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Visa

NYSE:V
Snowflake Description

Solid track record with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
V
NYSE
$313B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Visa Inc. operates as a payments technology company worldwide. The last earnings update was 46 days ago. More info.


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Price Volatility
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Industry
5yr Volatility vs Market

Value

 Is Visa undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Visa to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Visa.

NYSE:V Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 34 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:V
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
IT Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.903 (1 + (1- 21%) (5.31%))
0.941
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.941 * 7.05%)
9.58%

Discounted Cash Flow Calculation for NYSE:V using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Visa is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:V DCF 1st Stage: Next 5 year cash flow forecast
2018 2019 2020 2021 2022
Levered FCF (USD, Millions) 11,028.81 12,126.73 13,465.68 13,534.67 14,762.33
Source Analyst x12 Analyst x11 Analyst x8 Analyst x3 Analyst x3
Present Value
Discounted (@ 9.58%)
10,064.47 10,098.76 10,233.28 9,386.34 9,342.57
Present value of next 5 years cash flows $49,125.42
NYSE:V DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
= $14,762.33 × (1 + 2.95%) ÷ (9.58% – 2.95%)
$229,171.65
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $229,171.65 ÷ (1 + 9.58%)5
$145,034.74
NYSE:V Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $49,125.42 + $145,034.74
$194,160.16
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $194,160.16 / 2,225.11
$87.26
NYSE:V Discount to Share Price
Calculation Result
Value per share (USD) From above. $87.26
Current discount Discount to share price of $139.92
= -1 x ($139.92 - $87.26) / $87.26
-60.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Visa is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Visa's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Visa's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:V PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in USD $4.11
NYSE:V Share Price ** NYSE (2018-08-15) in USD $139.92
United States of America IT Industry PE Ratio Median Figure of 116 Publicly-Listed IT Companies 25.2x
United States of America Market PE Ratio Median Figure of 7,193 Publicly-Listed Companies 18.22x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Visa.

NYSE:V PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:V Share Price ÷ EPS (both in USD)

= 139.92 ÷ 4.11

34.06x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Visa is overvalued based on earnings compared to the US IT industry average.
  • Visa is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Visa's expected growth come at a high price?
Raw Data
NYSE:V PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 34.06x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 34 Analysts
14.6%per year
United States of America IT Industry PEG Ratio Median Figure of 97 Publicly-Listed IT Companies 2.12x
United States of America Market PEG Ratio Median Figure of 5,693 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

NYSE:V PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 34.06x ÷ 14.6%

2.33x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Visa is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Visa's assets?
Raw Data
NYSE:V PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in USD $12.51
NYSE:V Share Price * NYSE (2018-08-15) in USD $139.92
United States of America IT Industry PB Ratio Median Figure of 182 Publicly-Listed IT Companies 3.57x
United States of America Market PB Ratio Median Figure of 11,718 Publicly-Listed Companies 1.87x
NYSE:V PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:V Share Price ÷ Book Value per Share (both in USD)

= 139.92 ÷ 12.51

11.18x

* Primary Listing of Visa.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Visa is overvalued based on assets compared to the US IT industry average.
X
Value checks
We assess Visa's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Visa has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Visa expected to perform in the next 1 to 3 years based on estimates from 34 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Visa expected to grow at an attractive rate?
  • Visa's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Visa's earnings growth is expected to exceed the United States of America market average.
  • Visa's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:V Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:V Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 34 Analysts 14.6%
NYSE:V Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 34 Analysts 10.3%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 16.9%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 8.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 6.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:V Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 34 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:V Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-09-30 31,466 18,315 3
2021-09-30 28,427 16,586 3
2020-09-30 25,405 15,190 13,508 25
2019-09-30 22,916 13,391 11,970 34
2018-09-30 20,586 12,073 10,273 34
NYSE:V Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-06-30 20,030 11,986 9,264
2018-03-31 19,355 11,886 9,004
2017-12-31 18,759 9,462 6,903
2017-09-30 18,358 9,208 6,467
2017-06-30 17,764 8,893 6,279
2017-03-31 16,829 5,659 4,702
2016-12-31 15,978 6,103 5,990
2016-09-30 15,082 5,574 5,929
2016-06-30 14,392 4,856 5,560
2016-03-31 14,280 6,664 6,842
2015-12-31 14,063 6,802 6,685
2015-09-30 13,880 6,584 6,313

