Visa logged a -0.5% change during today's morning session, and is now trading at a price of $348.15 per share.
Visa returned gains of 30.5% last year, with its stock price reaching a high of $375.51 and a low of $267.67. Over the same period, the stock outperformed the S&P 500 index by 15.4%. More recently, the company's 50-day average price was $348.44. Visa Inc. operates as a payment technology company in the United States and internationally. The Large-Cap Real Estate company is based in San Francisco, CA. Visa has offered a 0.7% dividend yield over the last 12 months.
Growing Revenues but an Average Current Ratio:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $22,977 | $21,846 | $24,105 | $29,310 | $32,653 | $35,926 |
| Operating Margins | 65% | 64% | 66% | 64% | 64% | 66% |
| Net Margins | 53% | 50% | 51% | 51% | 53% | 55% |
| Net Income (M) | $12,080 | $10,866 | $12,311 | $14,957 | $17,273 | $19,743 |
| Net Interest Expense (M) | -$533 | -$516 | -$513 | -$538 | -$644 | $583 |
| Depreciation & Amort. (M) | $656 | $767 | $804 | $861 | $943 | $1,034 |
| Diluted Shares (M) | 2,272 | 2,223 | 2,188 | 2,136 | 2,085 | 2,029 |
| Earnings Per Share | $5.32 | $4.89 | $5.63 | $7.0 | $8.28 | $9.73 |
| EPS Growth | n/a | -8.08% | 15.13% | 24.33% | 18.29% | 17.51% |
| Avg. Price | $162.4 | $190.0 | $218.96 | $209.04 | $260.35 | $350.04 |
| P/E Ratio | 30.53 | 38.85 | 38.89 | 29.86 | 31.44 | 35.98 |
| Free Cash Flow (M) | $12,028 | $9,704 | $14,522 | $17,879 | $19,696 | $18,693 |
| CAPEX (M) | $756 | $736 | $705 | $970 | $1,059 | $1,257 |
| EV / EBITDA | 20.93 | 25.54 | 25.82 | 20.48 | 22.09 | 26.82 |
| Total Debt (M) | $16,729 | $24,054 | $21,919 | $22,450 | $20,463 | $20,836 |
| Net Debt / EBITDA | 0.51 | 0.61 | 0.43 | 0.46 | 0.31 | 0.34 |
| Current Ratio | 1.27 | 2.12 | 1.4 | 1.44 | 1.45 | 1.12 |
Visa benefits from growing revenues and increasing reinvestment in the business, strong operating margins with a stable trend, and generally positive cash flows. The company's financial statements show a strong EPS growth trend and healthy leverage levels. Furthermore, Visa has just enough current assets to cover current liabilities, as shown by its current ratio of 1.12.
Visa Has Elevated P/B and P/E Ratios:
Visa has a trailing twelve month P/E ratio of 34.0, compared to an average of 27.31 for the Real Estate sector. Based on its EPS guidance of $12.66, the company has a forward P/E ratio of 27.5. The 13.2% compound average growth rate of Visa's historical and projected earnings per share yields a PEG ratio of 2.58. This suggests that these shares are overvalued. Furthermore, Visa is likely overvalued compared to the book value of its equity, since its P/B ratio of 17.78 is higher than the sector average of 1.94. The company's shares are currently trading 435.8% below their Graham number. Overall, Visa's lofty valuation in terms of earnings and assets is to some extent attenuated by its strong cash flow trend and reasonable levels of debt.
Visa Has an Analyst Consensus of Some Upside Potential:
The 35 analysts following Visa have set target prices ranging from $305.0 to $430.0 per share, for an average of $391.23 with a buy rating. The company is trading -11.0% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Visa has a very low short interest because 1.7% of the company's shares are sold short. Institutions own 90.5% of the company's shares, and the insider ownership rate stands at 0.59%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 10% stake in the company is worth $56,589,694,696.
