Value Investing

Vladimir Dimitrov, CFA

Equity Bottom-Up

<ul>
<li>Visa continues to deliver as the company fully capitalizes on recent macroeconomic and industry-wide tailwinds.</li>
<li>The expectations for the upcoming quarter are high and the second half of the fiscal year is also likely to be more challenging.</li>
<li>This creates certain risks for the share price that are not necessarily priced in at the moment.</li>
</ul>


Visa continues to deliver as the company fully capitalizes on recent macroeconomic and industry-wide tailwinds.
The expectations for the upcoming quarter are high and the second half of the fiscal year is also likely to be more challenging.
This creates certain risks for the share price that are not necessarily priced in at the moment.


Visa Earnings: Business Momentum Is Likely To Be Sustained, But Clouds Are Gathering

Financials & FinTech research, Galliano’s Financials Research

Victor Galliano

Financials & FinTech research

Financials & FinTech, EM & Developed Markets

Galliano’s Financials Research

Galliano's Financials Research provides fundamental research in Emerging Markets financials, including FinTech, as well as financials in select Developed Markets.

The investment style applied is generally value oriented, although Growth At Reasonable Price (GARP) strategies can also be used where appropriate. 

Our investment research approach aim is often contrarian, looking to capitalise on overly sceptical or optimistic consensus views. In terms of valuation techniques, the focus is on PBV ratio to ROE, PE multiples and dividend yield, as well as the application of PEG ratios and, where appropriate, Sum of the Parts (SOTP) valuations.

Thematic (Sector/Industry)

<ul>
<li>In 1H23 and in the early part of 3Q23, our longs – Visa, Wise and PagSeguro – delivered positive returns; our shorts, DLocal and Kakao Pay, were also modestly successful</li>
<li>Ahead of results to June 2023, we retain card network megacap Visa as a core holding, as well as PagSeguro; we add PayPal and drop Wise from the buy list</li>
<li>We keep our negative view on DLocal and add Affirm, given high take-rates and  premium valuations; we stick with our negative on Kakao Pay due to its lofty multiples</li>
</ul>


In 1H23 and in the early part of 3Q23, our longs – Visa, Wise and PagSeguro – delivered positive returns; our shorts, DLocal and Kakao Pay, were also modestly successful
Ahead of results to June 2023, we retain card network megacap Visa as a core holding, as well as PagSeguro; we add PayPal and drop Wise from the buy list
We keep our negative view on DLocal and add Affirm, given high take-rates and  premium valuations; we stick with our negative on Kakao Pay due to its lofty multiples


Payment Companies – 1H 2023 in Review, Our High Conviction Calls for 2H 2023

<ul>
<li>Block's share price has remained relatively flat over the past year, but that's hardly good news.</li>
<li>The highly supportive outside environment was not able to propel the share price anywhere near its previous highs.</li>
<li>When adjusting for risks, Block remains as one of the worst performers within its peer group, according to analysts.</li>
</ul>


Block's share price has remained relatively flat over the past year, but that's hardly good news.
The highly supportive outside environment was not able to propel the share price anywhere near its previous highs.
When adjusting for risks, Block remains as one of the worst performers within its peer group, according to analysts.


Block: When A Flat Share Price Is A Cause Of Concern

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

<ul><li>Visa had a successful Q1 2023, with significant domestic transaction volumes and continued improvement in cross-border travel which resulted in an all-around beat.</li><li>Payment volume increased by 7% year-on-year or 135% compared to three years ago, aligned with Q4.</li><li>Cross-border volumes, excluding intra-Europe, surged 31% year-on-year and 132% compared to three years ago, up five points from Q4.</li></ul>

Visa had a successful Q1 2023, with significant domestic transaction volumes and continued improvement in cross-border travel which resulted in an all-around beat.Payment volume increased by 7% year-on-year or 135% compared to three years ago, aligned with Q4.Cross-border volumes, excluding intra-Europe, surged 31% year-on-year and 132% compared to three years ago, up five points from Q4.

Visa Inc: Cross-Border Travel Recovery & Strategic Partnerships Leading The Way – Key Drivers

<ul>
<li>Fiserv's delivered a 30% return since October of last year, when I laid out my full investment thesis.</li>
<li>Fiserv is laying the groundwork for long-term growth, says the company's market commentators.</li>
<li>The company continues to outmaneuver its direct competitors, according to analysts.</li>
</ul>


Fiserv's delivered a 30% return since October of last year, when I laid out my full investment thesis.
Fiserv is laying the groundwork for long-term growth, says the company's market commentators.
The company continues to outmaneuver its direct competitors, according to analysts.


Fiserv: Achieving Industry-Leading Returns Is Not As Hard As You Might Think

United States

Visa Inc. operates a retail electronic payments network and manages global financial services.  The Company also offers global commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses and government entities.

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Visa (V US)

Visa Earnings: Business Momentum Is Likely To Be Sustained, But Clouds Are Gathering

Visa continues to deliver as the company fully capitalizes on recent macroeconomic and industry-wide tailwinds. The expectations for the upcoming...

Vladimir Dimitrov, CFA

Payment Companies – 1H 2023 in Review, Our High Conviction Calls for 2H 2023

Our 2H 2023 payments company longs are card network megacap Visa, value play PagSeguro and PayPal with our short calls being DLocal, Kakao Pay and...

Victor Galliano

Visa Inc: Cross-Border Travel Recovery & Strategic Partnerships Leading The Way – Key Drivers

Visa had a successful Q1 2023, with significant domestic transaction volumes and continued improvement in cross-border travel which resulted in an...

Baptista Research

Fiserv: Achieving Industry-Leading Returns Is Not As Hard As You Might Think

Fiserv's delivered a 30% return since October of last year, when I laid out my full investment thesis. Fiserv is laying the groundwork for long...

Vladimir Dimitrov, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Visa Earnings: Business Momentum Is Likely To Be Sustained, But Clouds Are Gathering

Visa continues to deliver as the company fully capitalizes on recent macroeconomic and industry-wide tailwinds. The expectations for the upcoming...

Vladimir Dimitrov, CFA

Payment Companies – 1H 2023 in Review, Our High Conviction Calls for 2H 2023

Our 2H 2023 payments company longs are card network megacap Visa, value play PagSeguro and PayPal with our short calls being DLocal, Kakao Pay and...

Victor Galliano

Block: When A Flat Share Price Is A Cause Of Concern

The highly supportive outside environment was not able to propel the share price anywhere near its previous highs. When adjusting for risks, Block...

Vladimir Dimitrov, CFA

Visa Inc: Cross-Border Travel Recovery & Strategic Partnerships Leading The Way – Key Drivers

Visa had a successful Q1 2023, with significant domestic transaction volumes and continued improvement in cross-border travel which resulted in an...

Baptista Research

Fiserv: Achieving Industry-Leading Returns Is Not As Hard As You Might Think

Fiserv's delivered a 30% return since October of last year, when I laid out my full investment thesis. Fiserv is laying the groundwork for long...

Vladimir Dimitrov, CFA