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

Reasonable growth potential with proven track record.


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

Stable Share Price: MA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

MA

1.9%

US IT

0.2%

US Market


1 Year Return

40.5%

MA

26.4%

US IT

12.2%

US Market

Return vs Industry: MA exceeded the US IT industry which returned 26.4% over the past year.

Return vs Market: MA exceeded the US Market which returned 12.2% over the past year.


Shareholder returns

MAIndustryMarket
7 Day1.7%1.9%0.2%
30 Day0.5%1.5%3.5%
90 Day1.9%0.9%6.3%
1 Year41.3%40.5%27.7%26.4%14.7%12.2%
3 Year171.8%166.9%96.3%88.0%47.8%38.3%
5 Year241.3%230.1%133.7%112.9%62.1%44.1%

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 compared to its fair value and its price relative to the market?

41.36x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MA ($279.63) is trading above our estimate of fair value ($244.89)

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 (41.4x) compared to the IT industry average (31.2x).

PE vs Market: MA is poor value based on its PE Ratio (41.4x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: MA is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: MA is overvalued based on its PB Ratio (57.1x) compared to the US IT industry average (4x).


Next Steps

Future Growth

How is Mastercard forecast to perform in the next 1 to 3 years based on estimates from 33 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MA's forecast earnings growth (14.5% per year) is above the savings rate (2.7%).

Earnings vs Market: MA's earnings (14.5% 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 (11.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: MA's revenue (11.7% 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 (123.9%).


Next Steps

Past Performance

How has Mastercard performed over the past 5 years?

13.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MA has a high level of non-cash earnings.

Growing Profit Margin: MA's current net profit margins (42.5%) are higher than last year (35.9%).


Past Earnings Growth Analysis

Earnings Trend: MA's earnings have grown by 13.2% per year over the past 5 years.

Accelerating Growth: MA's earnings growth over the past year (33.4%) exceeds its 5-year average (13.2% per year).

Earnings vs Industry: MA earnings growth over the past year (33.4%) exceeded the IT industry 17%.


Return on Equity

High ROE: Whilst MA's Return on Equity (137%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Mastercard's financial position?


Financial Position Analysis

Short Term Liabilities: MA's short term assets ($14.8B) exceeds its short term liabilities ($10.7B)

Long Term Liabilities: MA's short term assets (14.8B) exceeds its long term liabilities (10.2B)


Debt to Equity History and Analysis

Debt Level: MA's debt to equity ratio (153.2%) is considered high

Reducing Debt: MA's debt to equity ratio has increased from 22.8% to 153.2% over the past 5 years.

Debt Coverage: MA's debt is well covered by operating cash flow (84.5%).

Interest Coverage: MA's interest payments on its debt are well covered by EBIT (106.7x coverage).


Balance Sheet

Inventory Level: MA has a low level of unsold assets or inventory.

Debt Coverage by Assets: MA's debt is covered by short term assets (assets are 1.9x debt).


Next Steps

Dividend

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

0.47%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%1.4%markettop25%3.6%industryaverage1.3%forecastin3Years0.5%

Current dividend yield vs market & industry

Notable Dividend: MA's dividend (0.47%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: MA's dividend (0.47%) is low compared to the top 25% of dividend payers in the US market (3.65%).


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

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

3.4yrs

Average management tenure


CEO

Ajay Banga (59yo)

9.3yrs

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

Compensation vs Market: Ajay's total compensation ($USD20.38M) is above average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Ajay's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.4yrs

Average Tenure

53yo

Average Age

Experienced Management: MA's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

10.4yrs

Average Tenure

61yo

Average Age

Experienced Board: MA's board of directors are seasoned and experienced ( 10.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$4,143,41912 Nov 19
The MasterCard Foundation, Endowment Arm
EntityCompany
Shares15,089
Max PriceUS$275.67
SellUS$6,134,90807 Nov 19
The MasterCard Foundation, Endowment Arm
EntityCompany
Shares22,626
Max PriceUS$272.77
SellUS$6,288,49704 Nov 19
The MasterCard Foundation, Endowment Arm
EntityCompany
Shares22,626
Max PriceUS$278.37
SellUS$6,215,26830 Oct 19
The MasterCard Foundation, Endowment Arm
EntityCompany
Shares22,626
Max PriceUS$275.69
SellUS$6,026,79125 Oct 19
The MasterCard Foundation, Endowment Arm
EntityCompany
Shares22,626
Max PriceUS$270.56
SellUS$6,170,33022 Oct 19
The MasterCard Foundation, Endowment Arm
EntityCompany
Shares22,626
Max PriceUS$275.63
SellUS$6,286,19617 Oct 19
The MasterCard Foundation, Endowment Arm
EntityCompany
Shares22,626
Max PriceUS$278.86
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

Ownership Breakdown

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


Management Team

  • Ed McLaughlin (53yo)

    President of Operations & Technology

    • Tenure: 2.5yrs
  • Ann Cairns (62yo)

    Executive Vice Chairman

    • Tenure: 0yrs
    • Compensation: US$4.50m
  • Ajay Banga (59yo)

    President

    • Tenure: 9.3yrs
    • Compensation: US$20.38m
  • Sachin Mehra (48yo)

    Chief Financial Officer

    • Tenure: 0.6yrs
  • Tim Murphy (51yo)

    Chief Franchise Officer & General Counsel

    • Tenure: 5.6yrs
    • Compensation: US$4.47m
  • Warren Kneeshaw

    Executive Vice President of Investor Relations

    • Tenure: 3yrs
  • Gilberto Caldart (60yo)

    President of International Markets

    • Tenure: 6.3yrs
    • Compensation: US$4.23m
  • Raja Rajamannar (57yo)

    Chief Marketing & Communications Officer and President of Healthcare

    • Tenure: 0yrs
  • Craig Vosburg (52yo)

    President of North America

    • Tenure: 3.8yrs
    • Compensation: US$4.72m
  • Sandra Arkell (51yo)

    Corporate Controller & Principal Accounting Officer

    • Tenure: 2.6yrs

Board Members

  • Julius Genachowski (56yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$314.79k
  • Jack Tai (69yo)

    Independent Director

    • Tenure: 11.2yrs
    • Compensation: US$335.09k
  • Rick Haythornthwaite (62yo)

    Independent Chairman of the Board

    • Tenure: 13.2yrs
    • Compensation: US$490.30k
  • José Octavio Reyes Lagunes (67yo)

    Independent Director

    • Tenure: 11.8yrs
    • Compensation: US$317.59k
  • Oki Matsumoto (56yo)

    Independent Director

    • Tenure: 3.4yrs
    • Compensation: US$305.09k
  • Merit Janow (60yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: US$328.59k
  • Steve Freiberg (62yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$347.59k
  • Ajay Banga (59yo)

    President

    • Tenure: 9.3yrs
    • Compensation: US$20.38m
  • David Carlucci (64yo)

    Independent Director

    • Tenure: 13.5yrs
    • Compensation: US$335.09k
  • Rima Qureshi (54yo)

    Independent Director

    • Tenure: 8.6yrs
    • 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$282.109b
  • 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
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 Analysis2019/11/15 00:03
End of Day Share Price2019/11/14 00:00
Earnings2019/09/30
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.