Now trading at a price of $329.38, Visa has moved 0.4% so far today.
Over the last year, Visa logged a 4.7% change, with its stock price reaching a high of $375.51 and a low of $299.0. Over the same period, the stock underperformed the S&P 500 index by -5.6%. AThe company's 50-day average price was $340.53. Visa Inc. operates as a payment technology company in the United States and internationally. Based in San Francisco, CA, the Large-Cap Real Estate company has 34,100 full time employees. 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 | $327.98 |
| P/E Ratio | 30.53 | 38.85 | 38.89 | 29.86 | 31.44 | 33.71 |
| 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 | 25.15 |
| 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's Valuation Is in Line With Its Sector Averages:
Visa has a trailing twelve month P/E ratio of 33.4, 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 26.9. The 13.2% compound average growth rate of Visa's historical and projected earnings per share yields a PEG ratio of 2.53. 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 16.99 is higher than the sector average of 1.94. The company's shares are currently trading 406.9% below their Graham number. Ultimately, Visa's strong cash flows, decent earnings multiple, and healthy debt levels factor towards it being fairly valued, its elevated P/B ratio notwithstanding.
There's an Analyst Consensus of Some Upside Potential for Visa:
The 37 analysts following Visa have set target prices ranging from $305.0 to $450.0 per share, for an average of $394.43 with a buy rating. The company is trading -16.5% 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 1.4% of the company's shares are sold short. Institutions own 90.6% of the company's shares, and the insider ownership rate stands at 0.6%, suggesting a small amount of insider investors. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $52,674,940,827.
