VISA INC's gross profit margin for the first quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. VISA INC has average liquidity. Currently, the Quick Ratio is 1.45 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.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.43% 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||Q1 FY15||Q1 FY14|
|Net Sales ($mil)||3382.0||3155.0|
|Net Income ($mil)||1569.0||1407.0|
|Balance Sheet||Q1 FY15||Q1 FY14|
|Cash & Equiv. ($mil)||7019.0||5025.0|
|Total Assets ($mil)||38884.0||36248.0|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q1 FY15||Q1 FY14|
|Gross Profit Margin||69.72||69.22|
|Return on Assets||14.4||14.05|
|Return on Equity||20.04||18.85|
|Debt||Q1 FY15||Q1 FY14|
|Share Data||Q1 FY15||Q1 FY14|
|Shares outstanding (mil)||2463.86||2536.19|
|Div / share||0.12||0.1|
|Book value / share||11.34||10.65|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3576266.0||2914242.0|
BUY. VISA INC's P/E ratio indicates a premium compared to an average of 25.27 for the IT Services industry and a premium compared to the S&P 500 average of 19.41. To use another comparison, its price-to-book ratio of 5.78 indicates a significant premium versus the S&P 500 average of 2.74 and a significant discount versus the industry average of 9.14. 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 29.35||Peers 25.27||V 21.70||Peers 19.04|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
V is trading at a premium to its peers.
Premium. 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 premium to its peers.
|V 21.86||Peers 20.12||V NM||Peers 2.50|
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 significant premium to its peers.
Neutral. 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's negative PEG ratio makes this valuation measure meaningless.
|V 5.78||Peers 9.14||V 13.88||Peers 22.82|
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 12.50||Peers 5.17||V 6.96||Peers 9.92|
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.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
V significantly trails its peers on the basis of sales growth
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