MASTERCARD INC - A (MA) Stock Fundamental Analysis
NYSE:MA - New York Stock Exchange, Inc. - US57636Q1040 - Common Stock
Overall MA gets a fundamental rating of 6 out of 10. We evaluated MA against 101 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 valued quite expensively, but it does show have an excellent growth rating. These ratings would make MA suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
MA had positive earnings in the past year.
In the past year MA had a positive cash flow from operations.
Each year in the past 5 years MA has been profitable.
In the past 5 years MA always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 26.09%, MA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Equity, with a value of 165.63%, MA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 44.49%, MA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
MA had an Average Return On Invested Capital over the past 3 years of 41.59%. This is significantly above the industry average of 7.84%.
The 3 year average ROIC (41.59%) for MA is below the current ROIC(44.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.09% | ||
| ROE | 165.63% | ||
| ROIC | 44.49% |
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
With an excellent Profit Margin value of 45.26%, MA belongs to the best of the industry, outperforming 91.09% of the companies in the same industry.
MA's Profit Margin has improved in the last couple of years.
MA has a Operating Margin of 58.70%. This is amongst the best in the industry. MA outperforms 90.10% of its industry peers.
MA's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.7% | ||
| PM (TTM) | 45.26% | ||
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MA is creating value.
MA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MA has less shares outstanding
The debt/assets ratio for MA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.21 indicates that MA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.21, MA belongs to the top of the industry, outperforming 95.05% of the companies in the same industry.
The Debt to FCF ratio of MA is 1.43, which is an excellent value as it means it would take MA, only 1.43 years of fcf income to pay off all of its debts.
MA has a better Debt to FCF ratio (1.43) than 79.21% of its industry peers.
A Debt/Equity ratio of 2.37 is on the high side and indicates that MA has dependencies on debt financing.
MA's Debt to Equity ratio of 2.37 is on the low side compared to the rest of the industry. MA is outperformed by 68.32% of its industry peers.
Even though the debt/equity ratio score it not favorable for MA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 11.21 |
ROIC/WACC4.92
WACC9.05%
2.3 Liquidity
A Current Ratio of 1.29 indicates that MA should not have too much problems paying its short term obligations.
The Current ratio of MA (1.29) is better than 63.37% of its industry peers.
A Quick Ratio of 1.29 indicates that MA should not have too much problems paying its short term obligations.
The Quick ratio of MA (1.29) is better than 64.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
MA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.10%, which is quite good.
MA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.57% yearly.
The Revenue has grown by 11.73% in the past year. This is quite good.
MA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.92% yearly.
EPS 1Y (TTM)19.1%
EPS 3Y24%
EPS 5Y13.57%
EPS Q2Q%14.75%
Revenue 1Y (TTM)11.73%
Revenue growth 3Y17.93%
Revenue growth 5Y10.92%
Sales Q2Q%12.8%
3.2 Future
MA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.51% yearly.
The Revenue is expected to grow by 12.07% on average over the next years. This is quite good.
EPS Next Y21.79%
EPS Next 2Y17.04%
EPS Next 3Y16.77%
EPS Next 5Y16.51%
Revenue Next Year12.19%
Revenue Next 2Y12.19%
Revenue Next 3Y12.13%
Revenue Next 5Y12.07%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
MA is valuated quite expensively with a Price/Earnings ratio of 37.87.
Based on the Price/Earnings ratio, MA is valued a bit more expensive than 70.30% of the companies in the same industry.
MA is valuated rather expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 31.50 indicates a quite expensive valuation of MA.
Based on the Price/Forward Earnings ratio, MA is valued a bit more expensive than 75.25% of the companies in the same industry.
MA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.87 | ||
| Fwd PE | 31.5 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.75 | ||
| EV/EBITDA | 29.15 |
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 16.77% in the coming years.
PEG (NY)1.74
PEG (5Y)2.79
EPS Next 2Y17.04%
EPS Next 3Y16.77%
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 3.66, MA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
5.2 History
On average, the dividend of MA grows each year by 17.92%, which is quite nice.
MA has paid a dividend for at least 10 years, which is a reliable track record.
MA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)17.92%
Div Incr Years12
Div Non Decr Years17
5.3 Sustainability
19.28% of the earnings are spent on dividend by MA. This is a low number and sustainable payout ratio.
The dividend of MA is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP19.28%
EPS Next 2Y17.04%
EPS Next 3Y16.77%
MASTERCARD INC - A
NYSE:MA (1/22/2025, 12:03:01 PM)
529.015
+0.96 (+0.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners79.61%
Inst Owner Change-1.02%
Ins Owners0.05%
Ins Owner Change-0.56%
Market Cap485.55B
Analysts81.2
Price Target575.18 (8.73%)
Short Float %0.68%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend2.28
Dividend Growth(5Y)17.92%
DP19.28%
Div Incr Years12
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.07%
Min EPS beat(2)-0.82%
Max EPS beat(2)0.96%
EPS beat(4)2
Avg EPS beat(4)-0.11%
Min EPS beat(4)-0.82%
Max EPS beat(4)0.96%
EPS beat(8)4
Avg EPS beat(8)0.18%
EPS beat(12)8
Avg EPS beat(12)2.94%
EPS beat(16)12
Avg EPS beat(16)3.84%
Revenue beat(2)0
Avg Revenue beat(2)-1.45%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)-1.3%
Revenue beat(4)0
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-2.77%
Max Revenue beat(4)-1.3%
Revenue beat(8)0
Avg Revenue beat(8)-1.92%
Revenue beat(12)2
Avg Revenue beat(12)-1.22%
Revenue beat(16)5
Avg Revenue beat(16)-0.95%
PT rev (1m)0.93%
PT rev (3m)8.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.35%
EPS NY rev (1m)0%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.87 | ||
| Fwd PE | 31.5 | ||
| P/S | 17.83 | ||
| P/FCF | 37.75 | ||
| P/OCF | 34.49 | ||
| P/B | 65.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.15 |
EPS(TTM)13.97
EY2.64%
EPS(NY)16.79
Fwd EY3.17%
FCF(TTM)14.01
FCFY2.65%
OCF(TTM)15.34
OCFY2.9%
SpS29.66
BVpS8.11
TBVpS-4.92
PEG (NY)1.74
PEG (5Y)2.79
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.09% | ||
| ROE | 165.63% | ||
| ROCE | 53.37% | ||
| ROIC | 44.49% | ||
| ROICexc | 71.85% | ||
| ROICexgc | 202.28% | ||
| OM | 58.7% | ||
| PM (TTM) | 45.26% | ||
| GM | N/A | ||
| FCFM | 47.25% |
ROA(3y)25.03%
ROA(5y)24.39%
ROE(3y)146.01%
ROE(5y)135.22%
ROIC(3y)41.59%
ROIC(5y)40.58%
ROICexc(3y)61.74%
ROICexc(5y)66.07%
ROICexgc(3y)192.79%
ROICexgc(5y)184.89%
ROCE(3y)49.9%
ROCE(5y)48.68%
ROICexcg growth 3Y14.71%
ROICexcg growth 5Y-19.77%
ROICexc growth 3Y5.5%
ROICexc growth 5Y-12.75%
OM growth 3Y3%
OM growth 5Y0.93%
PM growth 3Y2.11%
PM growth 5Y2.62%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | 1.43 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 139.26% | ||
| Cap/Sales | 4.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.53% | ||
| Profit Quality | 104.38% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 11.21 |
F-Score6
WACC9.05%
ROIC/WACC4.92
Cap/Depr(3y)131.52%
Cap/Depr(5y)131.22%
Cap/Sales(3y)4.53%
Cap/Sales(5y)4.5%
Profit Quality(3y)99.52%
Profit Quality(5y)98.4%
High Growth Momentum
Growth
EPS 1Y (TTM)19.1%
EPS 3Y24%
EPS 5Y13.57%
EPS Q2Q%14.75%
EPS Next Y21.79%
EPS Next 2Y17.04%
EPS Next 3Y16.77%
EPS Next 5Y16.51%
Revenue 1Y (TTM)11.73%
Revenue growth 3Y17.93%
Revenue growth 5Y10.92%
Sales Q2Q%12.8%
Revenue Next Year12.19%
Revenue Next 2Y12.19%
Revenue Next 3Y12.13%
Revenue Next 5Y12.07%
EBIT growth 1Y13.15%
EBIT growth 3Y21.47%
EBIT growth 5Y11.95%
EBIT Next Year19.61%
EBIT Next 3Y15.47%
EBIT Next 5Y13.69%
FCF growth 1Y24.91%
FCF growth 3Y18.68%
FCF growth 5Y13.75%
OCF growth 1Y24.74%
OCF growth 3Y18.37%
OCF growth 5Y14%