MASTERCARD INC - A (MA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MA - US57636Q1040 - Common Stock
566.21 USD
+0.74 (+0.13%)
566.21 USD
0 (0%)
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 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. This makes MA very considerable for 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.
Each year in the past 5 years MA has been profitable.
Each year in the past 5 years MA had a positive operating cash flow.
1.2 Ratios
MA has a Return On Assets of 26.74%. This is amongst the best in the industry. MA outperforms 97.94% of its industry peers.
MA has a Return On Equity of 180.29%. This is amongst the best in the industry. MA outperforms 98.97% of its industry peers.
MA has a Return On Invested Capital of 47.55%. 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 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
MA has a Profit Margin of 45.28%. This is amongst the best in the industry. MA outperforms 87.63% of its industry peers.
MA's Profit Margin has been stable in the last couple of years.
MA has a better Operating Margin (59.16%) than 87.63% 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 | 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.
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 10.67 indicates that MA is not in any danger for bankruptcy at the moment.
MA has a better Altman-Z score (10.67) than 93.81% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.16, MA is in the better half of 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.
The Debt to Equity ratio of MA (2.40) is worse than 72.16% of its industry peers.
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 | 10.67 |
ROIC/WACC5.52
WACC8.61%
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 in line with its industry peers.
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 54.64% 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.
The Earnings Per Share has been growing by 13.43% on average over the past years. This is quite good.
Looking at the last year, MA shows a quite strong growth in Revenue. The Revenue has grown by 15.60% in the last year.
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)15.1%
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
MA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.33% yearly.
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
The Price/Earnings ratio is 35.21, which means the current valuation is very expensive for MA.
Based on the Price/Earnings ratio, MA is valued a bit more expensive than 70.10% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.26. MA is valued slightly more expensive when compared to this.
MA is valuated quite expensively with a Price/Forward Earnings ratio of 28.72.
Based on the Price/Forward Earnings ratio, MA is valued a bit more expensive than 70.10% of the companies in the same industry.
MA's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 23.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.21 | ||
| Fwd PE | 28.72 |
4.2 Price Multiples
MA's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as MA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.18 | ||
| EV/EBITDA | 26.22 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
MA's earnings are expected to grow with 16.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.15
PEG (5Y)2.62
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.
MA's Dividend Yield is comparable with the industry average which is at 2.16.
With a Dividend Yield of 0.62, MA pays less dividend than the S&P500 average, which is at 1.87.
| 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 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 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 2Y16.16%
EPS Next 3Y16.2%
566.21
+0.74 (+0.13%)
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 Cap508.46B
Revenue(TTM)31.47B
Net Income(TTM)14.25B
Analysts80.82
Price Target667.03 (17.81%)
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 | 35.21 | ||
| Fwd PE | 28.72 | ||
| P/S | 16.15 | ||
| P/FCF | 31.18 | ||
| P/OCF | 29.09 | ||
| P/B | 64.33 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.22 |
EPS(TTM)16.08
EY2.84%
EPS(NY)19.71
Fwd EY3.48%
FCF(TTM)18.16
FCFY3.21%
OCF(TTM)19.47
OCFY3.44%
SpS35.05
BVpS8.8
TBVpS-8.09
PEG (NY)2.15
PEG (5Y)2.62
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%.