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Mastercard

NYSE:MA
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MA
NYSE
$212B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The last earnings update was 80 days ago. More info.


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MA Share Price and Events
Price Volatility
MA
Industry
5yr Volatility vs Market

MA Value

 Is Mastercard undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Mastercard to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Mastercard.

NYSE:MA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 36 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:MA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
IT Unlevered Beta Simply Wall St/ S&P Global 0.97
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.969 (1 + (1- 21%) (2.76%))
0.99
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.99
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (0.99 * 7.05%)
9.93%

Discounted Cash Flow Calculation for NYSE:MA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Mastercard is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:MA DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 7,752.77 9,035.27 10,188.00 11,375.67 12,534.93
Source Analyst x12 Analyst x9 Analyst x3 Analyst x3 Est @ 10.19%
Present Value
Discounted (@ 9.93%)
7,052.64 7,477.07 7,669.63 7,790.36 7,809.04
Present value of next 5 years cash flows $37,798.73
NYSE:MA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $12,534.93 × (1 + 2.95%) ÷ (9.93% – 2.95%)
$184,957.23
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $184,957.23 ÷ (1 + 9.93%)5
$115,225.03
NYSE:MA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $37,798.73 + $115,225.03
$153,023.75
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $153,023.75 / 1,038.45
$147.36
NYSE:MA Discount to Share Price
Calculation Result
Value per share (USD) From above. $147.36
Current discount Discount to share price of $204.22
= -1 x ($204.22 - $147.36) / $147.36
-38.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Mastercard is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Mastercard's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Mastercard's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:MA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in USD $4.48
NYSE:MA Share Price ** NYSE (2018-10-12) in USD $204.22
United States of America IT Industry PE Ratio Median Figure of 73 Publicly-Listed IT Companies 26.17x
United States of America Market PE Ratio Median Figure of 2,938 Publicly-Listed Companies 19.24x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Mastercard.

NYSE:MA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:MA Share Price ÷ EPS (both in USD)

= 204.22 ÷ 4.48

45.6x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mastercard is overvalued based on earnings compared to the US IT industry average.
  • Mastercard is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Mastercard's expected growth come at a high price?
Raw Data
NYSE:MA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 45.6x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 36 Analysts
17.7%per year
United States of America IT Industry PEG Ratio Median Figure of 61 Publicly-Listed IT Companies 1.98x
United States of America Market PEG Ratio Median Figure of 2,056 Publicly-Listed Companies 1.29x

*Line of best fit is calculated by linear regression .

NYSE:MA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 45.6x ÷ 17.7%

2.57x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mastercard is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Mastercard's assets?
Raw Data
NYSE:MA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in USD $5.06
NYSE:MA Share Price * NYSE (2018-10-12) in USD $204.22
United States of America IT Industry PB Ratio Median Figure of 118 Publicly-Listed IT Companies 4.14x
United States of America Market PB Ratio Median Figure of 4,936 Publicly-Listed Companies 1.93x
NYSE:MA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:MA Share Price ÷ Book Value per Share (both in USD)

= 204.22 ÷ 5.06

40.39x

* Primary Listing of Mastercard.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mastercard is overvalued based on assets compared to the US IT industry average.
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Value checks
We assess Mastercard's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the IT industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the IT industry average (and greater than 0)? (1 check)
  5. Mastercard has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MA Future Performance

