Visa (V) AI Stock Analysis

• Market Cap: $685.57B
• Dividend Yield: 0.63%
• Average Volume (3M): 5.49M
• Price to Earnings (P/E): 36.0
• Beta (1Y): 0.73
• Revenue Growth: 10.19%
• EPS Growth: 12.45%
• Country: US
• Employees: 28,800
• Sector: Financial
• Sector Strength: 83
• Industry: Financial - Credit Services
• EPS (TTM): 2.76
• Shares Outstanding: 1,710,985,100
• 10 Day Avg. Volume: 5,803,533
• 30 Day Avg. Volume: 5,486,201
• PEG Ratio: 10.50
• Price to Book (P/B): 18.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 33.33
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 4.77
• Enterprise Value/Gross Profit: 22.99
• Enterprise Value/Ebitda: 6.79
• 1Y Price Target: $385.00
• Price Target Upside: 8.90% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 25

• Rating: 82 Outperform
• Price Target: ―

Visa's overall stock score reflects its strong financial performance with growth in revenue and profitability, robust financial health, and effective cash flow management. Technical indicators show upward momentum, but caution is advised due to potential overbought conditions. Valuation metrics suggest the stock may be overvalued, but positive earnings call guidance and strategic financial moves, such as the issuance of senior notes, support continued growth. Visa's strong market position and innovation in payment services contribute significantly to its solid score.

Positive Factors

Earnings

Visa’s FY2Q25 adj. net income rose 6% y/y to USD5.4bn or USD2.76 per share exceeding analyst expectations of USD2.68 per share.

Market Position

Visa has performed well year-to-date compared to the S&P 500, supporting its position as a top FinTech idea.

Product Innovation

Visa's stepped-up product and innovation cadence is important in an era focused on price-to-value and componentized value-add services, while driving core network growth.

Negative Factors

Cross-Border Challenges

Cross-border normalization has shifted to weakening growth, with a guidance indicating a rate below previous expectations.

Growth Concerns

Underlying transaction and volume were softer than expected, raising concerns about the durability of topline growth for Visa.

Regulatory Risks

Operating in an oligopoly, Visa’s dominance and its network fees have been under regulatory scrutiny. Any change in laws that affect payment networks such as Visa could potentially lead to significant losses in earnings.

Visa Business Overview & Revenue Model

Company Description

Visa Inc. operates as a payments technology company worldwide. The company facilitates digital payments among consumers, merchants, financial institutions, businesses, strategic partners, and government entities. It operates VisaNet, a transaction processing network that enables authorization, clearing, and settlement of payment transactions. In addition, the company offers card products, platforms, and value-added services. It provides its services under the Visa, Visa Electron, Interlink, VPAY, and PLUS brands. Visa Inc. has a strategic agreement with Ooredoo to provide an enhanced payment experience for Visa cardholders and Ooredoo customers in Qatar. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California.

How the Company Makes Money

Visa Inc. makes money primarily through the collection of fees from financial institutions based on the payment volume of transactions processed through its network. Its revenue model includes service revenues, data processing revenues, and international transaction revenues. Service revenues are earned from financial institutions for the use of Visa's payment network to authorize and settle transactions. Data processing revenues are generated from processing transactions and providing related services. International transaction revenues are derived from cross-border transaction fees and currency conversion fees. Additionally, Visa also earns from licensing its brand and technology to card-issuing financial institutions and acquiring banks. Strategic partnerships with technology companies and financial institutions further enhance its earnings and market reach.

Visa Financial Statement Overview

Summary

Visa exhibits outstanding financial health across all verticals. The income statement highlights impressive growth and profitability, the balance sheet reveals a stable financial position with manageable leverage, and cash flow metrics indicate strong cash generation and management. Visa's financial performance is characterized by robust growth, high profitability, and effective cash flow management, making it a well-rounded and financially resilient company in the credit services industry.

Income Statement

Visa has demonstrated robust revenue growth, with a 14.27% increase from 2023 to 2024 and a subsequent rise to a TTM total of $37.62 billion. The company's gross profit margin is strong at 79.71%, indicating excellent operational efficiency. Net profit margin remains impressive at 52.85%, reflecting effective cost control. The EBIT and EBITDA margins are also high at 63.67% and 66.88%, respectively, underscoring substantial profitability. Overall, Visa shows a solid growth trajectory with exceptional profitability metrics.

