MASTERCARD INC - A (MA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MA - US57636Q1040 - Common Stock
579.6 USD
+0.15 (+0.03%)
579.6 USD
0 (0%)
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 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 could make MA a good candidate 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.
Each year in the past 5 years MA had a positive operating cash flow.
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.
MA has a Return On Equity of 180.29%. This is amongst the best in the industry. MA outperforms 98.99% of its industry peers.
The Return On Invested Capital of MA (47.55%) is better than 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 8.44%.
The 3 year average ROIC (45.83%) for MA is below the current ROIC(47.55%), indicating increased profibility in the last year.
| 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.
Looking at the Operating Margin, with a value of 59.16%, MA belongs to the top of the industry, outperforming 87.88% 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.
Compared to 5 years ago, MA has less shares outstanding
Compared to 1 year ago, MA has a worse debt to assets ratio.
2.2 Solvency
MA has an Altman-Z score of 10.83. 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 10.83, MA belongs to the top of the industry, outperforming 93.94% 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.
MA has a Debt to FCF ratio of 1.16. This is in the better half of the industry: MA outperforms 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.
MA's Debt to Equity ratio of 2.40 is on the low side compared to the rest of the industry. MA is outperformed by 71.72% 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 | 2.4 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 10.83 |
ROIC/WACC5.54
WACC8.59%
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.
MA has a Quick ratio of 1.12. This is comparable to the rest of the industry: MA outperforms 55.56% of its industry peers.
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
The Earnings Per Share has grown by an nice 15.10% over the past year.
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%.
Measured over the past years, MA shows a quite strong growth in Revenue. The Revenue has been growing by 10.78% on average per year.
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
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
The Price/Earnings ratio is 36.04, which means the current valuation is very expensive for MA.
Based on the Price/Earnings ratio, MA is valued a bit more expensive than 68.69% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.57. MA is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 29.39, the valuation of MA can be described as expensive.
MA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MA is more expensive than 69.70% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MA to the average of the S&P500 Index (24.04), we can say MA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.04 | ||
| Fwd PE | 29.39 |
4.2 Price Multiples
MA's Enterprise Value to EBITDA is on the same level as 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 | 31.92 | ||
| EV/EBITDA | 26.83 |
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.
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)2.21
PEG (5Y)2.68
EPS Next 2Y16.18%
EPS Next 3Y16.23%
5. Dividend
5.1 Amount
MA has a yearly dividend return of 0.60%, which is pretty low.
MA's Dividend Yield is comparable with the industry average which is at 2.61.
With a Dividend Yield of 0.60, MA pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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.
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%
579.6
+0.15 (+0.03%)
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 Cap520.48B
Revenue(TTM)31.47B
Net Income(TTM)14.25B
Analysts80.82
Price Target667.91 (15.24%)
Short Float %0.73%
Short Ratio2.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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 | 36.04 | ||
| Fwd PE | 29.39 | ||
| P/S | 16.54 | ||
| P/FCF | 31.92 | ||
| P/OCF | 29.78 | ||
| P/B | 65.85 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.83 |
EPS(TTM)16.08
EY2.77%
EPS(NY)19.72
Fwd EY3.4%
FCF(TTM)18.16
FCFY3.13%
OCF(TTM)19.47
OCFY3.36%
SpS35.05
BVpS8.8
TBVpS-8.09
PEG (NY)2.21
PEG (5Y)2.68
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 | 10.83 |
F-Score8
WACC8.59%
ROIC/WACC5.54
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%.