MASTERCARD INC - A (MA) Stock Fundamental Analysis
USA - NYSE:MA - US57636Q1040 - Common Stock
527.58 USD
-9.27 (-1.73%)
527.5 USD
-0.08 (-0.02%)
Overall MA gets a fundamental rating of 6 out of 10. We evaluated MA against 99 industry peers in the Financial Services industry. MA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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
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.
In the past 5 years MA always reported a positive cash flow from operatings.
1.2 Ratios
MA has a Return On Assets of 26.74%. This is amongst the best in the industry. MA outperforms 98.99% of its industry peers.
MA has a Return On Equity of 180.29%. This is amongst the best in the industry. MA outperforms 100.00% of its industry peers.
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.
The Average Return On Invested Capital over the past 3 years for MA is significantly above the industry average of 8.15%.
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 87.88% of its industry peers.
In the last couple of years the Profit Margin of MA has remained more or less at the same level.
The Operating Margin of MA (59.16%) is better than 87.88% 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.
Compared to 1 year ago, MA has less shares outstanding
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.
MA's Altman-Z score of 10.36 is amongst the best of the industry. MA outperforms 92.93% 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.
MA has a Debt to FCF ratio of 1.16. This is in the better half of the industry: MA outperforms 79.80% 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.
MA has a worse Debt to Equity ratio (2.40) than 70.71% 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 | 10.36 |
ROIC/WACC5.55
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.12 indicates that MA should not have too much problems paying its short term obligations.
MA's Current ratio of 1.12 is in line compared to the rest of the industry. MA outperforms 55.56% of its industry peers.
MA has a Quick 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.
Looking at the Quick ratio, with a value of 1.12, MA is in line with its industry, outperforming 57.58% 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
The Earnings Per Share has grown by an nice 15.10% over the past year.
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.
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
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.
The Revenue is expected to grow by 11.67% on average over the next years. This is quite good.
EPS Next Y16.07%
EPS Next 2Y16.06%
EPS Next 3Y16.15%
EPS Next 5Y15.33%
Revenue Next Year16.6%
Revenue Next 2Y14.5%
Revenue Next 3Y13.64%
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
With a Price/Earnings ratio of 32.81, MA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of MA indicates a slightly more expensive valuation: MA is more expensive than 68.69% of the companies listed in the same industry.
MA is valuated rather expensively when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 26.81 indicates a quite expensive valuation of MA.
Based on the Price/Forward Earnings ratio, MA is valued a bit more expensive than 70.71% of the companies in the same industry.
MA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 34.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.81 | ||
| Fwd PE | 26.81 |
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.
MA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.25 | ||
| 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.
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 16.15% in the coming years.
PEG (NY)2.04
PEG (5Y)2.44
EPS Next 2Y16.06%
EPS Next 3Y16.15%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, MA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.68, MA has a dividend in line with its industry peers.
With a Dividend Yield of 0.55, MA pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
On average, the dividend of MA grows each year by 14.95%, which is quite nice.
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 2Y16.06%
EPS Next 3Y16.15%
527.58
-9.27 (-1.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.32%
Inst Owner Change-2.12%
Ins Owners0.05%
Ins Owner Change-0.02%
Market Cap476.94B
Revenue(TTM)31.47B
Net Income(TTM)14.25B
Analysts80.42
Price Target660.88 (25.27%)
Short Float %0.7%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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)1.01%
PT rev (3m)2.03%
EPS NQ rev (1m)1.56%
EPS NQ rev (3m)1.79%
EPS NY rev (1m)0.6%
EPS NY rev (3m)3.32%
Revenue NQ rev (1m)1.11%
Revenue NQ rev (3m)1.6%
Revenue NY rev (1m)0.42%
Revenue NY rev (3m)2.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.81 | ||
| Fwd PE | 26.81 | ||
| P/S | 15.15 | ||
| P/FCF | 29.25 | ||
| P/OCF | 27.28 | ||
| P/B | 60.34 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.05 |
EPS(TTM)16.08
EY3.05%
EPS(NY)19.68
Fwd EY3.73%
FCF(TTM)18.04
FCFY3.42%
OCF(TTM)19.34
OCFY3.67%
SpS34.82
BVpS8.74
TBVpS-8.03
PEG (NY)2.04
PEG (5Y)2.44
Graham Number56.24
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
WACC8.57%
ROIC/WACC5.55
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 Y16.07%
EPS Next 2Y16.06%
EPS Next 3Y16.15%
EPS Next 5Y15.33%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.73%
Revenue Next Year16.6%
Revenue Next 2Y14.5%
Revenue Next 3Y13.64%
Revenue Next 5Y11.67%
EBIT growth 1Y16.51%
EBIT growth 3Y17.33%
EBIT growth 5Y11.15%
EBIT Next Year23.18%
EBIT Next 3Y16.18%
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%.