Is Visa Stock a Good Investment?
Visa Investment Advice | V |
- Examine Visa's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Visa's leadership team and their track record. Good management can help Visa navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Transaction & Payment Processing Services space and any emerging trends that could impact Visa's business and its evolving consumer preferences.
- Compare Visa's performance and market position to its competitors. Analyze how Visa is positioned in terms of product offerings, innovation, and market share.
- Check if Visa pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Visa's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Visa Class A stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Visa Class A is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Visa Stock
Researching Visa's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 93.0% of the company outstanding shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.71. Visa Class A recorded earning per share (EPS) of 9.34. The entity last dividend was issued on the 9th of August 2024. The firm had 4:1 split on the 19th of March 2015.
To determine if Visa is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Visa's research are outlined below:
| Visa Class A generated a negative expected return over the last 90 days | |
| Over 93.0% of the company outstanding shares are owned by institutional investors | |
| On 3rd of June 2024 Visa paid $ 0.52 per share dividend to its current shareholders | |
| Latest headline from americanbanker.com: Kamala Harris digital dollar vision A new era of financial inclusion |
Visa Quarterly Good Will |
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Visa uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Visa Class A. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Visa's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 23rd of April 2024 Upcoming Quarterly Report | View | |
| 23rd of July 2024 Next Financial Report | View | |
| 31st of March 2024 Next Fiscal Quarter End | View | |
| 22nd of October 2024 Next Fiscal Year End | View | |
| 31st of December 2023 Last Quarter Report | View | |
| 30th of September 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Visa's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Visa's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2009-04-29 | 2009-03-31 | 0.16 | 0.18 | 0.02 | 12 | ||
2008-04-28 | 2008-03-31 | 0.11 | 0.13 | 0.02 | 18 | ||
2010-10-27 | 2010-09-30 | 0.24 | 0.27 | 0.03 | 12 | ||
2010-02-03 | 2009-12-31 | 0.23 | 0.26 | 0.03 | 13 | ||
2009-02-04 | 2008-12-31 | 0.17 | 0.2 | 0.03 | 17 | ||
2008-07-30 | 2008-06-30 | 0.12 | 0.15 | 0.03 | 25 | ||
2017-02-02 | 2016-12-31 | 0.78 | 0.86 | 0.08 | 10 | ||
2018-07-25 | 2018-06-30 | 1.09 | 1.2 | 0.11 | 10 |
Know Visa's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Visa is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Visa Class A backward and forwards among themselves. Visa's institutional investor refers to the entity that pools money to purchase Visa's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Capital World Investors | 2024-03-31 | 18.9 M | Goldman Sachs Group Inc | 2024-03-31 | 18.6 M | Royal Bank Of Canada | 2024-03-31 | 18.5 M | Wellington Management Company Llp | 2024-03-31 | 17.4 M | Tci Fund Management Limited | 2024-03-31 | 16.8 M | Northern Trust Corp | 2024-03-31 | 15.7 M | Norges Bank | 2023-12-31 | 15 M | Ameriprise Financial Inc | 2024-03-31 | 14.3 M | Legal & General Group Plc | 2024-03-31 | 14.1 M | Vanguard Group Inc | 2024-03-31 | 142.2 M | Blackrock Inc | 2024-03-31 | 127.3 M |
Visa's market capitalization trends
The company currently falls under 'Mega-Cap' category with a current capitalization of 493.75 B.Market Cap |
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Visa's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.34 | 0.18 | |
| Return On Capital Employed | 0.28 | 0.29 | |
| Return On Assets | 0.17 | 0.18 | |
| Return On Equity | 0.51 | 0.50 |
Determining Visa's profitability involves analyzing its financial statements and using various financial metrics to determine if Visa is a good buy. For example, gross profit margin measures Visa's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Visa's profitability and make more informed investment decisions.
Visa's Earnings Breakdown by Geography
The data published in Visa's official financial statements typically reflect Visa's business processes, product offerings, services, and other fundamental events. However, there are additional fundamental indicators that are easier to understand and visualize along the underlying realities that are driving Visa's quantitative information. For example, before you start analyzing numbers published by Visa accountants, it's essential to understand Visa's liquidity, profitability, and earnings quality within the context of the Financial Services space in which it operates.
Please note, the imprecision that can be found in Visa's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Visa Class A. Check Visa's Beneish M Score to see the likelihood of Visa's management manipulating its earnings.
