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MASTERCARD INC - A (MA) Stock Fundamental Analysis

NYSE:MA - New York Stock Exchange, Inc. - US57636Q1040 - Common Stock - Currency: USD

569.24  +7.72 (+1.37%)

After market: 569.3 +0.06 (+0.01%)

Fundamental Rating

6

Taking everything into account, MA scores 6 out of 10 in our fundamental rating. MA was compared to 100 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 valied quite expensively at the moment, while it does show a decent growth rate. With these ratings, MA could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

8

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.
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.
MA Yearly Net Income VS EBIT VS OCF VS FCFMA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

1.2 Ratios

MA's Return On Assets of 27.12% is amongst the best of the industry. MA outperforms 99.00% of its industry peers.
With an excellent Return On Equity value of 197.02%, MA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
MA has a better Return On Invested Capital (46.34%) than 98.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MA is significantly above the industry average of 11.84%.
The 3 year average ROIC (45.59%) for MA is below the current ROIC(46.34%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 27.12%
ROE 197.02%
ROIC 46.34%
ROA(3y)26.26%
ROA(5y)24.19%
ROE(3y)172.59%
ROE(5y)147.38%
ROIC(3y)45.59%
ROIC(5y)40.55%
MA Yearly ROA, ROE, ROICMA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50 100 150

1.3 Margins

The Profit Margin of MA (45.21%) is better than 91.00% of its industry peers.
In the last couple of years the Profit Margin of MA has remained more or less at the same level.
MA has a better Operating Margin (58.69%) than 90.00% of its industry peers.
MA's Operating Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 58.69%
PM (TTM) 45.21%
GM N/A
OM growth 3Y2.16%
OM growth 5Y0.03%
PM growth 3Y-0.21%
PM growth 5Y-1.01%
GM growth 3YN/A
GM growth 5YN/A
MA Yearly Profit, Operating, Gross MarginsMA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40 50

8

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
Compared to 5 years ago, MA has less shares outstanding
MA has a worse debt/assets ratio than last year.
MA Yearly Shares OutstandingMA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
MA Yearly Total Debt VS Total AssetsMA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

2.2 Solvency

MA has an Altman-Z score of 11.41. This indicates that MA is financially healthy and has little risk of bankruptcy at the moment.
MA's Altman-Z score of 11.41 is amongst the best of the industry. MA outperforms 92.00% of its industry peers.
The Debt to FCF ratio of MA is 1.31, which is an excellent value as it means it would take MA, only 1.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.31, MA is in the better half of the industry, outperforming 79.00% of the companies in the same industry.
A Debt/Equity ratio of 2.82 is on the high side and indicates that MA has dependencies on debt financing.
MA has a Debt to Equity ratio of 2.82. This is in the lower half of the industry: MA underperforms 72.00% 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 RankSector Rank
Debt/Equity 2.82
Debt/FCF 1.31
Altman-Z 11.41
ROIC/WACC5.24
WACC8.84%
MA Yearly LT Debt VS Equity VS FCFMA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.3 Liquidity

MA has a Current Ratio of 1.11. This is a normal value and indicates that MA is financially healthy and should not expect problems in meeting its short term obligations.
MA's Current ratio of 1.11 is in line compared to the rest of the industry. MA outperforms 54.00% of its industry peers.
A Quick Ratio of 1.11 indicates that MA should not have too much problems paying its short term obligations.
MA has a Quick ratio (1.11) which 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 RankSector Rank
Current Ratio 1.11
Quick Ratio 1.11
MA Yearly Current Assets VS Current LiabilitesMA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

6

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 17.70% 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 13.12%.
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)17.7%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%12.69%
Revenue 1Y (TTM)13.12%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%14.21%

3.2 Future

The Earnings Per Share is expected to grow by 15.30% 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 12.48% yearly.
EPS Next Y12.38%
EPS Next 2Y14.5%
EPS Next 3Y15.22%
EPS Next 5Y15.3%
Revenue Next Year13.67%
Revenue Next 2Y12.77%
Revenue Next 3Y12.48%
Revenue Next 5YN/A

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.
MA Yearly Revenue VS EstimatesMA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 10B 20B 30B 40B
MA Yearly EPS VS EstimatesMA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5 10 15 20 25

2

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 37.87, which means the current valuation is very expensive for MA.
Based on the Price/Earnings ratio, MA is valued a bit more expensive than 73.00% of the companies in the same industry.
MA is valuated rather expensively when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 29.72 indicates a quite expensive valuation of MA.
Based on the Price/Forward Earnings ratio, MA is valued a bit more expensive than the industry average as 73.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 21.90. MA is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 37.87
Fwd PE 29.72
MA Price Earnings VS Forward Price EarningsMA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

MA's Enterprise Value to EBITDA is on the same level as the industry average.
MA's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 36.11
EV/EBITDA 29.28
MA Per share dataMA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30

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.
MA's earnings are expected to grow with 15.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.06
PEG (5Y)2.82
EPS Next 2Y14.5%
EPS Next 3Y15.22%

