VISA INC. (V) Stock Analysis
VISA INC. (V) Stock Analysis
Analysis from 10-K filed 2025-11-06. Data as of Q4 2025.
Overall Grade: F (Concerning)
VISA INC. faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | 37.8% | Above industry average |
| FCF Margin | 55.4% | Strong cash generation |
Investment Thesis: Strong return on invested capital of 37.8% suggests durable competitive advantages and efficient capital allocation.
Explore VISA INC.: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: VISA INC. earns 37.8% ROIC, Top 5% in Technology
VISA INC.'s trailing-twelve-month ROIC of 37.8% ranks Top 5% in Technology companies (sector median: 5.2%), driven by NOPAT margin of 49.8% combined with asset turnover of 0.4x. Source: 10-K filed 2025-11-06.
| Metric | V | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 37.8% | Excellent | Above sector median of 5.2% |
| Operating Margin | 59.2% | Excellent | Efficient operations |
Cash Flow: VISA INC. generates $22.9B FCF at 55.4% margin, positive NaN/8 quarters
VISA INC. generated $22.9B in free cash flow (TTM), a 55.4% FCF margin, a margin that ranks Top 5% in Technology. Operating cash flow exceeds net income by 1.2x, indicating high earnings quality. FCF was positive in N/A of the last 8 quarters. Source: 10-K filed 2025-11-06.
| Metric | V | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 55.4% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $22.9B | Good | Positive cash generation |
| OCF/Net Income | 1.2x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet Analysis for VISA INC.
Net cash position of $2.0B provides financial flexibility. Source: 10-K filed 2025-11-06.
| Metric | V | Rating | Context |
|---|---|---|---|
| Net Cash Position | $2.0B | Excellent | Net cash positive |
Valuation: VISA INC. trades at 32.8x earnings
VISA INC. trades at a P/E of 32.8x. Free cash flow yield of 3.4% reflects market expectations for growth.
| Metric | V | Rating | Context |
|---|---|---|---|
| P/E Ratio | 32.8x | Adequate | Premium valuation |
| EV/Sales | 16.5x | Warning | Growth premium priced in |
| FCF Yield | 3.4% | Adequate | Lower cash yield |
| Dividend Yield | 0.5% | Adequate | Growth focus over income |
Capital Allocation: VISA INC. returns 3.2% shareholder yield
VISA INC.'s total shareholder yield is 3.2% (dividends 0.5% + buybacks 2.6%). Source: 10-K filed 2025-11-06.
| Metric | V | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 3.2% | Good | Dividend + buyback yield combined |
| Buyback Yield | 2.6% | Adequate | Active share repurchases |
| Total Capital Returned (TTM) | $22.8B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 37.8% | Top 5% | 7.3x above |
| Free Cash Flow Margin | 55.4% | Top 5% | 6.1x above |
| Operating Margin | 59.2% | Top 5% | 12.2x above |
| P/E Ratio | 32.8x | N/A | - |
Financial Scorecard
| Metric | V | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 37.8% | Excellent | Top 5% of sector (median: 5.2%) |
| Free Cash Flow Margin | 55.4% | Excellent | Top 5% of sector (median: 9.1%) |
| P/E Ratio (Price-to-Earnings) | 32.8x | Adequate | Growth premium |
| Free Cash Flow Yield | 3.4% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is VISA INC.'s Return on Invested Capital (ROIC)?
VISA INC. (V) has a trailing twelve-month Return on Invested Capital (ROIC) of 37.8%. This compares above the sector median of 5.2%. An ROIC above 20% indicates exceptional capital efficiency and strong competitive advantages.
Q: What is VISA INC.'s Free Cash Flow Margin?
VISA INC. (V) has a free cash flow margin of 55.4%, generating $22.9 billion in free cash flow over the trailing twelve months. A FCF margin above 20% indicates excellent cash conversion and a high-quality business model.
Q: Is VISA INC. stock overvalued or undervalued?
VISA INC. (V) trades at a P/E ratio of 32.8x, which is above the sector median of N/A. The EV/Sales multiple is 16.5x. Free cash flow yield is 3.4%, which is in line with market averages.
Q: Does VISA INC. pay a dividend?
VISA INC. (V) currently pays a dividend yield of 0.5%. Including share buybacks, the total shareholder yield is 3.2%. The relatively low yield suggests the company prioritizes growth reinvestment over income distribution.
Q: What is VISA INC.'s revenue and earnings growth?
VISA INC. (V) grew revenue by 12.5% year-over-year. Earnings per share increased by 7.3% compared to the prior year. Solid growth above 10% suggests healthy business momentum.
Q: Is VISA INC. buying back stock?
VISA INC. (V) repurchased $18.0 billion of stock over the trailing twelve months. This represents a buyback yield of 2.6%.
Q: How does VISA INC. compare to competitors in Technology?
Compared to other companies in Technology, VISA INC. (V) shows: ROIC of 37.8% is above the sector median of 5.2% (Top 0%). FCF margin of 55.4% exceeds the sector median of 9.1% (Top 0% of sector). These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with VISA INC.?
VISA INC. (V) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-K filed 2025-11-06. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.