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Reasonable growth and debt and a high ROIC for MASTERCARD INC - A (NYSE:MA).

By Mill Chart

Last update: Feb 21, 2024

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.

Some of the quality metrics of NYSE:MA highlighted

  • MASTERCARD INC - A has demonstrated significant revenue growth over the past 5 years, with a 10.92% increase. This underscores the company's ability to adapt to market dynamics and capitalize on growth opportunities.
  • The ROIC excluding cash and goodwill of MASTERCARD INC - A stands at 232.0%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
  • MASTERCARD INC - A demonstrates a well-balanced Debt/Free Cash Flow Ratio of 1.44, indicating effective debt management and strong cash flow generation. This ratio suggests the company has a sustainable financial position and the capacity to allocate capital efficiently.
  • MASTERCARD INC - A demonstrates consistent Profit Quality over the past 5 years, with a strong 98.4%. This indicates the company's ability to generate sustainable and reliable profits, showcasing its long-term profitability and financial stability.
  • The 5-year EBIT growth of MASTERCARD INC - A has been remarkable, with 11.95% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
  • 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.

Fundamental Analysis Observations

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.

We assign a fundamental rating of 7 out of 10 to MA. MA was compared to 103 industry peers in the Financial Services industry. MA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. MA is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make MA suitable for quality investing!

Our latest full fundamental report of MA contains the most current fundamental analsysis.

More quality stocks can be found in our Caviar Cruise screen.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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