NYSE:MA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Mastercard's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

5.6%

NYSE:MA

4.4%

US IT

2.9%

US Market


1 Year Return

38.0%

NYSE:MA

22.8%

US IT

0.2%

US Market

MA outperformed the IT industry which returned 21.7% over the past year.

MA outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

MAIndustryMarket
7 Day5.6%4.4%2.9%
30 Day1.2%-0.5%-2.3%
90 Day12.9%9.8%3.1%
1 Year38.8%38.0%24.1%22.8%2.4%0.2%
3 Year200.9%195.2%102.5%93.9%41.7%32.4%
5 Year280.6%268.0%143.9%119.1%55.1%37.9%

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

Valuation

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

43.26x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Mastercard's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Mastercard's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

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

Mastercard is poor value based on expected growth next year.


Price Based on Value of Assets

Mastercard is overvalued based on assets compared to the US IT industry average.


Next Steps

Future Growth

How is Mastercard expected to perform in the next 1 to 3 years based on estimates from 34 analysts?

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Mastercard's revenue is expected to grow by 12.1% yearly, however this is not considered high growth (20% yearly).

Mastercard's earnings are expected to grow by 15.2% yearly, however this is not considered high growth (20% yearly).

Mastercard's revenue growth is expected to exceed the United States of America market average.

Mastercard's earnings growth is expected to exceed the United States of America market average.

Mastercard's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Mastercard is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has Mastercard performed over the past 5 years?

12.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Mastercard's year on year earnings growth rate has been positive over the past 5 years.

Mastercard's 1-year earnings growth exceeds its 5-year average (42.2% vs 12%)

Mastercard's earnings growth has exceeded the US IT industry average in the past year (42.2% vs 9.8%).


Return on Equity

Whilst Mastercard made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.


Return on Assets

Mastercard used its assets more efficiently than the US IT industry average last year based on Return on Assets.


Return on Capital Employed

Mastercard has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Mastercard's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Mastercard's level of debt (152.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (23.7% vs 152.8% today).

Debt is well covered by operating cash flow (83.9%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 133.5x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 1.8x debt.


Next Steps

Dividend

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

0.48%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Mastercard's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Mastercard's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

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

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.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Ajay Banga (59yo)

9.1yrs

Tenure

US$20,379,353

Compensation

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. He serves as Director of Dow Inc ...


CEO Compensation Analysis

Ajay's remuneration is higher than average for companies of similar size in United States of America.

Ajay's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.2yrs

Average Tenure

53yo

Average Age

The tenure for the Mastercard management team is about average.


Board Age and Tenure

10.1yrs

Average Tenure

61yo

Average Age

The average tenure for the Mastercard board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

Mastercard individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$4,323,10013 Aug 19
The MasterCard Foundation, Endowment Arm
EntityCompany
Shares15,890
Max PriceUS$272.63
BuyUS$468,60313 Aug 19
Richard Davis
EntityIndividual
Shares1,735
Max PriceUS$270.09
SellUS$6,473,29509 Aug 19
The MasterCard Foundation, Endowment Arm
EntityCompany
Shares23,850
Max PriceUS$275.33
SellUS$4,218,37506 Aug 19
The MasterCard Foundation, Endowment Arm
EntityCompany
Shares15,900
Max PriceUS$268.46
SellUS$2,196,32101 Aug 19
The MasterCard Foundation, Endowment Arm
EntityCompany
Shares7,950
Max PriceUS$276.27
BuyUS$413,56001 Aug 19
Lance Uggla
EntityIndividual
Shares1,500
Max PriceUS$277.29
SellUS$6,665,47831 Jul 19
The MasterCard Foundation, Endowment Arm
EntityCompany
Shares23,850
Max PriceUS$281.81
SellUS$6,662,08026 Jul 19
The MasterCard Foundation, Endowment Arm
EntityCompany
Shares23,850
Max PriceUS$281.12
SellUS$6,633,52323 Jul 19
The MasterCard Foundation, Endowment Arm
EntityCompany
Shares23,850
Max PriceUS$278.50
SellUS$6,615,37318 Jul 19
The MasterCard Foundation, Endowment Arm
EntityCompany
Shares23,850
Max PriceUS$279.16
SellUS$1,043,20912 Jun 19
David Carlucci
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,974
Max PriceUS$262.51
BuyUS$486,01505 Nov 18
Richard Davis
EntityIndividual
Shares2,475
Max PriceUS$196.37

Ownership Breakdown


Management Team

  • Ed McLaughlin (53yo)

    President of Operations & Technology

    • Tenure: 2.3yrs
  • Ann Cairns (62yo)

    Vice Chairman

    • Tenure: 0.0yrs
    • Compensation: US$4.50m
  • Ajay Banga (59yo)

    President

    • Tenure: 9.1yrs
    • Compensation: US$20.38m
  • Sachin Mehra (48yo)

    Chief Financial Officer

    • Tenure: 0.3yrs
  • Tim Murphy (51yo)

    Chief Franchise Officer & General Counsel

    • Tenure: 5.3yrs
    • Compensation: US$4.47m
  • Warren Kneeshaw

    Executive Vice President of Investor Relations

    • Tenure: 2.8yrs
  • Gilberto Caldart (60yo)

    President of International Markets

    • Tenure: 6.0yrs
    • Compensation: US$4.23m
  • Raja Rajamannar (57yo)

    Chief Marketing & Communications Officer and President of Healthcare

    • Tenure: 0.0yrs
  • Craig Vosburg (52yo)

    President of North America

    • Tenure: 3.6yrs
    • Compensation: US$4.72m
  • Sandra Arkell (51yo)

    Corporate Controller & Principal Accounting Officer

    • Tenure: 2.3yrs

Board Members

  • Julius Genachowski (56yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: US$314.79k
  • Jack Tai (69yo)

    Independent Director

    • Tenure: 10.9yrs
    • Compensation: US$335.09k
  • Rick Haythornthwaite (62yo)

    Chairman of the Board

    • Tenure: 12.9yrs
    • Compensation: US$490.30k
  • José Octavio Reyes Lagunes (67yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$317.59k
  • Oki Matsumoto (56yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$305.09k
  • Merit Janow (60yo)

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: US$328.59k
  • Steve Freiberg (62yo)

    Independent Director

    • Tenure: 12.9yrs
    • Compensation: US$347.59k
  • Ajay Banga (59yo)

    President

    • Tenure: 9.1yrs
    • Compensation: US$20.38m
  • David Carlucci (64yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: US$335.09k
  • Rima Qureshi (54yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$310.09k

Company Information

Mastercard Incorporated's company bio, 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$286.116b
  • Shares outstanding: 1.01b
  • Website: https://www.mastercard.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
M4IDB (Deutsche Boerse AG)YesClass A Common StockDEEURMay 2006
MANYSE (New York Stock Exchange)YesClass A Common StockUSUSDMay 2006
M4IXTRA (XETRA Trading Platform)YesClass A Common StockDEEURMay 2006
MA *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNMay 2006
MASWX (SIX Swiss Exchange)YesClass A Common StockCHCHFMay 2006
0R2ZLSE (London Stock Exchange)YesClass A Common StockGBUSDMay 2006
MASTWBAG (Wiener Boerse AG)YesClass A Common StockATEURMay 2006
M4IETLX (Eurotlx)YesClass A Common StockITEURMay 2006
MSCD34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COM CL 'A' USD0.0001BRBRLFeb 2012

Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:54
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.