VISA INC's gross profit margin for the fourth quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. VISA INC has average liquidity. Currently, the Quick Ratio is 1.35 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.02% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||3229.0||2973.0|
|Net Income ($mil)||1073.0||1192.0|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||6409.0||5170.0|
|Total Assets ($mil)||38569.0||35956.0|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||65.56||62.46|
|Return on Assets||14.09||13.85|
|Return on Equity||19.83||18.53|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||617.97||638.05|
|Div / share||0.4||0.33|
|Book value / share||44.36||42.11|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2772400.0||2512118.0|
BUY. This stock's P/E ratio indicates a premium compared to an average of 23.75 for the IT Services industry and a significant premium compared to the S&P 500 average of 19.47. To use another comparison, its price-to-book ratio of 5.81 indicates a significant premium versus the S&P 500 average of 2.75 and a significant discount versus the industry average of 9.28. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, VISA INC seems to be trading at a premium to investment alternatives within the industry.
|V 29.92||Peers 23.75||V 22.09||Peers 20.54|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
V is trading at a significant premium to its peers.
Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
V is trading at a valuation on par to its peers.
|V 21.36||Peers 20.48||V 1.45||Peers 1.71|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
V is trading at a premium to its peers.
Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
V trades at a discount to its peers.
|V 5.81||Peers 9.28||V 13.58||Peers 19.46|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
V is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, V is expected to significantly trail its peers on the basis of its earnings growth rate.
|V 12.53||Peers 5.10||V 7.84||Peers 8.10|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
V is trading at a significant premium to its industry.
Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.
V is keeping pace with its peers on the basis of sales growth.
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