V : NYSE : Financial
$94.95 -0.27 | -0.28%
Today's Range: 94.63 - 95.34
Avg. Daily Volume: 8059000.0
06/27/17 - 3:59 PM ET

Financial Analysis


VISA INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. VISA INC has average liquidity. Currently, the Quick Ratio is 1.41 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, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 5.67% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)4477.03626.0
EBITDA ($mil)3133.02556.0
EBIT ($mil)3002.02435.0
Net Income ($mil)430.01707.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)9994.022008.0
Total Assets ($mil)63227.054326.0
Total Debt ($mil)15888.015876.0
Equity ($mil)30783.029131.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin69.9870.49
EBITDA Margin69.9770.49
Operating Margin67.0567.15
Sales Turnover0.270.26
Return on Assets7.6512.62
Return on Equity15.7323.53
Debt Q2 FY17 Q2 FY16
Current Ratio1.524.74
Debt/Capital0.340.35
Interest Expense135.0132.0
Interest Coverage22.2418.45


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)2307.02385.0
Div / share0.170.14
EPS0.180.71
Book value / share13.3412.21
Institutional Own % n/a n/a
Avg Daily Volume7981790.08171769.0

Valuation


BUY. VISA INC's P/E ratio indicates a significant premium compared to an average of 31.75 for the IT Services industry and a significant premium compared to the S&P 500 average of 25.75. To use another comparison, its price-to-book ratio of 7.04 indicates a significant premium versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 9.85. 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 46.98 Peers 31.75   V 38.26 Peers 21.57

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 23.94 Peers 22.07   V 1.32 Peers 1.73

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 discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
V 7.04 Peers 9.85   V -29.08 Peers -1.13

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 12.88 Peers 5.67   V 17.85 Peers 11.40

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.

 

 

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