MASTERCARD INC - A (MA) Stock Fundamental Analysis
USA - NYSE:MA - US57636Q1040 - Common Stock
576.44 USD
-3.4 (-0.59%)
576.44 USD
0 (0%)
MA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 99 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. This makes MA very considerable for quality investing!
1. Profitability
1.1 Basic Checks
MA had positive earnings in the past year.
MA had a positive operating cash flow in the past year.
MA had positive earnings in each of the past 5 years.
Each year in the past 5 years MA had a positive operating cash flow.
1.2 Ratios
MA has a Return On Assets of 26.42%. This is amongst the best in the industry. MA outperforms 98.99% of its industry peers.
Looking at the Return On Equity, with a value of 173.00%, MA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 45.82%, MA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
MA had an Average Return On Invested Capital over the past 3 years of 45.83%. This is significantly above the industry average of 7.66%.
| 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
MA's Profit Margin of 44.93% is amongst the best of the industry. MA outperforms 88.89% of its industry peers.
In the last couple of years the Profit Margin of MA has remained more or less at the same level.
The Operating Margin of MA (58.98%) is better than 87.88% of its industry peers.
MA's Operating Margin has been stable in the last couple of years.
| 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.
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 11.16 indicates that MA is not in any danger for bankruptcy at the moment.
MA has a better Altman-Z score (11.16) than 95.96% 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 78.79% of its industry peers.
MA has a Debt/Equity ratio of 2.42. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.42, MA is not doing good in the industry: 68.69% 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 | 2.42 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 11.16 |
ROIC/WACC5.33
WACC8.59%
2.3 Liquidity
A Current Ratio of 1.16 indicates that MA should not have too much problems paying its short term obligations.
MA's Current ratio of 1.16 is in line compared to the rest of the industry. MA outperforms 58.59% of its industry peers.
A Quick Ratio of 1.16 indicates that MA should not have too much problems paying its short term obligations.
MA has a Quick ratio (1.16) which is in line with 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.
Measured over the past years, MA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.43% on average per year.
The Revenue has grown by 14.59% in the past year. This is quite good.
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
Based on estimates for the next years, MA will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.33% on average per year.
The Revenue is expected to grow by 11.67% on average over the next years. This is quite good.
EPS Next Y15.38%
EPS Next 2Y15.74%
EPS Next 3Y15.99%
EPS Next 5Y15.33%
Revenue Next Year16.11%
Revenue Next 2Y14.08%
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.
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 36.97.
Based on the Price/Earnings ratio, MA is valued a bit more expensive than the industry average as 70.71% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 27.91. MA is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 29.45 indicates a quite expensive valuation of MA.
Based on the Price/Forward Earnings ratio, MA is valued a bit more expensive than 74.75% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.30. MA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.97 | ||
| Fwd PE | 29.45 |
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.
MA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.84 | ||
| EV/EBITDA | 28.3 |
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.
A more expensive valuation may be justified as MA's earnings are expected to grow with 15.99% in the coming years.
PEG (NY)2.4
PEG (5Y)2.75
EPS Next 2Y15.74%
EPS Next 3Y15.99%
5. Dividend
5.1 Amount
MA has a yearly dividend return of 0.53%, which is pretty low.
MA's Dividend Yield is comparable with the industry average which is at 5.03.
With a Dividend Yield of 0.53, MA pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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.
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.
DP19.15%
EPS Next 2Y15.74%
EPS Next 3Y15.99%
576.44
-3.4 (-0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.32%
Inst Owner Change0%
Ins Owners0.05%
Ins Owner Change-0.01%
Market Cap521.11B
Analysts79.57
Price Target654.29 (13.51%)
Short Float %0.66%
Short Ratio2.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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)0.26%
PT rev (3m)2.93%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)5.29%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)2.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.31%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.97 | ||
| Fwd PE | 29.45 | ||
| P/S | 17.23 | ||
| P/FCF | 32.84 | ||
| P/OCF | 30.74 | ||
| P/B | 66.36 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.3 |
EPS(TTM)15.59
EY2.7%
EPS(NY)19.57
Fwd EY3.4%
FCF(TTM)17.55
FCFY3.04%
OCF(TTM)18.75
OCFY3.25%
SpS33.45
BVpS8.69
TBVpS-8.16
PEG (NY)2.4
PEG (5Y)2.75
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 | 11.16 |
F-Score5
WACC8.59%
ROIC/WACC5.33
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 Y15.38%
EPS Next 2Y15.74%
EPS Next 3Y15.99%
EPS Next 5Y15.33%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.84%
Revenue Next Year16.11%
Revenue Next 2Y14.08%
Revenue Next 3Y13.33%
Revenue Next 5Y11.67%
EBIT growth 1Y15.33%
EBIT growth 3Y17.33%
EBIT growth 5Y11.15%
EBIT Next Year23.18%
EBIT Next 3Y16.18%
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%