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MA

MastercardNYSE:MA Stock Report

Market Cap

US$317.4b

7D

0.5%

1Y

-4.0%

Updated

30 Nov, 2021

Data

Company Financials +
MA fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance4/6
Financial Health3/6
Dividends0/6

MA Stock Overview

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally.

Mastercard Competitors

Visa

NYSE:V

US$416.8b

PayPal Holdings

NasdaqGS:PYPL

US$220.0b

Square

NYSE:SQ

US$97.8b

Fiserv

NasdaqGS:FISV

US$64.4b

Price History & Performance

Summary of all time highs, changes and price drops for Mastercard
Historical stock prices
Current Share PriceUS$323.01
52 Week HighUS$401.50
52 Week LowUS$312.38
Beta1.09
1 Month Change-3.73%
3 Month Change-6.71%
1 Year Change-4.01%
3 Year Change53.92%
5 Year Change211.94%
Change since IPO6,921.96%

Recent News & Updates

Nov 30
Here's What's Concerning About Mastercard's (NYSE:MA) Returns On Capital

Here's What's Concerning About Mastercard's (NYSE:MA) Returns On Capital

What are the early trends we should look for to identify a stock that could multiply in value over the long term...

Nov 17

Visa And Mastercard: Why The Sell-Off In These Cash Flow Kings Is Overblown

Visa’s recent -9.5% drawdown on revenue guidance is overdone. Mastercard’s -7% drawdown also appears to be an over-reaction. Both companies have phenomenal balance sheets & income statements based on an assessment done using Buffett’s favourite accounting measures. The risk/reward for a long position is favourable with clear stop-loss limits. Risks do remain for V with a DOJ probe involving anticompetitive processes.

Nov 17
What Is Mastercard Incorporated's (NYSE:MA) Share Price Doing?

What Is Mastercard Incorporated's (NYSE:MA) Share Price Doing?

Today we're going to take a look at the well-established Mastercard Incorporated ( NYSE:MA ). The company's stock saw a...

Nov 04
A Look At The Intrinsic Value Of Mastercard Incorporated (NYSE:MA)

A Look At The Intrinsic Value Of Mastercard Incorporated (NYSE:MA)

Does the November share price for Mastercard Incorporated ( NYSE:MA ) reflect what it's really worth? Today, we will...

Shareholder Returns

MAUS ITUS Market
7D0.5%0.1%-0.9%
1Y-4.0%3.1%23.3%

Return vs Industry: MA underperformed the US IT industry which returned 2.9% over the past year.

Return vs Market: MA underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is MA's price volatile compared to industry and market?
MA volatility
MA Average Weekly Movement4.8%
IT Industry Average Movement7.0%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

Stable Share Price: MA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MA's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196621,000Michael Miebachhttps://www.mastercard.com

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 offers integrated products and services for account holders, merchants, financial institutions, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits 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 credit and debit payment products and solutions.

Mastercard Fundamentals Summary

How do Mastercard's earnings and revenue compare to its market cap?
MA fundamental statistics
Market CapUS$317.38b
Earnings (TTM)US$8.09b
Revenue (TTM)US$17.79b

39.2x

P/E Ratio

17.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MA income statement (TTM)
RevenueUS$17.79b
Cost of RevenueUS$0
Gross ProfitUS$17.79b
ExpensesUS$9.70b
EarningsUS$8.09b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)8.24
Gross Margin100.00%
Net Profit Margin45.50%
Debt/Equity Ratio203.8%

How did MA perform over the long term?

See historical performance and comparison

Dividends

0.5%

Current Dividend Yield

22%

Payout Ratio

Valuation

Is Mastercard undervalued compared to its fair value and its price relative to the market?

19.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MA ($323.01) is trading below our estimate of fair value ($398.61)

Significantly Below Fair Value: MA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MA is poor value based on its PE Ratio (39.2x) compared to the US IT industry average (34.7x).

PE vs Market: MA is poor value based on its PE Ratio (39.2x) compared to the US market (17.1x).


Price to Earnings Growth Ratio

PEG Ratio: MA is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: MA is overvalued based on its PB Ratio (47.3x) compared to the US IT industry average (4.7x).


Future Growth

How is Mastercard forecast to perform in the next 1 to 3 years based on estimates from 32 analysts?

17.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MA's forecast earnings growth (17.1% per year) is above the savings rate (2%).

Earnings vs Market: MA's earnings (17.1% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: MA's earnings are forecast to grow, but not significantly.

Revenue vs Market: MA's revenue (15% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: MA's revenue (15% 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 (204.3%).


Past Performance

How has Mastercard performed over the past 5 years?

14.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MA has high quality earnings.

Growing Profit Margin: MA's current net profit margins (45.5%) are higher than last year (43.1%).


Past Earnings Growth Analysis

Earnings Trend: MA's earnings have grown by 14.2% per year over the past 5 years.

Accelerating Growth: MA's earnings growth over the past year (20.3%) exceeds its 5-year average (14.2% per year).

Earnings vs Industry: MA earnings growth over the past year (20.3%) underperformed the IT industry 38.3%.


Return on Equity

High ROE: Whilst MA's Return on Equity (118.98%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Mastercard's financial position?


Financial Position Analysis

Short Term Liabilities: MA's short term assets ($15.4B) exceed its short term liabilities ($11.6B).

Long Term Liabilities: MA's short term assets ($15.4B) do not cover its long term liabilities ($17.0B).


Debt to Equity History and Analysis

Debt Level: MA's net debt to equity ratio (102.1%) is considered high.

Reducing Debt: MA's debt to equity ratio has increased from 53.6% to 203.8% over the past 5 years.

Debt Coverage: MA's debt is well covered by operating cash flow (61.5%).

Interest Coverage: MA's interest payments on its debt are well covered by EBIT (22.6x coverage).


Balance Sheet


Dividend

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

0.54%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MA's dividend (0.54%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: MA's dividend (0.54%) is low compared to the top 25% of dividend payers in the US market (3.58%).


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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.5yrs

Average management tenure


CEO

Michael Miebach (53 yo)

0.83

Tenure

US$9,220,476

Compensation

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 ($USD9.22M) is about average for companies of similar size in the US market ($USD11.11M).

Compensation vs Earnings: Michael's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MA's management team is considered experienced (3.5 years average tenure).


Board Members

Experienced Board: MA's board of directors are considered experienced (4.5 years average tenure).


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Mastercard Incorporated's employee growth, exchange listings and data sources


Key Information

  • Name: Mastercard Incorporated
  • Ticker: MA
  • Exchange: NYSE
  • Founded: 1966
  • Industry: Data Processing and Outsourced Services
  • Sector: Software
  • Market Cap: US$317.376b
  • Shares outstanding: 982.56m
  • Website: https://www.mastercard.com

Number of Employees


Location

  • Mastercard Incorporated
  • 2000 Purchase Street
  • Purchase
  • New York
  • 10577
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 00:21
End of Day Share Price2021/11/29 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.