 How is Mastercard expected to perform in the next 1 to 3 years based on estimates from 36 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
17.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Mastercard expected to grow at an attractive rate?
  • Mastercard's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Mastercard's earnings growth is expected to exceed the United States of America market average.
  • Mastercard's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:MA Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:MA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 36 Analysts 17.7%
NYSE:MA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 36 Analysts 11.5%
United States of America IT Industry Earnings Growth Rate Market Cap Weighted Average 17.6%
United States of America IT Industry Revenue Growth Rate Market Cap Weighted Average 9.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 15.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:MA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:MA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 23,898 12,527 3
2021-12-31 21,368 11,050 3
2020-12-31 18,976 9,651 8,823 23
2019-12-31 16,873 8,328 7,623 36
2018-12-31 14,955 6,912 6,466 36
NYSE:MA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-06-30 13,955 6,027 4,718
2018-03-31 13,343 5,863 4,326
2017-12-31 12,497 5,555 3,915
2017-09-30 11,941 4,799 4,621
2017-06-30 11,423 4,468 4,375
2017-03-31 11,064 4,204 4,181
2016-12-31 10,776 4,535 4,059
2016-09-30 10,537 4,582 4,016
2016-06-30 10,187 4,430 3,809
2016-03-31 9,883 4,190 3,747
2015-12-31 9,667 4,101 3,808
2015-09-30 9,561 3,729 3,719

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Mastercard's earnings are expected to grow by 17.7% yearly, however this is not considered high growth (20% yearly).
  • Mastercard's revenue is expected to grow by 11.5% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:MA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below

All data from Mastercard Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 12.47 12.47 12.47 1.00
2021-12-31 10.65 10.65 10.65 1.00
2020-12-31 8.86 9.14 8.48 14.00
2019-12-31 7.48 7.90 6.85 21.00
2018-12-31 6.20 6.48 5.96 19.00
NYSE:MA Past Financials Data
Date (Data in USD Millions) EPS *
2018-06-30 4.48
2018-03-31 4.08
2017-12-31 3.67
2017-09-30 4.30
2017-06-30 4.04
2017-03-31 3.83
2016-12-31 3.70
2016-09-30 3.63
2016-06-30 3.42
2016-03-31 3.33
2015-12-31 3.36
2015-09-30 3.26

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Mastercard is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).
X
Future performance checks
We assess Mastercard's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Mastercard has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MA Past Performance

  How has Mastercard performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Mastercard's growth in the last year to its industry (IT).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Mastercard's year on year earnings growth rate has been positive over the past 5 years.
  • Mastercard's 1-year earnings growth is less than its 5-year average (7.8% vs 7.9%)
  • Mastercard's earnings growth has not exceeded the US IT industry average in the past year (7.8% vs 32.4%).
Earnings and Revenue History
Mastercard's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Mastercard Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:MA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 13,955.00 4,718.00 5,747.00
2018-03-31 13,343.00 4,326.00 5,647.00
2017-12-31 12,497.00 3,915.00 5,250.00
2017-09-30 11,941.00 4,621.00 5,040.00
2017-06-30 11,423.00 4,375.00 4,818.00
2017-03-31 11,064.00 4,181.00 4,643.00
2016-12-31 10,776.00 4,059.00 4,525.00
2016-09-30 10,537.00 4,016.00 4,551.00
2016-06-30 10,187.00 3,809.00 4,422.00
2016-03-31 9,883.00 3,747.00 4,294.00
2015-12-31 9,667.00 3,808.00 4,083.00
2015-09-30 9,561.00 3,719.00 3,988.00
2015-06-30 9,521.00 3,757.00 3,987.00
2015-03-31 9,499.00 3,767.00 3,905.00
2014-12-31 9,441.00 3,617.00 3,927.00
2014-09-30 9,156.00 3,439.00 3,745.00
2014-06-30 8,884.00 3,303.00 3,664.00
2014-03-31 8,612.00 3,220.00 3,567.00
2013-12-31 8,312.00 3,116.00 3,456.00
2013-09-30 8,115.00 3,098.00 3,384.00
2013-06-30 7,815.00 2,991.00 3,274.00
2013-03-31 7,539.00 2,843.00 3,237.00
2012-12-31 7,391.00 2,759.00 3,204.00
2012-09-30 7,224.00 2,173.00 3,184.00
2012-06-30 7,124.00 2,118.00 3,153.00
2012-03-31 6,971.00 2,026.00 3,116.00
2011-12-31 6,714.00 1,906.00 3,037.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Mastercard made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%).
  • Mastercard used its assets more efficiently than the US IT industry average last year based on Return on Assets.
  • Mastercard's use of capital has not improved over the past 3 years (Return on Capital Employed).
X
Past performance checks
We assess Mastercard's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the IT industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Mastercard has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MA Health

 How is Mastercard's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Mastercard's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Mastercard is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Mastercard's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Mastercard's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Mastercard Company Filings, last reported 3 months ago.