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Visa's earnings are expected to grow by 14.6% yearly, however this is not considered high growth (20% yearly).
  • Visa's revenue is expected to grow by 10.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:V Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 34 Analyst Estimates (S&P Global) See Below

All data from Visa Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:V Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-09-30 8.97 8.97 8.97 1.00
2021-09-30 7.60 7.60 7.60 1.00
2020-09-30 6.15 6.36 5.87 16.00
2019-09-30 5.29 5.57 4.92 21.00
2018-09-30 4.43 4.60 4.34 16.00
NYSE:V Past Financials Data
Date (Data in USD Millions) EPS *
2018-06-30 4.11
2018-03-31 3.97
2017-12-31 3.02
2017-09-30 2.81
2017-06-30 2.70
2017-03-31 2.00
2016-12-31 2.53
2016-09-30 2.49
2016-06-30 2.31
2016-03-31 2.83
2015-12-31 2.75
2015-09-30 2.58

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Visa is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Visa's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Visa has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Visa performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Visa's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Visa's year on year earnings growth rate has been positive over the past 5 years.
  • Visa's 1-year earnings growth exceeds its 5-year average (47.5% vs 13.8%)
  • Visa's earnings growth has exceeded the US IT industry average in the past year (47.5% vs 14.8%).
Earnings and Revenue History
Visa's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Visa Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:V Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 20,030.00 9,264.00 5,406.00
2018-03-31 19,355.00 9,004.00 5,223.00
2017-12-31 18,759.00 6,903.00 5,002.00
2017-09-30 18,358.00 6,467.00 4,827.00
2017-06-30 17,764.00 6,279.00 4,723.00
2017-03-31 16,829.00 4,702.00 4,402.00
2016-12-31 15,978.00 5,990.00 4,152.00
2016-09-30 15,082.00 5,929.00 4,018.00
2016-06-30 14,392.00 5,560.00 3,819.00
2016-03-31 14,280.00 6,842.00 3,898.00
2015-12-31 14,063.00 6,685.00 3,845.00
2015-09-30 13,880.00 6,313.00 3,834.00
2015-06-30 13,538.00 5,873.00 3,794.00
2015-03-31 13,175.00 5,537.00 3,684.00
2014-12-31 12,929.00 5,584.00 3,681.00
2014-09-30 12,702.00 5,421.00 3,610.00
2014-06-30 12,446.00 5,539.00 3,759.00
2014-03-31 12,292.00 5,403.00 3,677.00
2013-12-31 12,087.00 5,075.00 3,669.00
2013-09-30 11,778.00 4,961.00 3,671.00
2013-06-30 11,536.00 5,431.00 3,545.00
2013-03-31 11,100.00 2,377.00 3,616.00
2012-12-31 10,720.00 2,399.00 3,525.00
2012-09-30 10,421.00 2,137.00 3,435.00
2012-06-30 10,073.00 1,357.00 3,265.00
2012-03-31 9,830.00 4,192.00 3,189.00
2011-12-31 9,497.00 3,783.00 3,106.00
2011-09-30 9,188.00 3,638.00 3,080.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Visa has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Visa used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • Visa's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Visa's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Visa has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Visa's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Visa's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Visa is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Visa's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Visa's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Visa Company Filings, last reported 1 month ago.

