Visa Inc. (NYSE: V) Industry: Financial Payments Networking
Analysts: Brian Weisman, Zuhair Ahmed, Aakriti Jhunjhunwala, Anant Garg Date: Nov. 26, 2011
BUSINESS DESCRIPTION STOCK PRICE & VOLUME PERFORMANCE
The Company provides financial institutions with payment processing platforms that encompass consumer credit, debit, prepaid $100.00 90,000,000
and commercial payments, and facilitates global commerce through the transfer of value and information among financial
$90.00 80,000,000
institutions, merchants, consumers, businesses and government entities. The Company does not issue cards, set fees, or determine
the interest rates consumers will be charged on Visa-branded cards, which are the independent responsibility of the Company’s $80.00
70,000,000
issuing clients.
$70.00
60,000,000
$60.00
50,000,000
$50.00
40,000,000
$40.00
INVESTMENT THESIS
30,000,000
With unemployment levels falling and an overall bullish market outlook on the economy and the financial sector, consumer $30.00
confidence will increase and spending using credit/debit, rather than cash, will also increase. Visa’s credit and debit card 20,000,000
$20.00
networking spending volume is the largest out of its competitors, placing Visa in a market leader position. As domestic markets
prove to be more saturated following the rise in confidence by domestic market consumers in the coming year, international $10.00 10,000,000
processing transactions are expected to increase to 50% of revenue by 2015. Currently they represent roughly 16% of all revenue
streams. Furthermore, Visa's brand name comes with high levels of secure processing on transactions and innovative business to $0.00 0
business service. One particular service that is expected to change the payment industry landscape is in mobile payment Date 8-Aug-08 29-Dec-08 20-May-09 9-Oct-09 26-Feb-10
technology. While Visa was not a first-mover in this new innovative product segment, Visa has made several acquisitions to
strengthen its foothold and bring that technology to its large market share position over its closest competitor, Master Card. With
gross profit margins and insulation from the risks that plague the financial services industry from the Derbin Consumer Protection
Act and Dodd-Frank Acts, Visa is expected to outperform the industry with an upside of 24.15%
FINANCIAL SUMMARY
( in millions, except per share data)
Result of Operations
FY Ending Dec. 30
2007 2008 2009 2010 Balance Sheet Data Public Market Overview
Revenue $ 894.90 $ 7,424.00 $ 8,145.00 $ 9,625.00 Total Debt $ 44.0 Share Price as of Nov. 26 2011 $ 78.91
Growth 729.6% 9.7% 18.2% Cash & Equivalents $ 3,867.0 52-Week High $ 96.23
EBITDA $ (765.30) $ 1,469.00 $ 3,764.00 $ 4,854.00 Net Debt $ (3,823.0) 52-Week Low $ 64.90
Margin (%) (85.5%) 19.8% 46.2% 50.4% Diluted Shares Outstanding (MM) 716.223
Net Income $ 64.70 $ 68.90 $ 84.00 Credit Statistics Market Value of Equity (MM) $ 56,517.18
Margin (%) 7.2% 0.9% 1.0% 0.0% Total Debt/EBITDA 0.01x Plus: Net Debt $ (3,823.00)
EBITDA/Interest 10.51x Enterprise Value (MM) $ 52,694.18
CFO $ 88.80 $ 558.00 $ 2,691.00 $ 3,671.00
Cap Ex $ (16.20) $ (567.40) $ (317.00) $ (2,046.00) Valuation Multiples Visa Mastercard American Express
D&A $ 27.10 $ 237.00 $ 226.00 $ 265.00 P/E 18.50x 19.33x 12.91x
EV/EBITDA 15.60x 10.12x 130.15x
Diluted EPS excl. X/O items $ 0.43 $ 0.46 $ 0.56 $ 0.61 Market Cap (4/27/11) 2,810 1,102 2,580
Share Price (4/27/11) $ 78.91 $ 275.36 $ 47.62
Update this valuation table with more multiples from the
Source: Company Annual Report, Bloomberg
(Figures in Millions)
Visa, Inc. - USD - Brian Weisman, Zuhair Ahmed, Aakriti Jhunjhunwala, Anant Garg
Assumptions
Company Name: Visa, Inc.