Balance Sheet

Visa maintains a solid financial position with a debt-to-equity ratio of 0.55, indicating moderate leverage. The equity ratio stands at 40.95%, suggesting a healthy proportion of assets financed by equity. The return on equity (ROE) is robust at 52.3%, highlighting high profitability relative to shareholder investment. While leverage is manageable, continued monitoring is essential to ensure balance sheet stability.

Cash Flow

Visa's cash flow performance is strong, with a free cash flow of $20.51 billion in TTM, showing consistent generation of cash. The free cash flow growth rate from 2023 to TTM is notable at 8.22%, reflecting effective cash management. The operating cash flow to net income ratio is a solid 1.10, indicating efficient conversion of income to cash. Free cash flow to net income ratio is also healthy at 1.03. Visa demonstrates a strong ability to generate and manage cash flows effectively.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
37.62B	35.93B	32.65B	29.31B	24.11B	21.85B
	Gross Profit
30.13B	28.88B	26.09B	23.58B	19.14B	17.33B
	EBIT
23.96B	23.59B	21.00B	18.81B	15.80B	14.08B
	EBITDA
25.84B	25.59B	22.62B	19.54B	17.38B	15.07B
	Net Income Common Stockholders
19.89B	19.74B	17.27B	14.96B	12.31B	10.87B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.75B	15.18B	20.13B	18.52B	18.51B	20.04B
	Total Assets
92.85B	94.51B	90.50B	85.50B	82.90B	80.92B
	Total Debt
20.76B	20.84B	20.46B	22.45B	20.98B	24.07B
	Net Debt
9.03B	8.86B	4.18B	6.76B	4.49B	7.78B
	Total Liabilities
54.82B	55.37B	51.77B	49.92B	45.31B	44.71B
	Stockholders Equity
38.03B	39.14B	38.73B	35.58B	37.59B	36.21B
Cash Flow		Free Cash Flow
20.51B	18.69B	19.70B	17.88B	14.52B	9.70B
	Operating Cash Flow
21.89B	19.95B	20.75B	18.85B	15.23B	10.44B
	Investing Cash Flow
1.80B	-1.93B	-2.01B	-4.29B	-152.00M	1.43B
	Financing Cash Flow
-23.52B	-20.63B	-17.77B	-12.70B	-14.41B	-3.97B

Visa Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 353.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For V, the sentiment is Positive. The current price of 353.54 is above the 20-day moving average (MA) of 352.93, above the 50-day MA of 341.58, and above the 200-day MA of 313.92, indicating a bullish trend. The MACD of 5.98 indicates Positive momentum. The RSI at 53.28 is Neutral, neither overbought nor oversold. The STOCH value of 29.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for V.

Visa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
V	82 Outperform	$685.57B	35.96	50.03%	0.63%	10.19%	12.45%
DFS	78 Outperform	$50.34B	10.69	28.29%	1.40%	9.42%	128.55%
MA	77 Outperform	$511.76B	39.53	188.92%	0.50%	12.94%	13.22%
AXP	76 Outperform	$199.82B	19.92	34.02%	1.02%	8.45%	17.89%
PYPL	76 Outperform	$67.93B	15.67	22.20%	―	4.50%	12.82%
COF	73 Outperform	$118.48B	15.54	7.90%	1.30%	6.69%	-6.76%
Sector *	64 Neutral	$12.64B	9.78	7.67%	17015.08%	12.23%	-6.02%

Visa Corporate Events

Visa Issues €3.5 Billion in Senior Notes

On April 30, 2025, Visa Inc. announced the offering of €3.5 billion in senior notes with varying maturity dates from 2028 to 2044. These unsecured notes, issued on May 15, 2025, are part of Visa’s strategy to strengthen its financial position and provide flexibility in capital management, potentially impacting stakeholders by enhancing the company’s ability to invest in growth opportunities.

The most recent analyst rating on (V) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on Visa stock, see the V Stock Forecast page.