Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if MASTERCARD INC - A (NYSE:MA) is suited for quality investing. Investors should of course do their own research, but we spotted MASTERCARD INC - A showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.
Exploring Why NYSE:MA Holds Appeal for Quality Investors.
Over the past 5 years, MASTERCARD INC - A has experienced impressive revenue growth, with 12.22% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
With a notable ROIC excluding cash and goodwill at 194.0%, MASTERCARD INC - A demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
The Debt/Free Cash Flow Ratio of MASTERCARD INC - A stands at 1.59, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
With a robust Profit Quality (5-year) ratio of 98.47%, MASTERCARD INC - A highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
With a robust 5-year EBIT growth of 13.41%, MASTERCARD INC - A showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
MASTERCARD INC - A has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.
What is the full fundamental picture of NYSE:MA telling us.
ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.
Overall MA gets a fundamental rating of 7 out of 10. We evaluated MA against 103 industry peers in the Financial Services industry. MA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MA is valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, MA could be worth investigating further for quality investing!.
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.