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.
Looking into the quality metrics of MASTERCARD INC - A
Over the past 5 years, MASTERCARD INC - A has experienced impressive revenue growth, with 10.92% 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 202.0%, 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.
MASTERCARD INC - A maintains a healthy Debt/Free Cash Flow Ratio of 1.43, indicating a strong financial position and prudent debt management. This ratio suggests the company has sufficient free cash flow to cover its debt obligations and highlights its ability to generate cash from operations.
With a robust Profit Quality (5-year) ratio of 98.4%, 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.
MASTERCARD INC - A has experienced impressive EBIT growth over the past 5 years, with 11.95% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
MASTERCARD INC - A has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.
Zooming in on the fundamentals.
ChartMill utilizes a proprietary algorithm to assign a Fundamental Rating to every stock. This rating, ranging from 0 to 10, is computed daily by analyzing a variety of fundamental indicators and properties.
MA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 99 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 valued quite expensive, but it does show an excellent growth. These ratings would make MA suitable for growth and quality investing!
More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.
Disclaimer
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.