Ticker: V
Share Price (as of 04/26/11) $78.77
Shares Outstanding 716.22
Total Preferred 0.00
Cost of Preferred 0.00%
Tax Rate 35.0%
Beta 0.97
Risk-Free Rate of Return 3.34%
Market Risk Premium 5.5%
Debt Risk Premium 0.5%
Currency USD
Units $mm
Last Fiscal Year End 09/30/10
Discount Factor: 1
1 - Mid-Period Convention
2 - End-of-Period Convention
Growth Scenario: 4
Year 2011E 2012E 2013E 2014E
1. Upside 16.0% 15.0% 13.0% 12.0%
2. Base 10.0% 9.0% 8.0% 7.0%
3. Downside -10.0% -8.0% -6.0% -4.0%
Today's Date: 04/26/11
Days Remaining in Current FY 157
Fix the different cases with drivers on payment volume, cross border transaction growth, and credit/debit spending/accounts
Growth Scenario
Year 2011E 2012E 2013E 2014E
1. Services Revenue (Payments Volume) 10% 8% 6% 4%
2. Data Processing Revenue (Transactions Volume) 17% 15% 13% 11%
3. International Transactions Revenue (Cross-Border Transactions) 15% 17% 20% 18%
4. Other Revenues 10% 11% 10% 11%
5. Terminal Value 3.0%
Revenue Projections
Credit Card 2011 2012 2013 2014
US
Payments Volume
Transactions Processed
Cross-Border Transactions
Total Revenue
Rest of World
Payments Volume
Transactions Processed
Cross-Border Transactions
Total Revenue
Debit Card
US
Payments Volume
Transactions Processed
Cross-Border Transactions
Total Revenue
Rest of World
Payments Volume
Transactions Processed
Cross-Border Transactions
Total Revenue
Operating Scenario 5
Historical Operating Performance
(in millions)
Credit Card 2005 2006 2007 2008
US
Payments Volume 674,000 742,000 807,000 839,000
Revenue 741 816 888 923
Transactions Processed 7,757 8,394 9,048 9,323
Revenue 175 189 204 210
Payments Volume Growth Rate 10.1% 8.8% 4.0%
Transactions Processed Growth Rate 8.2% 7.8% 3.0%
Total Revenue 916 1,005 1,091 1,133
Rest of World
Payments Volume 558,000 658,000 808,000 937,000
Revenue 614 724 889 1,031
Transactions Processed 7,254 8,702 10,379 11,744
Revenue 163 196 234 264
Payments Volume Growth Rate 17.9% 22.8% 16.0%
Transactions Processed Growth Rate 20.0% 19.3% 13.2%
Total Revenue 777 920 1,123 1,295
Debit Card 2005 2006 2007 2008
US
Payments Volume 554,000 642,000 726,000 807,000
Revenue 609 706 799 888
Transactions Processed 13,993 16,225 18,564 20,507
Revenue 315 365 418 461
Payments Volume Growth Rate 15.9% 13.1% 11.2%
Transactions Processed Growth Rate 16.0% 14.4% 10.5%
Total Revenue 924 1,071 1,216 1,349
Rest of World
Payments Volume 62,000 84,000 117,000 149,000
Revenue 68 92 129 164
Transactions Processed 1,692 2,240 2,869 3,430
Revenue 38 50 65 77
Payments Volume Growth Rate 35.5% 39.3% 27.4%
Transactions Processed Growth Rate 32.4% 28.1% 19.6%
Total Revenue 106 143 194 241
International Transactions Revenues
Cross-Border Payment Volume 57643.04 63672.64 72666.88 275360
Cross-Border Revenues 360.269 397.954 454.168 1,721
Other Revenues 242.847 280.312 279.796 569
Total Operating Revenues 3,327 3,818 4,358 6,308
Other Revenue Growth Rates 15% 0% 103%
Cross Border Payments Volume Growth Rate 0.1046024 0.1412575
0.0319458 0.037489 0.0444107 0.0382468
Revenue per Card (no contracts, special processing fees)
