MASTERCARD INC - A (MA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MA - US57636Q1040 - Common Stock
569.895 USD
+3.68 (+0.65%)
MA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 97 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. While showing a medium growth rate, MA is valued expensive at the moment. These ratings could make MA a good candidate for 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.
MA had positive earnings in each of the past 5 years.
Each year in the past 5 years MA had a positive operating cash flow.
1.2 Ratios
MA has a better Return On Assets (26.74%) than 97.94% of its industry peers.
Looking at the Return On Equity, with a value of 180.29%, MA belongs to the top of the industry, outperforming 98.97% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 47.55%, MA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MA is significantly above the industry average of 8.44%.
The last Return On Invested Capital (47.55%) for MA is above the 3 year average (45.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.74% | ||
| ROE | 180.29% | ||
| ROIC | 47.55% |
ROA(3y)26.26%
ROA(5y)24.19%
ROE(3y)172.59%
ROE(5y)147.38%
ROIC(3y)45.83%
ROIC(5y)40.7%
1.3 Margins
With an excellent Profit Margin value of 45.28%, MA belongs to the best of the industry, outperforming 87.63% of the companies in the same industry.
In the last couple of years the Profit Margin of MA has remained more or less at the same level.
With an excellent Operating Margin value of 59.16%, MA belongs to the best of the industry, outperforming 87.63% of the companies in the same industry.
MA's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.16% | ||
| PM (TTM) | 45.28% | ||
| GM | N/A |
OM growth 3Y2.69%
OM growth 5Y0.34%
PM growth 3Y-0.21%
PM growth 5Y-1.01%
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.
The number of shares outstanding for MA has been reduced compared to 1 year ago.
The number of shares outstanding for MA has been reduced compared to 5 years ago.
Compared to 1 year ago, MA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.67 indicates that MA is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.67, MA belongs to the best of the industry, outperforming 93.81% of the companies in the same industry.
The Debt to FCF ratio of MA is 1.16, which is an excellent value as it means it would take MA, only 1.16 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.16, MA is doing good in the industry, outperforming 78.35% of the companies in the same industry.
MA has a Debt/Equity ratio of 2.40. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.40, MA is not doing good in the industry: 72.16% 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 | 2.4 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 10.67 |
ROIC/WACC5.52
WACC8.61%
2.3 Liquidity
MA has a Current Ratio of 1.12. 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 Current ratio value of 1.12, MA perfoms like the industry average, outperforming 52.58% of the companies in the same industry.
MA has a Quick Ratio of 1.12. 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 Quick ratio (1.12) which is comparable to the rest of the industry.
MA does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
MA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.10%, 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 13.43% yearly.
MA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.60%.
The Revenue has been growing by 10.78% on average over the past years. This is quite good.
EPS 1Y (TTM)15.1%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%12.6%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.73%
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 15.33% on average per year.
MA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.67% yearly.
EPS Next Y16.35%
EPS Next 2Y16.16%
EPS Next 3Y16.2%
EPS Next 5Y15.33%
Revenue Next Year16.74%
Revenue Next 2Y14.65%
Revenue Next 3Y13.76%
Revenue Next 5Y11.67%
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 stable.
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
With a Price/Earnings ratio of 35.44, MA can be considered very expensive at the moment.
70.10% of the companies in the same industry are cheaper than MA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MA to the average of the S&P500 Index (26.26), we can say MA is valued slightly more expensively.
A Price/Forward Earnings ratio of 28.91 indicates a quite expensive valuation of MA.
MA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MA is more expensive than 70.10% of the companies in the same industry.
MA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.68, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.44 | ||
| Fwd PE | 28.91 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MA is on the same level as its industry peers.
MA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.39 | ||
| EV/EBITDA | 26.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of MA may justify a higher PE ratio.
A more expensive valuation may be justified as MA's earnings are expected to grow with 16.20% in the coming years.
PEG (NY)2.17
PEG (5Y)2.64
EPS Next 2Y16.16%
EPS Next 3Y16.2%
5. Dividend
5.1 Amount
MA has a yearly dividend return of 0.62%, which is pretty low.
Compared to an average industry Dividend Yield of 2.16, MA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
5.2 History
The dividend of MA is nicely growing with an annual growth rate of 14.95%!
MA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)14.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MA pays out 18.79% of its income as dividend. This is a sustainable payout ratio.