4

5. Dividend

5.1 Amount

MA has a yearly dividend return of 0.56%, which is pretty low.
MA's Dividend Yield is comparable with the industry average which is at 4.97.
Compared to an average S&P500 Dividend Yield of 2.42, MA's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.56%

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
MA Yearly Dividends per shareMA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

19.22% of the earnings are spent on dividend by MA. This is a low number and 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.
DP19.22%
EPS Next 2Y14.5%
EPS Next 3Y15.22%
MA Yearly Income VS Free CF VS DividendMA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B
MA Dividend Payout.MA Dividend Payout, showing the Payout Ratio.MA Dividend Payout.PayoutRetained Earnings

MASTERCARD INC - A

NYSE:MA (7/3/2025, 7:45:45 PM)

After market: 569.3 +0.06 (+0.01%)

569.24

+7.72 (+1.37%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)05-01 2025-05-01/bmo
Earnings (Next)07-24 2025-07-24/amc
Inst Owners90.17%
Inst Owner Change1.21%
Ins Owners0.05%
Ins Owner Change0.06%
Market Cap516.90B
Analysts80.42
Price Target635.7 (11.68%)
Short Float %0.56%
Short Ratio1.79
Dividend
Industry RankSector Rank
Dividend Yield 0.56%
Yearly Dividend2.65
Dividend Growth(5Y)14.95%
DP19.22%
Div Incr Years0
Div Non Decr Years0
Ex-Date04-09 2025-04-09 (0.76)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.9%
Min EPS beat(2)0.38%
Max EPS beat(2)1.41%
EPS beat(4)3
Avg EPS beat(4)0.48%
Min EPS beat(4)-0.82%
Max EPS beat(4)1.41%
EPS beat(8)5
Avg EPS beat(8)0.41%
EPS beat(12)8
Avg EPS beat(12)0.84%
EPS beat(16)12
Avg EPS beat(16)3.14%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)-1.13%
Revenue beat(4)0
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)-1.13%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)1
Avg Revenue beat(12)-1.47%
Revenue beat(16)3
Avg Revenue beat(16)-1.18%
PT rev (1m)1.18%
PT rev (3m)1.12%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.43%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.13%
Valuation
Industry RankSector Rank
PE 37.87
Fwd PE 29.72
P/S 17.78
P/FCF 36.11
P/OCF 33.37
P/B 77.48
P/tB N/A
EV/EBITDA 29.28
EPS(TTM)15.03
EY2.64%
EPS(NY)19.15
Fwd EY3.36%
FCF(TTM)15.76
FCFY2.77%
OCF(TTM)17.06
OCFY3%
SpS32.01
BVpS7.35
TBVpS-9.05
PEG (NY)3.06
PEG (5Y)2.82
Profitability
Industry RankSector Rank
ROA 27.12%
ROE 197.02%
ROCE 55.68%
ROIC 46.34%
ROICexc 62.43%
ROICexgc 180.6%
OM 58.69%
PM (TTM) 45.21%
GM N/A
FCFM 49.24%
ROA(3y)26.26%
ROA(5y)24.19%
ROE(3y)172.59%
ROE(5y)147.38%
ROIC(3y)45.59%
ROIC(5y)40.55%
ROICexc(3y)67.03%
ROICexc(5y)62.66%
ROICexgc(3y)221.66%
ROICexgc(5y)195.93%
ROCE(3y)54.77%
ROCE(5y)48.72%
ROICexcg growth 3Y15.54%
ROICexcg growth 5Y5.3%
ROICexc growth 3Y9.56%
ROICexc growth 5Y-4.29%
OM growth 3Y2.16%
OM growth 5Y0.03%
PM growth 3Y-0.21%
PM growth 5Y-1.01%
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.6
Health
Industry RankSector Rank
Debt/Equity 2.82
Debt/FCF 1.31
Debt/EBITDA 1.04
Cap/Depr 122.7%
Cap/Sales 4.04%
Interest Coverage 250
Cash Conversion 85.97%
Profit Quality 108.92%
Current Ratio 1.11
Quick Ratio 1.11
Altman-Z 11.41
F-Score5
WACC8.84%
ROIC/WACC5.24
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)17.7%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%12.69%
EPS Next Y12.38%
EPS Next 2Y14.5%
EPS Next 3Y15.22%
EPS Next 5Y15.3%
Revenue 1Y (TTM)13.12%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%14.21%
Revenue Next Year13.67%
Revenue Next 2Y12.77%
Revenue Next 3Y12.48%
Revenue Next 5YN/A
EBIT growth 1Y13.54%
EBIT growth 3Y16.72%
EBIT growth 5Y10.81%
EBIT Next Year20.33%
EBIT Next 3Y15.47%
EBIT Next 5Y13.73%
FCF growth 1Y40.66%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y36.67%
OCF growth 3Y16.02%
OCF growth 5Y12.55%