SOFI

Visa’s Stock Remains Resilient, Huge Free Cash Flow Margins

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  Image Source: Visa By Brian Nelson, CFA Visa Inc. (V) is one of our top ideas in the simulated Best Ideas Newsletter portfolio. As a 10%-12% “weighting,” we have been very pleased to see its share price hold up during what is turning into one of the most difficult years for investors in a long time. Year-to-date in 2022, Visa’s shares are down less than 7%, as the ~6% pop during the trading session October 26 (at the time of this writing) has cushioned the blow. Our fair value estimate of Visa stands at $227 as shares yield ~0.93% on a forward annual estimated basis. We’re huge fans of Visa for three reasons. First, the company operates as a … Read more

Best Idea Visa Is a Free Cash Flow Cow

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Image Shown: Visa Inc is a tremendous free cash flow generator and is very shareholder friendly. Management distributes cash back to investors primarily through sizable share repurchases and to a lesser extent, through dividend increases. Image Source: Visa Inc – Third Quarter of Fiscal 2022 IR Earnings Presentation By Calum Turcan Visa Inc (V) reported third quarter earnings for fiscal 2022 (period ended June 30, 2022) that beat both consensus top- and bottom-line estimates. Visa is included in the Best Ideas Newsletter portfolio as we view its capital appreciation upside potential quite favorably. Our recently updated fair value estimate for Visa stands at $226 per share with room for upside as the high end of our fair value estimate range … Read more

Global Payments Buying EVO Payments as Fintech Industry Consolidates

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Image Shown: Global Payments Inc is in the process of acquiring EVO Payments Inc. Image Source: Global Payments Inc – Second Quarter of 2022 IR Earnings Presentation By Callum Turcan Global Payments Inc (GPN) announced it would acquire EVO Payments Inc (EVOP) for $34 per share through an all-cash deal worth ~$4.0 billion by enterprise value. As its name would suggest, Global Payments provides payment technology and software solutions to customers in over 100 countries. By acquiring EVO Payments, which focuses on providing payment technology and services to small and medium-sized businesses in over 50 markets worldwide, Global Payments will extend its reach into new markets (including Chile, Germany, Greece, and Poland) while enhancing its presence in existing markets (including … Read more

Alphabet and PayPal Report Fourth-Quarter 2021 Results

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Video: Valuentum’s President Brian Michael Nelson, CFA, walks through the fourth-quarter 2021 results of Alphabet and PayPal. Related: SQ, LSPD, SOFI, UPST, PSFE, AFRM, FISV, GPN, LC, BLND, RKT, COIN, SI, HOOD, MQ, FOUR, RPAY, PAYA, FLT, EVOP, GDOT, WEX, WU, EFX, AXP, DFS, SOCL, FINX, GFOF ———- Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value estimates and ranges, dividend reports and more. Not a member? Subscribe today. The first 14 days are free.    Brian Nelson owns shares in SPY, SCHG, QQQ, DIA, VOT, BITO, and IWM. Valuentum owns SPY, SCHG, QQQ, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE. Some of the other securities written … Read more

ICYMI: The PayPal Wave Recedes, We Still Like Shares

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This article was originally published November 10, 2021. The fair value estimate has been updated in this version. Video: PayPal By Brian Nelson, CFA We knew something wasn’t quite lining up at digital-payments provider PayPal (PYPL) when the rumor mill started to turn with reports it was interested in scooping up Pinterest (PINS) for a pretty penny. PayPal has since put to rest rumors about buying Pinterest, but it left investors with a sour outlook when it issued third-quarter 2021 results November 8. Though the market wasn’t happy with the forecast for the fourth quarter of 2021 and into 2022, the company continues to grow revenue at a robust pace, and we expect several key initiatives to drive sustainable top-line … Read more

Large Cap Growth Has More Room To Run

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“The stylistic area of large cap growth has been one of our favorite areas because of the strong net cash rich, free cash flow generating, secular growth powerhouses that make up much of the space. The image is a rundown of the key Valuentum statistics for the top 15 holdings of the Schwab U.S. Large Cap Growth ETF (SCHG). We believe where large cap growth goes, so does the broader market, considering the hefty weightings of some of these stocks in other broad-based indices. Based on the high end of our fair value estimate range for this group of bellwethers, the broader U.S. markets still have room to run, to the tune of 7%+, despite the many highs already reached … Read more

PayPal and Visa Remain Attractive Long-Term Ideas

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Image Source: Visa Inc – Second Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan The payment processing and payment solutions space is attractive. Companies operating in this industry have asset-light business models with relatively modest capital expenditure requirements to maintain a given level of revenues, making free cash flows easier to come by. Additionally, the industry’s growth outlook is incredibly bright and supported by secular tailwinds as the world continues to shift away from cash and towards other payment options (card, mobile apps, QR codes, online payment platforms). Our two favorite companies in this space are PayPal Holdings Inc (PYPL) and Visa Inc (V), and we include both as ideas in the Best Ideas Newsletter portfolio. Online spending … Read more

Visa’s High Margin Business Reveals Consumer Spending Remains Resilient

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  Image: Visa has been a strong performer thus far in 2023.  By Brian Nelson, CFA On October 24, Best Ideas Newsletter portfolio holding Visa (V) reported excellent fourth-quarter results for its fiscal 2023. Net revenues advanced 11% on a year-over-year basis, while non-GAAP net income and non-GAAP earnings per share leapt 18% and 21% year-over-year, respectively, in the period. For the fiscal year, Visa generated an impressive 64.4% operating margin. Payments volume increased 9% and cross-border volume advanced 16%, showcasing that the consumer remains very healthy thanks in part to low unemployment rates, despite concerns over higher mortgage costs, student loan repayments, and general economic uncertainty as savings accrued during the COVID-19 pandemic wane. We continue to be big … Read more