This Score-Card analysis of Visa Inc (V) attributes an Overall Score to a company by analyzing several aspects that I consider to be among the most important.
In summary, a company to have an overall score close to 100% must have the following characteristics:
- Report high growth rates in the last 3 years (and in the last quarter) in terms of Revenue, Gross Profit, Operating Income and Net Income. Furthermore, it must operate with high and improving margins in recent years.
- Analysts expect Earnings Per Share (EPS) and revenues to grow in the short term (in the next quarter) and in the medium to long term (in the next 5 years). Moreover, they expect the company to be undervalued at current prices and in the last quarter their EPS expectations must have been beaten with a consequent rise in share prices.
- The stock price of the company must have outperformed the S&P 500 index and in the last 3 months the Hedge Funds and Insiders bought shares in the company.
The overall score ranges from 0% (if the characteristics listed above are all very negative) to +100% and it is unlikely that there will be a company with a +100% score because the requirements for achieving this score are very high, however a score higher than +70% can be considered good.
The purpose of this analysis is purely informative.
Score-Card analysis of Visa Inc (V)
Summary
Overall Score of 71.7%, very high score.
In the last 3 years Visa has doubled its Net Income to 11.6 billion dollars with a Net Margin of + 50% (improved by 29% in the same period).
In the last quarter it reported Revenue growth by 13% to 6.1 billion, with a quarterly Net Income of approximately $ 3 billion (Net Margin 6% worse than 12 months before).
Double-digit growth forecasts for Visa according to analysts, with an annual growth rate of EPS expected for the next 5 years by 15.3%.
Not very good news in the last quarter from the Hedge Funds that reduced positions by 1 million shares and from the Insiders who sold about 4 million dollars in shares.
Visa confirms its strength by outperforming the S&P 500 index since the beginning of the year (+ 41% vs + 28%) and analysts believe it is still underestimated by 10% at current prices.
Full description
Visa Inc is an American multinational financial services corporation headquartered in Foster City, California, United States. It facilitates electronic funds transfers throughout the world, most commonly through Visa-branded credit cards, debit cards and prepaid cards.
The overall score of V is 71,7% .
In the last 6 months, V has underperformed the S&P500 index by -0,6% and analysts believe the company is undervalued by 10,9% .
In the last quarter, the company reported revenue of 6137 million, up by 12,9% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 22977 million, up by 52,3% in the last 3 years.
V reported an operating income of 3735 million in the last quarter, an improvement of 9,7% compared to the same quarter 12 months earlier, also reporting a reduction by -2,9% in the operating margin. Considering the sum of the last four quarters (TTM), V reports an operating income of 15001,0 Million , a growth of 90,3% compared to three years ago and an improvement of 24,9% in the operating margin.
V reported a net income of 2916 million in the last quarter, an improvement of 6,3% compared to the same quarter 12 months earlier, also reporting an improvement of -5,9% in the net margin. The TTM net income is 11650 million , a growth of 96,5% compared to three years ago and the net margin has improved by 29,0% .
In the next quarter, analysts expect growth in EPS (Earnings Per Share) of 12,3% and a growth in revenue of 10,4% . Furthermore, they expect an annual growth of V EPS by 15,3% for the next 5 years.
In the last quarter, V reported better EPS than analysts’ expectations and the stock price reacted by increasing by 1,0% .
Finally, in the last quarter the Hedge Funds have decreased their positions by 1M shares. The Insiders have sold shares worth $3.78M .
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*The comparison with the S&P 500 index (black line) is visible inside the graph.
*Information updated to the last quarterly report available
*Data in Millions of Dollars
*Data from zacks.com, tipranks.com, reuters.com, finance.yahoo.com
*Company information from wikipedia.com
DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment. Stocks trading involves substantial risk of loss and is not suitable for every investor. Trade responsibly.
