Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally.
Reasonable growth potential with adequate 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 has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: MA underperformed the US IT industry which returned 18.5% over the past year.
Return vs Market: MA exceeded the US Market which returned 12.5% over the past year.
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
13 hours ago | Simply Wall StIs Mastercard's (NYSE:MA) Share Price Gain Of 216% Well Earned?
1 week ago | Simply Wall StCalculating The Intrinsic Value Of Mastercard Incorporated (NYSE:MA)
3 weeks ago | Simply Wall StMastercard Incorporated's (NYSE:MA) Popularity With Investors Under Threat
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 ($308.53) is trading above our estimate of fair value ($250.81)
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 (42.5x) compared to the US IT industry average (31.1x).
PE vs Market: MA is poor value based on its PE Ratio (42.5x) compared to the US market (17.8x).
Price to Earnings Growth Ratio
PEG Ratio: MA is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: MA is overvalued based on its PB Ratio (47.9x) compared to the US IT industry average (3.5x).
How is Mastercard forecast to perform in the next 1 to 3 years based on estimates from 33 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MA's forecast earnings growth (21.7% per year) is above the savings rate (2.2%).
Earnings vs Market: MA's earnings (21.7% per year) are forecast to grow slower than the US market (22.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MA's revenue (14.6% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: MA's revenue (14.6% 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 (113.8%).
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 (45.1%) are higher than last year (42.7%).
Past Earnings Growth Analysis
Earnings Trend: MA's earnings have grown by 17.2% per year over the past 5 years.
Accelerating Growth: MA's earnings growth over the past year (9.1%) is below its 5-year average (17.2% per year).
Earnings vs Industry: MA earnings growth over the past year (9.1%) underperformed the IT industry 9.6%.
Return on Equity
High ROE: Whilst MA's Return on Equity (111.81%) 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 ($19.4B) exceed its short term liabilities ($9.9B).
Long Term Liabilities: MA's short term assets ($19.4B) exceed its long term liabilities ($15.7B).
Debt to Equity History and Analysis
Debt Level: MA's debt to equity ratio (179.2%) is considered high.
Reducing Debt: MA's debt to equity ratio has increased from 23.2% to 179.2% over the past 5 years.
Debt Coverage: MA's debt is well covered by operating cash flow (73.7%).
Interest Coverage: MA's interest payments on its debt are well covered by EBIT (39.7x coverage).
What is Mastercard current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MA's dividend (0.52%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.66%).
High Dividend: MA's dividend (0.52%) is low compared to the top 25% of dividend payers in the US market (4.51%).
Stability and Growth of Payments
Stable Dividend: MA is not paying a notable dividend for the US market, therefore no need to check if payments are stable.
Growing Dividend: MA is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: MA is not paying a notable dividend for the US market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of MA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ajay Banga (60 yo)
Mr. Ajaypal S. Banga, also known as Ajay, has been the Chief Executive Officer of Mastercard Incorporated since July 1, 2010. He served as President of Mastercard Incorporated since August 31, 2009 until M ...
CEO Compensation Analysis
Compensation vs Market: Ajay's total compensation ($USD23.25M) is above average for companies of similar size in the US market ($USD11.35M).
Compensation vs Earnings: Ajay's compensation has been consistent with company performance over the past year.
|CEO & Director||10.08yrs||US$23.25m||0.039% |
|Chief Financial Officer||1.33yrs||US$4.21m||0.00068% |
|President of North America||6.33yrs||US$5.16m||0.0033% |
|Vice Chairman & President of Strategic Growth||2.33yrs||US$5.57m||0.00045% |
|President of Operations & Technology||3.25yrs||no data||0.0024% |
|Corporate Controller & Principal Accounting Officer||3.33yrs||no data||0.00023% |
|Executive Vice President of Investor Relations||3.75yrs||no data||no data|
|General Counsel||6.33yrs||US$4.47m||0.0031% |
|Chief Marketing & Communications Officer and President of Healthcare||no data||no data||no data|
|Chief People Officer||4.08yrs||no data||0.00047% |
|President of Latin America & Caribbean Region||no data||no data||no data|
Experienced Management: MA's management team is considered experienced (3.5 years average tenure).
|CEO & Director||10.08yrs||US$23.25m||0.039% |
|Independent Director||1.67yrs||US$346.31k||0.000020% |
|Independent Director||2.17yrs||US$337.56k||0.00042% |
|Independent Director||6.17yrs||US$337.16k||0.00020% |
|Independent Director||11.92yrs||US$362.56k||0.0027% |
|Independent Chairman of the Board||13.92yrs||US$517.55k||0.0028% |
|Independent Director||12.58yrs||US$338.81k||0.0031% |
|Independent Director||4.17yrs||US$327.56k||0.00057% |
|Independent Director||2.33yrs||US$326.31k||0.00028% |
|Independent Director||6.17yrs||US$359.00k||0.00040% |
|Independent Director||13.92yrs||US$375.06k||0.00084% |
|Independent Director||9.33yrs||US$331.31k||0.0018% |
Experienced Board: MA's board of directors are considered experienced (7.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MA insiders have only sold shares 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$312.922b
- Shares outstanding: 1.00b
- Website: https://www.mastercard.com
Number of Employees
- Mastercard Incorporated
- 2000 Purchase Street
- New York
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|M4I||DB (Deutsche Boerse AG)||Yes||Class A Common Stock||DE||EUR||May 2006|
|MA||NYSE (New York Stock Exchange)||Yes||Class A Common Stock||US||USD||May 2006|
|M4I||XTRA (XETRA Trading Platform)||Yes||Class A Common Stock||DE||EUR||May 2006|
|MA *||BMV (Bolsa Mexicana de Valores)||Yes||Class A Common Stock||MX||MXN||May 2006|
|MA||SWX (SIX Swiss Exchange)||Yes||Class A Common Stock||CH||CHF||May 2006|
|0R2Z||LSE (London Stock Exchange)||Yes||Class A Common Stock||GB||USD||May 2006|
|MAST||WBAG (Wiener Boerse AG)||Yes||Class A Common Stock||AT||EUR||May 2006|
|M4I||ETLX (Eurotlx)||Yes||Class A Common Stock||IT||EUR||May 2006|
|MA||BVL (Bolsa de Valores de Lima)||Yes||Class A Common Stock||PE||USD||May 2006|
|MSCD34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH REPR 1 COM CL 'A' USD0.0001||BR||BRL||Feb 2012|
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||2020/08/04 00:16|
|End of Day Share Price||2020/08/03 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.