Service Fee 0.11%
Data Processing 0.0225
International Transaction - Issuing Bank 0.40%
International Transaction - Merchant Bank 0.45%
0.63%
2015E Terminal
11.0% 6.0%
6.0% 3.5%
-2.0% 2.5%
credit/debit spending/accounts
2015E Terminal
3%
9%
19%
9%
Projections
2015 Terminal
ting Performance Financial Projections
(in millions)
2009 2010 2011E 2012E 2013E 2014E 2015E
764,000 809,000 840980.21 863904.16 877026.96 886058.18 912848.56
840 890 925 950 965 975 1,004
9,040 9,429 9812.0089 10129.138 10364.155 10589.718 10930.574
203 212 221 228 233 238 246
-8.9% 5.9% 4.0% 2.7% 1.5% 1.0% 3.0%
-3.0% 4.3% 4.1% 3.2% 2.3% 2.2% 3.2%
1,044 1,102 1,146 1,178 1,198 1,213 1,250
974,000 1,172,000 1361770.6 1577559.6 1805614.5 2061187.5 2339447.8
1,071 1,289 1,498 1,735 1,986 2,267 2,573
13,472 15,062 17438.8 20044.828 22866.806 25953.824 29327.822
303 339 392 451 515 584 660
3.9% 20.3% 16.2% 15.8% 14.5% 14.2% 13.5%
14.7% 11.8% 15.8% 14.9% 14.1% 13.5% 13.0%
1,375 1,628 1,890 2,186 2,501 2,851 3,233
2009 2010 2011E 2012E 2013E 2014E 2015E
883,000 1,053,000 1197883.9 1357610.7 1534100.1 1725862.6 1941595.5
971 1,158 1,318 1,493 1,688 1,898 2,136
23,911 28,395 32721.571 37660.676 43121.474 49158.48 55794.875
538 639 736 847 970 1,106 1,255
9.4% 19.3% 13.8% 13.3% 13.0% 12.5% 12.5%
16.6% 18.8% 15.2% 15.1% 14.5% 14.0% 13.5%
1,509 1,797 2,054 2,341 2,658 3,005 3,391
172,000 238,000 312221.89 406906.4 523013.44 669457.2 850210.65
189 262 343 448 575 736 935
4,335 5,294 6654.8652 8276.6174 10232.153 12534.388 15166.609
98 119 150 186 230 282 341
15.4% 38.4% 31.2% 30.3% 28.5% 28.0% 27.0%
26.4% 22.1% 25.7% 24.4% 23.6% 22.5% 21.0%
287 381 493 634 806 1,019 1,277
306560 366400 417179.79 478542.05 549627.55 651683.77 784481.64
1,916 2,290 2607.3737 2990.8878 3435.1722 4073.0235 4903.0103
625 713 784.3 862.73 949.003 1043.9033 1148.2936
6,756 7,912 8,976 10,193 11,547 13,205 15,203
10% 14% 110% 110% 110% 110% 110%
0.1133062 0.1951983 0.1385911 0.1470883 0.148546 0.1856825 0.2037766
0.0424816 0.048173 0.0549756 0.0622042 0.0697845 0.0771438 0.0839775
Visa, Inc. - USD - Brian Weisman, Zuhair Ahmed, Aakriti Jhunjhunwala, Anant Garg
WACC - in $mm except for shares
Share Price $78.77
Shares Outstanding 716.2
Market Cap 56,416.9
Total Preferreds 0.0
Total Debt 44.0
Current Debt to Equity 0.08%
Equity
Risk Free Rate 3.34%
Beta 0.97
Equity Risk Premium 5.50%
Weight of Equity 99.9%
Cost of Equity 8.68%
Debt
Risk Free Rate 3.34%
Interest Coverage 1.547202x
Debt Premium Spread 0.50%
Tax Rate 35.0%
Weight of Debt 0.08%
Cost of Debt 2.50%
Preferred Shares
Weight of Preferreds 0.00%
Cost of Preferreds 0.00%
WACC 9.33%
Visa, Inc. - USD - Brian Weisman, Zuhair Ahmed, Aakriti Jhunjhunwala, Anant Garg
DCF Analysis - in $mm except for shares
2006 2007 2008 2009 2010 |
| 2011E 2012E 2013E 2014E 2015E
Total Revenue 858.9 894.9 7,424.0 8,145.0 9,625.0 | 9,625.0 9,625.0 9,625.0 9,625.0 9,625.0
% Growth 4.2% 729.6% 9.7% 18.2% | 0.0% 0.0% 0.0% 0.0% 0.0%
Service Revenues 3,061.0 3,174.0 3,497.0 $ 3,847 $ 4,154 $ 4,404 $ 4,580 $ 4,717
% Growth 4% 10% 10.0% 8.0% 6.0% 4.0% 3.0%
