Visa Inc.

Exchange

NYSE

Sector

Miscellaneous

Industry

Business Services

Market Cap.

207.12B

Vuru Grade

58.90/100

Current Price

$89.12
+0.17 (+0.19%)

Growth Price

$39.78
Overvalued by 55.36%

Stability Price

$12.43
Overvalued by 86.05%

Company Metrics

  • P/E 34.54
  • P/S 12.94
  • P/B 7.94
  • EPS 2.58
  • Cash ROIC 11.83%
  • Cash Ratio -
  • Dividend 0.66 / 0.74%
  • Avg. Vol. 8.19M
  • Shares 2.32B
  • Market Cap. 207.12B

Company Description

Visa Inc. operates retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. The company owns and operates VisaNet, a global processing platform that provides transaction processing services linking issuers and acquirers. It also offers a range of payme... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Visa Inc (V) and Viewpost Are About to Change Checks Forever
Investorplace.com - Mar 28, 2017
Visa Inc (NYSE:V) just announced a partnership with Viewpost, a company that provides invoicing and payment services. However, Visa will not just be processing invoices on behalf of small- and medium-sized businesses (SMB).
Visa and Viewpost to Accelerate Electronic Bill Payments for US Businesses - Business Wire (press release)
Supreme Court clears way for retailers to again sue Visa, MasterCard over fees
MarketWatch - Mar 27, 2017
The Supreme Court on Monday declined an invitation to rescue a $7.25 billion antitrust settlement over fees between Visa Inc. and Mastercard Inc. and retailers, effectively clearing the way for merchants to sue for additional charges incurred in recent ...
Visa Inc Wins Key Antitrust Court Ruling Vs. Retailers - StockNews.com (blog)
US Supreme Court Won't Reinstate $5.7 Billion Credit-Card Accord - Bloomberg
Visa Inc. (V) Is Trying To Tell Investors Something Through Its Technicals
NY Stock News - 1 hour ago
The technicals for Visa Inc. (V) has spoken via its technical chart and the message is loud and clear. Based on that message, this is the relevant information necessary to make sense of that current setup.
EOD Risers: Verizon Communications Inc., Visa Inc, Wal-Mart Stores Inc, Walt ...
DirectorsTalk Interviews - 9 hours ago
Shares in Visa Inc with company EPIC: (NYSE:V) a payments technology company that connects consumers, merchants, financial institutions, businesses, strategic partners and government entities to electronic payments, gained 0.19% or 0.17 points during ...
Visa Inc. (V) Closes 0.19% Up on the Day for March 28
Equities.com - 21 hours ago
Shares of Visa Inc. (V) ended the trading day Tuesday at $89.12, representing a move of 0.19%, or $0.17 per share, on volume of 6.98 million shares.
Featured Stock for Investors: Visa Inc. (V)
HugoPress - 4 hours ago
Loop Capital Initiates Coverage On Visa Inc. (V)'s stock to Buy with no specific Price Target. This rating was issued on 2/15/17.
Visa Inc. to Host Investor Day
Yahoo Finance - Mar 8, 2017
Visa Inc. (NYSE:V) today announced that it will host an Investor Day in San Francisco on Thursday, June 22, 2017 from 7:00 a.m.
Visa and Girl Starter Team Up to Empower Female-Led Startups - Digital Journal
Visa: Growth And Room To Run
Seeking Alpha - Mar 19, 2017
Considering that electronic spending is still growing rapidly year over year, Visa dominating this market should mean it continues to benefit from the global switch from cash to card.
Credit Agricole SA Cuts Stake in Visa Inc (V) - BNB Daily (blog)
Nicholas Co. Inc. WI Has $39679000 Position in Visa Inc (V) - The Cerbat Gem
Traders Secrets on Medtronic plc (MDT), Visa Inc. (V)
StockNewsJournal - Mar 28, 2017
Visa Inc. (NYSE:V), at its latest closing price of $88.95, it has a price-to-book ratio of 7.96, compared to an industry average at 5.52.
Cadus (KDUS) EPS Estimated At $0.00, Henderson Group Plc Decreased Its Visa (V ... - Herald KS
Taking a Look at the Data Behind Visa Inc. (V)
StockNewsJournal - Mar 27, 2017
Visa Inc. (V) is an interesting player in the Financial space, with a focus on Credit Services. The stock has been active on the tape, currently trading at $89.19, up from yesterday's close by 0.37%.
Visa Inc. surged in the Previous Trading Session with the Change of 0.37% - Free Observer
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for V to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate V's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$89.12 Current Price

$39.78 Growth Price (DCF)

Overvalued by 55.36%


Growth Rate Assumed by Market: 40.43%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$12.43 Stability Price (EPV)

Overvalued by 86.05%


Discount Rate: 15.0%

$54.30 Book Price

Overvalued by 39.07%


Satisfactory Cash Return on Invested Capital over the past 5 years

V has somewhat efficiently invested its financial resources in buildings, projects, and equipment. If CROIC is inconsistent, it's likely V could be benefiting from a one-time event or has a mixed history of investing capital productively. Read the company's Annual Report to determine whether this can improve.