NYSE:V Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 33,318.00 16,627.00 11,901.00
2018-03-31 34,103.00 16,624.00 11,719.00
2017-12-31 33,401.00 16,621.00 11,551.00
2017-09-30 32,760.00 18,367.00 13,438.00
2017-06-30 31,944.00 15,891.00 10,191.00
2017-03-31 30,783.00 15,888.00 7,922.00
2016-12-31 31,726.00 16,451.00 9,521.00
2016-09-30 32,912.00 15,882.00 8,938.00
2016-06-30 32,827.00 15,879.00 8,752.00
2016-03-31 29,131.00 15,876.00 19,897.00
2015-12-31 29,476.00 15,877.00 21,345.00
2015-09-30 29,842.00 0.00 6,015.00
2015-06-30 28,627.00 0.00 4,722.00
2015-03-31 28,237.00 0.00 4,606.00
2014-12-31 27,942.00 0.00 4,580.00
2014-09-30 27,413.00 0.00 3,950.00
2014-06-30 27,286.00 0.00 4,064.00
2014-03-31 27,295.00 0.00 3,494.00
2013-12-31 27,014.00 0.00 4,090.00
2013-09-30 26,870.00 0.00 4,255.00
2013-06-30 27,003.00 0.00 3,348.00
2013-03-31 26,895.00 0.00 2,719.00
2012-12-31 27,588.00 0.00 2,785.00
2012-09-30 27,630.00 0.00 2,817.00
2012-06-30 26,158.00 0.00 2,303.00
2012-03-31 28,521.00 0.00 2,957.00
2011-12-31 27,301.00 0.00 2,741.00
2011-09-30 26,437.00 0.00 3,398.00
  • Visa's level of debt (49.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 49.9% today).
  • Debt is well covered by operating cash flow (72.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 25.8x coverage).
X
Financial health checks
We assess Visa's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Visa has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.6%
Current annual income from Visa dividends. Estimated to be 0.66% next year.
If you bought $2,000 of Visa shares you are expected to receive $12 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Visa's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.46%).
  • Visa's dividend is below the markets top 25% of dividend payers in United States of America (3.82%).
Upcoming dividend payment

Purchase Visa on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:V Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 34 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 77 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 5588 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:V Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-09-30
2021-09-30
2020-09-30 1.00 11.00
2019-09-30 0.94 17.00
2018-09-30 0.84 16.00
NYSE:V Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-07-17 0.840 0.600
2018-04-18 0.840 0.639
2018-02-01 0.840 0.695
2017-10-18 0.780 0.684
2017-07-18 0.660 0.638
2017-04-18 0.660 0.704
2017-02-01 0.660 0.749
2016-10-18 0.660 0.820
2016-07-19 0.560 0.690
2016-04-20 0.560 0.720
2016-02-05 0.560 0.757
2015-10-21 0.560 0.731
2015-07-22 0.480 0.663
2015-04-23 0.480 0.699
2015-01-28 0.480 0.722
2014-10-22 0.480 0.762
2014-07-23 0.400 0.753
2014-04-23 0.400 0.756
2014-01-29 0.400 0.735
2013-10-23 0.400 0.764
2013-07-16 0.330 0.710
2013-04-24 0.330 0.732
2013-01-30 0.330 0.820
2012-10-24 0.330 0.882
2012-07-19 0.220 0.667
2012-04-26 0.220 0.734
2012-02-01 0.220 0.755
2011-10-19 0.220 0.910
2011-07-22 0.150 0.691
2011-04-25 0.150 0.747
2011-02-02 0.150 0.809
2010-10-20 0.150 0.808
2010-08-02 0.125 0.693
2010-07-28 0.125 0.683
2010-07-22 0.125 0.663
2010-04-20 0.125 0.641
2010-02-03 0.125 0.562
2010-01-21 0.125 0.603
2009-11-20 0.125 0.591
2009-10-27 0.125 0.634
2009-10-21 0.125 0.674
2009-07-30 0.105 0.595
2009-07-29 0.105 0.627
2009-07-27 0.105 0.627
2009-05-06 0.105 0.651
2009-04-29 0.105 0.638
2009-04-23 0.105 0.698
2009-02-09 0.105 0.759
2009-02-04 0.105 0.788
2009-01-26 0.105 0.895
2008-11-21 0.105 0.819
2008-10-29 0.105 0.795
2008-10-16 0.105 0.843
2008-08-18 0.105 0.651