Evaluate Visa's management efficiency
Visa Class A has return on total asset of 0.1625 % which means that for every 100 dollars spent on assets, it generated a profit of $0.1625. This is way below average. Similarly, it shows a return on equity (ROE) of 0.4855 %, implying that it made 0.4855 on every $100 invested by shareholders. Visa's management efficiency ratios could be used to measure how well Visa manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Visa's Return On Capital Employed is fairly stable compared to the past year. Return On Assets is likely to climb to 0.18 in 2024, whereas Return On Tangible Assets are likely to drop 0.18 in 2024. At this time, Visa's Non Currrent Assets Other are fairly stable compared to the past year. Other Current Assets is likely to climb to about 5 B in 2024, whereas Non Current Assets Total are likely to drop slightly above 36.9 B in 2024.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 17.03 | 8.74 | |
| Tangible Book Value Per Share | (3.02) | (2.87) | |
| Enterprise Value Over EBITDA | 20.04 | 13.03 | |
| Price Book Value Ratio | 10.94 | 11.49 | |
| Enterprise Value Multiple | 20.04 | 13.03 | |
| Price Fair Value | 10.94 | 11.49 | |
| Enterprise Value | 339.4 B | 180.6 B |
The analysis of Visa's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze Visa's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of Visa Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield 0.0082 | Forward Dividend Yield 0.0082 | Forward Dividend Rate 2.08 | Beta 0.953 |
Basic technical analysis of Visa Stock
As of the 27th of July, Visa has the Risk Adjusted Performance of (0.04), coefficient of variation of (1,418), and Variance of 1.13. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Visa Class A, as well as the relationship between them. Please validate Visa Class A standard deviation, as well as the relationship between the treynor ratio and potential upside to decide if Visa is priced more or less accurately, providing market reflects its prevalent price of 259.46 per share. Given that Visa Class A has information ratio of (0.15), we advise you to double-check Visa Class A's current market performance to make sure the company can sustain itself at a future point.Visa's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Visa insiders, such as employees or executives, is commonly permitted as long as it does not rely on Visa's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Visa insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Rajat Taneja over six months ago Exercise or conversion by Rajat Taneja of 4898 shares of Visa Class subject to Rule 16b-3 | ||
Rajat Taneja over six months ago Exercise or conversion by Rajat Taneja of 9200 shares of Visa Class subject to Rule 16b-3 | ||
Rajat Taneja over six months ago Exercise or conversion by Rajat Taneja of 15800 shares of Visa Class subject to Rule 16b-3 | ||
Rajat Taneja over six months ago Exercise or conversion by Rajat Taneja of 4559 shares of Visa Class subject to Rule 16b-3 |
Visa's Outstanding Corporate Bonds
Visa issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Visa Class A uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Visa bonds can be classified according to their maturity, which is the date when Visa Class A has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| VISA INC 365 Corp BondUS92826CAJ18 | View | |
| VISA INC 275 Corp BondUS92826CAH51 | View | |
| VISA INC 43 Corp BondUS92826CAF95 | View | |
| VISA INC 415 Corp BondUS92826CAE21 | View | |
| VISA INC 315 Corp BondUS92826CAD48 | View | |
| VISA INC Corp BondUS92826CAQ50 | View | |
| US92826CAP77 Corp BondUS92826CAP77 | View | |
| VISA INC Corp BondUS92826CAN20 | View |
Understand Visa's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Visa's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.04) | |||
| Market Risk Adjusted Performance | (0.09) | |||
| Mean Deviation | 0.81 | |||
| Coefficient Of Variation | (1,418) | |||
| Standard Deviation | 1.06 | |||
| Variance | 1.13 | |||
| Information Ratio | (0.15) | |||
| Jensen Alpha | (0.14) | |||
| Total Risk Alpha | (0.20) | |||
| Treynor Ratio | (0.10) | |||
| Maximum Drawdown | 5.91 | |||
| Value At Risk | (1.55) | |||
| Potential Upside | 1.39 | |||
| Skewness | (0.72) | |||
| Kurtosis | 1.96 |
| Risk Adjusted Performance | (0.04) | |||
| Market Risk Adjusted Performance | (0.09) | |||
| Mean Deviation | 0.81 | |||
| Coefficient Of Variation | (1,418) | |||
| Standard Deviation | 1.06 | |||
| Variance | 1.13 | |||
| Information Ratio | (0.15) | |||
| Jensen Alpha | (0.14) | |||
| Total Risk Alpha | (0.20) | |||
| Treynor Ratio | (0.10) | |||
| Maximum Drawdown | 5.91 | |||
| Value At Risk | (1.55) | |||
| Potential Upside | 1.39 | |||
| Skewness | (0.72) | |||
| Kurtosis | 1.96 |
Consider Visa's intraday indicators
Visa intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Visa stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 151667.0 | |||
| Daily Balance Of Power | 1.019608 | |||
| Rate Of Daily Change | 1.02 | |||
| Day Median Price | 258.4 | |||
| Day Typical Price | 258.75 | |||
| Price Action Indicator | 3.92 | |||
| Period Momentum Indicator | 5.72 |
Visa Corporate Filings
10Q | 24th of July 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 23rd of July 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
F4 | 15th of May 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
| 6th of May 2024 Other Reports | ViewVerify |
Visa Stock media impact
Far too much social signal, news, headlines, and media speculation about Visa that are available to investors today. That information is available publicly through Visa media outlets and privately through word of mouth or via Visa internal channels. However, regardless of the origin, that massive amount of Visa data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Visa news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Visa relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Visa's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Visa alpha.
Visa Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Visa can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Visa Class A Historical Investor Sentiment
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 and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Visa news discussions. The higher the estimate score, the more favorable the investor's outlook on Visa.
Visa Maximum Pain Price across 2024-08-02 Option Contracts
Visa's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Visa close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Visa's options.
Visa Corporate Directors
| John Swainson | Independent Director | Profile | |
| Mary Cranston | Independent Director | Profile | |
| Suzanne Johnson | Independent Director | Profile | |
| John Lundgren | Lead Independent Director | Profile |
Additional Tools for Visa Stock Analysis
When running Visa's price analysis, check to measure Visa's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Visa is operating at the current time. Most of Visa's value examination focuses on studying past and present price action to predict the probability of Visa's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Visa's price. Additionally, you may evaluate how the addition of Visa to your portfolios can decrease your overall portfolio volatility.