Tenure

US$26,364,928

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 ($USD26.36M) is above average for companies of similar size in the US market ($USD11.31M).

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


Leadership Team

Experienced Management: V's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: V's board of directors are considered experienced (6.7 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: 1958
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$491.417b
  • Shares outstanding: 2.13b
  • Website: https://usa.visa.com

Number of Employees


Location

  • Visa Inc.
  • PO Box 8999
  • San Francisco
  • California
  • 94128
  • United States

Listings


Biography

Visa Inc. operates as a payments technology company worldwide. The company facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government en...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/20 22:25
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.