Data Processing Revenues 2,073.0 2,430.0 3,125.0 $ 3,656.3 $ 4,204.7 $ 4,751.3 $ 5,273.9 $ 5,748.6
% Growth 17% 29% 17.0% 15.0% 13.0% 11.0% 9.0%
International Transaction Revenues 1,721.0 1,916.0 2,290.0 $ 2,633.5 $ 3,081.2 $ 3,697.4 $ 4,363.0 $ 5,191.9
% Growth 11% 20% 15.0% 17.0% 20.0% 18.0% 19.0%
Other Revenues 569.0 625.0 713.0 $ 784.3 $ 870.6 $ 957.6 $ 1,063.0 $ 1,158.6
% Growth 10% 14% 10.0% 11.0% 10.0% 11.0% 9.0%
Volume and Support Incentives (COGS) 457.9 468.7 1,161.0 1,234.0 1,560.0 | 1,801.9 2,216.0 2,762.0 3,361.5 3,867.8
% of Sales 53.3% 52.4% 15.6% 15.2% 16.2% | 16.5% 18.0% 20.0% 22.0% 23.0%
Gross Profit 401.0 (468.7) 6,263.0 6,911.0 8,065.0 | 9,118.8 10,094.9 11,048.1 11,918.2 12,948.6
% Gross Margin 46.7% -52.4% 84.4% 84.8% 83.8% | 83.5% 82.0% 80.0% 78.0% 77.0%
Total Operating Revenues from the new driver model | 8,976 10,193 11,547 13,205 15,203
SG&A 280.6 296.6 4,794.0 3,147.0 3,211.0 | 3,633.0 4,128.3 4,618.6 5,347.9 6,081.1
% of Sales 32.7% 33.1% 64.6% 38.6% 33.4% | 40.5% 40.5% 40.0% 40.5% 40.0%
D&A 26.9 27.1 237.0 226.0 265.0 | 269.3 305.8 346.4 396.1 456.1
% of Sales 3.1% 3.0% 3.2% 2.8% 2.8% | 3.00% 3.00% 3.00% 3.00% 3.00%
Operating Income (EBIT) 93.5 (792.4) 1,232.0 3,538.0 4,589.0 | 5,073.2 5,759.2 6,581.6 7,460.6 8,665.6
% Margin 10.9% -88.5% 16.6% 43.4% 47.7% | 56.5% 56.5% 57.0% 56.5% 57.0%
|
EBITDA 120.4 (765.3) 1,469.0 3,764.0 4,854.0 | 5,342.5 6,065.0 6,928.0 7,856.7 9,121.7
% Growth -735.6% -292.0% 156.2% 29.0% | 10.1% 13.5% 14.2% 13.4% 16.1%
|
Capex/Acquisitions (18.7) (16.2) (567.4) (317.0) (2,046.0) | (807.8) (713.5) (692.8) (660.2) (1,064.2)
% of Revenue 2.2% 3.5% 9.1% 4.6% 25.4% | 9.0% 7.0% 6.0% 5.0% 7.0%
|
Taxes 37.4 40.2 532.0 1,648.0 1,674.0 | 2,029.3 2,303.7 2,632.6 2,984.2 3,466.2
% Effective Rate 40.0% -5.1% 43.2% 46.6% 36.5% | 40.0% % 40.0% % 40.0% % 40.0% 40.0%
|
Changes in NWC (1.5) (73.2) (168.4) 1,005.0 | (72.6) 79.2 88.0 107.8 129.9
|
Unlevered Free Cash Flow (850.3) 59.4 1,404.6 2,139.0 | 2,432.8 3,126.9 3,690.5 4,320.0 4,721.1
Growth Rate | 13.7% 28.5% 18.0% 17.1% 9.3%
|
Remaining Date (Fiscal Year) Factor | -0.070 0.930 1.930 2.930 3.930
|
PV Factor | 0.433 0.920 0.842 0.770 0.704
|
PV of Cash Flows | 1,053.0 2,878.0 3,106.8 3,326.4 3,325.0
Enterprise Value Analysis % of Total Value
PV of 5 Yr. Cash Flows 13,689.2 20.7%
Terminal CF Growth Rate 3.00%
Terminal Value 52,528 79.3%
Total Enterprise Value 66,217 100.0%
Less:
Total Debt 44.0
Preferred Stock 0.0
Plus:
Cash and Equivalent 3,867.0
Total Equity Value 70,040
Shares outstanding 716.2
Implied Share Price $97.79
Upside (Downside) Potential 24.15%
Visa, Inc. - USD - Brian Weisman, Zuhair Ahmed, Aakriti Jhunjhunwala, Anant Garg
Working Capital Analysis - in $mm except for shares
2006 2007 2008 2009 2010 | 2011 2012 2013 2014 2015
Revenue 858.9 894.9 7,424.0 8,145.0 9,625.0 | 8,975.5 10,193.3 11,546.6 13,204.6 15,202.8
COGS 457.9 468.7 1,161.0 1,234.0 1,560.0 | 1,801.9 2,216.0 2,762.0 3,361.5 3,867.8
|
Current Assets |
Accounts Receivable 52.7 54.5 59.1 444.0 476.0 | 448.8 509.7 577.3 660.2 760.1
% of Revenue 6.1% 6.1% 0.8% 5.5% 4.9% | 5.0% 5.0% 5.0% 5.0% 5.0%
