In fiscal 2024, Visa reported total sales of $35.9 billion, reflecting a remarkable 56% increase over the past five years, with analysts forecasting a 10% annual growth rate for the next three years.

The company's revenue for the last quarter reached $9.6 billion, accompanied by an operating income of $6.3 billion, resulting in an impressive operating margin of 66%.

Visa generated $6.4 billion in free cash flow in the last quarter, enabling significant capital returns to investors through share repurchases and dividends.

In fiscal 2023, Visa repurchased $16.7 billion in shares and paid $4.2 billion in dividends, with the current dividend yield at 0.76%, having increased by 392% over the past decade.

This strong financial performance is largely driven by the increasing preference for cashless transactions, with Visa commanding a 32% share of the global credit card market.

Visa benefits from robust network effects, boasting 4.5 billion cards in circulation and 130 million merchant acceptance locations, solidifying its position as a leader in the payments industry.

Despite a price-to-earnings ratio of 31.9, which may not suggest a bargain, Visa's strong market position and historical performance indicate that shares could still be worth buying, potentially through dollar-cost averaging.

However, concerns loom regarding potential disruptions from cryptocurrencies, particularly stablecoins, which could present cheaper and faster payment alternatives.

Additionally, Visa may face increased regulatory scrutiny as lawmakers aim to enhance competition within the payments landscape, posing a potential risk to its operations.

Since becoming publicly traded in March 2008, Visa has achieved a total return of 2,370% as of November 22, 2024, significantly outperforming the S&P 500.