MASTERCARD INC - A (MA) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:MA • US57636Q1040
548.74 USD
-3.15 (-0.57%)
At close: Feb 6, 2026
548.6 USD
-0.14 (-0.03%)
After Hours: 2/6/2026, 8:04:00 PM
We assign a fundamental rating of 7 out of 10 to MA. MA was compared to 97 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. MA shows excellent growth, but is valued quite expensive already. These ratings could make MA a good candidate for growth and 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.
- In the past 5 years MA has always been profitable.
- MA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of MA (27.64%) is better than 97.94% of its industry peers.
- MA has a Return On Equity of 193.46%. This is amongst the best in the industry. MA outperforms 98.97% of its industry peers.
- The Return On Invested Capital of MA (51.15%) is better than 100.00% of its industry peers.
- MA had an Average Return On Invested Capital over the past 3 years of 48.09%. This is significantly above the industry average of 8.54%.
- 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
- MA has a Profit Margin of 45.65%. This is amongst the best in the industry. MA outperforms 87.63% of its industry peers.
- MA's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 59.37%, MA belongs to the best of the industry, outperforming 87.63% of the companies in the same industry.
- 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. 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.
- MA has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for MA has been reduced compared to a year ago.
2.2 Solvency
- MA has an Altman-Z score of 10.41. This indicates that MA is financially healthy and has little risk of bankruptcy at the moment.
- MA has a Altman-Z score of 10.41. This is amongst the best in the industry. MA outperforms 94.85% 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.
- Looking at the Debt to FCF ratio, with a value of 1.16, MA is in the better half of the industry, outperforming 78.35% of the companies in the same industry.
- MA has a Debt/Equity ratio of 2.36. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 2.36, MA is doing worse than 71.13% 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 | 2.36 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 10.41 |
ROIC/WACC5.89
WACC8.69%
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.
- With a Quick ratio value of 1.03, MA perfoms like the industry average, outperforming 49.48% of the companies in the same 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 | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
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.
- MA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 16.47% yearly.
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
- MA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.04% yearly.
- Based on estimates for the next years, MA will show a quite strong growth in Revenue. The Revenue will grow by 10.45% on average per year.
EPS Next Y18.13%
EPS Next 2Y16.98%
EPS Next 3Y16.92%
EPS Next 5Y15.04%
Revenue Next Year12.81%
Revenue Next 2Y12.48%
Revenue Next 3Y12.47%
Revenue Next 5Y10.45%
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.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 32.24 indicates a quite expensive valuation of MA.
- Compared to the rest of the industry, the Price/Earnings ratio of MA indicates a slightly more expensive valuation: MA is more expensive than 69.07% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.92. MA is around the same levels.
- With a Price/Forward Earnings ratio of 27.29, MA can be considered very expensive at the moment.
- 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.
- MA's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.24 | ||
| Fwd PE | 27.29 |
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 | 29.99 | ||
| EV/EBITDA | 24.42 |
4.3 Compensation for Growth
- MA's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct 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 16.92% in the coming years.
PEG (NY)1.78
PEG (5Y)1.5
EPS Next 2Y16.98%
EPS Next 3Y16.92%
5. Dividend
5.1 Amount
- With a yearly dividend of 0.63%, MA is not a good candidate for dividend investing.
- MA's Dividend Yield is comparable with the industry average which is at 1.99.
- Compared to an average S&P500 Dividend Yield of 1.83, MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
5.2 History
- On average, the dividend of MA grows each year by 13.71%, 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)13.71%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 18.41% 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.
DP18.41%
EPS Next 2Y16.98%
EPS Next 3Y16.92%
548.74
-3.15 (-0.57%)
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 Change-2.37%
Ins Owners0.05%
Ins Owner Change0%
Market Cap492.77B
Revenue(TTM)32.79B
Net Income(TTM)14.97B
Analysts81.22
Price Target674 (22.83%)
Short Float %0.81%
Short Ratio2.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.63% |
Yearly Dividend3.05
Dividend Growth(5Y)13.71%
DP18.41%
Div Incr Years0
Div Non Decr Years0
Ex-Date01-09 2026-01-09 (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)1.16%
PT rev (3m)2.24%
EPS NQ rev (1m)-0.12%
EPS NQ rev (3m)0.25%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.79%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)-0.05%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.24 | ||
| Fwd PE | 27.29 | ||
| P/S | 15.03 | ||
| P/FCF | 29.99 | ||
| P/OCF | 27.92 | ||
| P/B | 63.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.42 |
EPS(TTM)17.02
EY3.1%
EPS(NY)20.11
Fwd EY3.66%
FCF(TTM)18.3
FCFY3.33%
OCF(TTM)19.65
OCFY3.58%
SpS36.52
BVpS8.62
TBVpS-8.21
PEG (NY)1.78
PEG (5Y)1.5
Graham Number57.44
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 | 10.41 |
F-Score8
WACC8.69%
ROIC/WACC5.89
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 Year12.81%
Revenue Next 2Y12.48%
Revenue Next 3Y12.47%
Revenue Next 5Y10.45%
EBIT growth 1Y17.87%
EBIT growth 3Y14.9%
EBIT growth 5Y18.9%
EBIT Next Year19.27%
EBIT Next 3Y12.48%
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%.