company background image
V

VisaNYSE:V Stock Report

Market Cap

US$408.6b

7D

-6.4%

1Y

-9.5%

Updated

02 Dec, 2021

Data

Company Financials +
V fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance5/6
Financial Health4/6
Dividends4/6

V Stock Overview

Visa Inc. operates as a payments technology company worldwide.

Visa Competitors

Mastercard

NYSE:MA

US$309.4b

Square

NYSE:SQ

US$96.1b

Fiserv

NasdaqGS:FISV

US$63.7b

Fidelity National Information Services

NYSE:FIS

US$63.6b

Price History & Performance

Summary of all time highs, changes and price drops for Visa
Historical stock prices
Current Share PriceUS$190.16
52 Week HighUS$252.67
52 Week LowUS$190.10
Beta0.92
1 Month Change-10.50%
3 Month Change-15.18%
1 Year Change-9.53%
3 Year Change37.16%
5 Year Change139.77%
Change since IPO1,246.27%

Recent News & Updates

Dec 01

Visa: Buying Opportunity Of The Decade

Visa has seen its shares decline rapidly in recent weeks, on the back of new COVID fears and weak sector performance. Visa will do well in the long run, however, as there are multiple growth drivers that will propel Visa's earnings per share upwards. Visa trades at a clear discount compared to the historic norm, and the valuation decline it has experienced in recent weeks is massive, providing a great buying opportunity.

Nov 26
I Built A List Of Growing Companies And Visa (NYSE:V) Made The Cut

I Built A List Of Growing Companies And Visa (NYSE:V) Made The Cut

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Nov 24

Visa: Keep Calm And Carry On

I cover V's price action over several different timeframes. I explore the competition, inflation and V's business results. I show P/E compression in light of a growth to value rotation. Lastly, I look at current prices and what I expect going forward.

Nov 18

When To Buy Visa

First, I discuss Visa's share price in light of the Amazon UK news. Second, I reveal the true impact on Visa versus the market reaction. Third, I show Visa's price volatility and overall price action over time. Fourth, I dive into Quant Ratings but also what the Analysts are saying. Lastly, I provide some ideas around both trading and investing in Visa.

Nov 15
Returns on Capital Paint A Bright Future For Visa (NYSE:V)

Returns on Capital Paint A Bright Future For Visa (NYSE:V)

If we want to find a stock that could multiply over the long term, what are the underlying trends we should look for...

Shareholder Returns

VUS ITUS Market
7D-6.4%-7.1%-4.9%
1Y-9.5%-1.5%17.8%

Return vs Industry: V underperformed the US IT industry which returned -1.5% over the past year.

Return vs Market: V underperformed the US Market which returned 17.8% over the past year.

Price Volatility

Is V's price volatile compared to industry and market?
V volatility
V Average Weekly Movement4.1%
IT Industry Average Movement7.0%
Market Average Movement6.0%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.4%

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

FoundedEmployeesCEOWebsite
195821,500Al Kellyhttps://usa.visa.com

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

How do Visa's earnings and revenue compare to its market cap?
V fundamental statistics
Market CapUS$408.57b
Earnings (TTM)US$12.01b
Revenue (TTM)US$24.11b

33.4x

P/E Ratio

16.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
V income statement (TTM)
RevenueUS$24.11b
Cost of RevenueUS$730.00m
Gross ProfitUS$23.38b
ExpensesUS$11.37b
EarningsUS$12.01b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)5.69
Gross Margin96.97%
Net Profit Margin49.82%
Debt/Equity Ratio55.8%

How did V perform over the long term?

See historical performance and comparison

Dividends

0.8%

Current Dividend Yield

24%

Payout Ratio

Valuation

Is Visa undervalued compared to its fair value and its price relative to the market?

23.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: V ($190.16) is trading below our estimate of fair value ($247.58)

Significantly Below Fair Value: V is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: V is good value based on its PE Ratio (33.4x) compared to the US IT industry average (34x).

PE vs Market: V is poor value based on its PE Ratio (33.4x) compared to the US market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: V is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: V is overvalued based on its PB Ratio (11.6x) compared to the US IT industry average (4.6x).


Future Growth

How is Visa forecast to perform in the next 1 to 3 years based on estimates from 31 analysts?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: V's forecast earnings growth (15.5% per year) is above the savings rate (2%).

Earnings vs Market: V's earnings (15.5% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: V's revenue (12.6% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: V's revenue (12.6% 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 (45.8%).


Past Performance

How has Visa performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: V has high quality earnings.

Growing Profit Margin: V's current net profit margins (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 38.3%.


Return on Equity

High ROE: V's Return on Equity (32.8%) is considered high.


Financial Health

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).


Balance Sheet


Dividend

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

0.79%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: V's dividend (0.79%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: V's dividend (0.79%) is low compared to the top 25% of dividend payers in the US market (3.69%).


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 (18.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Al Kelly (63 yo)

4.92yrs

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 ($USD26.36M) is above average for companies of similar size in the US market ($USD11.11M).

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 (7.1 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 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$408.574b
  • Shares outstanding: 2.11b
  • Website: https://usa.visa.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/02 00:07
End of Day Share Price2021/12/01 00:00
Earnings2021/09/30
Annual Earnings2021/09/30


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.