The dividend of MA is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP18.79%
EPS Next 2Y16.16%
EPS Next 3Y16.2%
NYSE:MA (12/19/2025, 3:49:10 PM)
569.895
+3.68 (+0.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.73%
Inst Owner Change-2.11%
Ins Owners0.05%
Ins Owner Change0%
Market Cap511.77B
Revenue(TTM)31.47B
Net Income(TTM)14.25B
Analysts80.82
Price Target667.03 (17.04%)
Short Float %0.73%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.62% |
Yearly Dividend2.65
Dividend Growth(5Y)14.95%
DP18.79%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.74%
Min EPS beat(2)-1.55%
Max EPS beat(2)0.08%
EPS beat(4)3
Avg EPS beat(4)0.08%
Min EPS beat(4)-1.55%
Max EPS beat(4)1.41%
EPS beat(8)5
Avg EPS beat(8)-0.01%
EPS beat(12)7
Avg EPS beat(12)0.14%
EPS beat(16)11
Avg EPS beat(16)2.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)-0.87%
Revenue beat(8)0
Avg Revenue beat(8)-1.66%
Revenue beat(12)0
Avg Revenue beat(12)-1.76%
Revenue beat(16)2
Avg Revenue beat(16)-1.27%
PT rev (1m)0.93%
PT rev (3m)1.92%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)1.57%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.82%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.44 | ||
| Fwd PE | 28.91 | ||
| P/S | 16.26 | ||
| P/FCF | 31.39 | ||
| P/OCF | 29.28 | ||
| P/B | 64.75 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.22 |
EPS(TTM)16.08
EY2.82%
EPS(NY)19.71
Fwd EY3.46%
FCF(TTM)18.16
FCFY3.19%
OCF(TTM)19.47
OCFY3.42%
SpS35.05
BVpS8.8
TBVpS-8.09
PEG (NY)2.17
PEG (5Y)2.64
Graham Number56.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.74% | ||
| ROE | 180.29% | ||
| ROCE | 57.12% | ||
| ROIC | 47.55% | ||
| ROICexc | 70.61% | ||
| ROICexgc | 228.49% | ||
| OM | 59.16% | ||
| PM (TTM) | 45.28% | ||
| GM | N/A | ||
| FCFM | 51.8% |
ROA(3y)26.26%
ROA(5y)24.19%
ROE(3y)172.59%
ROE(5y)147.38%
ROIC(3y)45.83%
ROIC(5y)40.7%
ROICexc(3y)67.38%
ROICexc(5y)62.88%
ROICexgc(3y)222.96%
ROICexgc(5y)196.71%
ROCE(3y)55.06%
ROCE(5y)48.9%
ROICexgc growth 3Y16.14%
ROICexgc growth 5Y5.63%
ROICexc growth 3Y10.13%
ROICexc growth 5Y-4%
OM growth 3Y2.69%
OM growth 5Y0.34%
PM growth 3Y-0.21%
PM growth 5Y-1.01%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 109.1% | ||
| Cap/Sales | 3.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.75% | ||
| Profit Quality | 114.42% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 10.67 |
F-Score8
WACC8.61%
ROIC/WACC5.52
Cap/Depr(3y)138.52%
Cap/Depr(5y)129.95%
Cap/Sales(3y)4.5%
Cap/Sales(5y)4.49%
Profit Quality(3y)101.51%
Profit Quality(5y)101.14%
High Growth Momentum
Growth
EPS 1Y (TTM)15.1%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%12.6%
EPS Next Y16.35%
EPS Next 2Y16.16%
EPS Next 3Y16.2%
EPS Next 5Y15.33%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.73%
Revenue Next Year16.74%
Revenue Next 2Y14.65%
Revenue Next 3Y13.76%
Revenue Next 5Y11.67%
EBIT growth 1Y16.51%
EBIT growth 3Y17.33%
EBIT growth 5Y11.15%
EBIT Next Year24.87%
EBIT Next 3Y16.84%
EBIT Next 5Y13.75%
FCF growth 1Y66.51%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y59.63%
OCF growth 3Y16.02%
OCF growth 5Y12.55%
MASTERCARD INC - A / MA FAQ
Can you provide the ChartMill fundamental rating for MASTERCARD INC - A?
ChartMill assigns a fundamental rating of 6 / 10 to MA.
What is the valuation status of MASTERCARD INC - A (MA) stock?
ChartMill assigns a valuation rating of 2 / 10 to MASTERCARD INC - A (MA). This can be considered as Overvalued.
How profitable is MASTERCARD INC - A (MA) stock?
MASTERCARD INC - A (MA) has a profitability rating of 8 / 10.
How financially healthy is MASTERCARD INC - A?
The financial health rating of MASTERCARD INC - A (MA) is 8 / 10.
How sustainable is the dividend of MASTERCARD INC - A (MA) stock?
The dividend rating of MASTERCARD INC - A (MA) is 4 / 10 and the dividend payout ratio is 18.79%.