MASTERCARD INC - A (MA) Fundamental Analysis & Valuation
NYSE:MA • US57636Q1040
524.66 USD
+1.74 (+0.33%)
At close: Mar 5, 2026
521 USD
-3.66 (-0.7%)
Pre-Market: 3/6/2026, 8:00:05 AM
This MA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
MA gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 97 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 shows excellent growth, but is valued quite expensive already. This makes MA very considerable for growth and quality investing!
1. MA Profitability Analysis
1.1 Basic Checks
- MA had positive earnings in the past year.
- 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 (27.64%) than 97.94% of its industry peers.
- The Return On Equity of MA (193.46%) is better than 98.97% of its industry peers.
- The Return On Invested Capital of MA (51.15%) is better than 100.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MA is significantly above the industry average of 8.35%.
- The last Return On Invested Capital (51.15%) for MA is above the 3 year average (48.09%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.64% | ||
| ROE | 193.46% | ||
| ROIC | 51.15% |
ROA(3y)26.93%
ROA(5y)25.9%
ROE(3y)184.52%
ROE(5y)166%
ROIC(3y)48.09%
ROIC(5y)44.33%
1.3 Margins
- Looking at the Profit Margin, with a value of 45.65%, MA belongs to the top of the industry, outperforming 86.60% of the companies in the same industry.
- In the last couple of years the Profit Margin of MA has grown nicely.
- The Operating Margin of MA (59.37%) is better than 87.63% of its industry peers.
- In the last couple of years the Operating Margin of MA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.37% | ||
| PM (TTM) | 45.65% | ||
| GM | N/A |
OM growth 3Y0.95%
OM growth 5Y2.09%
PM growth 3Y0.73%
PM growth 5Y1.73%
GM growth 3YN/A
GM growth 5YN/A
2. MA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MA 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 better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 10.07 indicates that MA is not in any danger for bankruptcy at the moment.
- MA has a better Altman-Z score (10.07) than 93.81% of its industry peers.
- 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.
- With a decent Debt to FCF ratio value of 1.16, MA is doing good in the industry, outperforming 77.32% of the companies in the same industry.
- A Debt/Equity ratio of 2.36 is on the high side and indicates that MA has dependencies on debt financing.
- With a Debt to Equity ratio value of 2.36, MA is not doing good in the industry: 69.07% of the companies in the same industry are doing better.
- Although MA's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 | 2.36 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 10.07 |
ROIC/WACC5.98
WACC8.55%
2.3 Liquidity
- MA has a Current Ratio of 1.03. This is a normal value and indicates that MA is financially healthy and should not expect problems in meeting its short term obligations.
- The Current ratio of MA (1.03) is comparable to the rest of the industry.
- MA has a Quick Ratio of 1.03. 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 (1.03) which is in line with its industry peers.
- 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 | 1.03 | ||
| Quick Ratio | 1.03 |
3. MA Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an nice 16.50% over the past year.
- Measured over the past years, MA shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.49% on average per year.
- The Revenue has grown by 16.42% in the past year. This is quite good.
- The Revenue has been growing by 16.47% on average over the past years. This is quite good.
EPS 1Y (TTM)16.5%
EPS 3Y16.91%
EPS 5Y21.49%
EPS Q2Q%24.61%
Revenue 1Y (TTM)16.42%
Revenue growth 3Y13.82%
Revenue growth 5Y16.47%
Sales Q2Q%17.59%
3.2 Future
- The Earnings Per Share is expected to grow by 15.04% 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 11.48% on average per year.
EPS Next Y18.13%
EPS Next 2Y16.98%
EPS Next 3Y16.92%
EPS Next 5Y15.04%
Revenue Next Year12.88%
Revenue Next 2Y12.59%
Revenue Next 3Y12.51%
Revenue Next 5Y11.48%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. MA Valuation Analysis
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 30.83, the valuation of MA can be described as expensive.
- Based on the Price/Earnings ratio, MA is valued a bit more expensive than the industry average as 69.07% of the companies are valued more cheaply.
- Compared to an average S&P500 Price/Earnings ratio of 26.69, MA is valued at the same level.
- Based on the Price/Forward Earnings ratio of 26.09, the valuation of MA can be described as expensive.
- MA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MA is more expensive than 70.10% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of MA to the average of the S&P500 Index (24.79), we can say MA is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.83 | ||
| Fwd PE | 26.09 |
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 | 28.54 | ||
| EV/EBITDA | 23.13 |
4.3 Compensation for Growth
- MA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 16.92% in the coming years.
PEG (NY)1.7
PEG (5Y)1.43
EPS Next 2Y16.98%
EPS Next 3Y16.92%
5. MA Dividend Analysis
5.1 Amount
- MA has a yearly dividend return of 0.68%, which is pretty low.
- MA's Dividend Yield is comparable with the industry average which is at 2.29.
- With a Dividend Yield of 0.68, MA pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
5.2 History
- The dividend of MA is nicely growing with an annual growth rate of 13.71%!
- MA has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.71%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- MA pays out 18.41% 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.
