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Mastercard Inc Class A MA

Morningstar Rating
$451.75 −16.38 (3.50%)
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Company Report

Mastercard Earnings: Results Are Normalizing

Mastercard's fourth-quarter results were basically in line with what we saw from its peer Visa. Over the past few years, both companies have been buffeted by the pandemic and the subsequent recovery, as well as one-time issues like Russia. While macro uncertainty still exists, we think results have now largely normalized, and we expect growth will hold at a level roughly in line with our long-term expectations. We will maintain our $421 fair value estimate for the wide-moat company and see shares as roughly fairly valued at the moment.

Price vs Fair Value

MA is trading at a 7% premium.
Price
$451.75
Fair Value
$174.00
Uncertainty
Medium
1-Star Price
$598.75
5-Star Price
$342.60
Economic Moat
Kmk
Capital Allocation
Ndlkqmc

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
$468.13
Day Range
$450.12455.85
52-Week Range
$340.21474.17
Bid/Ask
$450.50 / $452.60
Market Cap
$421.43 Bil
Volume/Avg
5.0 Mil / 2.5 Mil

Key Statistics

Price/Earnings (Normalized)
37.94
Price/Sales
17.53
Dividend Yield (Trailing)
0.52%
Dividend Yield (Forward)
0.58%
Total Yield
2.67%

Company Profile

Mastercard is the second-largest payment processor in the world, having processed close to over $8 trillion in transactions during 2022. 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
AXP
DFS
Price/Earnings (Normalized)
37.9418.818.11
Price/Book Value
62.715.431.98
Price/Sales
17.532.571.75
Price/Cash Flow
31.6110.533.45
Price/Earnings
MA
AXP
DFS

Financial Strength

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

Profitability

Metric
MA
AXP
DFS
Return on Assets (Normalized)
29.19%3.64%2.69%
Return on Equity (Normalized)
191.08%33.42%27.23%
Return on Invested Capital (Normalized)
56.34%
Return on Assets
MA
AXP
DFS
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Credit Services Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
V
Visa Inc Class AMwxv$565.2 Bil
AXP
American Express CoDbjw$153.8 Bil
PYPL
PayPal Holdings IncBxldz$62.8 Bil
COF
Capital One Financial CorpFrwwnf$52.3 Bil
DFS
Discover Financial ServicesVlffrjs$31.1 Bil
SYF
Synchrony FinancialHykt$16.5 Bil
ALLY
Ally Financial IncHjb$11.2 Bil
SOFI
SoFi Technologies Inc Ordinary SharesPvks$8.3 Bil
WU
The Western Union CoYgcmdbn$4.5 Bil

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