High level decisions on buy or sell for a stock should be driven by
1. The margin that the company makes. i.e. Out of $1 that the company sells how much does the company taken home.
- Here we see VISA makes a margin of 66% on Gross Level and about 51% on Net level This means that out of $1 that it makes $0.08 is being pocketed as profits.
2. The growth rates of the company on revenue, net income, EPS and Dividend. i.e. If it sold $1 last year how much more did it sell this year.
- Here we see VISA grew at an good rate of 14 % in the revenue and the net profit figures grew by 519%.
3. The efficiency ratios of the company on Equity and Assets. i.e. How well is the company able to sweat each $1 that it puts to work in the company.
- Here we see VISA makes a Return on Assets of 15% and Return of Equity of 31% which is pretty good.
Here we see that VISA scores high on each and every one of the parameters that we have selected when compared to our reasonable barriers that we have kept.
GOLD STANDARD : This is one of the no-debate stocks that are a must have in ones portfolio.
FAMOUS INVESTORS: This stock is owned by the Great Warren Buffett so I suppose you don’t have to think twice before investing in this counter.
All these ratios can be found in the attached excel sheets and are based on the EDGAR report submitted by VISA to the SEC. All the data on the above analysis can be found at the link below