Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. More Details
Reasonable growth potential with mediocre balance sheet.
Share Price & News
How has Mastercard's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MA is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: MA's weekly volatility (3%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: MA underperformed the US IT industry which returned 30.7% over the past year.
Return vs Market: MA underperformed the US Market which returned 35.9% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Mastercard's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 weeks ago | Simply Wall StIf You Had Bought Mastercard (NYSE:MA) Shares Five Years Ago You'd Have Earned 322% Returns
4 weeks ago | Simply Wall StMastercard (NYSE:MA) Has A Pretty Healthy Balance Sheet
1 month ago | Simply Wall StHere's What Mastercard Incorporated's (NYSE:MA) Shareholder Ownership Structure Looks Like
Is Mastercard undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MA ($385.94) is trading above our estimate of fair value ($327.27)
Significantly Below Fair Value: MA is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MA is poor value based on its PE Ratio (58.9x) compared to the US IT industry average (35.8x).
PE vs Market: MA is poor value based on its PE Ratio (58.9x) compared to the US market (18x).
Price to Earnings Growth Ratio
PEG Ratio: MA is poor value based on its PEG Ratio (3.3x)
Price to Book Ratio
PB vs Industry: MA is overvalued based on its PB Ratio (60.5x) compared to the US IT industry average (5.2x).
How is Mastercard forecast to perform in the next 1 to 3 years based on estimates from 35 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MA's forecast earnings growth (18% per year) is above the savings rate (2%).
Earnings vs Market: MA's earnings (18% per year) are forecast to grow faster than the US market (14.9% per year).
High Growth Earnings: MA's earnings are forecast to grow, but not significantly.
Revenue vs Market: MA's revenue (14.7% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: MA's revenue (14.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MA's Return on Equity is forecast to be very high in 3 years time (169.2%).
How has Mastercard performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MA has high quality earnings.
Growing Profit Margin: MA's current net profit margins (42.4%) are lower than last year (46.8%).
Past Earnings Growth Analysis
Earnings Trend: MA's earnings have grown by 15.1% per year over the past 5 years.
Accelerating Growth: MA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MA had negative earnings growth (-17.7%) over the past year, making it difficult to compare to the IT industry average (19.3%).
Return on Equity
High ROE: Whilst MA's Return on Equity (101.44%) is outstanding, this metric is skewed due to their high level of debt.
How is Mastercard's financial position?
Financial Position Analysis
Short Term Liabilities: MA's short term assets ($16.4B) exceed its short term liabilities ($11.5B).
Long Term Liabilities: MA's short term assets ($16.4B) do not cover its long term liabilities ($16.9B).
Debt to Equity History and Analysis
Debt Level: MA's debt to equity ratio (201.8%) is considered high.
Reducing Debt: MA's debt to equity ratio has increased from 60.4% to 201.8% over the past 5 years.
Debt Coverage: MA's debt is well covered by operating cash flow (52.4%).
Interest Coverage: MA's interest payments on its debt are well covered by EBIT (19.9x coverage).
What is Mastercard current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MA's dividend (0.46%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: MA's dividend (0.46%) is low compared to the top 25% of dividend payers in the US market (3.54%).
Stability and Growth of Payments
Stable Dividend: MA is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: MA is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: MA is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Michael Miebach (53 yo)
Mr. Michael Miebach serves as President of Mastercard Incorporated from March 01, 2020. He has been Chief Executive Officer and Director of Mastercard Incorporated since January 01, 2021. He served as the ...
CEO Compensation Analysis
Compensation vs Market: Michael's total compensation ($USD9.22M) is about average for companies of similar size in the US market ($USD11.17M).
Compensation vs Earnings: Michael's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: MA's management team is considered experienced (3.2 years average tenure).
Experienced Board: MA's board of directors are considered experienced (4.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Mastercard Incorporated's company bio, employee growth, exchange listings and data sources
- Name: Mastercard Incorporated
- Ticker: MA
- Exchange: NYSE
- Founded: 1966
- Industry: Data Processing and Outsourced Services
- Sector: Software
- Market Cap: US$380.836b
- Shares outstanding: 986.78m
- Website: https://www.mastercard.com
Number of Employees
- Mastercard Incorporated
- 2000 Purchase Street
- New York
- United States
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 pay...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/07/31 06:02|
|End of Day Share Price||2021/07/30 00:00|
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.