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Visa is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Visa is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Visa's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Visa's dividends as it is not paying a notable for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Visa's dividends in 3 years as they are not expected to pay a notable for United States of America.
X
Income/ dividend checks
We assess Visa's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Visa afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Visa has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Al Kelly, image provided by Google.
Al Kelly
COMPENSATION $21,770,704
AGE 60
TENURE AS CEO 1.7 years
CEO Bio

Mr. Alfred F. Kelly, Jr., also known as Al, has been the Chief Executive Officer of Visa Inc. since December 1, 2016. Mr. Kelly served as the Chairman, President and Chief Executive Officer of the 2014 NY/NJ Super Bowl Host Company from April 2011 to August 2014. Mr. Kelly served as the Chief Executive Officer and President at Intersection Co. since February 17, 2016. He served as the President and Head of Global Consumer Group at American Express Company from July 1, 2007 to April 10, 2010. He led many of American Express' key businesses, including the Consumer Card Services Group, OPEN from American Express, Consumer Travel, Global Travelers Cheques and Prepaid Services, Establishment Services, North America, U.S. Customer Service, Global Risk Management and Interactive Services worldwide. He served as Group President of Consumer for Small Business and Merchant Services for American Express Co. from October 2005 to July 1, 2007. He served as Group President of U.S. Consumer and Small Business Services for Travel Releated Services Company, Inc. since June 2000. He served as the President of Consumer Card Services Group, TRS since October 1998. He served as an Executive Vice President and General Manager for Consumer Marketing, TRS since February 1997. He served as the Head of Information Systems at the White House from 1985 to 1987, where he oversaw the information processing functions for several government agencies that comprise the Executive Office of the President. He also held management positions in strategic and financial planning at PepsiCo. He has an extensive global experience in consumer marketing, strategic planning and development, customer loyalty and information technology. He has been an Independent Director of Visa Inc. since January 29, 2014. He was a Director of Metropolitan Life Insurance Company from 2009 until June 12, 2018. He served as a Director for Affinion Group Holdings, Inc. from February 24, 2011 to August 9, 2013. He served as a Director of The Hershey Company from August 11, 2005 to November 11, 2007. He served as Vice Chairman of the Wall Street Charity Golf Classic for 12 years. He served as a Director of Affinion Group, Inc. from February 24, 2011 to August 2013. He served as the Chairman, Board of Directors of School of the Holy Child. He serves as a Trustee of The New York and Presbyterian Hospital and Iona Preparatory School. He served as a Member of Boards of Trustees of St. Joseph's Seminary and College and New York Catholic Foundation. He serves on the Board of Trustees of Iona College, New Rochelle, NY. He serves on the Board of Directors of Concern Worldwide USA and the Carvel Children's Rehabilitation Center and serves as Member of Council on Foreign Relations. Mr. Kelly holds a Master of Business Administration and Bachelor of Arts in Liberal Arts (Summa Cum Laude) from Iona College. He was Director of MetLife, Inc. from June 2009 until June 12, 2018.

CEO Compensation
  • Al's compensation has increased by more than 20% in the past year.
  • Al's compensation appears reasonable for a company of this size and profit level.
Management Team Tenure

Average tenure and age of the Visa management team in years:

2.5
Average Tenure
54.5
Average Age
  • The tenure for the Visa management team is about average.
Management Team

Al Kelly

TITLE
CEO & Director
COMPENSATION
$22M
AGE
60
TENURE
1.7 yrs

Ryan McInerney

TITLE
President
COMPENSATION
$9M
AGE
43
TENURE
5.2 yrs

Vasant Prabhu

TITLE
Executive VP & CFO
COMPENSATION
$8M
AGE
58
TENURE
3.5 yrs

Rajat Taneja

TITLE
Executive Vice President of Technology & Operations
COMPENSATION
$10M
AGE
54

Kelly Tullier

TITLE
Executive VP
COMPENSATION
$5M
AGE
52
TENURE
3.8 yrs

James Hoffmeister

TITLE
Senior VP
AGE
45
TENURE
2.3 yrs

Mike Milotich

TITLE
Senior Vice President of Investor Relations
TENURE
0.3 yrs

Lynne Biggar

TITLE
Executive VP and Chief Marketing & Communications Officer
AGE
55
TENURE
2.5 yrs