Other Current Assets 26.6 25.7 33.2 3,253.0 3,308.0 | 3,051.7 3,465.7 3,925.8 4,489.6 5,168.9
3.1% 2.9% 0.4% 39.9% 34.4% | 34.00% 34.00% 34.00% 34.00% 34.00%
Total Current Assets 79.3 80.2 92.3 3697.0 3784.0 | 3500.5 3975.4 4503.2 5149.8 5929.1
Current Liabilities 2006 2007 2008 2009 2010 | 2011 2012 2013 2014 2015
Accounts Payable 16.3 19.1 18.8 156.0 137.0 | 134.6 152.9 173.2 198.1 228.0
% of Revenue 1.9% 2.1% 0.3% 1.9% 1.4% | 1.50% 1.50% 1.50% 1.50% 1.50%
Short-Term Debt 0.5 1.2 65.0 12.0 12.0 | -- -- -- -- -
Accrued Liabilities 70.1 65.4 77.2 2,148.0 1,256.0 | -- -- -- -- -
Other Short-Term Liabilities 98.3 101.9 111.9 1730.0 1723.0 | -- -- -- -- -
Total ST Debt + Liabilities 168.9 168.5 254.1 3,890.0 2,991.0 | 2,782.4 3,159.9 3,579.4 4,093.4 4,712.9
% of Revenue 19.7% 18.8% 3.4% 47.8% 31.1% | 31% 31% 31% 31% 31%
Total Current Liabilities 185.2 187.6 272.9 4,046.0 3,128.0 | 2,917.0 3,312.8 3,752.6 4,291.5 4,940.9
Working Capital (105.9) (107.4) (180.6) (349.0) 656.0 | 583.4 662.6 750.5 858.3 988.2
% of Total Revenue 12.3% 12.0% 2.4% 4.3% 6.8% | 6.5% 6.5% 6.5% 6.5% 6.5%
Change in NWC (1.5) (73.2) (168.4) 1,005.0 | (72.6) 79.2 88.0 107.8 129.9
Visa, Inc.(V)
10-Yr Income Statement
Revenue (from 2001-2010)
2000 2001 2002 2003 2004 2005
Revenue 649.6 652.3 665.4 677 750.9 802.4
COGS 374.1 364.3 361.7 362.4 395.3 422
Gross Profit 275.5 288 303.7 314.6 355.6 380.4
Operating Expenses $Mil
2000 2001 2002 2003 2004 2005
SG&A 242 240.5 238.6 236.5 258.9 274.9
R&D --- --- --- --- --- ---
D&A 18.4 20.3 21.6 20.2 23 24.3
Operating Income 15 27.1 43.5 57.9 73.6 81.2
Other Income and Expense $Mil
2000 2001 2002 2003 2004 2005
Net Int Inc & Other 0.5 0.4 0.4 2.1 25.1 6.7
Earnings Before Taxes --- 27.3 43.7 60 98.7 88
Income Taxes 5.9 10.4 16.6 24.3 40.5 35.2
Earnings After Taxes -5.9 17 27.1 35.8 58.3 52.8
Acctg Changes --- --- --- --- -6.2 ---
Disc Operations --- --- --- --- --- ---
Ext Items --- --- --- --- --- ---
Net Income 9.6 16.9 27.1 35.8 52.1 52.8
Diluted EPS, Cont Ops$ --- 0.11 0.18 0.23 0.37 0.34
Diluted EPS$ --- 0.11 0.18 0.23 0.33 0.34
Shares --- 153 153 156 158 157
Source:
Morning Star
2006 2007 2008 2009 2010
858.9 894.9 7,424.00 8,145.00 9,625.00
457.9 468.7 1161 1234 1560
401 426.2 6263 6911 8065
2006 2007 2008 2009 2010
280.6 296.6 4794 3147 3211
--- --- --- --- ---
26.9 27.1 237 226 265
93.6 102.6 1232 3538 4589
2006 2007 2008 2009 2010
1.6 2.3 104 462 2966
95.2 104.9 1336 4000 7555
37.4 40.2 532 1648 1674
57.8 64.7 804 2352 5881
--- --- --- --- ---
--- --- --- --- ---
--- --- --- --- ---
57.8 64.7 68.9 84 90
0.37 0.43 0.46 0.56 0.61
0.37 0.43 0.46 0.56 0.61
155 152 150 150 147.15
Rollins, Inc.(ROL)
10-Yr Cash Flows
Cash Flows From Operating Activities $Mil
2001 2002 2003 2004 2005
Net Income 9.6 16.9 27.1 35.8 52.1
Depr & Amort 18.4 20.3 21.6 20.2 23
Deferred Taxes 2.7 3.4 3.6 10.4 13.6
Other -19.2 -11 1.3 -4.3 -16.8
Cash from Operations 11.5 29.6 53.7 62 71.9
Cash Flows From Investing Activities $Mil
2000 2001 2002 2003 2004
Cap Ex -14.4 -8.5 -10.4 -10.6 -14.2
Purchase of Business --- --- --- --- ---
