Visa Inc. [NYSE: V] shares went lower by -1.31% from its previous closing of $171.59, now trading at the price of $169.35, also adding -2.24 points. Is V stock a buy or should you stay away?
The stock had a rather active trading session with the latest closing, by far recording 6.87 million contracts. Compared to the average trading volume of V shares, the company saw a far better performance. Moreover, the stock has a 1.73B float and a +1.46% run over in the last seven days. V share price has been hovering between $172.18 and $121.60 lately, and is definitely worthy of attention.
Visa Inc. [NYSE:V]: Analyst Rating and Earnings
Pro stock market traders often keep their attention pointed at what top market analysts have to say regarding a potential equity investment. For Visa Inc. [V] currently, the latest-available mean analyst rating is for the fiscal quarter that will end in September. On average, stock market experts give V an Outperform rating. Its stock price has been found in the range of 121.60 to 172.18. This is compared to its latest closing price of $171.59.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Visa Inc. [V] is sitting at 1.62. This is compared to 1 month ago, when its average rating was 1.62.
For the quarter ending in Mar-19 Visa Inc. [V] generated $5.49 billion in sales. That’s 0.53% higher than the average estimate of $5.47 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes peeled for this company’s upcoming financial results publication, which is slated for Wed 24 Jul (In 40 Days).
Fundamental Analysis of Visa Inc. [V]
Now let’s turn to look at profitability: with a current Operating Margin for Visa Inc. [V] sitting at +65.80 and its Gross Margin at +78.32, this company’s Net Margin is now 49.50%. These measurements indicate that Visa Inc. [V] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 26.65, and its Return on Invested Capital has reached 20.60%. Its Return on Equity is 29.78, and its Return on Assets is 14.49. These metrics all suggest that Visa Inc. is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Visa Inc. [V] has generated a Total Debt to Total Equity ratio of 48.90. Similarly, its Total Debt to Total Capital is 32.84, while its Total Debt to Total Assets stands at 24.02. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 58.28, and its Long-Term Debt to Total Capital is 32.84. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 26.48 and its Total Debt to EBITDA Value is 1.17. The Enterprise Value to Sales for this firm is now 17.32, and its Total Debt to Enterprise Value stands at 0.05. Visa Inc. [V] has a Price to Book Ratio of 11.65, a Price to Cash Flow Ratio of 27.50 and P/E Ratio of 36.25. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Visa Inc. [V] earns $1,212,294 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 7.39 and its Total Asset Turnover is 0.30. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.61 and its Current Ratio is 1.61. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Visa Inc. [V] has 2.15B shares outstanding, amounting to a total market cap of $363.28B. Its stock price has been found in the range of 121.60 to 172.18. At its current price, it has moved down by -1.64% from its 52-week high, and it has moved up 39.27% from its 52-week low.
This stock’s Beta value is currently 0.96, which indicates that it is 1.72% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 61.21. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Visa Inc. [V] a Reliable Buy?
Shares of Visa Inc. [V], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.