MASTERCARD INC - A (MA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MA - US57636Q1040 - Common Stock
575.7 USD
+3.47 (+0.61%)
579 USD
+3.3 (+0.57%)
Taking everything into account, MA scores 6 out of 10 in our fundamental rating. MA was compared to 99 industry peers in the Financial Services industry. MA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MA is quite expensive at the moment. It does show a decent growth rate. These ratings would make MA suitable for quality investing!
1. Profitability
1.1 Basic Checks
MA had positive earnings in the past year.
MA had a positive operating cash flow in the past year.
In the past 5 years MA has always 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 26.74%, MA belongs to the best of the industry, outperforming 97.98% of the companies in the same industry.
Looking at the Return On Equity, with a value of 180.29%, MA belongs to the top of the industry, outperforming 98.99% 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.
MA had an Average Return On Invested Capital over the past 3 years of 45.83%. This 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 87.88% of the companies in the same industry.
MA's Profit Margin has been stable in the last couple of years.
MA's Operating Margin of 59.16% is amongst the best of the industry. MA outperforms 87.88% of its industry peers.
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
MA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
The debt/assets ratio for MA is higher compared to a year ago.
2.2 Solvency
MA has an Altman-Z score of 10.78. This indicates that MA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.78, MA belongs to the top of the industry, outperforming 92.93% 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.
The Debt to FCF ratio of MA (1.16) is better than 78.79% of its industry peers.
A Debt/Equity ratio of 2.40 is on the high side and indicates that MA has dependencies on debt financing.
With a Debt to Equity ratio value of 2.40, MA is not doing good in the industry: 71.72% of the companies in the same industry are doing better.
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 | 2.4 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 10.78 |
ROIC/WACC5.52
WACC8.62%
2.3 Liquidity
A Current Ratio of 1.12 indicates that MA should not have too much problems paying its short term obligations.
MA has a Current ratio (1.12) which is comparable to the rest of the industry.
A Quick Ratio of 1.12 indicates that MA should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.12, MA perfoms like the industry average, outperforming 55.56% 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 | 1.12 | ||
| 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.
The Revenue has grown by 15.60% in the past year. This is quite good.
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
The Earnings Per Share is expected to grow by 15.33% on average over the next years. This is quite good.
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 Y16.34%
EPS Next 2Y16.18%
EPS Next 3Y16.23%
EPS Next 5Y15.33%
Revenue Next Year16.73%
Revenue Next 2Y14.64%
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.
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 35.80.
MA's Price/Earnings ratio is a bit more expensive when compared to the industry. MA is more expensive than 68.69% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.61. MA is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 29.19, which means the current valuation is very expensive for MA.
Based on the Price/Forward Earnings ratio, MA is valued a bit more expensive than the industry average as 69.70% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of MA to the average of the S&P500 Index (24.01), we can say MA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.8 | ||
| Fwd PE | 29.19 |
4.2 Price Multiples
MA's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as MA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.71 | ||
| EV/EBITDA | 26.65 |
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 16.23% in the coming years.
PEG (NY)2.19
PEG (5Y)2.67
EPS Next 2Y16.18%
EPS Next 3Y16.23%
5. Dividend
5.1 Amount
MA has a yearly dividend return of 0.61%, which is pretty low.
MA's Dividend Yield is comparable with the industry average which is at 2.43.
With a Dividend Yield of 0.61, MA pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
On average, the dividend of MA grows each year by 14.95%, which is quite nice.
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.
MA's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP18.79%
EPS Next 2Y16.18%
EPS Next 3Y16.23%
575.7
+3.47 (+0.61%)
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 Cap516.98B
Revenue(TTM)31.47B
Net Income(TTM)14.25B
Analysts80.82
Price Target667.91 (16.02%)
Short Float %0.73%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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)1.06%
PT rev (3m)2.05%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.8 | ||
| Fwd PE | 29.19 | ||
| P/S | 16.43 | ||
| P/FCF | 31.71 | ||
| P/OCF | 29.58 | ||
| P/B | 65.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.65 |
EPS(TTM)16.08
EY2.79%
EPS(NY)19.72
Fwd EY3.43%
FCF(TTM)18.16
FCFY3.15%
OCF(TTM)19.47
OCFY3.38%
SpS35.05
BVpS8.8
TBVpS-8.09
PEG (NY)2.19
PEG (5Y)2.67
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 | 10.78 |
F-Score8
WACC8.62%
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 Y16.34%
EPS Next 2Y16.18%
EPS Next 3Y16.23%
EPS Next 5Y15.33%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.73%
Revenue Next Year16.73%
Revenue Next 2Y14.64%
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%.