Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A+ . The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
- EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 9.6%. Since the same quarter one year prior, revenues slightly increased by 9.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MASTERCARD INC reported significant earnings per share improvement 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 $21.94 versus $14.83 in the prior year. This year, the market expects an improvement in earnings ($25.50 versus $21.94).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the IT Services industry. The net income increased by 3084.2% when compared to the same quarter one year prior, rising from $19.00 million to $605.00 million.
- The gross profit margin for MASTERCARD INC is rather high; currently it is at 50.70%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 31.92% significantly outperformed against the industry average.
- Net operating cash flow has increased to $866.00 million or 10.45% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -29.98%.
MasterCard Incorporated, together with its subsidiaries, provides transaction processing and other payment-related services in the United States and internationally. MasterCard has a market cap of $61.18 billion and is part of the services sector and diversified services industry. The company has a P/E ratio of 23.6, above the S&P 500 P/E ratio of 17.7. Shares are up 4.6% year to date as of the close of trading on Friday.
You can view the full
or get investment ideas from our
--Written by a member of TheStreet Ratings Staff.
It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE