Should Quality Investors Include NYSE:MA in Their Portfolio?

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.

Why NYSE:MA may be interesting for quality investors.

• Over the past 5 years, MASTERCARD INC - A has experienced impressive revenue growth, with 10.78% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• With a robust ROIC excluding cash and goodwill at 252.0%, MASTERCARD INC - A showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
• MASTERCARD INC - A maintains a healthy Debt/Free Cash Flow Ratio of 1.34, 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.
• The Profit Quality (5-year) of MASTERCARD INC - A stands at 101.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• MASTERCARD INC - A has experienced impressive EBIT growth over the past 5 years, with 10.81% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
• MASTERCARD INC - A demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.

MA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making MA a very profitable company, without any liquidiy or solvency issues. MA is quite expensive at the moment. It does show a decent growth rate. With these ratings, MA could be worth investigating further for quality investing!.

For an up to date full fundamental analysis you can check the fundamental report of MA

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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.