Visa Beneish M Score

V
 Stock
  

USD 203.56  1.95  0.95%   

This module uses fundamental data of Visa to approximate the value of its Beneish M Score. Visa M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Also, please take a look at Visa Piotroski F Score and Visa Altman Z Score analysis.
  
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Visa Total Debt is fairly stable at the moment as compared to the past year. Visa reported Total Debt of 14.29 Billion in 2021. Debt Current is likely to climb to about 14.2 M in 2022, whereas Long Term Debt to Equity is likely to drop 0.44 in 2022. Visa Enterprise Value over EBIT is fairly stable at the moment as compared to the past year. Visa reported Enterprise Value over EBIT of 25.30 in 2021. Enterprise Value over EBITDA is likely to climb to 24.53 in 2022, whereas PPandE Turnover is likely to drop 7.38 in 2022.
At this time, it appears that Visa Inc is an unlikely manipulator. The earnings manipulation may begin if Visa's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Visa executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Visa's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.8
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.3Focus
Asset Quality0.78Focus
Expense Coverage1.05Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.05Focus
Depreciation Resistance1.02Focus
Net Sales Growth0.83Focus
Financial Leverage Condition1.29Focus

Visa Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Visa's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues18.1 B21.7 B
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense1.6 B1.8 B
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations14.8 B13.7 B
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion362.7 M451.8 M
Significantly Down
Increasing
Slightly volatile
Total Assets62.4 B74.6 B
Fairly Down
Increasing
Slightly volatile
InvestmentsB6.5 B
Significantly Up
Increasing
Slightly volatile
Investments Current3.2 BB
Significantly Up
Increasing
Slightly volatile
Investments Non Current3.8 B3.5 B
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net1.6 B1.9 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables2.4 B2.3 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities44 B40.8 B
Significantly Up
Increasing
Slightly volatile
Current Assets26.8 B24.8 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current48.3 B44.7 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities15.3 B14.2 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current22.4 B20.8 B
Significantly Up
Increasing
Slightly volatile
Total Debt15.4 B14.3 B
Significantly Up
Increasing
Slightly volatile
Debt Current14.2 M13.8 M
Fairly Up
Decreasing
Slightly volatile
Debt Non Current15.4 B14.3 B
Significantly Up
Increasing
Slightly volatile
Operating Income11.5 B14.2 B
Significantly Down
Increasing
Slightly volatile
Gross Margin87.0487.82
Slightly Down
Decreasing
Slightly volatile

Visa Inc Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Visa's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Visa in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Visa's degree of accounting gimmicks and manipulations.

About Visa Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Operating Margin

55.65

Share
Visa Operating Margin is fairly stable at the moment as compared to the past year. Visa reported Operating Margin of 59.01 in 2021

Visa Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Visa. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues20.61 B22.98 B21.85 B24.11 B21.69 B18.05 B
Total Assets69.22 B72.57 B80.92 B82.9 B74.61 B62.44 B
Current Assets18.22 B20.97 B27.64 B27.61 B24.85 B26.81 B
Total Liabilities35.22 B37.89 B44.71 B45.31 B40.78 B44 B
Current Liabilities11.3 B13.41 B14.51 B15.74 B14.17 B15.28 B
Operating Income12.95 B15 B14.08 B15.8 B14.22 B11.49 B

About Visa Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Visa Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Visa using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Visa Inc based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Visa Inc. operates as a payments technology company worldwide. Visa Inc. was founded in 1958 and is headquartered in San Francisco, California. Visa operates under Credit Services classification in the United States and is traded on New York Stock Exchange. It employs 21500 people.

Visa Investors Sentiment

The influence of Visa's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Visa. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Visa Implied Volatility

    
  33.85  
Visa's implied volatility exposes the market's sentiment of Visa Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Visa's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Visa stock will not fluctuate a lot when Visa's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Visa in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Visa's short interest history, or implied volatility extrapolated from Visa options trading.

Current Sentiment - V

Visa Inc Investor Sentiment

Most of Macroaxis users are at this time bullish on Visa Inc. What is your outlook on investing in Visa Inc? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
Also, please take a look at Visa Piotroski F Score and Visa Altman Z Score analysis. Note that the Visa Inc information on this page should be used as a complementary analysis to other Visa's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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When running Visa Inc price analysis, check to measure Visa's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Visa is operating at the current time. Most of Visa's value examination focuses on studying past and present price action to predict the probability of Visa's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Visa's price. Additionally, you may evaluate how the addition of Visa to your portfolios can decrease your overall portfolio volatility.
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Is Visa's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Visa. If investors know Visa will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Visa listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.23
Market Capitalization
434.9 B
Quarterly Revenue Growth YOY
0.26
Return On Assets
0.14
Return On Equity
0.37
The market value of Visa Inc is measured differently than its book value, which is the value of Visa that is recorded on the company's balance sheet. Investors also form their own opinion of Visa's value that differs from its market value or its book value, called intrinsic value, which is Visa's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Visa's market value can be influenced by many factors that don't directly affect Visa's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Visa's value and its price as these two are different measures arrived at by different means. Investors typically determine Visa value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Visa's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.