Visa Inc.
Visa Inc. Fundamental Analysis
Visa Inc. (3V64.DE) shows strong financial fundamentals with a PE ratio of 27.59, profit margin of 50.11%, and ROE of 54.09%. The company generates $42.2B in annual revenue with strong year-over-year growth of 11.34%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 81.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze 3V64.DE's fundamental strength across five key dimensions:
Efficiency Score
Excellent3V64.DE demonstrates superior asset utilization.
Valuation Score
Weak3V64.DE trades at a premium to fair value.
Growth Score
Moderate3V64.DE shows steady but slowing expansion.
Financial Health Score
Excellent3V64.DE maintains a strong and stable balance sheet.
Profitability Score
Excellent3V64.DE achieves industry-leading margins.
Key Financial Metrics
Is 3V64.DE Expensive or Cheap?
P/E Ratio
3V64.DE trades at 27.59 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, 3V64.DE's PEG of 5.32 indicates potential overvaluation.
Price to Book
The market values Visa Inc. at 14.76 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 21.88 times EBITDA. This signals the market has high growth expectations.
How Well Does 3V64.DE Make Money?
Net Profit Margin
For every $100 in sales, Visa Inc. keeps $50.11 as profit after all expenses.
Operating Margin
Core operations generate 60.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $54.09 in profit for every $100 of shareholder equity.
ROA
Visa Inc. generates $21.42 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Visa Inc. generates strong operating cash flow of $24.92B, reflecting robust business health.
Free Cash Flow
Visa Inc. generates strong free cash flow of $23.37B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $11.99 in free cash annually.
FCF Yield
3V64.DE converts 3.93% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
27.59
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
5.32
vs 25 benchmark
P/B Ratio
Price to book value ratio
14.76
vs 25 benchmark
P/S Ratio
Price to sales ratio
14.10
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.55
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.11
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.54
vs 25 benchmark
ROA
Return on assets percentage
0.21
vs 25 benchmark
ROCE
Return on capital employed
0.39
vs 25 benchmark
How 3V64.DE Stacks Against Its Sector Peers
| Metric | 3V64.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 27.59 | 18.66 | Worse (Expensive) |
| ROE | 54.09% | 806.00% | Weak |
| Net Margin | 50.11% | -451.00% (disorted) | Strong |
| Debt/Equity | 0.55 | 1.00 | Strong (Low Leverage) |
| Current Ratio | 1.11 | 662.02 | Neutral |
| ROA | 21.42% | -24409.00% (disorted) | Strong |
3V64.DE outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Visa Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
101.80%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
103.44%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
143.43%
Industry Style: Value, Dividend, Cyclical
High Growth