MASTERCARD INC - A (MA) Stock Fundamental Analysis
NYSE:MA - US57636Q1040 - Common Stock
591.87 USD
-3.42 (-0.57%)
591.71 USD
-0.16 (-0.03%)
Overall MA gets a fundamental rating of 6 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. While showing a medium growth rate, MA is valued expensive at the moment. With these ratings, MA could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
MA had positive earnings in the past year.
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
MA has a better Return On Assets (26.42%) than 99.02% of its industry peers.
MA's Return On Equity of 173.00% is amongst the best of the industry. MA outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 45.82%, MA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MA is significantly above the industry average of 7.59%.
| 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 88.24% of its industry peers.
MA's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 58.98%, MA belongs to the best of the industry, outperforming 88.24% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
Compared to 1 year ago, MA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.35 indicates that MA is not in any danger for bankruptcy at the moment.
MA's Altman-Z score of 11.35 is amongst the best of the industry. MA outperforms 93.14% of its industry peers.
MA has a debt to FCF ratio of 1.20. This is a very positive value and a sign of high solvency as it would only need 1.20 years to pay back of all of its debts.
MA has a better Debt to FCF ratio (1.20) than 78.43% of its industry peers.
A Debt/Equity ratio of 2.42 is on the high side and indicates that MA has dependencies on debt financing.
MA has a worse Debt to Equity ratio (2.42) than 70.59% 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 | 2.42 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 11.35 |
ROIC/WACC5.28
WACC8.68%
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 in line with its industry peers.
A Quick Ratio of 1.16 indicates that MA should not have too much problems paying its short term obligations.
MA's Quick ratio of 1.16 is in line compared to the rest of the industry. MA outperforms 57.84% 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 15.74%, which is quite good.
The Earnings Per Share has been growing by 13.43% on average over the past years. This is quite good.
Looking at the last year, MA shows a quite strong growth in Revenue. The Revenue has grown by 14.59% 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)15.74%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%15.6%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.84%
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 15.33% yearly.
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 Y15.4%
EPS Next 2Y15.7%
EPS Next 3Y15.94%
EPS Next 5Y15.33%
Revenue Next Year16.09%
Revenue Next 2Y14.1%
Revenue Next 3Y13.33%
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.
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
The Price/Earnings ratio is 37.96, which means the current valuation is very expensive for MA.
Based on the Price/Earnings ratio, MA is valued a bit more expensive than 72.55% of the companies in the same industry.
MA's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.13.
The Price/Forward Earnings ratio is 30.26, which means the current valuation is very expensive for MA.
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 73.53% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.76, MA is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.96 | ||
| Fwd PE | 30.26 |
4.2 Price Multiples
MA's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.72 | ||
| EV/EBITDA | 29.05 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of MA may justify a higher PE ratio.
MA's earnings are expected to grow with 15.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.46
PEG (5Y)2.83
EPS Next 2Y15.7%
EPS Next 3Y15.94%
5. Dividend
5.1 Amount
MA has a yearly dividend return of 0.51%, which is pretty low.
Compared to an average industry Dividend Yield of 4.24, MA has a dividend in line with its industry peers.
With a Dividend Yield of 0.51, MA pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
The dividend of MA is nicely growing with an annual growth rate of 14.95%!
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.
The dividend of MA is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP19.15%
EPS Next 2Y15.7%
EPS Next 3Y15.94%
591.87
-3.42 (-0.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.29%
Inst Owner Change0.07%
Ins Owners0.05%
Ins Owner Change0.06%
Market Cap535.06B
Analysts80
Price Target652.62 (10.26%)
Short Float %0.65%
Short Ratio2.05
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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)2.15%
PT rev (3m)3.87%
EPS NQ rev (1m)4.95%
EPS NQ rev (3m)3.99%
EPS NY rev (1m)2.73%
EPS NY rev (3m)2.78%
Revenue NQ rev (1m)3.07%
Revenue NQ rev (3m)3.95%
Revenue NY rev (1m)1.97%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.96 | ||
| Fwd PE | 30.26 | ||
| P/S | 17.69 | ||
| P/FCF | 33.72 | ||
| P/OCF | 31.56 | ||
| P/B | 68.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.05 |
EPS(TTM)15.59
EY2.63%
EPS(NY)19.56
Fwd EY3.3%
FCF(TTM)17.55
FCFY2.97%
OCF(TTM)18.75
OCFY3.17%
SpS33.45
BVpS8.69
TBVpS-8.16
PEG (NY)2.46
PEG (5Y)2.83
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%
ROICexcg growth 3Y16.14%
ROICexcg 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 | 11.35 |
F-Score5
WACC8.68%
ROIC/WACC5.28
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)15.74%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%15.6%
EPS Next Y15.4%
EPS Next 2Y15.7%
EPS Next 3Y15.94%
EPS Next 5Y15.33%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.84%
Revenue Next Year16.09%
Revenue Next 2Y14.1%
Revenue Next 3Y13.33%
Revenue Next 5Y11.67%
EBIT growth 1Y15.33%
EBIT growth 3Y17.33%
EBIT growth 5Y11.15%
EBIT Next Year23.09%
EBIT Next 3Y16.12%
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%