DP18.41%
EPS Next 2Y16.98%
EPS Next 3Y16.92%
MA Fundamentals: All Metrics, Ratios and Statistics
524.66
+1.74 (+0.33%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)01-29 2026-01-29/bmo
Earnings (Next)04-29 2026-04-29/bmo
Inst Owners90.75%
Inst Owner Change8.4%
Ins Owners0.05%
Ins Owner Change-0.01%
Market Cap469.05B
Revenue(TTM)32.79B
Net Income(TTM)14.97B
Analysts82
Price Target674.91 (28.64%)
Short Float %0.82%
Short Ratio1.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.68% |
Yearly Dividend3.05
Dividend Growth(5Y)13.71%
DP18.41%
Div Incr Years0
Div Non Decr Years0
Ex-Date04-09 2026-04-09 (0.87)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.62%
Min EPS beat(2)-1.55%
Max EPS beat(2)8.79%
EPS beat(4)3
Avg EPS beat(4)2.18%
Min EPS beat(4)-1.55%
Max EPS beat(4)8.79%
EPS beat(8)5
Avg EPS beat(8)1.07%
EPS beat(12)8
Avg EPS beat(12)0.89%
EPS beat(16)11
Avg EPS beat(16)2.57%
Revenue beat(2)0
Avg Revenue beat(2)-2.39%
Min Revenue beat(2)-2.63%
Max Revenue beat(2)-2.14%
Revenue beat(4)0
Avg Revenue beat(4)-1.69%
Min Revenue beat(4)-2.63%
Max Revenue beat(4)-0.87%
Revenue beat(8)0
Avg Revenue beat(8)-1.75%
Revenue beat(12)0
Avg Revenue beat(12)-1.77%
Revenue beat(16)2
Avg Revenue beat(16)-1.32%
PT rev (1m)-0.11%
PT rev (3m)1.18%
EPS NQ rev (1m)2.67%
EPS NQ rev (3m)2.54%
EPS NY rev (1m)1.92%
EPS NY rev (3m)2.16%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)0.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.83 | ||
| Fwd PE | 26.09 | ||
| P/S | 14.3 | ||
| P/FCF | 28.54 | ||
| P/OCF | 26.58 | ||
| P/B | 60.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.13 |
EPS(TTM)17.02
EY3.24%
EPS(NY)20.11
Fwd EY3.83%
FCF(TTM)18.38
FCFY3.5%
OCF(TTM)19.74
OCFY3.76%
SpS36.68
BVpS8.65
TBVpS-8.25
PEG (NY)1.7
PEG (5Y)1.43
Graham Number57.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.64% | ||
| ROE | 193.46% | ||
| ROCE | 62.01% | ||
| ROIC | 51.15% | ||
| ROICexc | 78.35% | ||
| ROICexgc | 298.32% | ||
| OM | 59.37% | ||
| PM (TTM) | 45.65% | ||
| GM | N/A | ||
| FCFM | 50.11% |
ROA(3y)26.93%
ROA(5y)25.9%
ROE(3y)184.52%
ROE(5y)166%
ROIC(3y)48.09%
ROIC(5y)44.33%
ROICexc(3y)72.29%
ROICexc(5y)65.83%
ROICexgc(3y)259.03%
ROICexgc(5y)223.97%
ROCE(3y)58.3%
ROCE(5y)53.74%
ROICexgc growth 3Y17.55%
ROICexgc growth 5Y14.35%
ROICexc growth 3Y8.26%
ROICexc growth 5Y5.25%
OM growth 3Y0.95%
OM growth 5Y2.09%
PM growth 3Y0.73%
PM growth 5Y1.73%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.36 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 0.89 | ||
| Cap/Depr | 106.3% | ||
| Cap/Sales | 3.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.62% | ||
| Profit Quality | 109.79% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 10.07 |
F-Score8
WACC8.55%
ROIC/WACC5.98
Cap/Depr(3y)125.19%
Cap/Depr(5y)126.79%
Cap/Sales(3y)4.09%
Cap/Sales(5y)4.3%
Profit Quality(3y)104.2%
Profit Quality(5y)102.77%
High Growth Momentum
Growth
EPS 1Y (TTM)16.5%
EPS 3Y16.91%
EPS 5Y21.49%
EPS Q2Q%24.61%
EPS Next Y18.13%
EPS Next 2Y16.98%
EPS Next 3Y16.92%
EPS Next 5Y15.04%
Revenue 1Y (TTM)16.42%
Revenue growth 3Y13.82%
Revenue growth 5Y16.47%
Sales Q2Q%17.59%
Revenue Next Year12.88%
Revenue Next 2Y12.59%
Revenue Next 3Y12.51%
Revenue Next 5Y11.48%
EBIT growth 1Y17.87%
EBIT growth 3Y14.9%
EBIT growth 5Y18.9%
EBIT Next Year20.1%
EBIT Next 3Y15.48%
EBIT Next 5Y12.72%
FCF growth 1Y20.96%
FCF growth 3Y17.62%
FCF growth 5Y20.32%
OCF growth 1Y19.4%
OCF growth 3Y16.38%
OCF growth 5Y19.56%
MASTERCARD INC - A / MA FAQ
Can you provide the ChartMill fundamental rating for MASTERCARD INC - A?
ChartMill assigns a fundamental rating of 7 / 10 to MA.
Can you provide the valuation status for MASTERCARD INC - A?
ChartMill assigns a valuation rating of 3 / 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 18.13% 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 18.41%.