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MasterCard Inc
MA : NYSE : Financial
$95.17 up1.40 | 1.50%
Today's Range: 94.20 - 95.27
Avg. Daily Volume: 4,520,000
10/07/15 - 3:59 PM ET

Financial Analysis

MASTERCARD INC's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. MASTERCARD INC has average liquidity. Currently, the Quick Ratio is 1.24 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.20% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q2 FY15 Q2 FY14
Net Sales ($mil)2390.02368.0
EBITDA ($mil)1404.01464.0
EBIT ($mil)1312.01383.0
Net Income ($mil)921.0931.0

Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)5618.06254.0
Total Assets ($mil)15272.014375.0
Total Debt ($mil)1495.01494.0
Equity ($mil)6404.06266.0

Profitability Q2 FY15 Q2 FY14
Gross Profit Margin58.7461.82
EBITDA Margin58.7461.82
Operating Margin54.958.4
Sales Turnover0.620.62
Return on Assets24.622.97
Return on Equity58.6652.71
Debt Q2 FY15 Q2 FY14
Current Ratio1.581.83
Interest Expense17.015.0
Interest Coverage77.1892.2

Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)1134.021159.26
Div / share0.160.11
Book value / share5.655.41
Institutional Own % n/a n/a
Avg Daily Volume4522376.03922988.0


BUY. MASTERCARD INC's P/E ratio indicates a premium compared to an average of 27.70 for the IT Services industry and a premium compared to the S&P 500 average of 19.38. For additional comparison, its price-to-book ratio of 16.07 indicates a significant premium versus the S&P 500 average of 2.58 and a significant premium versus the industry average of 7.84. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, MASTERCARD INC proves to trade at a premium to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MA 27.83 Peers 27.70   MA 26.97 Peers 19.08

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

MA is trading at a valuation on par with its peers.


Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

MA is trading at a significant premium to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
MA 22.91 Peers 20.61   MA 3.26 Peers 3.72

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

MA is trading at a significant premium to its peers.


Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

MA trades at a discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MA 16.07 Peers 7.84   MA 17.39 Peers 15.81

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

MA is trading at a significant premium to its peers.


Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

MA is expected to keep pace with its peers on the basis of earnings growth.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MA 10.79 Peers 5.30   MA 7.37 Peers 6.26

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

MA is trading at a significant premium to its industry.


Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

MA has a sales growth rate that exceeds its peers.



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