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Is NYSE:MA a Suitable Choice for Quality Investing?

By Mill Chart

Last update: Dec 8, 2023

In this article we will dive into MASTERCARD INC - A (NYSE:MA) as a possible candidate for quality investing. Investors should always do their own research, but we noticed MASTERCARD INC - A showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.

A Deep Dive into MASTERCARD INC - A's Quality Metrics.

  • The 5-year revenue growth of MASTERCARD INC - A has been remarkable, with 12.22% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
  • With a notable ROIC excluding cash and goodwill at 194.0%, MASTERCARD INC - A demonstrates its commitment to generating sustainable returns for shareholders. This metric emphasizes the company's effective use of capital and its ability to deliver long-term value.
  • The Debt/Free Cash Flow Ratio of MASTERCARD INC - A stands at 1.59, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
  • MASTERCARD INC - A exhibits impressive Profit Quality (5-year) with a 98.47% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
  • MASTERCARD INC - A has consistently achieved strong EBIT growth over the past 5 years, with a 13.41% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
  • MASTERCARD INC - A demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Zooming in on the fundamentals.

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

MA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 101 industry peers in the Financial Services industry. MA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.

For an up to date full fundamental analysis you can check the fundamental report of MA

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.

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