NYSE:MA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 5,350.00 5,858.00 7,745.00
2018-03-31 5,802.00 6,469.00 8,268.00
2017-12-31 5,568.00 5,424.00 7,782.00
2017-09-30 6,538.00 5,393.00 7,423.00
2017-06-30 5,948.00 5,326.00 6,959.00
2017-03-31 5,638.00 5,216.00 7,660.00
2016-12-31 5,684.00 5,180.00 8,335.00
2016-09-30 6,249.00 3,326.00 6,979.00
2016-06-30 5,869.00 3,306.00 6,447.00
2016-03-31 5,511.00 3,333.00 6,208.00
2015-12-31 6,062.00 3,268.00 6,738.00
2015-09-30 6,298.00 1,495.00 5,109.00
2015-06-30 6,436.00 1,495.00 5,077.00
2015-03-31 6,334.00 1,495.00 5,796.00
2014-12-31 6,824.00 1,535.00 6,375.00
2014-09-30 6,548.00 1,494.00 6,319.00
2014-06-30 6,314.00 1,494.00 5,714.00
2014-03-31 6,578.00 1,494.00 6,562.00
2013-12-31 7,495.00 35.00 6,295.00
2013-09-30 7,668.00 0.00 6,007.00
2013-06-30 7,029.00 0.00 5,090.00
2013-03-31 6,756.00 0.00 5,020.00
2012-12-31 6,929.00 0.00 5,039.00
2012-09-30 6,924.00 0.00 5,675.00
2012-06-30 6,276.00 0.00 4,992.00
2012-03-31 6,379.00 0.00 5,177.00
2011-12-31 5,877.00 0.00 4,949.00
  • Mastercard's level of debt (109.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 109.5% today).
  • Debt is well covered by operating cash flow (102.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 84.1x coverage).
X
Financial health checks
We assess Mastercard's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Mastercard has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MA Dividends

 What is Mastercard's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.49%
Current annual income from Mastercard dividends. Estimated to be 0.56% next year.
If you bought $2,000 of Mastercard shares you are expected to receive $10 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Mastercard's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.36%).
  • Mastercard's dividend is below the markets top 25% of dividend payers in United States of America (3.52%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:MA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below
United States of America IT Industry Average Dividend Yield Market Cap Weighted Average of 33 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1971 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:MA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 2.02 1.00
2021-12-31 1.75 1.00
2020-12-31 1.22 15.00
2019-12-31 1.12 19.00
2018-12-31 1.02 19.00
NYSE:MA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-09-17 1.000 0.464
2018-06-25 1.000 0.487
2018-02-05 1.000 0.549
2017-12-04 1.000 0.634
2017-09-19 0.880 0.600
2017-06-27 0.880 0.675
2017-02-07 0.880 0.764
2016-12-06 0.880 0.829
2016-09-27 0.760 0.737
2016-06-28 0.760 0.798
2016-02-02 0.760 0.822
2015-12-08 0.760 0.820
2015-09-22 0.640 0.661
2015-06-10 0.640 0.679
2015-02-03 0.640 0.713
2015-01-30 0.640 0.772
2014-09-16 0.440 0.544
2014-06-03 0.440 0.580
2014-02-04 0.440 0.586
2013-12-10 0.440 0.546
2013-09-17 0.240 0.335
2013-06-18 0.240 0.393
2013-02-05 0.240 0.444
2012-12-04 0.120 0.238
2012-09-11 0.120 0.258
2012-06-05 0.120 0.282
2012-02-07 0.120 0.285
2011-12-06 0.060 0.166
2011-09-21 0.060 0.174
2011-06-07 0.060 0.195
2011-02-08 0.060 0.229
2010-12-07 0.060 0.255
2010-09-21 0.060 0.254
2010-06-07 0.060 0.290
2010-02-02 0.060 0.256
2009-12-08 0.060 0.237
2009-09-21 0.060 0.268
2009-06-09 0.060 0.322
2009-02-03 0.060 0.366
2008-12-02 0.060 0.429
2008-10-15 0.060 0.426

