V : NYSE : Financial
$77.38 up 1.7 | 2.2%
Today's Range: 76.55 - 77.6
Avg. Daily Volume: 9688800.0
12/05/16 - 1:35 PM ET

Financial Analysis


VISA INC's gross profit margin for the fourth quarter of its fiscal year 2016 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 strong liquidity. Currently, the Quick Ratio is 1.70 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 10.28% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)4261.03571.0
EBITDA ($mil)2877.02413.0
EBIT ($mil)2736.02294.0
Net Income ($mil)1931.01512.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)10966.08110.0
Total Assets ($mil)64035.040236.0
Total Debt ($mil)15882.00.0
Equity ($mil)32912.029842.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin67.5267.57
EBITDA Margin67.5167.57
Operating Margin64.2164.24
Sales Turnover0.240.34
Return on Assets9.3515.72
Return on Equity18.221.2
Debt Q4 FY16 Q4 FY15
Current Ratio1.782.03
Debt/Capital0.330.0
Interest Expense135.00.0
Interest Coverage20.270.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)2342.282433.83
Div / share0.140.12
EPS0.790.62
Book value / share14.0512.26
Institutional Own % n/a n/a
Avg Daily Volume8781931.08715377.0

Valuation


BUY. VISA INC's P/E ratio indicates a premium compared to an average of 27.05 for the IT Services industry and a premium compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 5.77 indicates a significant premium versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 7.90. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
V 32.82 Peers 27.05   V 34.07 Peers 19.72

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 significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
V 21.06 Peers 20.95   V 1.02 Peers 1.58

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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
V 5.77 Peers 7.90   V -3.99 Peers 12.58

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
V 12.59 Peers 5.20   V 8.65 Peers 16.45

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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