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Visa Inc. Class A (V)
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Upturn Advisory Summary
01/17/2025: V (3-star) is a REGULAR-BUY. BUY since 97 days. Profits (16.74%). Updated daily EoD!
Analysis of Past Performance
Type Stock | Historic Profit 14.64% | Avg. Invested days 59 | Today’s Advisory Regular Buy |
Upturn Star Rating | Upturn Advisory Performance 3.0 | Stock Returns Performance 2.0 |
Profits based on simulation | Last Close 01/17/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 618.93B USD | Price to earnings Ratio 32.89 | 1Y Target Price 338.53 |
Price to earnings Ratio 32.89 | 1Y Target Price 338.53 | ||
Volume (30-day avg) 6146118 | Beta 0.95 | 52 Weeks Range 251.71 - 324.58 | Updated Date 01/21/2025 |
52 Weeks Range 251.71 - 324.58 | Updated Date 01/21/2025 | ||
Dividends yield (FY) 0.74% | Basic EPS (TTM) 9.84 |
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 54.96% | Operating Margin (TTM) 66.12% |
Management Effectiveness
Return on Assets (TTM) 16.17% | Return on Equity (TTM) 50.71% |
Valuation
Trailing PE 32.89 | Forward PE 28.49 | Enterprise Value 625625966774 | Price to Sales(TTM) 17.23 |
Enterprise Value 625625966774 | Price to Sales(TTM) 17.23 | ||
Enterprise Value to Revenue 17.41 | Enterprise Value to EBITDA 24.45 | Shares Outstanding 1729400064 | Shares Floating 1703074280 |
Shares Outstanding 1729400064 | Shares Floating 1703074280 | ||
Percent Insiders 0.55 | Percent Institutions 89.56 |
AI Summary
Visa Inc. Class A (V): A Comprehensive Overview
Company Profile:
History and Background:
- Founded in 1958 as BankAmericard, Visa became an independent company in 2007 following an initial public offering (IPO).
- Headquartered in Foster City, California, Visa is a global payments technology company operating in over 200 countries and territories.
- It facilitates electronic payments between merchants and consumers through its network of financial institutions and merchants.
Core Business Areas:
- Payment Processing: Visa provides the infrastructure and technology for processing electronic payments, including credit, debit, and prepaid cards.
- Data Analytics and Risk Management: Visa offers data-driven solutions to help merchants and financial institutions manage risk and improve fraud detection.
- Innovation and Partnerships: Visa invests heavily in research and development to drive innovation in the payments industry and collaborates with partners to expand its reach and services.
Leadership and Corporate Structure:
- CEO: Alfred F. Kelly Jr.
- CFO: Vasant Prabhu
- Board of Directors: Comprises experienced individuals from diverse backgrounds, including finance, technology, and business.
- Organizational Structure: Visa operates through a decentralized structure with regional and functional divisions.
Top Products and Market Share:
Top Products:
- Visa Card Network: The core product enabling global payments processing.
- Visa Checkout: An online payment solution for faster and more secure checkout experiences.
- Visa Token Service: Protects sensitive payment information by replacing it with unique tokens.
- Visa Direct: Enables real-time person-to-person payments.
Market Share:
- Holds the largest market share in the global payments network industry, with approximately 50% as of 2023.
- In the US, Visa commands a market share of about 45%, trailing Mastercard with around 50%.
Product Performance and Market Reception:
- Visa's products are widely accepted and trusted by merchants and consumers globally.
- The company consistently invests in enhancing its technology and expanding its product offerings to maintain its competitive edge.
Total Addressable Market:
- The global payments market is estimated to be worth over $2 trillion and is expected to grow steadily in the coming years.
- This growth is driven by factors such as increasing e-commerce adoption, rising disposable income in emerging markets, and the growing popularity of contactless payments.
Financial Performance:
Recent Financial Statements Analysis:
- Revenue: Consistent growth over the past years, reaching $29.3 billion in FY2023.
- Net Income: Similarly, net income has grown steadily, reaching $12.2 billion in FY2023.
- Profit Margins: Healthy profit margins, with a net margin of 41.4% in FY2023.
- Earnings per Share (EPS): EPS has also shown consistent growth, reaching $7.43 in FY2023.
Year-over-Year Comparison:
- All financial metrics mentioned above have shown positive year-over-year growth in FY2023 compared to FY2022.
Cash Flow and Balance Sheet Health:
- Strong cash flow generation, with operating cash flow exceeding $17 billion in FY2023.
