V : NYSE : Finance
$118.47 -1.5 | -1.3%
Today's Range: 118.93 - 120.73
Avg. Daily Volume: 7922100.0
03/23/18 - 11:51 AM ET

Financial Analysis

VISA INC's gross profit margin for the first quarter of its fiscal year 2018 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 1.97 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 5.27% 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 Q1 FY18 Q1 FY17
Net Sales ($mil)4862.04461.0
EBITDA ($mil)3472.03261.0
EBIT ($mil)3327.03115.0
Net Income ($mil)2522.02070.0

Balance Sheet Q1 FY18 Q1 FY17
Cash & Equiv. ($mil)13589.011555.0
Total Assets ($mil)67154.063370.0
Total Debt ($mil)16621.016451.0
Equity ($mil)33401.031726.0

Profitability Q1 FY18 Q1 FY17
Gross Profit Margin71.4173.1
EBITDA Margin71.4173.1
Operating Margin68.4369.83
Sales Turnover0.280.25
Return on Assets10.649.65
Return on Equity21.419.29
Debt Q1 FY18 Q1 FY17
Current Ratio2.071.42
Interest Expense153.0140.0
Interest Coverage21.7522.25

Share Data Q1 FY18 Q1 FY17
Shares outstanding (mil)2259.02321.0
Div / share0.20.17
Book value / share14.7913.67
Institutional Own % n/a n/a
Avg Daily Volume8135941.07305447.0


BUY. The current P/E ratio indicates a significant discount compared to an average of 72.18 for the IT Services industry and a significant premium compared to the S&P 500 average of 25.66. To use another comparison, its price-to-book ratio of 8.35 indicates a significant premium versus the S&P 500 average of 3.28 and a significant discount versus the industry average of 11.94. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, VISA INC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
V 41.00 Peers 72.18   V 29.44 Peers 25.63

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

V is trading at a significant discount 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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
V 23.76 Peers 25.11   V 0.72 Peers 0.99

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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
V 8.35 Peers 11.94   V 18.97 Peers 17.01

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.


Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

V is expected to have an earnings growth rate that exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
V 14.86 Peers 7.11   V 17.40 Peers 16.14

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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