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Mastercard is not paying a notable dividend for United States of America, therefore no need to check if the payments are stable.
  • Mastercard is not paying a notable dividend for United States of America, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Mastercard's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Mastercard's dividends as it is not paying a notable one for United States of America.
Future Payout to shareholders
  • No need to calculate the sustainability of Mastercard's dividends in 3 years as they are not expected to pay a notable one for United States of America.
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Income/ dividend checks
We assess Mastercard's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Mastercard afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Mastercard has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MA Management

 What is the CEO of Mastercard's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ajay Banga, image provided by Google.
Ajay Banga
COMPENSATION $18,684,468
AGE 58
TENURE AS CEO 8.3 years
CEO Bio

Mr. Ajaypal S. Banga, also known as Ajay, has been the Chief Executive Officer and President of Mastercard Incorporated since July 1, 2010 and August 31, 2009 respectively. Mr. Banga has been the Chief Executive Officer and President of Mondex International Ltd. since July 1, 2010 and August 31, 2009, respectively. He serves as the Chief Executive Officer and President of MasterCard International Incorporated. He served as the Chief Operating Officer of Mastercard Incorporated from August 31, 2009 to July 1, 2010. He served as the Chief Operating Officer of Mondex International Ltd. from August 31, 2009 to July 1, 2010. He served as the Chief Operating Officer of MasterCard International Incorporated. He joined MasterCard in 2009. Mr. Banga served as the Chief Executive Officer of Asia Pacific Region at Citibank Singapore Limited, a subsidiary of Citigroup Inc. He served as the Chairman of the Board and Chief Executive Officer of Global Consumer Group, International at Citigroup Finance Canada Inc. from August 2005 to 2008 and Citigroup Inc. since August 2005. He spent 13 years at Citibank, where he served as Chief Executive Officer of Citi Asia Pacific and was responsible for all its business lines in the region, including institutional banking, alternative investments, wealth management, consumer banking and credit cards. Mr. Banga served as the Chief Executive Officer of Asia Pacific Region at Citigroup Inc. until June 2009 and Head of Alternative Investments for Asia Pacific Region since August 2008. His responsibilities included all credit card, retail banking and consumer finance operations in Asia, Japan, Europe/Middle East/Africa, Latin America and Mexico at Citigroup. He served as the Head of International Consumer Business, New York at Citigroup Inc. until August 2008. Mr. Banga served as an Executive Vice President of Global Consumer Group at Citigroup and President of Retail Banking North America since 2002. Since 2002, he had additional responsibility for the servicing and technology of all the real estate businesses in the consumer bank. He was responsible for branch and commercial banking, commercial real estate, commercial financing and leasing, mortgages, student loans and the Primerica Financial Services distribution channel. He served as the Business Head for CitiFinancial and the US Consumer Assets Division from 2000 to 2002 and as Division Executive for consumer bank in Central/Eastern Europe, Middle East, Africa and India from 1998 to 2000. Mr. Banga began his business career as a Management Trainee at Nestlé, India, where for 13 years he worked on assignments spanning sales, marketing and general management. He spent the next 13 years in a variety of assignments spanning sales, marketing and general management. He spent two years at Pepsico, where he was instrumental in launching its fast food franchises in India as the economy liberalized. He joined Citifinancial in 1996 as Head of Marketing and Sales in India and as Head of its Sales, Marketing and Business Development for Europe, Middle East and Africa, based in Brussels. He is Director of the American Red Cross. He is Co-founder of Cyber Readiness Institute. He served as the Chairman and Chief Executive Officer of Foreign Consumer Business of Citigroup Inc. He was Business Sponsor of Citi's African heritage network, NYC. From 2005 to mid-2009, he spearheaded Citi's strategy in the microfinance sector around the world. He served as Chairman of U.S.– India Business Council and serves as its Member. Mr. Banga served as Vice Chairman of the New York Hall of Science. He has been an Independent Director of Mastercard Incorporated since April 12, 2010. He serves as a Director of MasterCard International Incorporated and New York City Ballet, Inc. He serves as a Trustee of the National Urban League, Enterprise Community Partners and the Asia Society. He serves as a Director of The Partnership for New York City, Inc and serves as its Co-Chair and a Director of Mondex International Limited. Mr. Banga is a member of the Board of Overseers of the Weill Cornell Medical College. He has served on the board of trustees of the Asia Society, the New York Hall of Science and among others. He served as a Director of The Dow Chemical Company since February 19, 2013 to August 31, 2017. He served as a Director of Mondelez International, Inc. from January 2007 to May 23, 2012. He served as a Director for the Council for Economic Education. He served as a Director of Foreign Consumer Business of Citigroup Inc. He served as a Director of Kraft Foods Inc. from January 2007 to May 23, 2012. He is a member of the Council on Foreign Relations, the International Advisory Board of the Moscow School of Management (Skolkovo), The Economic Club of New York and The Financial Services Roundtable. He is a Member of President’s Advisory Committee for Trade Policy and Negotiations (U.S.). He was a member of President’s Commission on Enhancing National Cybersecurity (U.S.). He is a Member, materials advisory committee of the Board of Directors, DowDuPont, Inc. He is Vice Chairman of The Business Council. He is Founding Trustee of U.S.-India Strategic Partnership Forum. He has a keen interest in social development issues. He was named by The Economic Times of India as the fourth "Most Powerful Indian" in the world. He is a fellow of the Foreign Policy Association and was awarded the Foreign Policy Association Medal in 2012. Mr. Banga graduated with a BA in Economics Honors from Delhi University and received an MBA from the Indian Institute of Management in Ahmedabad, India.

