MASTERCARD INC - A (MA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MA - US57636Q1040 - Common Stock
580.07 USD
+0.15 (+0.03%)
576.841 USD
-3.23 (-0.56%)
Taking everything into account, MA scores 6 out of 10 in our fundamental rating. MA was compared to 98 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. This makes MA very considerable 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 better Return On Assets (26.74%) than 97.96% of its industry peers.
MA's Return On Equity of 180.29% is amongst the best of the industry. MA outperforms 98.98% 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
Looking at the Profit Margin, with a value of 45.28%, MA belongs to the top of the industry, outperforming 87.76% of the companies in the same industry.
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 (59.16%) than 87.76% 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
MA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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 10.83. This indicates that MA is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 10.83, MA belongs to the best of the industry, outperforming 93.88% of the companies in the same industry.
MA has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
MA's Debt to FCF ratio of 1.16 is fine compared to the rest of the industry. MA outperforms 79.59% 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 has a Debt to Equity ratio of 2.40. This is in the lower half of the industry: MA underperforms 71.43% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 10.83 |
ROIC/WACC5.5
WACC8.64%
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.
MA has a Current ratio of 1.12. This is comparable to the rest of the industry: MA outperforms 54.08% of its industry peers.
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
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
Based on estimates for the next years, MA will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.33% on average per year.
Based on estimates for the next years, MA will show a quite strong growth in Revenue. The Revenue will grow by 11.67% on average per year.
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.
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
With a Price/Earnings ratio of 36.07, MA can be considered very expensive at the moment.
MA's Price/Earnings ratio is a bit more expensive when compared to the industry. MA is more expensive than 68.37% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.00, MA is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 29.41, the valuation of MA can be described as expensive.
70.41% 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 (23.70), we can say MA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.07 | ||
| Fwd PE | 29.41 |
4.2 Price Multiples
MA's Enterprise Value to EBITDA ratio is in line with the industry average.
MA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.95 | ||
| EV/EBITDA | 26.85 |
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 16.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.21
PEG (5Y)2.69
EPS Next 2Y16.18%
EPS Next 3Y16.23%
5. Dividend
5.1 Amount
With a yearly dividend of 0.61%, MA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.35, MA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 1.94, MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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
5.3 Sustainability
18.79% 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.
DP18.79%
EPS Next 2Y16.18%
EPS Next 3Y16.23%
580.07
+0.15 (+0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.75%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change0%
Market Cap520.90B
Revenue(TTM)31.47B
Net Income(TTM)14.25B
Analysts80.82
Price Target667.91 (15.14%)
Short Float %0.77%
Short Ratio2.5
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
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)0.13%
PT rev (3m)2.05%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)0.83%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.07 | ||
| Fwd PE | 29.41 | ||
| P/S | 16.55 | ||
| P/FCF | 31.95 | ||
| P/OCF | 29.8 | ||
| P/B | 65.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.85 |
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)2.69
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
WACC8.64%
ROIC/WACC5.5
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 Year24.88%
EBIT Next 3Y16.79%
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.
Can you provide the valuation status for MASTERCARD INC - A?
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.
What is the earnings growth outlook for MASTERCARD INC - A?
The Earnings per Share (EPS) of MASTERCARD INC - A (MA) is expected to grow by 16.34% in the next year.
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%.