Visa Inc. [NYSE: V] shares went higher by 0.37% from its previous closing of $195.33, now trading at the price of $196.05, also adding 0.72 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 6.23 million contracts. Compared to the average trading volume of V shares, the company saw a far better performance. Moreover, the stock has a 1.71B float and a +3.90% run over in the last seven days. V share price has been hovering between $195.60 and $133.30 lately, and is definitely worthy of attention.
Visa Inc. [NYSE:V]: Analyst Rating and Earnings
Its stock price has been found in the range of 133.30 to 195.60. This is compared to its latest closing price of $195.33.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Wed 29 Jan (In 15 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 +67.03 and its Gross Margin at +79.02, this company’s Net Margin is now 50.70%. 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 30.18, and its Return on Invested Capital has reached 26.50%. Its Return on Equity is 33.92, and its Return on Assets is 16.43. These metrics all suggest that Visa Inc. is doing well at using the money it earns to generate returns.
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Turning to investigate this organization’s capital structure, Visa Inc. [V] has generated a Total Debt to Total Equity ratio of 48.23. Similarly, its Total Debt to Total Capital is 32.54, while its Total Debt to Total Assets stands at 23.05. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 28.89, and its Long-Term Debt to Total Capital is 57.25.
What about valuation? This company’s Enterprise Value to EBITDA is 20.95 and its Total Debt to EBITDA Value is 1.04. The Enterprise Value to Sales for this firm is now 14.64, and its Total Debt to Enterprise Value stands at 0.04. Visa Inc. [V] has a Price to Book Ratio of 12.71, a Price to Cash Flow Ratio of 30.57 and P/E Ratio of 38.23. 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 $1,178,308 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 6.16 and its Total Asset Turnover is 0.32. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.56 and its Current Ratio is 1.56. 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 $421.81B. Its stock price has been found in the range of 133.30 to 195.60. At its current price, it has moved up by 0.23% from its 52-week high, and it has moved up 47.07% from its 52-week low.
This stock’s Beta value is currently 0.92, which indicates that it is 1.01% more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 74.93. This RSI suggests that Visa Inc. is currently Overbought.
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.