MASTERCARD INC - A (MA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MA - US57636Q1040 - Common Stock
537.5 USD
-2.94 (-0.54%)
Taking everything into account, MA scores 6 out of 10 in our fundamental rating. MA was compared to 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. 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
MA had positive earnings in the past year.
In the past year MA had a positive cash flow from operations.
MA had positive earnings in each of the past 5 years.
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 97.94% of the companies in the same industry.
The Return On Equity of MA (180.29%) is better than 98.97% of its industry peers.
The Return On Invested Capital of MA (47.55%) is better than 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 better Profit Margin (45.28%) than 87.63% of its industry peers.
MA's Profit Margin has been stable in the last couple of years.
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.
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
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.
MA has less shares outstanding than it did 5 years ago.
MA has a worse debt/assets ratio than last year.
2.2 Solvency
MA has an Altman-Z score of 10.36. 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 10.36, MA belongs to the top 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.
MA has a better Debt to FCF ratio (1.16) than 78.35% of its industry peers.
MA has a Debt/Equity ratio of 2.40. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.40, MA is doing worse than 72.16% of the companies in the same industry.
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 | 10.36 |
ROIC/WACC5.54
WACC8.58%
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.
The Current ratio of MA (1.12) 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.
The Quick ratio of MA (1.12) 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.
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.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
The Price/Earnings ratio is 33.43, which means the current valuation is very expensive for MA.
Compared to the rest of the industry, the Price/Earnings ratio of MA indicates a slightly more expensive valuation: MA is more expensive than 70.10% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, MA is valued a bit more expensive.
With a Price/Forward Earnings ratio of 27.27, 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/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MA to the average of the S&P500 Index (23.56), we can say MA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.43 | ||
| Fwd PE | 27.27 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as MA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.6 | ||
| EV/EBITDA | 25.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
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)2.04
PEG (5Y)2.49
EPS Next 2Y16.16%
EPS Next 3Y16.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.56%, MA is not a good candidate for dividend investing.
MA's Dividend Yield is comparable with the industry average which is at 3.96.
Compared to an average S&P500 Dividend Yield of 2.31, MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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 2Y16.16%
EPS Next 3Y16.2%
NYSE:MA (12/9/2025, 2:55:07 PM)
537.5
-2.94 (-0.54%)
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 Change-0.01%
Market Cap482.68B
Revenue(TTM)31.47B
Net Income(TTM)14.25B
Analysts80.82
Price Target667.03 (24.1%)
Short Float %0.72%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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)2.21%
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 | 33.43 | ||
| Fwd PE | 27.27 | ||
| P/S | 15.34 | ||
| P/FCF | 29.6 | ||
| P/OCF | 27.61 | ||
| P/B | 61.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.05 |
EPS(TTM)16.08
EY2.99%
EPS(NY)19.71
Fwd EY3.67%
FCF(TTM)18.16
FCFY3.38%
OCF(TTM)19.47
OCFY3.62%
SpS35.05
BVpS8.8
TBVpS-8.09
PEG (NY)2.04
PEG (5Y)2.49
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 | 10.36 |
F-Score8
WACC8.58%
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 Y16.35%
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%.