MasterCard Incorporated (NYSE:MA) is rated by TheStreet Ratings as a buy with a grade of A+. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
To view a list of all 50 stocks simply download our FREE report by clicking: HERE
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.7%. Since the same quarter one year prior, revenues slightly increased by 5.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MASTERCARD INC has improved earnings per share by 9.6% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MASTERCARD INC increased its bottom line by earning $14.83 versus $14.05 in the prior year. This year, the market expects an improvement in earnings ($21.95 versus $14.83).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the IT Services industry average. The net income increased by 7.7% when compared to the same quarter one year prior, going from $717.00 million to $772.00 million.
- The gross profit margin for MASTERCARD INC is rather high; currently it is at 58.50%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 40.25% significantly outperformed against the industry average.
- Net operating cash flow has remained constant at $1,014.00 million with no significant change when compared to the same quarter last year. In addition, MASTERCARD INC has modestly surpassed the industry average cash flow growth rate of -5.60%.
MasterCard Incorporated, a payments and technology company, together with its subsidiaries, provides transaction processing and other payment-related services in the United States and internationally. MasterCard has a market cap of $57.43 billion and is part of the services sector and diversified services industry.You can view the full MasterCard Ratings Report or get investment ideas from our investment research center.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV