MASTERCARD INC - A (MA)
US57636Q1040 - Common Stock
We assign a fundamental rating of 6 out of 10 to MA. MA was compared to 100 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 shows excellent growth, but is valued quite expensive already. This makes MA very considerable 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.
In the past 5 years MA has always been profitable.
Each year in the past 5 years MA had a positive operating cash flow.
1.2 Ratios
MA has a Return On Assets of 26.09%. This is amongst the best in the industry. MA outperforms 100.00% of its industry peers.
MA has a Return On Equity of 165.63%. This is amongst the best in the industry. MA outperforms 100.00% of its industry peers.
MA has a Return On Invested Capital of 44.49%. This is amongst the best in the industry. MA outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MA is significantly above the industry average of 7.54%.
The last Return On Invested Capital (44.49%) for MA is above the 3 year average (41.59%), which is a sign of increasing profitability.
| 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
The Profit Margin of MA (45.26%) is better than 91.00% of its industry peers.
In the last couple of years the Profit Margin of MA has grown nicely.
MA's Operating Margin of 58.70% is amongst the best of the industry. MA outperforms 90.00% of its industry peers.
In the last couple of years the Operating Margin of MA has remained more or less at the same level.
| 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
MA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, MA has less shares outstanding
MA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.03 indicates that MA is not in any danger for bankruptcy at the moment.
MA has a better Altman-Z score (11.03) than 96.00% of its industry peers.
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 Debt to FCF ratio of 1.43. This is amongst the best in the industry. MA outperforms 81.00% 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 72.00% 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 | 11.03 |
ROIC/WACC5.02
WACC8.86%
2.3 Liquidity
MA has a Current Ratio of 1.29. This is a normal value and indicates that MA is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Current ratio value of 1.29, MA is doing good in the industry, outperforming 61.00% of the companies in the same industry.
A Quick Ratio of 1.29 indicates that MA should not have too much problems paying its short term obligations.
MA has a Quick ratio of 1.29. This is in the better half of the industry: MA outperforms 62.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.10% over the past year.
The Earnings Per Share has been growing by 13.57% on average over the past years. This is quite good.
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
Based on estimates for the next years, MA will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.71% on average per year.
Based on estimates for the next years, MA will show a quite strong growth in Revenue. The Revenue will grow by 12.10% on average per year.
EPS Next Y21.76%
EPS Next 2Y17.22%
EPS Next 3Y16.84%
EPS Next 5Y16.71%
Revenue Next Year12.22%
Revenue Next 2Y12.17%
Revenue Next 3Y12.1%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MA is valuated quite expensively with a Price/Earnings ratio of 36.87.
Based on the Price/Earnings ratio, MA is valued a bit more expensive than 68.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. MA is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 30.58, MA can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, MA is valued a bit more expensive than the industry average as 73.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 23.82. MA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.87 | ||
| Fwd PE | 30.58 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MA.
MA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.75 | ||
| EV/EBITDA | 28.45 |
4.3 Compensation for Growth
The 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 16.84% in the coming years.
PEG (NY)1.69
PEG (5Y)2.72
EPS Next 2Y17.22%
EPS Next 3Y16.84%
5. Dividend
5.1 Amount
With a yearly dividend of 0.51%, MA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.55, MA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.23, MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)17.92%
Div Incr Years12
Div Non Decr Years17
5.3 Sustainability
MA pays out 19.28% of its income as dividend. This is a 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 2Y17.22%
EPS Next 3Y16.84%
MASTERCARD INC - A
NYSE:MA (11/21/2024, 8:04:00 PM)
After market: 515.1 0 (0%)515.1
+2.56 (+0.5%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap472.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.87 | ||
| Fwd PE | 30.58 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.69
PEG (5Y)2.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.09% | ||
| ROE | 165.63% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 58.7% | ||
| PM (TTM) | 45.26% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)19.1%
EPS 3Y24%
EPS 5Y
EPS Q2Q%
EPS Next Y21.76%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.73%
Revenue growth 3Y17.93%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y