Other 5.7 -0.7 -1.8 -23.4 -50.5
Cash from Investing -8.8 -9.2 -12.2 -34 -64.7
Cash Flows From Financing Activities $Mil
2000 2001 2002 2003 2004
Net Issuance of Stock -0.2 -1.6 -6.2 --- -0.9
Net Issuance of Debt --- --- --- --- ---
Dividends -6 -6 -6 -9 -10.9
Other -1.8 -4.5 0.3 2.2 1.8
Cash from Financing -8 -12.1 -11.9 -6.8 -10
Currency Adj --- --- --- --- ---
Change in Cash -5.3 8.3 29.7 21.2 -2.8
Free Cash Flow $Mil
2000 2001 2002 2003 2004
Cash from Operations 11.5 29.6 53.7 62 71.9
Cap Ex -14.4 -8.5 -10.4 -10.6 -14.2
Free Cash Flow -3 21.1 43.3 51.4 57.7
2006 2007 2008 2009 2010 TTM - 9/30
52.8 57.8 804 2352 2964 90.8
24.3 26.9 237 226 265 36.1
3.7 6 -27 297 249 ---
-3.3 -5.5 63 1271 -241 -15.8
77.4 85.2 531 558 2691 3671
2005 2006 2007 2008 2009 2010 TTM
-25.5 -18.7 -16.2 -415 -306 -241
--- 0 0 -152.4 -11 -1805
-26.5 -9.3 -6.5 0.5 0.2 25.2
-52 -28 554 -166.7 -26.6 -38.9
2005 2006 2007 2008 2009 2010
-27 -18.4 -40.6 -23.2 -29.1 -33.7
--- --- --- 93.8 1.5 8.1
-13.7 -17 -20.3 -25 -27.9 33.6
0.6 -1 1.1 -24.5 -34.3 3.1
-40.2 -36.4 -59.8 3624 2751 1542
1.1 -0.6 1.7 -2.6 1.3 0.4
-13.7 20.3 7.9 -57.6 -4.2 -6
2005 2006 2007 2008 2009 2010
77.4 85.2 88.8 558 2691 3671
-25.5 -18.7 -16.2 -415 -306 -2046
51.9 66.5 72.5 143 2385 1625
Visa, Inc
10-Yr Balance Sheet
Assets $Mil
2000 2001 2002 2003 2004 2005
Cash and Equiv 0.4 8.7 38.3 59.5 56.7 43.1
Short-Term Investments --- --- --- 21.9 --- ---
Accts Rec 50.1 48.5 47.7 48.5 45.5 47.7
Customer collateral 13 11.9 10.7 9.8 8.9 9.1
25.5 31.5 29.5 30.7 35.7 37.8
Other Current Assets (settlement, restricted cash, portion of volume/support incentives/deferred tax assets and prepaid expenses
Total Current Assets 89 100.6 126.2 170.4 146.8 137.7
Net PP&E 49.4 44.3 38.9 35.8 49.2 65.9
Intangibles 116 112.5 107.9 102.8 195.5 205.6
44.5 39.4 44.4 40.9
Other Long-Term Assets (Good will, volume/support incentives/investment securities/restricted cash) 27.3 30.5
Total Assets 298.9 296.8 317.4 349.9 418.8 439.7
Liabilities and Stockholders' Equity $Mil
2000 2001 2002 2003 2004 2005
Accts Payable 15.3 12.9 12.1 12.3 15.4 17.2
Short-Term Debt (current portion of long-term debt) 1.8 0.3 --- --- --- 0.8
Taxes Payable --- --- --- --- --- ---
Accrued Liabilities (Accrued litigation) --- 55.8 59.4 65.6 53.4 69.9
Other Short-Term Liabilities (settlement payable, customer 93.7 39.5 58.4
collateral, volume/support incentives/ 67.2 119.1 103
Total Current Liabilities 110.8 108.5 129.9 145.1 187.9 190.9
Long-Term Debt 0.3 0 0 0 0 0
109.2 102.5
Other Long-Term Liabilities (accr. Litigation/ deferred tax liabilities/ other liabilities) 96.9 66.1 63.3 71.8
Total Liabilities 220.3 211 226.8 211.2 251.2 262.7
Total Equity 78.6 85.5 90.7 138.8 167.6 177
Total Liabilities & Equity 298.9 296.5 317.5 350 418.8 439.7
Source:
Edgar filings
x x
2006 2007 2008 2009 2010
63.3 71.3 13.7 4,617 3,867
--- --- --- 115 184
52.7 54.5 59.1 444 476
8.4 8.9 10.9 812 899
26.6 25.7 33.2 3253 3308
151 160.4 116.9 9241 8734
72.1 77.4 78.6 1204 1357
202.2 199 342.1 10883 11,478
27.8 38.7 35 10953 11839
453.1 475.5 572.6 32281 33408
