Visa Inc (V, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With a current share price of $285.31 and a daily gain of 2.13%, coupled with a three-month change of 2.38%, Visa Inc is showing promising signs of substantial growth. A detailed analysis, supported by the GF Score, positions Visa Inc for significant future advancements.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Visa Inc boasts a GF Score of 97, signaling exceptional potential for market outperformance.
- Financial strength rank: 7/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 7/10
- Momentum rank: 7/10
Understanding Visa Inc's Business
Visa Inc, with a market cap of $555.18 billion and annual sales of $34.92 billion, is the largest payment processor globally. In fiscal 2023, it handled almost $15 trillion in total volume. Operating in over 200 countries and capable of processing over 65,000 transactions per second, Visa processes transactions in more than 160 currencies. Its operating margin stands impressively at 66.95%.
Financial Strength Breakdown
Visa Inc's Financial Strength is evident through its robust balance sheet and prudent capital management. The company's Interest Coverage ratio is a solid 36.08, significantly higher than Benjamin Graham's recommended minimum of 5. Additionally, its Altman Z-Score of 8 indicates strong financial stability, and a Debt-to-Revenue ratio of 0.59 further solidifies its financial health.
Profitability and Growth Metrics
Visa Inc's Profitability Rank is outstanding, supported by a Piotroski F-Score that confirms its healthy financial situation. The company's Predictability Rank of 5.0 stars reflects its consistent operational performance. Growth has been equally impressive, with a 3-Year Revenue Growth Rate of 16.8%, outperforming 65.93% of peers in the Credit Services industry.
Conclusion
Considering Visa Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's unparalleled position for potential outperformance. For investors looking for similar opportunities, the GF Score Screen offers a valuable tool for identifying other companies with strong GF Scores.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