CEO Compensation
  • Ajay's compensation has been consistent with company performance over the past year.
  • Ajay's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Mastercard management team in years:

2.5
Average Tenure
52
Average Age
  • The tenure for the Mastercard management team is about average.
Management Team

Ajay Banga

TITLE
President
COMPENSATION
$19M
AGE
58
TENURE
8.3 yrs

Martina T. Hund-Mejean

TITLE
Chief Financial Officer
COMPENSATION
$7M
AGE
57
TENURE
10.9 yrs

Ann Cairns

TITLE
Vice Chairman
COMPENSATION
$5M
AGE
61

Craig Vosburg

TITLE
President of North America
COMPENSATION
$4M
AGE
51
TENURE
2.8 yrs

Ed McLaughlin

TITLE
President of Operations & Technology
AGE
52
TENURE
1.4 yrs

Sandra Arkell

TITLE
Corporate Controller & Principal Accounting Officer
AGE
50
TENURE
1.5 yrs

Warren Kneeshaw

TITLE
Executive Vice President of Investor Relations
TENURE
1.9 yrs

Tim Murphy

TITLE
Chief Franchise Officer & General Counsel
AGE
50
TENURE
4.5 yrs

Raja Rajamannar

TITLE
Chief Marketing & Communications Officer and President of Healthcare

Michael Fraccaro

TITLE
Chief Human Resources Officer
AGE
52
TENURE
2.3 yrs
Board of Directors Tenure

