MASTERCARD INC - A (MA)
US57636Q1040 - Common Stock
MA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 102 industry peers in the Financial Services industry. MA gets an excellent profitability rating and is at the same time showing great financial health properties. MA is valued quite expensive, but it does show an excellent growth. This makes MA very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year MA was profitable.
MA had a positive operating cash flow in the past year.
In the past 5 years MA has always been profitable.
MA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 27.80%, MA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MA's Return On Equity of 163.54% is amongst the best of the industry. MA outperforms 100.00% of its industry peers.
MA has a Return On Invested Capital of 48.74%. This is amongst the best in the industry. MA outperforms 99.02% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MA is significantly above the industry average of 7.98%.
The last Return On Invested Capital (48.74%) for MA is above the 3 year average (41.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.8% | ||
| ROE | 163.54% | ||
| ROIC | 48.74% |
ROA(3y)25.03%
ROA(5y)24.39%
ROE(3y)146.01%
ROE(5y)135.22%
ROIC(3y)41.59%
ROIC(5y)40.58%
1.3 Margins
MA has a Profit Margin of 46.09%. This is amongst the best in the industry. MA outperforms 90.20% of its industry peers.
In the last couple of years the Profit Margin of MA has grown nicely.
MA has a better Operating Margin (58.47%) than 89.22% of its industry peers.
In the last couple of years the Operating Margin of MA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.47% | ||
| PM (TTM) | 46.09% | ||
| GM | N/A |
OM growth 3Y3%
OM growth 5Y0.93%
PM growth 3Y2.11%
PM growth 5Y2.62%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
MA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MA has been reduced compared to 1 year ago.
The number of shares outstanding for MA has been reduced compared to 5 years ago.
Compared to 1 year ago, MA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.11 indicates that MA is not in any danger for bankruptcy at the moment.
MA's Altman-Z score of 11.11 is amongst the best of the industry. MA outperforms 96.08% of its industry peers.
MA has a debt to FCF ratio of 1.47. This is a very positive value and a sign of high solvency as it would only need 1.47 years to pay back of all of its debts.
The Debt to FCF ratio of MA (1.47) is better than 78.43% of its industry peers.
A Debt/Equity ratio of 1.87 is on the high side and indicates that MA has dependencies on debt financing.
The Debt to Equity ratio of MA (1.87) is worse than 69.61% of its industry peers.
Although MA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | 1.47 | ||
| Altman-Z | 11.11 |
ROIC/WACC5.5
WACC8.87%
2.3 Liquidity
A Current Ratio of 1.09 indicates that MA should not have too much problems paying its short term obligations.
MA has a Current ratio of 1.09. This is comparable to the rest of the industry: MA outperforms 50.98% of its industry peers.
MA has a Quick Ratio of 1.09. This is a normal value and indicates that MA is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.09, MA perfoms like the industry average, outperforming 53.92% of the companies in the same industry.
MA does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.46% over the past year.
MA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.57% yearly.
MA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.62%.
Measured over the past years, MA shows a quite strong growth in Revenue. The Revenue has been growing by 10.92% on average per year.
EPS 1Y (TTM)19.46%
EPS 3Y24%
EPS 5Y13.57%
EPS growth Q2Q18.21%
Revenue 1Y (TTM)12.62%
Revenue growth 3Y17.93%
Revenue growth 5Y10.92%
Revenue growth Q2Q10.44%
3.2 Future
The Earnings Per Share is expected to grow by 16.71% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.49% on average over the next years. This is quite good.
EPS Next Y20.92%
EPS Next 2Y18.65%
EPS Next 3Y17.68%
EPS Next 5Y16.71%
Revenue Next Year12.29%
Revenue Next 2Y12.42%
Revenue Next 3Y12.49%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 35.87, which means the current valuation is very expensive for MA.
MA's Price/Earnings ratio is a bit more expensive when compared to the industry. MA is more expensive than 64.71% of the companies in the same industry.
MA is valuated rather expensively when we compare the Price/Earnings ratio to 28.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 26.54, which means the current valuation is very expensive for MA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MA indicates a slightly more expensive valuation: MA is more expensive than 65.69% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.51, MA is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.87 | ||
| Fwd PE | 26.54 |
4.2 Price Multiples
MA's Enterprise Value to EBITDA is on the same level as the industry average.
MA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.09 | ||
| EV/EBITDA | 27.12 |
4.3 Compensation for Growth
MA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MA has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MA's earnings are expected to grow with 17.68% in the coming years.
PEG (NY)1.71
PEG (5Y)2.64
EPS Next 2Y18.65%
EPS Next 3Y17.68%
5. Dividend
5.1 Amount
MA has a yearly dividend return of 0.58%, which is pretty low.
Compared to an average industry Dividend Yield of 3.38, MA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
The dividend of MA is nicely growing with an annual growth rate of 17.92%!
MA has paid a dividend for at least 10 years, which is a reliable track record.
MA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)17.92%
Div Incr Years12
Div Non Decr Years17
5.3 Sustainability
MA pays out 18.82% of its income as dividend. This is a sustainable payout ratio.
The dividend of MA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP18.82%
EPS Next 2Y18.65%
EPS Next 3Y17.68%
MASTERCARD INC - A
NYSE:MA (5/15/2024, 7:04:00 PM)
After market: 458 0 (0%)458
+3.8 (+0.84%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap425.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.87 | ||
| Fwd PE | 26.54 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.71
PEG (5Y)2.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.8% | ||
| ROE | 163.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 58.47% | ||
| PM (TTM) | 46.09% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)19.46%
EPS 3Y24%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.62%
Revenue growth 3Y17.93%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y