2006 2007 2008 2009 2010
16.3 19.1 18.8 156 137
0.5 1.2 65 12 12
--- --- --- --- ---
70.1 65.4 77.2 2148 1256
98.3 101.9 111.9 1730 1723
185.2 187.6 272.9 4046 3128
0 0 0 44 32
56.5 54 71.3 4602 4864
241.7 241.6 344.2 8692 8024
211.5 233.6 228.4 23193 25014
453.2 475.2 572.6 31885 33038
Visa, Inc.(V)
10-Yr Income Statement
Revenue (from 2001 to 2010) $Mil
2001 2002 2003 2004 2005 2006
Revenue --- --- 1,980.00 2,429.00 2,665.00 2,948.10
COGS --- --- --- --- --- ---
Gross Profit 0 0 1,980.00 2,429.00 2,665.00 2,948.10
Operating Expenses $Mil
2001 2002 2003 2004 2005 2006
SG&A --- --- --- --- --- 657.1
R&D --- --- --- --- --- ---
Other 0 0 3,398.00 1,999.00 2,212.00 1,561.40
Operating Income --- --- -1,418.00 430 453 729.7
Other Income and Expense $Mil
2001 2002 2003 2004 2005 2006
Net Int Inc & Other 0 0 -38 0 0 -97.4
Earnings Before Taxes --- --- --- --- --- 721.8
Income Taxes --- --- --- --- --- 251.3
Earnings After Taxes 0 0 0 0 0 470.5
Acctg Changes --- --- --- --- --- 0
Disc Operations --- --- --- --- --- ---
Ext Items --- --- --- --- --- ---
Net Income --- --- -885 210 360 454.6
Diluted EPS, Cont Ops$ --- --- --- --- --- ---
Diluted EPS$ --- --- --- --- --- ---
Shares --- --- --- --- --- ---
2007 2008 2009 2010 TTM
3,589.80 6,263.00 6,911.00 8,065.00 8,343.00
--- 1,538.00 1,536.00 1,647.00 ---
3,589.80 4,725.00 5,375.00 6,418.00 8,343.00
2007 2008 2009 2010 TTM
791.8 1,786.00 1,611.00 1,609.00 1,632.00
--- --- --- --- ---
4,247.50 237 226 220 1,973.00
-1,449.50 2,702.00 3,538.00 4,589.00 4,738.00
2007 2008 2009 2010 TTM
-18.6 -1,366.00 462 49 74
-1,387.40 1,336.00 4,000.00 4,638.00 4,812.00
-316 532 1,648.00 1,674.00 1,727.00
-1,071.40 804 2,352.00 2,964.00 3,085.00
0 --- --- --- ---
--- --- --- --- ---
--- --- --- --- ---
-1,076.10 804 2,353.00 2,966.00 3,087.00
--- 0.96 3.1 4.01 4.2
--- 0.96 3.1 4.01 4.2
900 1,393.00 1,049.00 739 732
Visa, Inc.(V)
10-Yr Balance Sheet
Assets $Mil
2001 2002 2003 2004 2005
Cash and Equiv --- --- 86 174 135
Short-Term Investments --- --- --- --- ---
Accts Rec --- --- --- --- ---
Inventory --- --- --- --- ---
Other Current Assets 0 0 781 746 1,343.00
Total Current Assets --- --- 867 920 1,478.00
Net PP&E --- --- --- --- ---
Intangibles --- --- --- --- ---
Other Long-Term Assets 0 0 1,038.00 1,374.00 1,267.00
Total Assets --- --- 1,905.00 2,294.00 2,745.00
Liabilities and Stockholders' Equity $Mil
2001 2002 2003 2004 2005
Accts Payable --- --- --- --- ---
Short-Term Debt --- --- 174 32 32
Taxes Payable --- --- --- --- ---
Accrued Liabilities --- --- --- --- ---
Other Short-Term Liabilities 0 0 814 1,038.00 1,293.00
Total Current Liabilities --- --- 988 1,070.00 1,325.00
Long-Term Debt --- --- 0 106 74
Other Long-Term Liabilities 0 0 1,357.00 1,348.00 1,220.00
Total Liabilities --- --- 2,345.00 2,524.00 2,619.00
Total Equity --- --- -440 -230 126
Total Liabilities & Equity 0 0 1,905.00 2,294.00 2,745.00
2006 2007 2008 2009 2010 latest Qtr
270.1 275.4 4,979.00 4,617.00 3,867.00 3,684.00
--- --- 355 115 184 201
258 254.7 1,473.00 1,049.00 878 1,033.00
--- --- --- --- --- ---
