Visa (V) AI Stock Analysis

• Market Cap: $676.22B
• Dividend Yield: 0.69%
• Average Volume (3M): 6.04M
• Price to Earnings (P/E): 34.6
• Beta (1Y): 0.78
• Revenue Growth: 11.38%
• EPS Growth: 7.43%
• Country: US
• Employees: 28,800
• Sector: Financial
• Sector Strength: 77
• Industry: Financial - Credit Services
• EPS (TTM): 2.98
• Shares Outstanding: 1,698,682,500
• 10 Day Avg. Volume: 5,251,083
• 30 Day Avg. Volume: 6,035,634
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 17.96
• Enterprise Value/Gross Profit: 22.62
• Enterprise Value/Ebitda: 26.79
• 1Y Price Target: $398.00
• Price Target Upside: 15.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 22

• Rating: 80 Outperform
• Price Target: $397.00 ▲(15.67% Upside)

Visa's strong financial performance and positive earnings call are the most significant factors driving the score. Despite a premium valuation and mixed technical signals, Visa's robust growth and strategic innovations position it well for future success.

Positive Factors

Global Performance

Volume growth accelerated in Asia-Pacific, Europe, CEMEA, and the US, indicating a strong global performance.

Revenue Growth

Visa reported the strongest revenue growth in over two years, with revenue and EPS beating expectations due to solid core trends, new pricing, low incentives, and other benefits.

VAS Revenue

Visa's VAS revenue grew by 26%, driven by advisory, issuing, and risk and identity services, as well as pricing.

Negative Factors

Commercial Volume

Visa's cross-border performance is softening, and commercial volume lack of acceleration raises questions about future growth.

Cross-border Volume

FQ3 cross-border volume growth slowed to +11% constant-fx, marking the slowest post-COVID growth, raising concerns among investors.

Topline Growth Concerns

Concerns exist about the durability of Visa's topline growth due to narrowing consumer spend and network volume growth.

Visa Business Overview & Revenue Model

Company Description

Visa Inc. is a global payments technology company that facilitates digital payments among consumers, merchants, financial institutions, and government entities. Headquartered in Foster City, California, Visa operates in the financial services sector and provides a wide range of products and services, including credit, debit, and prepaid cards, as well as payment processing solutions. Visa's network enables secure, fast, and reliable electronic transactions across various channels, including in-person, online, and mobile payments, making it a leader in the payments industry.

How the Company Makes Money

Visa generates revenue primarily through transaction fees charged to financial institutions for processing card transactions made by consumers and businesses. The company earns a percentage of the transaction value, known as the interchange fee, which is paid by the merchant's bank to the cardholder's bank. Additionally, Visa charges service fees to financial institutions for various services, including fraud prevention, data analytics, and marketing support. Significant partnerships with banks, credit unions, and merchants enhance Visa's revenue streams by expanding its payment network and increasing transaction volume. Moreover, Visa invests in technology and innovations to improve payment solutions, which can lead to increased adoption and usage, further contributing to its earnings.

Visa Financial Statement Overview

Summary

Visa exhibits outstanding financial health with strong revenue growth, high profitability, and effective cash flow management. The company has demonstrated exceptional profitability metrics, with impressive growth in revenue and margins. The balance sheet is stable with manageable leverage, and cash flow generation is robust, indicating Visa's financial resilience.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.89B	35.93B	32.65B	29.31B	24.11B	21.85B
Gross Profit	30.89B	28.88B	26.09B	23.58B	19.14B	17.33B
EBITDA	26.08B	25.59B	22.62B	19.54B	17.38B	15.07B
Net Income	20.23B	19.74B	17.27B	14.96B	12.31B	10.87B
Balance Sheet
Total Assets	100.02B	94.51B	90.50B	85.50B	82.90B	80.92B
Cash, Cash Equivalents and Short-Term Investments	19.18B	15.18B	20.13B	18.52B	18.51B	20.04B
Total Debt	25.14B	20.84B	20.98B	22.45B	20.98B	24.64B
Total Liabilities	61.36B	55.37B	51.77B	49.92B	45.31B	44.71B
Stockholders Equity	38.66B	39.14B	38.73B	35.58B	37.59B	36.21B
Cash Flow
Free Cash Flow	22.08B	18.69B	19.70B	17.88B	14.52B	9.70B
Operating Cash Flow	23.48B	19.95B	20.75B	18.85B	15.23B	10.44B
Investing Cash Flow	988.00M	-1.93B	-2.01B	-4.29B	-152.00M	1.43B
Financing Cash Flow	-20.03B	-20.63B	-17.77B	-12.70B	-14.41B	-3.97B

Visa Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 343.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For V, the sentiment is Negative. The current price of 343.22 is below the 20-day moving average (MA) of 345.54, below the 50-day MA of 347.85, and above the 200-day MA of 338.97, indicating a neutral trend. The MACD of 0.82 indicates Negative momentum. The RSI at 44.01 is Neutral, neither overbought nor oversold. The STOCH value of 58.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for V.

Visa Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MA	81 Outperform	$538.47B	40.02	177.90%	0.50%	14.55%	13.25%
V	80 Outperform	$676.22B	34.64	51.18%	0.69%	11.38%	7.43%
PYPL	79 Outperform	$65.41B	14.61	22.92%	―	4.05%	13.85%
SYF	78 Outperform	$28.60B	9.34	20.23%	1.46%	-3.16%	14.60%
AXP	77 Outperform	$230.09B	22.73	32.58%	0.93%	8.03%	6.26%
COF	70 Outperform	$144.74B	18.59	7.90%	1.08%	6.98%	-6.76%
Sector *	68 Neutral	$18.06B	11.97	10.24%	3.74%	9.75%	1.30%

Visa Corporate Events

Visa Announces $1.4 Billion Preferred Stock Release

On August 8, 2025, Visa Inc. announced the release of approximately $1.4 billion from its Series B and Series C Convertible Participating Preferred Stock, as part of the fourth mandatory release assessment related to the Visa Europe acquisition. This release, effective August 18, 2025, involves a significant adjustment in the Class A Common Equivalent Number for the Preferred Stock, resulting in a partial conversion into Series A Preferred Stock. The adjustment reflects Visa’s ongoing management of litigation risks associated with multilateral interchange fees in the Visa Europe region, impacting the company’s financial structuring and shareholder equity.

Visa Reports Strong Q3 2025 Financial Results

Visa reported strong financial results for its fiscal third quarter of 2025, with a 14% increase in net revenue to $10.2 billion and a GAAP net income of $5.3 billion. The company saw significant growth in payments volume, cross-border volume, and processed transactions. Visa’s continued focus on innovation and product development in areas like AI and stablecoins is expected to shape the future of commerce and deliver long-term value for shareholders. The board also declared a quarterly cash dividend of $0.590 per share, payable in September 2025.

Visa Amends Bylaws to Enhance Shareholder Engagement

On July 22, 2025, Visa Inc. amended its Bylaws to introduce a cure process for deficiencies in director nomination notices submitted by shareholders. This amendment allows shareholders to address any deficiencies in their nomination notices within a specified time frame, potentially impacting the company’s governance and shareholder engagement processes.