Seven criteria, each scored 0 to 100 on a published scale, weighted into one number.
78/100RyuScore 78 out of 100, Strong
78
Today's price. Only valuation depends on it.
-50%-40%-30%-20%-10%today+10%+20%+30%
Strong. Visa Inc. scores higher than 91% of the 2,252 companies Ryufin scores.
Carried by return on capital and capital allocation, held back by valuation.
Financial Services median 62 · all companies 54
Valuation
26% of the score
40median 51
Visa Inc. is valued at 29.3x its operating profit before acquisition amortisation (EBITA), including debt: a rich multiple.
60x
50x
35x
25x
18x
12x
8x
29.3x
Full points at 8x or less, none from 60xfull points
Return on capital
18% of the score
100median 23
Over 7 years the business earned 30% a year after tax on the capital it uses.
2%
8%
15%
25%
30%
None at 2% or less, full points from 25%full points
Return on capital by year
7 years agolatest 37%
Return on new capital
16% of the score
86median 33
For every dollar of operating profit earned over 6 years, yearly profit grew by 10 cents. New capital earned 207%, and 4.6% of profit went back into the business.
-5%
12%
9.6%
None at minus 5 cents, full points from 12 centsfull points
Capital allocation
14% of the score
100median 63
How management spends the money: shares bought back or issued, and whether assets grow faster than the business they serve.
Assets against salesAssets grew 4.3% a year, sales 13%
100
12%
-2%
-8.6%
0 pointsfull points
Cycle position
12% of the score
73median 63
Today's operating margin of 60% is 0.93x its normal 65%: close to its usual level. Normal is half the 10 year median, half the last four years, so a margin that has held is not taken for a peak.
2x
1.5x
1x
0.7x
0.9x
A trough earns points, a peak costs themfull points
Operating margin by year, against its normal level
10 years agonow 60%
Balance sheet
8% of the score
100median 50
What the debt weighs against the profit that has to carry it.
Whether the reported profit arrives as cash, and whether the accounts show the usual signs of stretching.
Cash against profitOperating cash flow was 1.12x profit over 3 years
76
0.7x
1x
1.3x
1.1x
0 pointsfull points
AccrualsCash ran ahead of profit by 3.1% of assets
76
8%
0%
-8%
-3.1%
0 pointsfull points
How the RyuScore works
Each criterion earns 0 to 100 points on the scale drawn under it, and the RyuScore is their average weighted 26, 18, 16, 14, 12, 8 and 6. Scales bend in the company's favour between their ends, so an ordinary figure is never already near zero. Where a criterion cannot be measured from the filings it is taken out and the remaining weights scale up; a company needs 60% of the weight covered, and always a price, to get a score.
Built from the company's annual and quarterly filings with the SEC and today's share price. Banks, insurers and property trusts are not scored: their debt is their raw material, so these yardsticks mean something else there.