Visa Inc.V
NYQ • Financial Services
$365.73
P/E
31.07
PEG
4.57
FCF Yield
3.2%
Rev Growth YoY
+14.4% YoY
Gross Margin
76.5%
Health Score
8/10
D/E Ratio
0.68
Confidence
MEDIUM
Business Snapshot
Visa operates the world's largest payment network, generating revenue primarily through transaction processing, cross-border fees, and value-added services tied to card payments. The company sits in a dominant competitive position within the global credit services industry, benefiting from the network effects that make Visa the default acceptance brand for merchants and issuers worldwide. With a $682.84B market cap, Visa is a large-cap leader generating $44.49B in trailing twelve-month revenue. The defining characteristic of the business is its extraordinarily profitable, asset-light model — a gross margin of 76.5% and net margin of 50.8% reflect the economics of operating a payments rail rather than taking on lending risk.
Financial Health
Gross margin contracted to 76.5% from 81.3% the prior year, while net margin remains a commanding 50.8%, illustrating modest pressure on the underlying margin structure. The balance sheet is healthy with a debt-to-equity ratio of 0.68x and a current ratio of 0.99x, indicating manageable leverage but tight short-term liquidity coverage...
Risk Assessment
VALUATION — P/E of 31.07x trades at a significant premium to the sector average of 17.6x, pricing in sustained out-performance.
EARNINGS QUALITY — Only 2 of the 4 most recent quarters beat analyst estimates, signalling guidance that is reasonably accurate but not conservative.
REVENUE DECELERATION — Quarterly revenue growth of 3.6% is meaningfully below the 14.4% year-over-year pace, indicating the growth rate is cooling.
DEBT / LIQUIDITY — Current ratio of 0.99x sits below the 1.0x threshold, indicating short-term liabilities slightly exceed liquid assets.
TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
INSIDER ACTIVITY — 0 insider buys versus 5 sells over the last 90 days, a net selling pattern that often precedes softer near-term performance....
Gross margin contracted to 76.5% from 81.3% the prior year, while net margin remains a commanding 50.8%, illustrating modest pressure on the underlying margin structure. The balance sheet is healthy with a debt-to-equity ratio of 0.68x and a current ratio of 0.99x, indicating manageable leverage but tight short-term liquidity coverage. Free cash flow of $21.58B is substantial, producing a 3.2% FCF yield that supports the company's ongoing capital-return program. Return on equity of 61.2% is extraordinary, signalling highly efficient capital deployment across the business. Overall, Visa's financial position is strong, with ample cash generation to fund dividends, buybacks, and reinvestment while maintaining a conservative leverage profile.
VALUATION — P/E of 31.07x trades at a significant premium to the sector average of 17.6x, pricing in sustained out-performance. EARNINGS QUALITY — Only 2 of the 4 most recent quarters beat analyst estimates, signalling guidance that is reasonably accurate but not conservative. REVENUE DECELERATION — Quarterly revenue growth of 3.6% is meaningfully below the 14.4% year-over-year pace, indicating the growth rate is cooling. DEBT / LIQUIDITY — Current ratio of 0.99x sits below the 1.0x threshold, indicating short-term liabilities slightly exceed liquid assets. TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. INSIDER ACTIVITY — 0 insider buys versus 5 sells over the last 90 days, a net selling pattern that often precedes softer near-term performance.
Unlock the full AI report
Full 8-section analysis includes:
Metric deep-dives