10Y annualized return is
excellent
at 17.9% per year
V has met or exceeded earnings expectations in
most
recent quarters (9/10)
Strong Gross Profit Margin
High Return on Equity
Strong Operating and Net Profit Margins
Excellent Interest Coverage
Healthy Liquidity Ratios
📈 Strong Revenue Growth
💳 Expanding Digital Payments
🤝 Strong Partnerships and Renewals
🚀 Innovation in Value-Added Services
🌍 Expansion of Visa Direct
🔒 Adoption of Tokenization
High Price-to-Earnings Ratio
Elevated Price-to-Sales Ratio
Moderate Debt Levels
📉 Slow Growth in Asia-Pacific
🔄 Potential Economic Volatility
Overall, Visa demonstrates a strong business model characterized by significant revenue growth, an expanding digital payments ecosystem, and robust partnerships. However, challenges in specific regions and economic uncertainties could impact future performance. The company's focus on innovation and value-added services presents substantial opportunities for continued growth.
Analysis Date: January 30, 2025
Last Updated: March 12, 2025
Past performance does not guarantee future results. The data presented is indicative and may not be updated in real-time.
Visa Inc. is a company that helps people and businesses make payments easily and safely. When you buy something with a Visa card, Visa makes sure your payment goes through smoothly, whether you're shopping in a store or online. They provide the technology and services needed for these transactions, so you can pay with confidence. Visa also partners with other companies to improve payment experiences for their customers.
Streams of revenue
Geographic Distribution
Core Products
Business Type
Business to Business
Competitive Advantages
Key Business Risks
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$444.72
Current Market Price: $353.80
IV/P Ratio: 1.26x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
20.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for V
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (27.11)
P/B ratio ≤ 1.5 (14.14)
Current ratio ≥ 2.0 (1.12x)
Long-term debt < Net current assets (4.72x)
Margin of safety (20.0%)
V does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
51.26%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-30)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
79.89%
Higher values indicate better efficiency in production
TTM (as of 2025-04-30)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
54.27%
Higher values indicate better overall profitability
TTM (as of 2025-04-30)
Operating profit margin of 66.11% and net profit margin of 54.27% indicate that the company effectively controls its costs and retains profits from sales.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.54x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q1 2025
Current Ratio
Current assets divided by current liabilities
1.12x
Higher values indicate better short-term liquidity
Less than 1.0 is concerning, 1.0-2.0 is adequate, greater than 2.0 is good
Q1 2025
An interest coverage ratio of 38.26 indicates that the company can easily meet its interest obligations, reflecting strong financial stability.
Current and quick ratios both above 1.12 suggest good short-term liquidity, indicating the company can cover its short-term liabilities.
A debt-to-equity ratio of 0.54 and a debt-to-assets ratio of 22.43% suggest that the company has a moderate level of debt, which could pose risks if not managed properly.
Meeting Expectations
Higher values indicate better execution and credibility
Recent Results
EPS
Visa reported a net revenue of $9.5 billion, representing a 10% year-over-year increase. This growth was attributed to improved overall payments volume and cross-border transactions, which grew 16% in constant dollars.
Visa's strategy to transition towards digital payments has resulted in over 60% of payment volume being digital, up from a lesser percentage five years ago. This shift highlights Visa's adaptability in a changing market.
Visa has renewed significant partnerships with major banks and financial institutions globally, strengthening its position in various markets and expanding its service offerings.
Visa's growth in the Asia-Pacific region remains muted at just over 1% year-over-year, indicating potential challenges in this key market.
Visa's focus on value-added services has shown an 18% growth rate, indicating a successful expansion beyond traditional payment processing into areas such as fraud prevention and consulting services.
The Visa Direct service is expected to see continued growth with nearly 3 billion transactions in the last quarter and significant partnerships being formed to enhance P2P payments.
Visa's tokenization strategy is seeing rapid adoption with a 44% increase in the number of tokens, enhancing security and reducing fraud rates for digital transactions.
The company faces uncertainty due to macroeconomic factors, including potential impacts from regulatory changes and currency fluctuations, which could affect future growth.
