Mastercard Inc

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MA : NYSE : Financial
$108.53 -0.13 | -0.12%
Today's Range: 108.33 - 109.37
Avg. Daily Volume: 3921500.0
01/19/17 - 4:01 PM ET

Financial Analysis

MASTERCARD INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. MASTERCARD INC has average liquidity. Currently, the Quick Ratio is 1.40 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained unchanged 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 Q3 FY16 Q3 FY15
Net Sales ($mil)2880.02530.0
EBITDA ($mil)1763.01542.0
EBIT ($mil)1670.01448.0
Net Income ($mil)1184.0977.0

Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)7522.05650.0
Total Assets ($mil)17323.014634.0
Total Debt ($mil)3326.01495.0
Equity ($mil)6219.06267.0

Profitability Q3 FY16 Q3 FY15
Gross Profit Margin61.2260.95
EBITDA Margin61.2160.94
Operating Margin57.9957.23
Sales Turnover0.610.65
Return on Assets23.1825.41
Return on Equity64.5759.34
Debt Q3 FY16 Q3 FY15
Current Ratio1.651.62
Interest Expense23.015.0
Interest Coverage72.6196.53

Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)1092.01124.31
Div / share0.190.16
Book value / share5.75.57
Institutional Own % n/a n/a
Avg Daily Volume3817261.03468112.0


BUY. MASTERCARD INC's P/E ratio indicates a premium compared to an average of 27.94 for the IT Services industry and a premium compared to the S&P 500 average of 25.49. For additional comparison, its price-to-book ratio of 19.09 indicates a significant premium versus the S&P 500 average of 2.84 and a significant premium versus the industry average of 8.33. 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 30.03 Peers 27.94   MA 26.20 Peers 19.79

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 25.40 Peers 21.69   MA 2.52 Peers 1.66

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.


Premium. 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 significant premium to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MA 19.09 Peers 8.33   MA 11.38 Peers 12.63

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 11.27 Peers 5.35   MA 10.20 Peers 16.93

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.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

MA significantly trails its peers on the basis of sales growth



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