Average tenure and age of the Mastercard board of directors in years:

10.8
Average Tenure
62
Average Age
  • The average tenure for the Mastercard board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Rick Haythornthwaite

TITLE
Chairman of the Board
COMPENSATION
$480K
AGE
61
TENURE
12.1 yrs

Ajay Banga

TITLE
President
COMPENSATION
$19M
AGE
58
TENURE
8.5 yrs

Steve Freiberg

TITLE
Independent Director
COMPENSATION
$335K
AGE
61
TENURE
12.1 yrs

Nancy Karch

TITLE
Director
COMPENSATION
$320K
AGE
70
TENURE
11.8 yrs

José Reyes Lagunes

TITLE
Director
COMPENSATION
$305K
AGE
66
TENURE
10.8 yrs

Silvio Barzi

TITLE
Independent Director
COMPENSATION
$315K
AGE
70
TENURE
10.8 yrs

David Carlucci

TITLE
Director
COMPENSATION
$325K
AGE
63
TENURE
12.4 yrs

Jack Tai

TITLE
Director
COMPENSATION
$330K
AGE
68
TENURE
10.1 yrs

Rima Qureshi

TITLE
Director
COMPENSATION
$310K
AGE
53
TENURE
7.5 yrs

Julius Genachowski

TITLE
Director
COMPENSATION
$299K
AGE
55
TENURE
4.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Start End Shares Value (USD)
12. Mar 18 Sell David Carlucci Individual 09. Mar 18 09. Mar 18 -5,950 $-1,089,453.33
X
Management checks
We assess Mastercard's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Mastercard has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MA News

External News
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Simply Wall St News

Is Mastercard Incorporated's (NYSE:MA) CEO Pay Justified?

Leading Mastercard Incorporated (NYSE:MA) as the CEO, Ajay Banga took the company to a valuation of US$211.02b. … Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders.

Simply Wall St -

Why Mastercard Incorporated’s (NYSE:MA) Cash Is A Factor You Need To Consider

If you are currently a shareholder in Mastercard Incorporated (NYSE:MA), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … I’ve analysed below, the health and outlook of Mastercard’s cash flow, which will help you understand the stock from a cash standpoint. … Mastercard generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating.

Simply Wall St -

Mastercard Incorporated (NYSE:MA): A Look At Return On Capital

and looking to gauge the potential return on investment in Mastercard Incorporated (NYSE:MA). … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Therefore, looking at how efficiently Mastercard is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Who Are The Major Shareholders In Mastercard Incorporated (NYSE:MA)?

In this article, I will take a quick look at Mastercard Incorporated’s (NYSE:MA) recent ownership structure – an unconventional investing subject, but an important one. … Ownership structure has been found to have an impact on shareholder returns in both short- and long-term. … Differences in ownership structure of companies can have a profound effect on how management's incentives are aligned with shareholder returns, and whether they adhere to corporate governance best practices.

Simply Wall St -

Is Mastercard Incorporated (NYSE:MA) Expensive For A Reason? A Look At The Intrinsic Value

by taking the expected future cash flows and discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

What Is Driving Mastercard Incorporated's (NYSE:MA) Margins In The Next Few Years?

earnings growth of 16.32% annualised … over the couple of years ahead, … it's necessary to take a moment

Simply Wall St -

Mastercard Incorporated (NYSE:MA) Investors Are Paying Above The Intrinsic Value

I am going to run you through how I calculated the intrinsic value of Mastercard Incorporated (NYSE:MA) by taking the foreast future cash flows of the company and discounting them back to today's value. … 5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $6,624.60 $7,500.97 $8,450.50 $9,512.50 $10,663.00 Source Analyst x12 Analyst x10 Analyst x2 Analyst x2 Analyst x2 Present Value Discounted @ 9.47% $6,051.74 $6,259.78 $6,442.35 $6,624.87 $6,783.96 Present Value of 5-year Cash Flow (PVCF)= $32,163 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $10,663 × (1 + 2.9%) ÷ (9.5% – 2.9%) = $168,471 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $168,471 / ( 1 + 9.5%)5 = $107,183 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $139,346.

