US Stock Investment: VISA (V)

My Investment Story for Visa
Today I finally make the decision to invest in Visa. I have monitored this company for a few years, waiting for the stock price to dip so that I can buy at a better price, but this price just keeps on going up. This stock is so resilient that it just won't be affected by the world economy and news.

But actually, I realized have missed out on this stock during early 2019 when the price dipped because I was too busy at that time.

I always want to invest in something that I am familiar with, and I would say I always use debit cards and credit cards quite frequently.
So finally decided to make this investment move.


Investment Details
Company: Visa
Exchange: NYSE
Ticker: V
Purchase Price: USD180.00
Stock Qty: 15
Total Investment: USD180 x 15 = USD2700.00
Brokerage Fees: USD 25
Broker: Maybank Investment
Date of Investment: 16 Nov 2019, 1.13AM Malaysia Time
Stock filled at 16 Nov 2019, 1.53AM Malaysia Time

Investment Strategy
Buy and Hold for the long term.

Reason for Investment
Visa has a strong economy of moat. It is not easy for another company to do what Visa had done for the past many years.
It has a strong network effect.
Visa is not a financial institution. It charges fees for every transaction made.
Visa still has much room for growth as the global transactions is still mainly using cash.
Well diversified in many countries.
As e-commerce adoption is picking up at a strong rate, more and more consumers will be using credit card and debit card payment.

Fundamental Analysis:

Date Update	16-Nov-19
Market Cap	401.905B
Price/Earnings (TTM)	33.79
Price/Book	13.68
Price/Cash Flow	38.17
Price/Sales	21.28
EPS (TTM)	5.32
Revenue:	Growing.
Profit:	Growing.
ROA	17.04%
ROE	41.83%
Net Margin	52.57%
Revenue Growth	15%
Operating Income Growth	16.41%
Net Income Growth	26.33%
Diluted EPS Growth	28.97%
Total Assets (Billion USD)	70.25
Cash (Billion USD)	11.18
Liabilities (Billion USD)	35.25
Debt (Billion USD)	16.69
Equity (Billion USD)	35.00
Debt/Equity	0.57
Current Ratio	1.56
Forward Dividend & Yield	1.20 (0.67%)
1y Target Est	202.43

Dividend Payout Ratio

18.38%

Employees	17000
Outstanding Shares	1,983,913,000
Next Earnings Date	1/29/2020 (Estimated)

Note: Data are provided by Yahoo Finance, Morningstar, Google Finance, Marketbeat & Finviz.
Some data are not consistent between the sources, so taking those data that are repeating in different sources.

Entry Reason
The technical chart shows uptrend base on short term and long term moving average (though buying at the high side a bit).
Buy at dip (high was about USD186).

Potential Threat
Will e-wallet eventually replace credit card payment?
In future yes but for now the adoption is still, especially in US/Western countries.

Stock Chart



Technical Analysis
The share price is above Exponential Moving Average for 50, 150 and 200 Days.
The EMA lines are also sloping up (45 degrees), a good sign of a bullish trend.
Strong uptrend since Jan 2019.
EMA 50 has been strong support.
Keep on moving to a new high.
Since August, the price has been moving sideline.
The resistance will be USD187.
Once it breaks this price, expect the price to continue to move higher.
Expect the uptrend to continue.




Here are some key data from the recent Visa 2019 Quarter 4 Report:

Note: Debit card has 100% more quantity than credit card.

Below are some of the key data from the 2018 Annual Report:

Watch the interview between Jim Cramer and the CEO Al Kelly

Watch the interview with the CFO: Vasant Prabhu, Visa Inc. chief financial officer

FAQ
Visa Stock Split in 2015
On 19 March 2015, there was a 4-1 stock split.
If you hold 100 shares, it will become 400 shares.

Visa's management team (2019):
Mr. Alfred Francis Kelly Jr., Chairman & CEO (Age 61)
Mr. Ryan M. McInerney, Pres (Age 44)
Mr. Vasant M. Prabhu, Exec. VP & CFO (Age 59)
Mr. Rajat Taneja, Exec. VP of Technology & Operations (Age 55)
Ms. Kelly Mahon Tullier, Exec. VP, Gen. Counsel & Corp. Sec. (Age 53)


Reference:
Visa Quarterly Report 2019, Q4
All Visa Quarterly Report
Visa Annual Report 2018
Payment Statistics
Visa Stock Chart by Investing.com
Morningstar: Visa
Visa Stock Target Price