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)
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.
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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Sources & additional info
*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
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