MASTERCARD INC - A (MA) Stock Fundamental Analysis
USA - NYSE:MA - US57636Q1040 - Common Stock
586.05 USD
-12.58 (-2.1%)
586.05 USD
0 (0%)
MA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 101 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 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.
Each year in the past 5 years MA has been profitable.
MA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 26.42%, MA belongs to the best of the industry, outperforming 99.01% of the companies in the same industry.
With an excellent Return On Equity value of 173.00%, MA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MA's Return On Invested Capital of 45.82% is amongst the best of the industry. MA outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MA is significantly above the industry average of 7.65%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.42% | ||
| ROE | 173% | ||
| ROIC | 45.82% |
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
MA's Profit Margin of 44.93% is amongst the best of the industry. MA outperforms 89.11% of its industry peers.
MA's Profit Margin has been stable in the last couple of years.
MA has a better Operating Margin (58.98%) than 88.12% 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 | 58.98% | ||
| PM (TTM) | 44.93% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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.
The debt/assets ratio for MA is higher compared to a year ago.
2.2 Solvency
MA has an Altman-Z score of 11.39. This indicates that MA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.39, MA belongs to the best of the industry, outperforming 96.04% of the companies in the same industry.
MA has a debt to FCF ratio of 1.20. This is a very positive value and a sign of high solvency as it would only need 1.20 years to pay back of all of its debts.
The Debt to FCF ratio of MA (1.20) is better than 79.21% of its industry peers.
MA has a Debt/Equity ratio of 2.42. This is a high value indicating a heavy dependency on external financing.
MA has a Debt to Equity ratio of 2.42. This is in the lower half of the industry: MA underperforms 69.31% 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 | 2.42 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 11.39 |
ROIC/WACC5.39
WACC8.5%
2.3 Liquidity
MA has a Current Ratio of 1.16. 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 1.16, MA perfoms like the industry average, outperforming 58.42% of the companies in the same industry.
MA has a Quick Ratio of 1.16. 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 of 1.16. This is comparable to the rest of the industry: MA outperforms 58.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
MA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.74%, which is quite good.
Measured over the past years, MA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.43% on average per year.
MA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.59%.
MA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.78% yearly.
EPS 1Y (TTM)15.74%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%15.6%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.84%
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 Y15.4%
EPS Next 2Y15.7%
EPS Next 3Y15.94%
EPS Next 5Y15.33%
Revenue Next Year16.1%
Revenue Next 2Y14.09%
Revenue Next 3Y13.33%
Revenue Next 5Y11.67%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
With a Price/Earnings ratio of 37.59, MA can be considered very expensive at the moment.
Based on the Price/Earnings ratio, MA is valued a bit more expensive than the industry average as 72.28% of the companies are valued more cheaply.
MA's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.20.
A Price/Forward Earnings ratio of 29.96 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 71.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.70. MA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.59 | ||
| Fwd PE | 29.96 |
4.2 Price Multiples
MA's Enterprise Value to EBITDA ratio is in line with the industry average.
MA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.39 | ||
| EV/EBITDA | 29.21 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MA does not grow enough to justify the current Price/Earnings ratio.
MA has a very decent 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 15.94% in the coming years.
PEG (NY)2.44
PEG (5Y)2.8
EPS Next 2Y15.7%
EPS Next 3Y15.94%
5. Dividend
5.1 Amount
MA has a yearly dividend return of 0.52%, which is pretty low.
Compared to an average industry Dividend Yield of 4.86, MA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
The dividend of MA is nicely growing with an annual growth rate of 14.95%!
MA has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)14.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MA pays out 19.15% 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.
DP19.15%
EPS Next 2Y15.7%
EPS Next 3Y15.94%
586.05
-12.58 (-2.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.29%
Inst Owner Change0.06%
Ins Owners0.05%
Ins Owner Change-0.03%
Market Cap529.80B
Analysts80
Price Target654.49 (11.68%)
Short Float %0.67%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend2.65
Dividend Growth(5Y)14.95%
DP19.15%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.75%
Min EPS beat(2)0.08%
Max EPS beat(2)1.41%
EPS beat(4)4
Avg EPS beat(4)0.71%
Min EPS beat(4)0.08%
Max EPS beat(4)1.41%
EPS beat(8)6
Avg EPS beat(8)0.5%
EPS beat(12)8
Avg EPS beat(12)0.4%
EPS beat(16)12
Avg EPS beat(16)2.62%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)-0.87%
Revenue beat(8)0
Avg Revenue beat(8)-1.73%
Revenue beat(12)0
Avg Revenue beat(12)-1.66%
Revenue beat(16)2
Avg Revenue beat(16)-1.28%
PT rev (1m)1.04%
PT rev (3m)3.28%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.99%
EPS NY rev (1m)2.73%
EPS NY rev (3m)2.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.95%
Revenue NY rev (1m)1.97%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.59 | ||
| Fwd PE | 29.96 | ||
| P/S | 17.52 | ||
| P/FCF | 33.39 | ||
| P/OCF | 31.25 | ||
| P/B | 67.46 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.21 |
EPS(TTM)15.59
EY2.66%
EPS(NY)19.56
Fwd EY3.34%
FCF(TTM)17.55
FCFY2.99%
OCF(TTM)18.75
OCFY3.2%
SpS33.45
BVpS8.69
TBVpS-8.16
PEG (NY)2.44
PEG (5Y)2.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.42% | ||
| ROE | 173% | ||
| ROCE | 55.04% | ||
| ROIC | 45.82% | ||
| ROICexc | 64.45% | ||
| ROICexgc | 190.14% | ||
| OM | 58.98% | ||
| PM (TTM) | 44.93% | ||
| GM | N/A | ||
| FCFM | 52.47% |
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%
ROICexcg growth 3Y16.14%
ROICexcg 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-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.42 | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 107.31% | ||
| Cap/Sales | 3.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.95% | ||
| Profit Quality | 116.79% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 11.39 |
F-Score5
WACC8.5%
ROIC/WACC5.39
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)15.74%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%15.6%
EPS Next Y15.4%
EPS Next 2Y15.7%
EPS Next 3Y15.94%
EPS Next 5Y15.33%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.84%
Revenue Next Year16.1%
Revenue Next 2Y14.09%
Revenue Next 3Y13.33%
Revenue Next 5Y11.67%
EBIT growth 1Y15.33%
EBIT growth 3Y17.33%
EBIT growth 5Y11.15%
EBIT Next Year23.09%
EBIT Next 3Y16.12%
EBIT Next 5Y13.75%
FCF growth 1Y52.98%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y46.49%
OCF growth 3Y16.02%
OCF growth 5Y12.55%