Visa Inc. (V): What Does Valuation Ratios Tell Us?

Visa Inc. (NYSE:V) saw a downside of -0.55% to $223.88 after subtracting -$1.23 on Tuesday. The 5-day average trading volume is 4,688,438 shares of the company’s common stock. It has gained $232.73 in the past week. An average of 6,871,834 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 7,232,346.

V’s 1-month performance is 0.09% or -$0.67 on its low of $216.31 reached on 09/20/21. The company’s shares have touched a 52-week low of $179.23 and high of $252.67, with the stock’s rally to the 52-week high happening on 07/27/21. YTD, V has achieved 2.92% or $5.51. However, the current price is down -11.39%% from the 52-week high price.


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Insider Transactions

On Oct 01, 11 days have gone by since the last insider trading activity for Visa Inc. (V). MCINERNEY RYAN (PRESIDENT) most recently sold 11,194 shares at $224.17 per share on Oct 01. This transaction cost the insider $2,509,359. CHAIRMAN & CEO, KELLY ALFRED F JR, sold 9,000 shares at a price of $227.58 on Sep 30. Then, on Sep 01, PRESIDENT MCINERNEY RYAN sold 11,193 shares at a price of $229.10 per share. This transaction amounted to $2,564,316.

Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 50.69 and a low of 24.77. V stock has a beta of 0.98. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 21.17 while the price-to-book (PB) in the most recent quarter is 12.83, with the price to cash flow ratio at 48.31.

Visa Inc. pays an annual dividend of $1.28 per share. Its dividend yield is 0.57% and the payout ratio is 23.60%. V’s most recent quarterly dividend payment was made on Sep. 1, when it paid $0.32 a share compared with prior rate of $0.32, down 0.0% from last year’s. The company has boosted its dividend for the last 1 consecutive years with the latest dividend increase of $0.02 reported on Friday October 30 2020. Measured over the last 3 years, the Dividend has been growing by 76.81% yearly.

It is projected that Visa Inc.’s next ex-dividend date will be on 15-Nov. V is expected to distribute $0.32 as its next dividend.

Visa Inc.’s quick ratio for the period ended June 29 was 2.00, with the current ratio over the same period at 2.00 meaning that V stock is able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending June 29 was 0.61, while the total debt to equity was 0.61. In terms of profitability, the gross margin trailing 12 months is 78.60%. The trailing 12-month EBITDA margin is 68.09% while for the period ending June 29; Visa Inc.’s operating margin was 64.60%. The firm’s gross profit as reported stood at $7.76 billion against revenue of $21.85 billion.

Earnings Surprise

For the quarterly period ending June 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected V to announce $1.35 per share in earnings in its latest quarter, but it posted $1.49, representing a 10.40% surprise. EBITDA for the quarter stood at more than $4.27 billion. V stock balance sheet for the quarter ending June 29 shows that total liabilities totaled 44.88 billion, with total debt at $21.0 billion. Shareholders hold equity totaling $1.94 billion

Technical Picture

Let’s look briefly at Visa Inc. (V) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 11 October was 44.77% to suggest the stock is trending Neutral, with historical volatility in this time period at 29.11%.

The stock’s 5-day moving average is $227.34, reflecting a -0.02% or -$0.04 change from its current price. V is currently trading +0.54% above its 20-day SMA, -0.97% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by -6.48% and +7.45% respectively.

Stochastic %K and %D was 46.81% and 62.15% and the average true range (ATR) pointed at 4.75. The RSI (14) points at 45.71%, while the 14-day stochastic is at 27.40% with the period’s ATR at 4.62. The stock’s 9-day MACD Oscillator is pointing at 0.00 and -0.65 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Visa Inc. (NYSE: V), Daiwa Securities downgraded it to a Neutral rating. They previously had an Outperform rating on the stock. Analysts offering their rating for V stock have a consensus rating for the stock as Overweight. Currently, 1 brokerage advisors rate V as a “sell,”, while 5 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 5 rates the stock as overweight while 27 have offered a “buy” rating.

What is V’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $202.00 and a high of $312.00, with their median price target at $280.60. Looking at these predictions, the average price target given by analysts is for Visa Inc. (V) stock is $279.44.

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