V : NYSE : Financial
$82.70 up 0.78 | 0.96%
Today's Range: 81.68 - 83.04
Avg. Daily Volume: 7,912,700
09/30/16 - 3:59 PM ET

Financial Analysis


VISA INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. VISA INC has strong liquidity. Currently, the Quick Ratio is 1.72 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 14.67% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)3630.03518.0
EBITDA ($mil)2577.02392.0
EBIT ($mil)2457.02262.0
Net Income ($mil)412.01697.0


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)10811.06933.0
Total Assets ($mil)63867.039429.0
Total Debt ($mil)15879.00.0
Equity ($mil)32827.028627.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin70.9967.99
EBITDA Margin70.9967.99
Operating Margin67.6964.3
Sales Turnover0.230.34
Return on Assets8.7214.93
Return on Equity16.9720.57
Debt Q3 FY16 Q3 FY15
Current Ratio1.851.74
Debt/Capital0.330.0
Interest Expense131.00.0
Interest Coverage18.760.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)2362.452433.0
Div / share0.140.12
EPS0.170.69
Book value / share13.911.77
Institutional Own % n/a n/a
Avg Daily Volume8718241.08126359.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 27.47 for the IT Services industry and a significant premium compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 6.00 indicates a significant premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 8.10. 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 36.24 Peers 27.47   V 41.00 Peers 20.56

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.

 

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 25.15 Peers 21.95   V 4.46 Peers 2.41

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.

 

Premium. 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 premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
V 6.00 Peers 8.10   V -3.47 Peers 21.96

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 13.68 Peers 5.57   V 6.30 Peers 22.90

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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