MASTERCARD INC - A (MA) Stock Fundamental Analysis
NYSE:MA - New York Stock Exchange, Inc. - US57636Q1040 - Common Stock - Currency: USD
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. Both the health and profitability get an excellent rating, making MA a very profitable company, without any liquidiy or solvency issues. MA is quite expensive at the moment. It does show a decent growth rate. These ratings would make MA suitable 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.
MA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MA has a Return On Assets of 27.12%. This is amongst the best in the industry. MA outperforms 99.00% of its industry peers.
MA has a Return On Equity of 197.02%. This is amongst the best in the industry. MA outperforms 100.00% of its industry peers.
The Return On Invested Capital of MA (46.34%) is better than 98.00% of its industry peers.
MA had an Average Return On Invested Capital over the past 3 years of 45.59%. This is significantly above the industry average of 11.84%.
The last Return On Invested Capital (46.34%) for MA is above the 3 year average (45.59%), which is a sign of increasing profitability.
| Industry Rank | Sector 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%
1.3 Margins
With an excellent Profit Margin value of 45.21%, MA belongs to the best of the industry, outperforming 91.00% of the companies in the same industry.
MA's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 58.69%, MA belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
MA's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector 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
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.
Compared to 1 year ago, MA has less shares outstanding
Compared to 5 years ago, MA has less shares outstanding
Compared to 1 year ago, MA has a worse debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 11.41, MA belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
MA has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
MA has a Debt to FCF ratio of 1.31. This is in the better half of the industry: MA outperforms 79.00% of its industry peers.
MA has a Debt/Equity ratio of 2.82. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.82, MA is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
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 | 2.82 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 11.41 |
ROIC/WACC5.24
WACC8.84%
2.3 Liquidity
A Current Ratio of 1.11 indicates that MA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.11, MA perfoms like the industry average, outperforming 54.00% of the companies in the same industry.
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.
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 | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
MA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.70%, which is quite good.
MA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.43% yearly.
Looking at the last year, MA shows a quite strong growth in Revenue. The Revenue has grown by 13.12% in the last year.
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
MA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.30% yearly.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 37.87 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 73.00% of the companies are valued more cheaply.
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.
Based on the Price/Forward Earnings ratio of 29.72, the valuation of MA can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MA indicates a slightly more expensive valuation: MA is more expensive than 73.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. MA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.87 | ||
| Fwd PE | 29.72 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MA is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as MA.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.11 | ||
| EV/EBITDA | 29.28 |
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 an outstanding 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 15.22% in the coming years.
PEG (NY)3.06
PEG (5Y)2.82
EPS Next 2Y14.5%
EPS Next 3Y15.22%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
5.2 History
On average, the dividend of MA grows each year by 14.95%, which is quite nice.
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
MA pays out 19.22% 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.
DP19.22%
EPS Next 2Y14.5%
EPS Next 3Y15.22%
569.24
+7.72 (+1.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
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 Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend2.65
Dividend Growth(5Y)14.95%
DP19.22%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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%