Michael Ross

TITLE
Executive Vice President of Human Resources
TENURE
5.6 yrs

Ellen Richey

TITLE
Vice Chairman & Chief Risk Officer
COMPENSATION
$4M
AGE
69
TENURE
1.3 yrs
Board of Directors Tenure

Average tenure and age of the Visa board of directors in years:

5
Average Tenure
63
Average Age
  • The tenure for the Visa board of directors is about average.
Board of Directors

Robert Matschullat

TITLE
Non-Executive Chairman of the Board
COMPENSATION
$497K
AGE
70
TENURE
5.4 yrs

Al Kelly

TITLE
CEO & Director
COMPENSATION
$22M
AGE
60
TENURE
4.6 yrs

Riko Abdurrahman

TITLE
President Director of PT Visa Worldwide Indonesia
TENURE
0.5 yrs

Mary Cranston

TITLE
Director
COMPENSATION
$355K
AGE
70
TENURE
10.8 yrs

Suzanne Nora Johnson

TITLE
Director
COMPENSATION
$350K
AGE
61
TENURE
10.8 yrs

John A. Swainson

TITLE
Director
COMPENSATION
$335K
AGE
64
TENURE
10.8 yrs

Francisco Fernández-Carbajal

TITLE
Director
COMPENSATION
$325K
AGE
63
TENURE
10.8 yrs

Maynard Webb

TITLE
Director
COMPENSATION
$335K
AGE
62
TENURE
4.6 yrs

Lloyd Carney

TITLE
Director
COMPENSATION
$315K
AGE
56
TENURE
3.2 yrs

John Lundgren

TITLE
Director
COMPENSATION
$31K
AGE
66
TENURE
1.3 yrs
Recent Insider Trading
  • Visa insiders have only sold shares in the past 3 months.
Who owns this company?
X
Management checks
We assess Visa's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Visa has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

External News
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Simply Wall St News

Should You Buy Visa Inc (NYSE:V) At US$140?

Today we're going to take a look at the well-established Visa Inc (NYSE:V). … saw a double-digit share price rise of over 10% in the past couple of months on the NYSE. … With many analysts covering the large-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price?

Simply Wall St -

What Do You Get For Owning Visa Inc (NYSE:V)?

Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … This is because the actual cash flow generated by the business dictates the potential for income (dividends) and capital appreciation (price increases), which are the two ways to achieve positive returns when buying a stock. … To understand Visa’s capital returns we will look at a useful metric called return on capital employed.

Simply Wall St -

Who Are The Top Investors In Visa Inc (NYSE:V)?

I am going to take a deep dive into Visa Inc’s (NYSE:V) most recent ownership structure, not a frequent subject of discussion among individual investors. … The impact of a company's ownership structure affects both its short- and long-term performance. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.

Simply Wall St -

Is Visa Inc's (NYSE:V) PE Ratio A Signal To Sell For Investors?

Yes, this expensive multiple can initially be deterring, but there are many company-specific elements which are not captured in such a static ratio – such as its growth outlook and debt obligations … This article will cover some key aspects we should consider in order to determine the best multiple to be used for

Simply Wall St -

What is Behind Visa Inc's (NYSE:V) Superior ROE?

I am writing today to help inform people who are new to the stock market. … If V borrows debt to invest in its business, its profits will be higher. … But ROE does not capture any debt, so we only see high profits and low equity, which is great on the surface

Simply Wall St -

Is Visa Inc's (NYSE:V) PE Ratio A Signal To Sell For Investors?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to better understand how you can grow your money by investing in Visa Inc (NYSE:V). … While V might seem like a stock to avoid or sell if you own it, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions

Simply Wall St -

Is Visa Inc's (NYSE:V) 27.35% ROE Strong Compared To Its Industry?

