Visa Class A Stock Beneish M Score

V Stock  USD 271.35  0.07  0.03%   
This module uses fundamental data of Visa to approximate the value of its Beneish M Score. Visa M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Visa Piotroski F Score and Visa Altman Z Score analysis.
  
At this time, Visa's Net Debt is fairly stable compared to the past year. Long Term Debt is likely to climb to about 24.7 B in 2024, whereas Short Term Debt is likely to drop slightly above 115.8 M in 2024. At this time, Visa's Cash Per Share is fairly stable compared to the past year. POCF Ratio is likely to climb to 44.12 in 2024, whereas Dividend Yield is likely to drop 0.01 in 2024.
At this time, it appears that Visa Class A is an unlikely manipulator. The earnings manipulation may begin if Visa's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Visa executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Visa's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.95
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

0.37

Focus
Expense Coverage

0.51

Focus
Gross Margin Strengs

0.88

Focus
Accruals Factor

0.51

Focus
Depreciation Resistance

1.37

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

2.07

Focus

Visa Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Visa's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables5.4 B5.1 B
Sufficiently Up
Slightly volatile
Total Revenue39.4 B37.6 B
Sufficiently Up
Slightly volatile
Total Assets52.9 B104.1 B
Way Down
Slightly volatile
Total Current Assets40.5 B38.6 B
Sufficiently Up
Slightly volatile
Non Current Assets Total36.9 B65.5 B
Way Down
Slightly volatile
Property Plant EquipmentB2.4 B
Fairly Down
Slightly volatile
Depreciation And Amortization587.9 M1.1 B
Way Down
Slightly volatile
Selling General Administrative1.2 B2.2 B
Way Down
Slightly volatile
Total Current Liabilities27.9 B26.6 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total34.6 B33 B
Sufficiently Up
Slightly volatile
Short Term Debt115.8 M121.9 M
Notably Down
Slightly volatile
Total Cash From Operating Activities25.1 B23.9 B
Sufficiently Up
Slightly volatile
Short Term Investments2.3 B4.4 B
Way Down
Slightly volatile
Long Term Investments2.3 B2.2 B
Sufficiently Up
Pretty Stable
Gross Profit Margin0.630.72
Fairly Down
Pretty Stable

Visa Class A Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Visa's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Visa in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Visa's degree of accounting gimmicks and manipulations.

About Visa Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Pretax Profit Margin

0.34

At this time, Visa's Pretax Profit Margin is fairly stable compared to the past year.

Visa Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Visa. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables2.9B3.7B4.0B4.5B5.1B5.4B
Total Revenue21.8B24.1B29.3B32.7B37.6B39.4B
Total Assets80.9B82.9B85.5B90.5B104.1B52.9B
Total Current Assets27.6B27.6B30.2B33.5B38.6B40.5B
Net Debt7.8B4.5B6.8B4.2B4.8B5.0B
Short Term Debt3.0B999M2.3B106M121.9M115.8M
Long Term Debt21.1B20.0B20.2B20.5B23.5B24.7B
Operating Income14.1B15.8B18.8B21B24.2B25.4B
Investments2.2B519M(4.3B)(2.0B)(1.8B)(1.7B)

Visa ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Visa's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Visa's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Visa Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Visa Class A's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Visa using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Visa Class A based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Visa Investors Sentiment

The influence of Visa's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Visa. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Visa's public news can be used to forecast risks associated with an investment in Visa. The trend in average sentiment can be used to explain how an investor holding Visa can time the market purely based on public headlines and social activities around Visa Class A. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Visa's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Visa's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Visa's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Visa.

Visa Implied Volatility

    
  34.24  
Visa's implied volatility exposes the market's sentiment of Visa Class A stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Visa's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Visa stock will not fluctuate a lot when Visa's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Visa in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Visa's short interest history, or implied volatility extrapolated from Visa options trading.

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When determining whether Visa Class A is a strong investment it is important to analyze Visa's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Visa's future performance. For an informed investment choice regarding Visa Stock, refer to the following important reports:

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Is Visa's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Visa. If investors know Visa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Visa listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.203
Dividend Share
1.94
Earnings Share
8.68
Revenue Per Share
16.386
Quarterly Revenue Growth
0.088
The market value of Visa Class A is measured differently than its book value, which is the value of Visa that is recorded on the company's balance sheet. Investors also form their own opinion of Visa's value that differs from its market value or its book value, called intrinsic value, which is Visa's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Visa's market value can be influenced by many factors that don't directly affect Visa's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Visa's value and its price as these two are different measures arrived at by different means. Investors typically determine if Visa is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Visa's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.