Visa (V) Stock Analysis
This is a peer-relative look at Visa (V): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Financial Services peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | V |
|---|---|
| Name | Visa Inc. Class A |
| Country/Region | United States |
| GICS Sector | Financials |
| GICS Industry Group | Financial Services |
| GICS Industry | Financial Services |
| GICS Sub-Industry | Transaction & Payment Processing Services |
| Market Capitalization | 676.68 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | March 19, 2008 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: V | Industry group median |
|---|---|---|
| Total Return (1Y) | 2.19% | 1.65% |
| Total Return (3Y, Annualized) | 15.02% | 11.13% |
| Total Return (5Y, Annualized) | 8.68% | 5.13% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: V | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 22.00% | 34.01% |
| Beta (5Y) | 0.75 | 1.04 |
| Max Drawdown (5Y) | -28.60% | -49.62% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: V | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | -0.08 | -0.06 |
| Sortino Ratio (1Y) | -0.13 | -0.09 |
Profitability
ROE (TTM)
Visa (V) posts ROE of 60.35%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.
V
Financial Services industry group
60.35%
Group distribution
- V
- 60.35%
- Max
- 42.17%
- Q3
- 21.40%
- Median
- 12.18%
- Q1
- 4.84%
- Min
- -17.69%
Largest peers
- MA
- 232.08%
- V
- 60.35%
- AXP
- 34.42%
- GS
- 16.95%
- BRK.B
- 10.50%
- BRK.A
- 10.50%
- MS
- --
Net Margin (TTM)
Visa (V) keeps 51.68% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
V
Financial Services industry group
51.68%
Group distribution
- Max
- 66.55%
- V
- 51.68%
- Q3
- 30.72%
- Median
- 16.62%
- Q1
- 4.66%
- Min
- -26.88%
Largest peers
- V
- 51.68%
- MA
- 45.88%
- GS
- 31.04%
- MS
- 25.90%
- BRK.B
- 19.31%
- BRK.A
- 19.31%
- AXP
- 16.31%
Operating Margin (TTM)
Visa (V) turns 67.35% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
V
Financial Services industry group
67.35%
Group distribution
- Max
- 95.95%
- V
- 67.35%
- Q3
- 51.93%
- Median
- 27.53%
- Q1
- 12.21%
- Min
- -46.55%
Largest peers
- V
- 67.35%
- MA
- 60.84%
- GS
- 42.32%
- MS
- 41.57%
- AXP
- 21.25%
- BRK.B
- 14.35%
- BRK.A
- 14.35%
Profitability Metrics
| Metric | Current stock: V | Industry group median |
|---|---|---|
| ROE (TTM) | 60.35% | 12.18% |
| ROA (TTM) | 19.19% | 2.70% |
| Net Margin (TTM) | 51.68% | 16.62% |
| Operating Margin (TTM) | 67.35% | 27.53% |
| Gross Margin (TTM) | -- | -- |
Growth
Revenue Growth
Visa (V) grew revenue 11.34%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.
EPS Growth
Visa (V) grew earnings per share 4.83%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: V | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 11.34% | 8.98% |
| Revenue Growth (3Y CAGR) | 10.92% | 10.22% |
| EPS Growth (YoY) | 4.83% | 7.06% |
| EPS Growth (3Y CAGR) | 13.37% | 12.67% |
Financial Strength
Current Ratio (MRQ)
current ratio is set aside for Visa (V) in Financial Services: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.
Debt / Equity (MRQ)
debt-to-equity ratio is set aside for Visa (V) in Financial Services: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.
Financial Strength Metrics
| Metric | Current stock: V | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt / Equity (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Visa (V) has dividend yield of 0.72%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
V
Financial Services industry group
0.72%
Group distribution
- Max
- 18.29%
- Q3
- 8.41%
- Median
- 1.57%
- V
- 0.72%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- MS
- 1.97%
- GS
- 1.61%
- AXP
- 0.97%
- V
- 0.72%
- MA
- 0.60%
- BRK.B
- 0.00%
- BRK.A
- 0.00%
Dividend Payout Ratio (TTM)
Visa (V) has payout ratio of 21.97%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.
V
Financial Services industry group
21.97%
Group distribution
- Max
- 228.57%
- Q3
- 95.23%
- Median
- 25.91%
- V
- 21.97%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- MS
- 32.31%
- GS
- 26.25%
- V
- 21.97%
- AXP
- 21.29%
- MA
- 18.23%
- BRK.B
- 0.00%
- BRK.A
- 0.00%
Dividend Metrics
| Metric | Current stock: V | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.72% | 1.57% |
| Dividend Payout Ratio (TTM) | 21.97% | 25.91% |
Valuation
P/E Ratio (TTM)
Visa (V) trades at P/E ratio of 31.43, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.
V
Financial Services industry group
31.43
Group distribution
- Max
- 49.65
- V
- 31.43
- Q3
- 26.26
- Median
- 15.26
- Q1
- 9.56
- Min
- 2.03
Largest peers
- MA
- 31.65
- V
- 31.43
- AXP
- 21.98
- MS
- 17.04
- GS
- 16.29
- BRK.B
- 14.62
- BRK.A
- 14.62
P/S Ratio (TTM)
Visa (V) trades at 15.73 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.
V
Financial Services industry group
15.73
Group distribution
- V
- 15.73
- Max
- 10.06
- Q3
- 4.96
- Median
- 2.91
- Q1
- 1.52
- Min
- -1.00
Largest peers
- V
- 15.73
- MA
- 14.01
- GS
- 4.74
- MS
- 4.37
- AXP
- 3.48
- BRK.B
- 2.81
- BRK.A
- 2.81
P/B Ratio (MRQ)
Visa (V) trades at 19.09 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.
V
Financial Services industry group
19.09
Group distribution
- V
- 19.09
- Max
- 7.16
- Q3
- 3.46
- Median
- 1.62
- Q1
- 0.91
- Min
- 0.00
Largest peers
- MA
- 71.05
- V
- 19.09
- AXP
- 7.04
- MS
- 3.27
- GS
- 2.96
- BRK.A
- 1.45
- BRK.B
- 0.00
Valuation Metrics
| Metric | Current stock: V | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 31.43 | 15.26 |
| P/S Ratio (TTM) | 15.73 | 2.91 |
| P/B Ratio (MRQ) | 19.09 | 1.62 |
| Free Cash Flow Yield (TTM) | -- | -- |