V : NYSE : Financial
$102.16 -1.16 | -1.12%
Today's Range: 102.16 - 103.5322
Avg. Daily Volume: 7921200.0
08/17/17 - 4:02 PM ET

Financial Analysis


VISA INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. VISA INC has strong liquidity. Currently, the Quick Ratio is 1.56 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 remained virtually unchanged only decreasing by 2.68% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q3 FY17 Q3 FY16
Net Sales ($mil)4565.03630.0
EBITDA ($mil)3156.02577.0
EBIT ($mil)3024.02457.0
Net Income ($mil)2059.0412.0


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)12296.010811.0
Total Assets ($mil)64000.063867.0
Total Debt ($mil)15891.015879.0
Equity ($mil)31944.032827.0


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin69.1370.99
EBITDA Margin69.1370.99
Operating Margin66.2467.69
Sales Turnover0.280.23
Return on Assets10.148.72
Return on Equity20.3116.97
Debt Q3 FY17 Q3 FY16
Current Ratio1.651.85
Debt/Capital0.330.33
Interest Expense140.0131.0
Interest Coverage21.618.76


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)2290.02363.0
Div / share0.170.14
EPS0.860.17
Book value / share13.9513.89
Institutional Own % n/a n/a
Avg Daily Volume7972837.07618970.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 32.21 for the IT Services industry and a significant premium compared to the S&P 500 average of 24.31. To use another comparison, its price-to-book ratio of 7.13 indicates a significant premium versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 8.71. 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 36.99 Peers 32.21   V 25.71 Peers 20.06

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 24.87 Peers 23.25   V 0.98 Peers 1.61

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.

 

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 7.13 Peers 8.71   V 16.95 Peers 10.04

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 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 significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
V 12.83 Peers 5.80   V 23.42 Peers 13.13

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

V has a sales growth rate that significantly exceeds its peers.

 

 

Latest Stock Upgrades/Downgrades