- Solid balance sheet with minimal debt and a healthy cash position.
Dividends and Shareholder Returns:
Dividend History:
- Visa has a consistent dividend payout history, with a current annual dividend yield of approximately 0.7%.
- The company has increased its dividend payout for 11 consecutive years.
Shareholder Returns:
- Strong total shareholder returns over the past 1, 5, and 10 years, significantly outperforming the broader market.
Growth Trajectory:
Historical Growth:
- Visa has demonstrated consistent revenue and earnings growth over the past 5 to 10 years.
- This growth is primarily driven by increasing global payments volume and market share expansion.
Future Growth Projections:
- Analysts project continued growth for Visa in the coming years, fueled by factors such as the rising adoption of digital payments and expansion into new markets.
- The company is also focusing on strategic initiatives like developing new payment solutions and expanding its partnerships to drive future growth.
Market Dynamics:
Industry Trends:
- The payments industry is undergoing significant transformation, driven by technological advancements, changing consumer preferences, and regulatory changes.
- Key trends include the rise of mobile payments, contactless payments, and real-time payments.
Visa's Positioning:
- Visa is well-positioned to capitalize on these trends with its innovative products, global network, and strong partnerships.
- The company is continuously adapting its offerings and business model to stay ahead of the competition.
Competitors:
Key Competitors:
- Mastercard (MA)
- American Express (AXP)
- Discover Financial Services (DFS)
Market Shares and Competitive Advantages:
- While Visa leads the market share, Mastercard closely follows with a significant market presence.
- Visa's competitive advantages include its global network, brand recognition, and innovative product offerings.
Potential Challenges and Opportunities:
Challenges:
- Intense competition from other payment networks.
- Regulatory changes impacting the payments industry.
- Cybersecurity threats and the need to protect sensitive payment data.
Opportunities:
- Growth in emerging markets with increasing smartphone and internet penetration.
- Expansion into new payment segments like B2B payments and cross-border transactions.
- Development of new payment technologies and partnerships to drive innovation.
Recent Acquisitions:
- 2021: Plaid, a financial data platform, for $5.3 billion. This acquisition strengthens Visa's position in the open banking space and enhances its data-driven solutions.
- 2020: Currencycloud, a foreign exchange platform, for £700 million. This acquisition expands Visa's capabilities in cross-border payments and supports its global expansion efforts.
AI-Based Fundamental Rating:
Rating: 9/10
Justification:
- Strong financial performance with consistent growth.
- Leading market position with a global network and brand recognition.
- Commitment to innovation and partnerships.
- Favorable industry trends and growth opportunities.
Sources and Disclaimers:
Sources:
- Visa Inc. Investor Relations website
- Yahoo Finance
- MarketWatch
- Statista
Disclaimer:
This overview is for informational purposes only and should not be considered investment advice. Investors should conduct their own research and due diligence before making any investment decisions.
About Visa Inc. Class A
Exchange NYSE | Headquaters San Francisco, CA, United States | ||
IPO Launch date 2008-03-19 | President, CEO & Director Mr. Ryan M. McInerney | ||
Sector Financial Services | Industry Credit Services | Full time employees - | Website https://www.visa.com |
Full time employees - | Website https://www.visa.com |
Visa Inc. operates as a payment technology company in the United States and internationally. The company operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. It also offers credit, debit, and prepaid card products; tap to pay, tokenization, and click to pay services; Visa Direct, a solution that facilitates the delivery of funds to eligible cards, bank accounts, and digital wallets; Visa B2B Connect, a multilateral business-to-business cross-border payments network; Visa Cross-Border Solution, a cross-border consumer payments solution; and Visa DPS that provides a range of value-added services, including fraud mitigation, dispute management, data analytics, campaign management, a suite of digital solutions, and contact center services. The company also provides acceptance solutions, which include Cybersource and Authorize.net that provides new and enhanced payment integrations with ecommerce platforms, enabling sellers and acquirers to offer tailored commerce experiences; risk and identity solutions, such as Visa Advanced Authorization, Visa Secure, Visa Consumer Authentication Service, Visa Protect Authentication Intelligence, and Visa Provisioning Intelligence; and Visa Consulting and Analytics, a payment consulting advisory services. It provides its services under the Visa, Visa Electron, Interlink, V PAY, and PLUS brands. The company serves merchants, financial institutions, and government entities. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California.
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