MASTERCARD INC - A (MA)
US57636Q1040 - Common Stock
MA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 99 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 valued quite expensively, but it does show have an excellent growth rating. This makes MA very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year MA was profitable.
MA had a positive operating cash flow in the past year.
MA had positive earnings in each of the past 5 years.
MA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MA (26.09%) is better than 100.00% of its industry peers.
With an excellent Return On Equity value of 165.63%, MA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
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.
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 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
Looking at the Profit Margin, with a value of 45.26%, MA belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
MA's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 58.70%, MA belongs to the top of the industry, outperforming 89.90% of the companies in the same industry.
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.
MA has less shares outstanding than it did 1 year ago.
MA has less shares outstanding than it did 5 years ago.
MA has a worse debt/assets ratio than last year.
2.2 Solvency
MA has an Altman-Z score of 11.21. This indicates that MA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.21, MA belongs to the best of the industry, outperforming 94.95% 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's Debt to FCF ratio of 1.43 is fine compared to the rest of the industry. MA outperforms 78.79% 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.
With a Debt to Equity ratio value of 2.37, MA is not doing good in the industry: 68.69% of the companies in the same industry are doing better.
Although MA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 11.21 |
ROIC/WACC4.96
WACC8.97%
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.
MA has a Current ratio of 1.29. This is in the better half of the industry: MA outperforms 61.62% of its industry peers.
MA has a Quick 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.
The Quick ratio of MA (1.29) is better than 62.63% 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.
Looking at the last year, MA shows a quite strong growth in Revenue. The Revenue has grown by 11.73% in the last year.
The Revenue has been growing by 10.92% on average over the past years. This is quite good.
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.
MA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.07% yearly.
EPS Next Y21.79%
EPS Next 2Y17.04%
EPS Next 3Y16.77%
EPS Next 5Y16.51%
Revenue Next Year12.22%
Revenue Next 2Y12.21%
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.
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
A Price/Earnings ratio of 37.80 indicates a quite expensive valuation of MA.
MA's Price/Earnings ratio is a bit more expensive when compared to the industry. MA is more expensive than 70.71% of the companies in the same industry.
MA's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.20.
MA is valuated quite expensively with a Price/Forward Earnings ratio of 31.44.
76.77% of the companies in the same industry are cheaper than MA, based on the Price/Forward Earnings ratio.
MA's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.8 | ||
| Fwd PE | 31.44 |
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 | 37.68 | ||
| EV/EBITDA | 29.15 |
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 16.77% in the coming years.
PEG (NY)1.73
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.
MA's Dividend Yield is comparable with the industry average which is at 3.79.
Compared to an average S&P500 Dividend Yield of 2.36, 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.
MA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.28%
EPS Next 2Y17.04%
EPS Next 3Y16.77%
MASTERCARD INC - A
NYSE:MA (12/20/2024, 8:23:18 PM)
After market: 528.03 0 (0%)528.03
+4.75 (+0.91%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners79.61%
Inst Owner Change0.81%
Ins Owners0.05%
Ins Owner Change-0.99%
Market Cap484.64B
Analysts81.2
Price Target569.86 (7.92%)
Short Float %0.77%
Short Ratio2.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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)5.71%
PT rev (3m)8.06%
EPS NQ rev (1m)-0.02%
EPS NQ rev (3m)-0.35%
EPS NY rev (1m)0.03%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.8 | ||
| Fwd PE | 31.44 | ||
| P/S | 17.8 | ||
| P/FCF | 37.68 | ||
| P/OCF | 34.43 | ||
| P/B | 65.14 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.15 |
EPS(TTM)13.97
EY2.65%
EPS(NY)16.79
Fwd EY3.18%
FCF(TTM)14.01
FCFY2.65%
OCF(TTM)15.34
OCFY2.9%
SpS29.66
BVpS8.11
TBVpS-4.92
PEG (NY)1.73
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
WACC8.97%
ROIC/WACC4.96
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 Year12.22%
Revenue Next 2Y12.21%
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 3Y15.4%
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%