Why Visa Stock Could Be A Strong Portfolio Add

Core Viewpoint - Visa (V) stock is considered an appealing investment due to its high margins and cash generation capabilities, currently available at a discounted price [1] Financial Performance - Visa stock has increased by 0.4% this year, but it is 34% more affordable based on its Price-to-Sales (P/S) ratio compared to a year ago [4] - Recent Q4 2025 performance showed a 25% growth in value-added services revenue and a 10% increase in processed transactions, indicating deeper integration into everyday spending [5] - Visa Direct transactions surged by 27%, and stablecoin card spending increased fourfold, showcasing diversified revenue generation [5] - Management forecasts low double-digit net revenue growth for fiscal year 2026, supported by these positive trends [5] - Visa's operating cash flow margin is nearly 57.6%, with an operating margin of 66.4% for the last twelve months [10] - Long-term profitability shows an average operating cash flow margin of approximately 58.9% and an operating margin of 66.8% over the last three years [10] - Revenue growth for Visa was 11.3% for the last twelve months and 10.9% over the last three-year average [10] Investment Criteria - Visa meets several investment criteria, including a market cap greater than $10 billion, high cash flow from operations margins, and a significant drop in valuation over the previous year [11] - The stock is available at a P/S multiple of 11.4, representing a 34% discount compared to one year ago [10]