MASTERCARD INC - A (MA)
US57636Q1040 - Common Stock
MA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 102 industry peers in the Financial Services industry. MA gets an excellent profitability rating and is at the same time showing great financial health properties. 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
In the past year MA was profitable.
In the past year MA had a positive cash flow from operations.
In the past 5 years MA has always been profitable.
MA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MA (27.80%) is better than 100.00% of its industry peers.
The Return On Equity of MA (163.54%) is better than 100.00% of its industry peers.
MA has a Return On Invested Capital of 48.74%. 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 7.24%.
The last Return On Invested Capital (48.74%) for MA is above the 3 year average (41.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.8% | ||
| ROE | 163.54% | ||
| ROIC | 48.74% |
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
MA's Profit Margin of 46.09% is amongst the best of the industry. MA outperforms 91.18% of its industry peers.
In the last couple of years the Profit Margin of MA has grown nicely.
The Operating Margin of MA (58.47%) is better than 89.22% of its industry peers.
MA's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.47% | ||
| PM (TTM) | 46.09% | ||
| 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 10.96 indicates that MA is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.96, MA belongs to the top of the industry, outperforming 96.08% of the companies in the same industry.
MA has a debt to FCF ratio of 1.47. This is a very positive value and a sign of high solvency as it would only need 1.47 years to pay back of all of its debts.
MA has a Debt to FCF ratio of 1.47. This is in the better half of the industry: MA outperforms 74.51% of its industry peers.
A Debt/Equity ratio of 1.87 is on the high side and indicates that MA has dependencies on debt financing.
MA has a Debt to Equity ratio of 1.87. This is in the lower half of the industry: MA underperforms 66.67% of its industry peers.
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 | 1.87 | ||
| Debt/FCF | 1.47 | ||
| Altman-Z | 10.96 |
ROIC/WACC5.65
WACC8.63%
2.3 Liquidity
MA has a Current Ratio of 1.09. 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 (1.09) which is comparable to the rest of the industry.
A Quick Ratio of 1.09 indicates that MA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.09, MA perfoms like the industry average, outperforming 51.96% of the companies in the same industry.
The current and quick ratio evaluation for MA is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
MA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.46%, 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 12.62% in the last year.
Measured over the past years, MA shows a quite strong growth in Revenue. The Revenue has been growing by 10.92% on average per year.
EPS 1Y (TTM)19.46%
EPS 3Y24%
EPS 5Y13.57%
EPS Q2Q%18.21%
Revenue 1Y (TTM)12.62%
Revenue growth 3Y17.93%
Revenue growth 5Y10.92%
Sales Q2Q%10.44%
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 16.71% yearly.
Based on estimates for the next years, MA will show a quite strong growth in Revenue. The Revenue will grow by 12.09% on average per year.
EPS Next Y20.27%
EPS Next 2Y18.27%
EPS Next 3Y17.67%
EPS Next 5Y16.71%
Revenue Next Year11.27%
Revenue Next 2Y11.88%
Revenue Next 3Y12.09%
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 34.87.
MA's Price/Earnings ratio is a bit more expensive when compared to the industry. MA is more expensive than 64.71% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.42, MA is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 25.96, the valuation of MA can be described as expensive.
Based on the Price/Forward Earnings ratio, MA is valued a bit more expensive than the industry average as 69.61% of the companies are valued more cheaply.
MA's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 20.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.87 | ||
| Fwd PE | 25.96 |
4.2 Price Multiples
MA's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.98 | ||
| EV/EBITDA | 26.56 |
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 17.67% in the coming years.
PEG (NY)1.72
PEG (5Y)2.57
EPS Next 2Y18.27%
EPS Next 3Y17.67%
5. Dividend
5.1 Amount
MA has a yearly dividend return of 0.59%, which is pretty low.
MA's Dividend Yield is comparable with the industry average which is at 3.61.
Compared to an average S&P500 Dividend Yield of 2.39, MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
The dividend of MA is nicely growing with an annual growth rate of 17.92%!
MA has been paying a dividend for at least 10 years, so it has 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
MA pays out 18.82% of its income as dividend. This is a sustainable payout ratio.
MA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP18.82%
EPS Next 2Y18.27%
EPS Next 3Y17.67%
MASTERCARD INC - A
NYSE:MA (6/17/2024, 10:31:00 AM)
445.23
+0.6 (+0.13%)
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 Cap413.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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 | 34.87 | ||
| Fwd PE | 25.96 | ||
| 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)1.72
PEG (5Y)2.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.8% | ||
| ROE | 163.54% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 58.47% | ||
| PM (TTM) | 46.09% | ||
| 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 Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.87 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.09 | ||
| Quick Ratio | 1.09 | ||
| 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)19.46%
EPS 3Y24%
EPS 5Y
EPS Q2Q%
EPS Next Y20.27%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.62%
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