View our latest analysis for Visa Breaking down Return on Equity Return on Equity (ROE) weighs Visa’s profit against the level of its shareholders’ equity. … ROE can be broken down into three different ratios: net profit margin, asset turnover, and financial leverage. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:V Last Perf Jun 4th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.

Simply Wall St -

Why Visa Inc (NYSE:V) Could Be A Buy

In addition to this, it seems like Visa’s share price is quite stable, which could mean two things: firstly, it may take the share price a while to fall back down to an attractive buying range, and secondly, there may be less chances to buy low in the future once it reaches that value. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … V’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value.

Simply Wall St -

Did Visa Inc's (NYSE:V) Recent Earnings Growth Beat The Trend?

When Visa Inc (NYSE:V) released its most recent earnings update (31 March 2018), I wanted to understand how these figures stacked up against its past performance. … The two benchmarks I used were Visa's average earnings over the past couple of years, and its industry performance. … Check out our latest analysis for Visa Commentary On V's Past Performance To account for any quarterly or half-yearly updates, I use data from the most recent 12 months, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data.

Simply Wall St -

Visa Inc (NYSE:V): What The Forecasts Are Telling Us

To help investors get a top level understanding, this article will interpret Visa's margin performance to help recognise the underlying make-up of revenue and expenses that is responsible for driving future earnings expectations and what it means for V's returns relative to its competitors. … Margin Calculation for V Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 6.90 Billion ÷ 18.76 Billion = 36.80% The past five years have seen Visa's margin expand, due to a 12.09% average growth in net income exceeding a 10.53% average growth in revenue, which suggests that the company has been able to convert a larger percentage of revenue into net income whilst grow their top line at the same time. … Forward looking projections suggest margins will continue to expand, with 10.15% in expected annual revenue growth and annual net income growth forecasted at 15.97%.

Simply Wall St -

Company Info

Map
Description

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; and offers fraud protection for account holders and assured payment for merchants. The company also offers gateway services for merchants to accept, process, and reconcile payments; manage fraud; and safeguard payment security online, as well as processing services for participating issuers of visa debit, prepaid, and ATM payment products. In addition, it provides digital products, including Visa Checkout that offers consumers an expedited, and secure payment experience for online transactions; and Visa Direct, a push payment product platform, that allows businesses, governments, and consumers to use the Visa network to transfer funds from an originating account to another via a debit, prepaid, or credit card number, as well as Visa token service that replaces the card account numbers from the transaction with a token. Further the company offers corporate (travel) and purchasing 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. was incorporated in 2007 and is headquartered in San Francisco, California.

Details
Name: Visa Inc.
V
Exchange: NYSE
Founded: 2007
$313,207,180,625
2,225,114,951
Website: http://usa.visa.com
Address: Visa Inc.
PO Box 8999,
San Francisco,
California, 94128,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE V Class A Common Stock New York Stock Exchange US USD 19. Mar 2008
DB 3V64 Class A Common Stock Deutsche Boerse AG DE EUR 19. Mar 2008
XTRA 3V64 Class A Common Stock XETRA Trading Platform DE EUR 19. Mar 2008
LSE 0QZ0 Class A Common Stock London Stock Exchange GB USD 19. Mar 2008
SWX V Class A Common Stock SIX Swiss Exchange CH CHF 19. Mar 2008
WBAG VISA Class A Common Stock Wiener Boerse AG AT EUR 19. Mar 2008
SNSE V Class A Common Stock Santiago Stock Exchange CL USD 19. Mar 2008
BMV V * Class A Common Stock Bolsa Mexicana de Valores MX MXN 19. Mar 2008
BVL V Class A Common Stock Bolsa de Valores de Lima PE USD 19. Mar 2008
BOVESPA VISA34 BDR EACH REPR 1 COM SHS Bolsa de Valores de Sao Paulo BR BRL 02. Feb 2012
Number of employees
Current staff
Staff numbers
14,200
Visa employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/08/15 22:45
End of day share price update: 2018/08/15 00:00
Last estimates confirmation: 2018/08/14
Last earnings update: 2018/06/30
Last annual earnings update: 2017/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.