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Mastercard (MA) Stock Analysis

This is a peer-relative look at Mastercard (MA): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Financial Services peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Mastercard (MA)
Profile ItemMA
NameMastercard Incorporated
Country/RegionUnited States
GICS SectorFinancials
GICS Industry GroupFinancial Services
GICS IndustryFinancial Services
GICS Sub-IndustryTransaction & Payment Processing Services
Market Capitalization475.63 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateMay 25, 2006
Security TypeCommon Stock

Price Performance

Cumulative Growth

MA
GSPC
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Mastercard (MA) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Mastercard (MA) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Mastercard (MA) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Mastercard (MA) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MAIndustry group median
Total Return (1Y)-2.34%1.65%
Total Return (3Y, Annualized)11.30%11.13%
Total Return (5Y, Annualized)7.85%5.13%

Risk Profile

Drawdown History

MA
GSPC
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Mastercard (MA) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Mastercard (MA) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Mastercard (MA) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MAIndustry group median
Volatility (1Y, Annualized)21.94%34.01%
Beta (5Y)0.721.04
Max Drawdown (5Y)-28.25%-49.62%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. MA is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Mastercard (MA) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MAIndustry group median
Sharpe Ratio (1Y)-0.29-0.06
Sortino Ratio (1Y)-0.41-0.09

Profitability

ROE (TTM)

Mastercard (MA) posts ROE of 232.08%, above the industry benchmark range. Equity is being turned into profit at an exceptional rate, but very high ROE should still be checked against leverage, buybacks, and the size of the equity base.

MA

Financial Services industry group

232.08%

Group distribution
MA
232.08%
Max
42.17%
Q3
21.40%
Median
12.18%
Q1
4.84%
Min
-17.69%
Largest peers
MA
232.08%
V
60.35%
AXP
34.42%
GS
16.95%
BRK.B
10.50%
BRK.A
10.50%
MS
--
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Where Mastercard (MA) stands on ROE within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Mastercard (MA) keeps 45.88% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

MA

Financial Services industry group

45.88%

Group distribution
Max
66.55%
MA
45.88%
Q3
30.72%
Median
16.62%
Q1
4.66%
Min
-26.88%
Largest peers
V
51.68%
MA
45.88%
GS
31.04%
MS
25.90%
BRK.B
19.31%
BRK.A
19.31%
AXP
16.31%
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Where Mastercard (MA) stands on net margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Mastercard (MA) turns 60.84% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

MA

Financial Services industry group

60.84%

Group distribution
Max
95.95%
MA
60.84%
Q3
51.93%
Median
27.53%
Q1
12.21%
Min
-46.55%
Largest peers
V
67.35%
MA
60.84%
GS
42.32%
MS
41.57%
AXP
21.25%
BRK.B
14.35%
BRK.A
14.35%
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Where Mastercard (MA) stands on operating margin within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Mastercard (MA) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MAIndustry group median
ROE (TTM)232.08%12.18%
ROA (TTM)25.03%2.70%
Net Margin (TTM)45.88%16.62%
Operating Margin (TTM)60.84%27.53%
Gross Margin (TTM)----

Growth

Revenue Growth

Mastercard (MA) grew revenue 16.42%, roughly around the peer group's normal range. Top-line momentum looks broadly typical for the industry.

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Mastercard (MA): Revenue Growth across different time periods, set against Financial Services industry-group medians.

EPS Growth

Mastercard (MA) grew earnings per share 18.93%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.

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Mastercard (MA): EPS Growth across different time periods, set against Financial Services industry-group medians.

Growth Metrics

Mastercard (MA) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MAIndustry group median
Revenue Growth (YoY)16.42%8.98%
Revenue Growth (3Y CAGR)13.82%10.22%
EPS Growth (YoY)18.93%7.06%
EPS Growth (3Y CAGR)17.36%12.67%

Financial Strength

Current Ratio (MRQ)

current ratio is set aside for Mastercard (MA) in Financial Services: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.

Debt / Equity (MRQ)

debt-to-equity ratio is set aside for Mastercard (MA) in Financial Services: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.

Financial Strength Metrics

Mastercard (MA) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MAIndustry group median
Current Ratio (MRQ)----
Debt / Equity (MRQ)----
Net Debt / EBITDA----

Dividends

Dividend Yield (TTM)

Mastercard (MA) has dividend yield of 0.60%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.

MA

Financial Services industry group

0.60%

Group distribution
Max
18.29%
Q3
8.41%
Median
1.57%
MA
0.60%
Q1
0.00%
Min
0.00%
Largest peers
MS
1.97%
GS
1.61%
AXP
0.97%
V
0.72%
MA
0.60%
BRK.B
0.00%
BRK.A
0.00%
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Where Mastercard (MA) stands on dividend yield within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Mastercard (MA) has payout ratio of 18.23%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.

MA

Financial Services industry group

18.23%

Group distribution
Max
228.57%
Q3
95.23%
Median
25.91%
MA
18.23%
Q1
0.00%
Min
0.00%
Largest peers
MS
32.31%
GS
26.25%
V
21.97%
AXP
21.29%
MA
18.23%
BRK.B
0.00%
BRK.A
0.00%
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Where Mastercard (MA) stands on payout ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Mastercard (MA) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MAIndustry group median
Dividend Yield (TTM)0.60%1.57%
Dividend Payout Ratio (TTM)18.23%25.91%

Valuation

P/E Ratio (TTM)

Mastercard (MA) trades at P/E ratio of 31.65, in the richer earnings-multiple quartile for its industry. That premium needs support from growth, durable earnings, or stronger business quality.

MA

Financial Services industry group

31.65

Group distribution
Max
49.65
MA
31.65
Q3
26.26
Median
15.26
Q1
9.56
Min
2.03
Largest peers
MA
31.65
V
31.43
AXP
21.98
MS
17.04
GS
16.29
BRK.B
14.62
BRK.A
14.62
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Where Mastercard (MA) stands on P/E ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Mastercard (MA) trades at 14.01 on P/S ratio, above the industry benchmark range. The stock is being valued at an unusually rich price per dollar of trailing revenue.

MA

Financial Services industry group

14.01

Group distribution
MA
14.01
Max
10.06
Q3
4.96
Median
2.91
Q1
1.52
Min
-1.00
Largest peers
V
15.73
MA
14.01
GS
4.74
MS
4.37
AXP
3.48
BRK.B
2.81
BRK.A
2.81
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Where Mastercard (MA) stands on P/S ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Mastercard (MA) trades at 71.05 on P/B ratio, above the industry benchmark range. Investors are putting an unusually rich price on each dollar of book equity relative to peers.

MA

Financial Services industry group

71.05

Group distribution
MA
71.05
Max
7.16
Q3
3.46
Median
1.62
Q1
0.91
Min
0.00
Largest peers
MA
71.05
V
19.09
AXP
7.04
MS
3.27
GS
2.96
BRK.A
1.45
BRK.B
0.00
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Where Mastercard (MA) stands on P/B ratio within its Financial Services peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Mastercard (MA) metric values compared with Financial Services industry-group medians
MetricCurrent stock: MAIndustry group median
P/E Ratio (TTM)31.6515.26
P/S Ratio (TTM)14.012.91
P/B Ratio (MRQ)71.051.62
Free Cash Flow Yield (TTM)----