Simply Wall St -

Are Mastercard Incorporated's (NYSE:MA) Interest Costs Too High?

At this stable level of debt, MA's cash and short-term investments stands at US$7.78B , ready to deploy into the business. … Moreover, MA has generated cash from operations of US$5.56B in the last twelve months, leading to an operating cash to total debt ratio of 102.42%, signalling that MA’s operating cash is sufficient to cover its debt. … Next Steps: MA’s high cash coverage means that, although its debt levels are high, the company is able to utilise its borrowings efficiently in order to generate cash flow.

Simply Wall St -

Should You Expect Mastercard Incorporated (NYSE:MA) To Continue Delivering An ROE Of 74.56%?

Check out our latest analysis for Mastercard Breaking down ROE — the mother of all ratios Return on Equity (ROE) weighs Mastercard’s profit against the level of its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Mastercard’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NYSE:MA Last Perf May 11th 18 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Does Mastercard Incorporated's (NYSE:MA) Stock Price Account For Its Growth?

Mastercard is trading at price-to-earnings (PE) ratio of 49.75x, this tells us the stock is overvalued compared to the US market average ratio of 18.68x , and overvalued based on current earnings compared to the it industry average of 25.38x. … NYSE:MA PE PEG Gauge Mar 18th 18 We understand MA seems to be overvalued based on its current earnings, compared to its industry peers. … This means that, when we account for Mastercard's growth, the stock can be viewed as overvalued , based on the fundamentals.

Simply Wall St -

MA Company Info

Map
Description

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services. The company also offers value-added services, such as safety and security products, loyalty and reward programs, information and consulting services, issuer and acquirer processing solutions, and payment and mobile gateways. In addition, it provides various integrated products and services for account holders, merchants, financial institutions, businesses, governments, and other organizations; programs that enable issuers to provide consumers with cards to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid payment programs and management services; and commercial payment products and solutions. Further, the company provides products and services to prevent, detect, and respond to fraud and cyber-attacks, and ensure the safety of transactions. It offers payment solutions and services under the MasterCard, Maestro, and Cirrus brands. Mastercard Incorporated has a strategic partnership with Bahrain Commercial Facilities Company BSC. The company was founded in 1966 and is headquartered in Purchase, New York.

Details
Name: Mastercard Incorporated
MA
Exchange: NYSE
Founded: 1966
$212,072,761,176
1,038,452,459
Website: http://www.mastercard.com
Address: Mastercard Incorporated
2000 Purchase Street,
Purchase,
New York, 10577,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE MA Class A Common Stock New York Stock Exchange US USD 25. May 2006
DB M4I Class A Common Stock Deutsche Boerse AG DE EUR 25. May 2006
XTRA M4I Class A Common Stock XETRA Trading Platform DE EUR 25. May 2006
LSE 0R2Z Class A Common Stock London Stock Exchange GB USD 25. May 2006
SWX MA Class A Common Stock SIX Swiss Exchange CH CHF 25. May 2006
WBAG MAST Class A Common Stock Wiener Boerse AG AT EUR 25. May 2006
BMV MA * Class A Common Stock Bolsa Mexicana de Valores MX MXN 25. May 2006
BOVESPA MSCD34 BDR EACH REPR 1 COM CL 'A' USD0.0001 Bolsa de Valores de Sao Paulo BR BRL 02. Feb 2012
Number of employees
Current staff
Staff numbers
13,400
Mastercard employees.
Industry
Data Processing and Outsourced Services
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/10/14 21:18
End of day share price update: 2018/10/12 00:00
Last estimates confirmation: 2018/10/12
Last earnings filing: 2018/07/26
Last earnings reported: 2018/06/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.