| Snowflake Score | |
|---|---|
| Valuation | 1/6 |
| Future Growth | 4/6 |
| Past Performance | 3/6 |
| Financial Health | 3/6 |
| Dividends | 0/6 |
V Overview
Visa Inc. operates as a payments technology company worldwide.
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
-1.3%
V
-1.8%
US IT
-1.8%
US Market
1 Year Return
9.8%
V
22.3%
US IT
31.5%
US Market
Return vs Industry: V underperformed the US IT industry which returned 24.7% over the past year.
Return vs Market: V underperformed the US Market which returned 33% over the past year.
Shareholder returns
| V | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.3% | -1.8% | -1.8% |
| 30 Day | -4.8% | -1.4% | -0.9% |
| 90 Day | -6.2% | -2.1% | 0.8% |
| 1 Year | 10.4%9.8% | 23.3%22.3% | 33.5%31.5% |
| 3 Year | 50.0%47.2% | 74.7%69.2% | 57.5%47.8% |
| 5 Year | 176.9%168.0% | 192.8%172.8% | 119.1%95.3% |
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
2 weeks ago | Simply Wall St
While Visa’s (NYSE:V) Stock Price Appears Weak, its Financials are in Great Shape4 weeks ago | Simply Wall St
High Institutional Ownership Should Provide Comfort Through Visa Inc.'s (NYSE:V) Pullback1 month ago | Simply Wall St
Shareholders Would Enjoy A Repeat Of Visa's (NYSE:V) Recent Growth In ReturnsVisa Fundamentals Summary
| V fundamental statistics | |
|---|---|
| Market Cap | US$468.26b |
| Earnings (TTM) | US$10.57b |
| Revenue (TTM) | US$22.65b |
44.3x
P/E Ratio20.7x
P/S RatioIs V overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| V income statement (TTM) | |
|---|---|
| Revenue | US$22.65b |
| Cost of Revenue | US$729.00m |
| Gross Profit | US$21.92b |
| Expenses | US$11.35b |
| Earnings | US$10.57b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 4.96 |
| Gross Margin | 96.78% |
| Net Profit Margin | 46.65% |
| Debt/Equity Ratio | 55.6% |
How did V perform over the long term?
See historical performance and comparisonDividends
0.6%
Current Dividend Yield26%
Payout RatioValuation
Is Visa undervalued compared to its fair value and its price relative to the market?
0.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: V ($220.17) is trading below our estimate of fair value ($221.32)
Significantly Below Fair Value: V is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: V is poor value based on its PE Ratio (44.3x) compared to the US IT industry average (34.1x).
PE vs Market: V is poor value based on its PE Ratio (44.3x) compared to the US market (17.5x).
Price to Earnings Growth Ratio
PEG Ratio: V is poor value based on its PEG Ratio (2.5x)
Price to Book Ratio
PB vs Industry: V is overvalued based on its PB Ratio (13.5x) compared to the US IT industry average (5.3x).
Future Growth
How is Visa forecast to perform in the next 1 to 3 years based on estimates from 32 analysts?
17.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: V's forecast earnings growth (17.5% per year) is above the savings rate (2%).
Earnings vs Market: V's earnings (17.5% per year) are forecast to grow faster than the US market (14.9% 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 (9.8% 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 (56.1%).
Past Performance
How has Visa performed over the past 5 years?
14.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: V has high quality earnings.
Growing Profit Margin: V's current net profit margins (46.7%) are lower than last year (49.5%).
Past Earnings Growth Analysis
Earnings Trend: V's earnings have grown by 14.6% 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 (-6.8%) over the past year, making it difficult to compare to the IT industry average (28%).
Return on Equity
High ROE: V's Return on Equity (28.7%) is considered high.
Financial Health
How is Visa's financial position?
Financial Position Analysis
Short Term Liabilities: V's short term assets ($28.0B) exceed its short term liabilities ($14.0B).
Long Term Liabilities: V's short term assets ($28.0B) do not cover its long term liabilities ($30.9B).
Debt to Equity History and Analysis
Debt Level: V's debt to equity ratio (55.6%) is considered high.
Reducing Debt: V's debt to equity ratio has increased from 48.4% to 55.6% over the past 5 years.
Debt Coverage: V's debt is well covered by operating cash flow (63.6%).
Interest Coverage: V's interest payments on its debt are well covered by EBIT (32.4x coverage).
Balance Sheet
Dividend
What is Visa current dividend yield, its reliability and sustainability?
0.58%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: V's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: V's dividend (0.58%) is low compared to the top 25% of dividend payers in the US market (3.65%).
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?
5.5yrs
Average management tenure
CEO
Al Kelly (63 yo)
4.75yrs
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 ($USD11.33M).
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 (5.5 years average tenure).
Board Members
Experienced Board: V's board of directors are considered experienced (7 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$468.261b
- 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/22 00:19 |
| End of Day Share Price | 2021/09/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/09/30 |
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.