NYSE:V

Stock Analysis Report

Executive Summary

Visa Inc. operates as a payments technology company worldwide.

Snowflake

Fundamentals

Outstanding track record with moderate growth potential.


Similar Companies

Share Price & News

How has Visa's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.6%

NYSE:V

4.4%

US IT

2.9%

US Market


1 Year Return

27.3%

NYSE:V

22.8%

US IT

0.2%

US Market

V outperformed the IT industry which returned 21.7% over the past year.

V outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

VIndustryMarket
7 Day2.6%4.4%2.9%
30 Day0.02%-0.5%-2.3%
90 Day11.3%9.8%3.1%
1 Year28.2%27.3%24.1%22.8%2.4%0.2%
3 Year129.9%125.3%102.5%93.9%41.7%32.4%
5 Year249.2%237.3%143.9%119.1%55.1%37.9%

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

Valuation

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

34.71x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Visa's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Visa's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Visa is poor value based on expected growth next year.


Price Based on Value of Assets

Visa is overvalued based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is Visa expected to perform in the next 1 to 3 years based on estimates from 35 analysts?

12.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Visa's revenue is expected to grow by 10% yearly, however this is not considered high growth (20% yearly).

Visa's earnings are expected to grow by 12.3% yearly, however this is not considered high growth (20% yearly).

Visa's revenue growth is expected to exceed the United States of America market average.

Visa's earnings growth is positive but not above the United States of America market average.

Visa's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Visa is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Visa performed over the past 5 years?

15.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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 (23.9% vs 15.2%)

Visa's earnings growth has exceeded the US IT industry average in the past year (23.9% vs 9.8%).


Return on Equity

Visa has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Visa used its assets more efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

Visa has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Visa's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Visa's level of debt (47.7%) compared to net worth is high (greater than 40%).

Unable to establish if Visa's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (71.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 58.4x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

0.62%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Visa's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Visa's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

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

No need to calculate the sustainability of Visa's dividends as it is not paying a notable one 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 one for United States of America.


Next Steps

Management

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

3.4yrs

Average management tenure


CEO

Al Kelly (61yo)

2.7yrs

Tenure

US$19,493,946

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

Al's remuneration is higher than average for companies of similar size in United States of America.

Al's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.4yrs

Average Tenure

53yo

Average Age

The tenure for the Visa management team is about average.


Board Age and Tenure

8.0yrs

Average Tenure

64yo

Average Age

The tenure for the Visa board of directors is about average.


Insider Trading

Visa individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

BuyUS$171,13007 Aug 19
Denise Morrison
EntityIndividual
Shares1,000
Max PriceUS$171.13
SellUS$639,55729 Jul 19
Lloyd Carney
EntityIndividual
Role
Member of the Board of Directors
Director
Shares3,500
Max PriceUS$182.73
SellUS$2,536,28519 Mar 19
Kelly Tullier
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares16,228
Max PriceUS$156.29
SellUS$325,54104 Dec 18
James Hoffmeister
EntityIndividual
Role
Chief Accounting Officer
Senior VP
Shares2,252
Max PriceUS$144.56

Ownership Breakdown


Management Team

  • Al Kelly (61yo)

    Chairman of the Board & CEO

    • Tenure: 2.7yrs
    • Compensation: US$19.49m
  • Vasant Prabhu (59yo)

    Vice Chairman & CFO

    • Tenure: 0.3yrs
    • Compensation: US$12.57m
  • Kelly Tullier (53yo)

    Executive VP

    • Tenure: 4.8yrs
    • Compensation: US$6.42m
  • Bill Sheedy (52yo)

    Executive Vice President of The Strategy Group

    • Tenure: 0.0yrs
    • Compensation: US$9.07m
  • Rajat Taneja (55yo)

    Executive Vice President of Technology & Operations

    • Tenure: 0.0yrs
    • Compensation: US$13.15m
  • Ryan McInerney (44yo)

    President

    • Tenure: 6.2yrs
    • Compensation: US$13.29m
  • Jennifer Grant (47yo)

    Executive VP of Human Resources & Chief Human Resources Officer

    • Tenure: 1.0yrs
  • Lynne Biggar (56yo)

    Executive VP and Chief Marketing & Communications Officer

    • Tenure: 3.5yrs
  • James Hoffmeister (46yo)

    Senior VP

    • Tenure: 3.3yrs
  • Mike Milotich

    Senior Vice President of Investor Relations

    • Tenure: 1.3yrs

Board Members

  • Al Kelly (61yo)

    Chairman of the Board & CEO

    • Tenure: 2.7yrs
    • Compensation: US$19.49m
  • John Lundgren (67yo)

    Lead Independent Director

    • Tenure: 0.3yrs
    • Compensation: US$284.19k
  • Vasant Prabhu (59yo)

    Vice Chairman & CFO

    • Tenure: 0.3yrs
    • Compensation: US$12.57m
  • Bob Matschullat (71yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$507.55k
  • Mary Cranston (71yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$355.05k
  • Francisco Javier Fernández Carbajal (64yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$310.05k
  • Suzanne Nora Johnson (62yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$345.05k
  • Lloyd Carney (57yo)

    Director

    • Tenure: 4.2yrs
    • Compensation: US$315.05k
  • John A. Swainson (65yo)

    Director

    • Tenure: 11.8yrs
    • Compensation: US$353.91k
  • Riko Abdurrahman

    President Director of PT Visa Worldwide Indonesia

    • Tenure: 1.5yrs

Company Information

Visa Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Visa Inc.
  • Ticker: V
  • Exchange: NYSE
  • Founded: 1970
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$393.152b
  • Shares outstanding: 2.17b
  • Website: https://usa.visa.com

Number of Employees


Location

  • Visa Inc.
  • PO Box 8999
  • San Francisco
  • California
  • 941282-8999
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VSWX (SIX Swiss Exchange)YesClass A Common StockCHCHFMar 2008
3V64DB (Deutsche Boerse AG)YesClass A Common StockDEEURMar 2008
3V64XTRA (XETRA Trading Platform)YesClass A Common StockDEEURMar 2008
V *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNMar 2008
VETLX (Eurotlx)YesClass A Common StockITEURMar 2008
VSNSE (Santiago Stock Exchange)YesClass A Common StockCLUSDMar 2008
VNYSE (New York Stock Exchange)YesClass A Common StockUSUSDMar 2008
0QZ0LSE (London Stock Exchange)YesClass A Common StockGBUSDMar 2008
VBVL (Bolsa de Valores de Lima)YesClass A Common StockPEUSDMar 2008
3V64DBATS-CHIXE (BATS 'Chi-X Europe')YesClass A Common StockGBEURMar 2008
VISAWBAG (Wiener Boerse AG)YesClass A Common StockATEURMar 2008
VISA34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM SHSBRBRLFeb 2012
VBASE (Buenos Aires Stock Exchange)CEDEARS (EACH 6 REP 1 COM USD0.0001)ARARSApr 2019

Biography

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, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:10
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.