MASTERCARD INC - A (MA)
US57636Q1040 - Common Stock
Overall MA gets a fundamental rating of 7 out of 10. We evaluated MA against 102 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 valied quite expensively at the moment, while it does show a decent growth rate. 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.
MA had positive earnings in each of the past 5 years.
In the past 5 years MA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 26.37%, MA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of MA (161.57%) is better than 100.00% of its industry peers.
MA's Return On Invested Capital of 46.58% is amongst the best of the industry. MA outperforms 99.02% 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 7.95%.
The last Return On Invested Capital (46.58%) for MA is above the 3 year average (41.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.37% | ||
| ROE | 161.57% | ||
| ROIC | 46.58% |
ROA(3y)25.03%
ROA(5y)24.39%
ROE(3y)146.01%
ROE(5y)135.22%
ROIC(3y)41.59%
ROIC(5y)40.58%
1.3 Margins
MA's Profit Margin of 44.61% is amongst the best of the industry. MA outperforms 90.20% of its industry peers.
In the last couple of years the Profit Margin of MA has grown nicely.
MA has a better Operating Margin (58.29%) than 90.20% of its industry peers.
MA's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.29% | ||
| PM (TTM) | 44.61% | ||
| GM | N/A |
OM growth 3Y3%
OM growth 5Y0.93%
PM growth 3Y2.11%
PM growth 5Y2.62%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MA is creating value.
The number of shares outstanding for MA has been reduced compared to 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.
With an excellent Altman-Z score value of 10.83, MA belongs to the best of the industry, outperforming 97.06% of the companies in the same industry.
The Debt to FCF ratio of MA is 1.44, which is an excellent value as it means it would take MA, only 1.44 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MA (1.44) is better than 79.41% of its industry peers.
MA has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of MA (2.07) is worse than 72.55% of its industry peers.
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 | 2.07 | ||
| Debt/FCF | 1.44 | ||
| Altman-Z | 10.83 |
ROIC/WACC5.15
WACC9.04%
2.3 Liquidity
A Current Ratio of 1.17 indicates that MA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.17, MA is in line with its industry, outperforming 53.92% of the companies in the same industry.
A Quick Ratio of 1.17 indicates that MA should not have too much problems paying its short term obligations.
MA has a Quick ratio (1.17) 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 | 1.17 | ||
| Quick Ratio | 1.17 |
3. Growth
3.1 Past
MA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.12%, 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 13.57% yearly.
The Revenue has grown by 12.87% in the past year. This is quite good.
MA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.92% yearly.
EPS 1Y (TTM)15.12%
EPS 3Y24%
EPS 5Y13.57%
EPS growth Q2Q20%
Revenue 1Y (TTM)12.87%
Revenue growth 3Y17.93%
Revenue growth 5Y10.92%
Revenue growth Q2Q12.57%
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 16.15% on average per year.
MA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.49% yearly.
EPS Next Y20.92%
EPS Next 2Y18.65%
EPS Next 3Y17.68%
EPS Next 5Y16.15%
Revenue Next Year12.29%
Revenue Next 2Y12.42%
Revenue Next 3Y12.49%
Revenue Next 5YN/A
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
MA is valuated quite expensively with a Price/Earnings ratio of 35.98.
MA's Price/Earnings ratio is a bit more expensive when compared to the industry. MA is more expensive than 63.73% of the companies in the same industry.
MA is valuated rather expensively when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
MA is valuated quite expensively with a Price/Forward Earnings ratio of 29.76.
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 67.65% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.72. MA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.98 | ||
| Fwd PE | 29.76 |
4.2 Price Multiples
MA's Enterprise Value to EBITDA ratio is in line with the industry average.
MA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.78 | ||
| EV/EBITDA | 27.11 |
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.
MA's earnings are expected to grow with 17.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.72
PEG (5Y)2.65
EPS Next 2Y18.65%
EPS Next 3Y17.68%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, MA is not a good candidate for dividend investing.
MA's Dividend Yield is comparable with the industry average which is at 3.61.
Compared to an average S&P500 Dividend Yield of 2.41, MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
5.2 History
On average, the dividend of MA grows each year by 17.92%, which is quite nice.
MA has paid a dividend for at least 10 years, which is a reliable track record.
MA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)17.92%
Div Incr Years12
Div Non Decr Years17
5.3 Sustainability
19.28% of the earnings are spent on dividend by MA. This is a low number and sustainable payout ratio.
MA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.28%
EPS Next 2Y18.65%
EPS Next 3Y17.68%
MASTERCARD INC - A
NYSE:MA (5/2/2024, 7:05:40 PM)
After market: 441.1 0 (0%)441.1
-0.97 (-0.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap411.50B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.98 | ||
| Fwd PE | 29.76 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.72
PEG (5Y)2.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.37% | ||
| ROE | 161.57% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 58.29% | ||
| PM (TTM) | 44.61% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.17 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.12%
EPS 3Y24%
EPS 5Y
EPS growth Q2Q
EPS Next Y20.92%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.87%
Revenue growth 3Y17.93%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y