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Mastercard Inc Class A MA

Morningstar Rating
$478.89 +3.06 (0.64%)
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Company Report

Mastercard Has Strong Growth Prospects and a Wide Moat

Mastercard has multiple characteristics that should draw investors’ attention. First, despite the evolution in the payment space, we think a wide moat surrounds the business and view Mastercard’s position in the current global electronic payment infrastructure as essentially unassailable. Second, Mastercard benefits from the ongoing shift toward electronic payments, which should provide plenty of opportunities to utilize its wide moat to create value over the long term. Digital payments, on a global basis, surpassed cash payments just a few years ago, suggesting that this trend still has a lot of room to run, and we think emerging markets could offer a further leg of growth even as growth in developed markets starts to slow. Finally, Mastercard is something of a tollbooth business, and the company is relatively agnostic to smaller shifts in the electronic payment space, as it earns fees regardless of whether payment is credit, debit, or mobile.

Price vs Fair Value

MA is trading at a 6% premium.
Price
$478.89
Fair Value
$217.00
Uncertainty
Medium
1-Star Price
$475.26
5-Star Price
$935.10
Economic Moat
Kfgq
Capital Allocation
Cgrkxyg

Bulls Say, Bears Say

Bulls

Mastercard historically has outperformed Visa in terms of growth. Its smaller size and some leveling in market share between the two could maintain this trend.

Bears

Mastercard is a distant number-two player in a scalable industry, which could hamper long-term margins.

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News

Trading Information

Previous Close Price
$475.83
Day Range
$476.65480.82
52-Week Range
$346.31482.00
Bid/Ask
$478.55 / $479.99
Market Cap
$446.75 Bil
Volume/Avg
2.1 Mil / 2.3 Mil

Key Statistics

Price/Earnings (Normalized)
39.06
Price/Sales
18.05
Dividend Yield (Trailing)
0.49%
Dividend Yield (Forward)
0.55%
Total Yield
2.52%

Company Profile

Mastercard is the second-largest payment processor in the world, having processed close to over $9 trillion in volume during 2023. Mastercard operates in over 200 countries and processes transactions in over 150 currencies.
Sector
Financial Services
Industry
Credit Services
Stock Style Box
Large Growth
Total Number of Employees
33,400

Competitors

Valuation

Metric
MA
DFS
AXP
Price/Earnings (Normalized)
39.0610.7019.71
Price/Book Value
64.552.195.69
Price/Sales
18.051.932.69
Price/Cash Flow
32.543.6011.04
Price/Earnings
MA
DFS
AXP

Financial Strength

Metric
MA
DFS
AXP
Quick Ratio
0.81
Current Ratio
1.17
Interest Coverage
24.72
Quick Ratio
MA
DFS
AXP

Profitability

Metric
MA
DFS
AXP
Return on Assets (Normalized)
29.19%2.12%3.64%
Return on Equity (Normalized)
191.08%22.27%33.42%
Return on Invested Capital (Normalized)
56.34%
Return on Assets
MA
DFS
AXP
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Credit Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
V
Visa Inc Class ALrss$585.5 Bil
AXP
American Express CoCvrjb$159.1 Bil
PYPL
PayPal Holdings IncNlwpsk$68.8 Bil
COF
Capital One Financial CorpPptdct$51.8 Bil
DFS
Discover Financial ServicesGkbcm$30.2 Bil
SYF
Synchrony FinancialNvy$17.0 Bil
ALLY
Ally Financial IncYfhg$11.5 Bil
SOFI
SoFi Technologies Inc Ordinary SharesMnw$6.9 Bil
WU
The Western Union CoQndwclp$4.6 Bil

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