MASTERCARD INC - A (MA) Stock Fundamental Analysis
USA - NYSE:MA - US57636Q1040 - Common Stock
551.99 USD
-1.69 (-0.31%)
551.99 USD
0 (0%)
Overall MA gets a fundamental rating of 6 out of 10. We evaluated MA against 99 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. 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
In the past year MA was profitable.
In the past year MA had a positive cash flow from operations.
Each year in the past 5 years MA has been profitable.
Each year in the past 5 years MA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MA (26.42%) is better than 98.99% of its industry peers.
Looking at the Return On Equity, with a value of 173.00%, MA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
MA has a better Return On Invested Capital (45.82%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MA is significantly above the industry average of 7.80%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.42% | ||
| ROE | 173% | ||
| ROIC | 45.82% |
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
The Profit Margin of MA (44.93%) is better than 89.90% of its industry peers.
In the last couple of years the Profit Margin of MA has remained more or less at the same level.
Looking at the Operating Margin, with a value of 58.98%, MA belongs to the top of the industry, outperforming 87.88% 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 | 58.98% | ||
| PM (TTM) | 44.93% | ||
| 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.
MA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MA has less shares outstanding
MA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.83 indicates that MA is not in any danger for bankruptcy at the moment.
The Altman-Z score of MA (10.83) is better than 93.94% of its industry peers.
The Debt to FCF ratio of MA is 1.20, which is an excellent value as it means it would take MA, only 1.20 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.20, MA is doing good in the industry, outperforming 77.78% of the companies in the same industry.
A Debt/Equity ratio of 2.42 is on the high side and indicates that MA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.42, MA is doing worse than 68.69% 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 | 2.42 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 10.83 |
ROIC/WACC5.36
WACC8.55%
2.3 Liquidity
MA has a Current Ratio of 1.16. 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 (1.16) which is comparable to the rest of the industry.
MA has a Quick Ratio of 1.16. 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 Quick ratio of 1.16. This is comparable to the rest of the industry: MA outperforms 57.58% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
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.
The Earnings Per Share has been growing by 13.43% on average over the past years. This is quite good.
The Revenue has grown by 12.23% in the past year. This is quite good.
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)12.23%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.73%
3.2 Future
The Earnings Per Share is expected to grow by 15.33% on average over the next years. This is quite good.
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 Y15.42%
EPS Next 2Y15.74%
EPS Next 3Y15.98%
EPS Next 5Y15.33%
Revenue Next Year16.12%
Revenue Next 2Y14.08%
Revenue Next 3Y13.34%
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.
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
A Price/Earnings ratio of 34.33 indicates a quite expensive valuation of MA.
Based on the Price/Earnings ratio, MA is valued a bit more expensive than the industry average as 69.70% of the companies are valued more cheaply.
MA is valuated rather expensively when we compare the Price/Earnings ratio to 26.10, which is the current average of the S&P500 Index.
MA is valuated quite expensively with a Price/Forward Earnings ratio of 28.20.
Based on the Price/Forward Earnings ratio, MA is valued a bit more expensive than 71.72% of the companies in the same industry.
MA's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.33 | ||
| Fwd PE | 28.2 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MA.
MA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.45 | ||
| EV/EBITDA | 27.05 |
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 a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MA's earnings are expected to grow with 15.98% in the coming years.
PEG (NY)2.23
PEG (5Y)2.56
EPS Next 2Y15.74%
EPS Next 3Y15.98%
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 4.75, MA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, MA's dividend is way lower than the S&P500 average.
| 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 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
19.15% 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.
DP19.15%
EPS Next 2Y15.74%
EPS Next 3Y15.98%
551.99
-1.69 (-0.31%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.32%
Inst Owner Change-3.18%
Ins Owners0.05%
Ins Owner Change-0.02%
Market Cap499.00B
Revenue(TTM)28.17B
Net Income(TTM)13.59B
Analysts79.57
Price Target660.88 (19.73%)
Short Float %0.65%
Short Ratio2.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend2.65
Dividend Growth(5Y)14.95%
DP19.15%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.75%
Min EPS beat(2)0.08%
Max EPS beat(2)1.41%
EPS beat(4)4
Avg EPS beat(4)0.71%
Min EPS beat(4)0.08%
Max EPS beat(4)1.41%
EPS beat(8)6
Avg EPS beat(8)0.5%
EPS beat(12)8
Avg EPS beat(12)0.4%
EPS beat(16)12
Avg EPS beat(16)2.62%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)-0.87%
Revenue beat(8)0
Avg Revenue beat(8)-1.73%
Revenue beat(12)0
Avg Revenue beat(12)-1.66%
Revenue beat(16)2
Avg Revenue beat(16)-1.28%
PT rev (1m)-0.03%
PT rev (3m)2.41%
EPS NQ rev (1m)0.13%
EPS NQ rev (3m)5.59%
EPS NY rev (1m)0.03%
EPS NY rev (3m)2.74%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)3.4%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.33 | ||
| Fwd PE | 28.2 | ||
| P/S | 16.5 | ||
| P/FCF | 31.45 | ||
| P/OCF | 29.43 | ||
| P/B | 63.54 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.05 |
EPS(TTM)16.08
EY2.91%
EPS(NY)19.57
Fwd EY3.55%
FCF(TTM)17.55
FCFY3.18%
OCF(TTM)18.75
OCFY3.4%
SpS33.45
BVpS8.69
TBVpS-8.16
PEG (NY)2.23
PEG (5Y)2.56
Graham Number56.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.42% | ||
| ROE | 173% | ||
| ROCE | 55.04% | ||
| ROIC | 45.82% | ||
| ROICexc | 64.45% | ||
| ROICexgc | 190.14% | ||
| OM | 58.98% | ||
| PM (TTM) | 44.93% | ||
| GM | N/A | ||
| FCFM | 52.47% |
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-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.42 | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 107.31% | ||
| Cap/Sales | 3.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.95% | ||
| Profit Quality | 116.79% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 10.83 |
F-Score5
WACC8.55%
ROIC/WACC5.36
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 Y15.42%
EPS Next 2Y15.74%
EPS Next 3Y15.98%
EPS Next 5Y15.33%
Revenue 1Y (TTM)12.23%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.73%
Revenue Next Year16.12%
Revenue Next 2Y14.08%
Revenue Next 3Y13.34%
Revenue Next 5Y11.67%
EBIT growth 1Y15.33%
EBIT growth 3Y17.33%
EBIT growth 5Y11.15%
EBIT Next Year23.18%
EBIT Next 3Y16.18%
EBIT Next 5Y13.75%
FCF growth 1Y52.98%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y46.49%
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 7 / 10.
How financially healthy is MASTERCARD INC - A?
The financial health rating of MASTERCARD INC - A (MA) is 7 / 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 19.15%.