V Stock Overview
Visa Inc. operates as a payments technology company worldwide.
No risks detected for V from our risk checks.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$215.71|
|52 Week High||US$252.67|
|52 Week Low||US$190.10|
|1 Month Change||1.81%|
|3 Month Change||-6.79%|
|1 Year Change||6.97%|
|3 Year Change||56.26%|
|5 Year Change||159.17%|
|Change since IPO||1,427.15%|
Recent News & Updates
Visa Inc. (NYSE:V) Might be Slightly Undervalued, but There are Probably Better Opportunities
After a severe decline through Q4 2021, Visa Inc. (NYSE: V) rebounded from the lows, but it seems that it is struggling to keep that momentum. So far, the outlook seems mixed between the recent rating downgrades and the resolution with Amazon regarding the card payments in the UK.
Visa: A Fantastic Business With A Premium Valuation
Visa is a fantastic business with huge margins and sustainable double digit revenue and earnings growth. The stock trades at approximately 35x earnings, which is too rich in my opinion for a company with a market cap over $450B. The dividend and buyback program aren't enough to move the needle for shareholders.
Is There Now An Opportunity In Visa Inc. (NYSE:V)?
Let's talk about the popular Visa Inc. ( NYSE:V ). The company's shares saw a decent share price growth in the teens...
|V||US IT||US Market|
Return vs Industry: V exceeded the US IT industry which returned -2% over the past year.
Return vs Market: V underperformed the US Market which returned 13.7% over the past year.
|V Average Weekly Movement||4.3%|
|IT Industry Average Movement||8.1%|
|Market Average Movement||6.6%|
|10% most volatile stocks in US Market||15.9%|
|10% least volatile stocks in US Market||2.4%|
Stable Share Price: V is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: V's weekly volatility (4%) has been stable over the past year.
About the Company
Visa Inc. operates as a payments technology company worldwide. The company facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions.
Visa Fundamentals Summary
|V fundamental statistics|
Is V overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|V income statement (TTM)|
|Cost of Revenue||US$730.00m|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 27, 2022
|Earnings per share (EPS)||5.69|
|Net Profit Margin||49.82%|
How did V perform over the long term?See historical performance and comparison
0.7%Current Dividend Yield
Is Visa undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: V ($214.67) is trading below our estimate of fair value ($242.97)
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 (37.7x) compared to the US IT industry average (33.6x).
PE vs Market: V is poor value based on its PE Ratio (37.7x) compared to the US market (17.4x).
Price to Earnings Growth Ratio
PEG Ratio: V is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: V is overvalued based on its PB Ratio (13.1x) compared to the US IT industry average (4.4x).
How is Visa forecast to perform in the next 1 to 3 years based on estimates from 32 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: V's forecast earnings growth (13.6% per year) is above the savings rate (2%).
Earnings vs Market: V's earnings (13.6% per year) are forecast to grow faster than the US market (13% per year).
High Growth Earnings: V's earnings are forecast to grow, but not significantly.
Revenue vs Market: V's revenue (12.5% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: V's revenue (12.5% 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 (47.9%).
How has Visa performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: V has high quality earnings.
Growing Profit Margin: V's current net profit margins (49.8%) are higher than last year (47.9%).
Past Earnings Growth Analysis
Earnings Trend: V's earnings have grown by 13.6% per year over the past 5 years.
Accelerating Growth: V's earnings growth over the past year (14.6%) exceeds its 5-year average (13.6% per year).
Earnings vs Industry: V earnings growth over the past year (14.6%) underperformed the IT industry 35.8%.
Return on Equity
High ROE: V's Return on Equity (32.8%) is considered high.
How is Visa's financial position?
Financial Position Analysis
Short Term Liabilities: V's short term assets ($27.6B) exceed its short term liabilities ($15.7B).
Long Term Liabilities: V's short term assets ($27.6B) do not cover its long term liabilities ($29.6B).
Debt to Equity History and Analysis
Debt Level: V's net debt to equity ratio (6.6%) is considered satisfactory.
Reducing Debt: V's debt to equity ratio has increased from 48.3% to 55.8% over the past 5 years.
Debt Coverage: V's debt is well covered by operating cash flow (72.6%).
Interest Coverage: V's interest payments on its debt are well covered by EBIT (30.9x coverage).
What is Visa current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: V's dividend (0.7%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: V's dividend (0.7%) is low compared to the top 25% of dividend payers in the US market (3.44%).
Stability and Growth of Payments
Stable Dividend: V's dividends per share have been stable in the past 10 years.
Growing Dividend: V's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (23.7%), V's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: V's dividends in 3 years are forecast to be well covered by earnings (19.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Al Kelly (63 yo)
Mr. Alfred Francis Kelly Jr., also known as Al, has been Chairman of the Board at Visa Inc. since April 16, 2019. He has been the Chief Executive Officer of Visa Inc. since December 1, 2016. Mr. Kelly ser...
CEO Compensation Analysis
Compensation vs Market: Al's total compensation ($USD26.36M) is above average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Al's compensation has been consistent with company performance over the past year.
Experienced Management: V's management team is seasoned and experienced (5.4 years average tenure).
Experienced Board: V's board of directors are considered experienced (8 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Visa Inc.'s employee growth, exchange listings and data sources
- Name: Visa Inc.
- Ticker: V
- Exchange: NYSE
- Founded: 1958
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Implied Market Cap: US$454.835b
- Shares outstanding: 2.11b
- Website: https://usa.visa.com
Number of Employees
- Visa Inc.
- PO Box 8999
- San Francisco
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/18 23:29|
|End of Day Share Price||2022/01/18 00:00|
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.