V has created $11.83 of cash for every $100 invested.
Figures in USD. Fiscal year ends in September
20122013201420152016
Free Cash Flow 4.63B 2.55B 6.65B 6.17B 5.05B
divided by
Invested Capital 40.01B 35.96B 38.57B 40.24B 64.04B
Cash ROIC 11.58% 7.09% 17.25% 15.33% 7.89%

Excellent Return on Equity over the past 5 years

Over the past 5 years, V has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

V has generated $17.11 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in September
20122013201420152016
Net Income 2.14B 4.98B 5.44B 6.33B 5.99B
divided by
Stockholders' Equity 27.63B 26.87B 27.41B 29.84B 32.91B
Return on Equity 7.76% 18.53% 19.84% 21.21% 18.20%

Excellent Business Performance over the past 10 years

V has been able to maintain profitability in good times and bad. This could mean V has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

V has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Free Cash Flow 505.15M 116.00M 252.00M 2.45B 3.52B 4.63B 2.55B 6.65B 6.17B 5.05B

Good Balance Sheet

V's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 4.39B 34.98B 32.28B 33.41B 34.76B 40.01B 35.96B 38.57B 40.24B 64.04B
Current Liabilities - - - - - - - - - -
Total Liabilities 4.89B 13.84B 9.09B 8.40B 8.32B 12.38B 9.09B 11.16B 10.39B 31.12B
Stockholder' Equity -501.33M 21.14B 23.19B 25.01B 26.44B 27.63B 26.87B 27.41B 29.84B 32.91B
Current Ratio - - - - - - - - - -
TL-to-TA 1.11 0.40 0.28 0.25 0.24 0.31 0.25 0.29 0.26 0.49

Consistent Reinvestment of Profits over the past 10 years

V has consistently retained profits. This may put V in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, V can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Retained Earnings - 186.00M 2.22B 4.37B 6.71B 7.81B 7.97B 9.13B 11.84B 10.46B
Retained Earnings Growth - - 1,093.01% 96.85% 53.53% 16.45% 2.11% 14.51% 29.70% -11.66%

Varying Competitive Advantage over the past 10 years

V likely has a competitive advantage which prevents other companies from entering or competing in their industry. However, there is a substantial variation in their Net Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$28.44 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Net Income -1.08B 804.00M 2.35B 2.97B 3.65B 2.14B 4.98B 5.44B 6.33B 5.99B
divided by
Revenue 3.59B 6.26B 6.91B 8.07B 9.19B 10.42B 11.78B 12.70B 13.88B 15.08B
Net Profit Margin -29.98% 12.84% 34.05% 36.78% 39.73% 20.57% 42.28% 42.81% 45.59% 39.72%

Weak Pricing Power over the past 10 years

V is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that V has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue 3.59B 6.26B 6.91B 8.07B 9.19B 10.42B 11.78B 12.70B 13.88B 15.08B
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

V has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that V may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

14.98% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Capital Expenditure - 415.00M 306.00M 241.00M 353.00M 376.00M 471.00M 553.00M 414.00M 523.00M
divided by
Net Income -1.08B 804.00M 2.35B 2.97B 3.65B 2.14B 4.98B 5.44B 6.33B 5.99B
Capital Expenditure Ratio - 51.62% 13.00% 8.13% 9.67% 17.54% 9.46% 10.17% 6.54% 8.73%

Strong Dividend History over the past 10 years

V has consistently distributed a dividend for the past 9 years. This suggests V is established and will likely continue to distribute its dividend for the foreseeable future.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Dividend Paid - 93.00M 318.00M 368.00M 423.00M 595.00M 864.00M 1.01B 1.18B 1.35B
divided by
Shares Outstanding - 1.39B 1.05B 739.00M 1.02B 678.00M 656.00M 631.00M 2.46B 2.41B
Dividend Paid Per Share - 0.07 0.30 0.50 0.41 0.88 1.32 1.59 0.48 0.56
Price at Year End - 49.82 86.70 69.60 101.34 148.65 220.91 264.55 78.35 78.02
Dividend Yield - 0.13% 0.35% 0.72% 0.41% 0.59% 0.60% 0.60% 0.61% 0.72%

Strong History of Stock Buybacks over the past 10 years

V has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in September
2007200820092010201120122013201420152016
Shares Outstanding - 1.39B 1.05B 739.00M 1.02B 678.00M 656.00M 631.00M 2.46B 2.41B
Stock Bought Back - -100.00% 32.79% 41.95% -27.69% 50.74% 3.35% 3.96% -74.32% 1.78%
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