1,065.80 1,976.80 4,367.00 3,460.00 3,805.00 4,437.00
1,593.90 2,506.90 11,174.00 9,241.00 8,734.00 9,355.00
--- --- 1,080.00 1,204.00 1,357.00 1,380.00
--- --- 21,096.00 21,091.00 22,925.00 22,910.00
1,370.00 1,883.20 1,631.00 745 392 344
2,963.90 4,390.10 34,981.00 32,281.00 33,408.00 33,989.00
2006 2007 2008 2009 2010 latest Qtr
119.1 98.6 159 156 137 95
32.3 41.3 51 12 12 12
--- --- --- --- --- ---
586.4 665.1 3,424.00 2,544.00 1,626.00 1,161.00
655.2 2,477.20 3,531.00 1,730.00 1,723.00 2,411.00
1,393.00 3,282.10 7,165.00 4,442.00 3,498.00 3,679.00
41.3 0 55 44 32 29
946.9 1,609.40 6,620.00 4,606.00 4,867.00 4,740.00
2,381.10 4,891.40 13,840.00 9,092.00 8,397.00 8,448.00
582.8 -501.3 21,141.00 23,189.00 25,011.00 25,541.00
2,963.90 4,390.10 34,981.00 32,281.00 33,408.00 33,989.00
Firm Name Analyst Recommendation
Susquehanna Financial Group FRIEDMAN Positive M
Wedbush LURIA neutral M
Lazard Capital Markets PARKER buy M
Sanford C. Bernstein & Co BOURGEOIS market perform M
Oppenheimer & Co GREENE outperform M
Wells Fargo Securities, LLC WILLI outperform M
SunTrust Robinson Humphrey JEFFREY buy M
Cowen and Company KATRI outperform M
EVA Dimensions TEAM COVERAGE hold D
RBC Capital Markets PERLIN outperform M
William Blair & Co SHUTLER outperform M
Robert W. Baird & Co KONING outperform M
Macquarie CARCACHE outperform M
Edward Jones STEMM buy M
Piper Jaffray NAPOLI overweight M
Barclays Capital HARTING overwt/neutral M
The Buckingham Research Group HOCHSTIM buy M
Credit Suisse ORENBUCH outperform M
Keefe, Bruyette & Woods SAKHRANI outperform M
Janney Montgomery Scott LLC MCCROHAN buy M
Portales Partners RYAN hold M
Stifel Nicolaus BRENDLER buy M
Credit Agricole Securities (USA) MAURER buy M
JPMorgan HUANG overweight M
Raymond James JOHNSON strong buy M
Duncan Williams SMITH strong buy M
Argus Research Corp RITTER buy M
Ameriprise Advisor Services, Inc WILKING buy M
Morgan Keegan DODD outperform M
Deutsche Bank MAMMONE buy M
Goldman Sachs QUINTEROS Buy/Neutral M
FBR Capital Markets VALENTIN outperform M
IPOfinancial.com TEAM COVERAGE buy M
Signal Hill Capital Group, LLC TANDON buy M
Meredith Whitney Advisory Group WHITNEY buy M
Citi FANDETTI hold M
Tgt Px Period Date 1 Yr Rtn BARR Rank
$ 87.00 12 month 04/27/11
$ 72.00 12 month 04/25/11
$ 105.00 12 month 04/25/11
$ 77.00 12 month 04/21/11 10th
$ 100.00 18 month 04/21/11
04/21/11 8th
$ 100.00 12 month 04/20/11 5.80% 2nd 5th
04/20/11 2nd
04/20/11 36.69% 1st
$ 92.00 12 month 04/15/11
04/14/11
$ 85.00 12 month 04/12/11 7th
$ 107.00 12 month 04/12/11
04/11/11
$ 100.00 12 month 04/07/11 6th
$ 97.00 04/07/11
$ 110.00 12 month 04/06/11 1st
$ 110.00 04/04/11
$ 98.00 12 month 04/04/11
$ 105.00 12 month 04/01/11
04/01/11 0.00% 3rd
$ 90.00 12 month 03/30/11 -7.97% 5th
$ 115.00 12 month 03/30/11
$ 85.00 12 month 03/25/11
$ 112.00 12 month 03/24/11
$ 100.00 12 month 03/16/11 3rd
02/22/11
02/07/11
$ 90.00 12 month 02/03/11 4th
$ 99.00 12 month 02/03/11
$ 85.00 12 month 02/03/11
$ 96.00 12 month 02/03/11 9th
02/03/11
02/02/11 11th
$ 105.00 12 month 10/28/10
$ 78.00 07/29/10 0.00% 3rd
85% Bullish on Industry!