Mastercard Inc

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MA : NYSE : Financial
$111.98 | %
Today's Range: 111.67 - 112.47
Avg. Daily Volume: 3199200.0
03/24/17 - 4:00 PM ET

Financial Analysis


MASTERCARD INC's gross profit margin for the fourth quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. MASTERCARD INC has strong liquidity. Currently, the Quick Ratio is 1.58 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has decreased by 6.17% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)2756.02517.0
EBITDA ($mil)1465.01200.0
EBIT ($mil)1373.01107.0
Net Income ($mil)933.0890.0


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)8878.07279.0
Total Assets ($mil)18675.016269.0
Total Debt ($mil)5187.03308.0
Equity ($mil)5656.06028.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin53.1647.68
EBITDA Margin53.1547.67
Operating Margin49.8243.98
Sales Turnover0.580.59
Return on Assets21.7323.4
Return on Equity71.7663.17
Debt Q4 FY16 Q4 FY15
Current Ratio1.841.75
Debt/Capital0.480.35
Interest Expense30.012.0
Interest Coverage45.7792.25


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)1081.01116.0
Div / share0.190.16
EPS0.860.79
Book value / share5.235.4
Institutional Own % n/a n/a
Avg Daily Volume3142678.03963713.0

Valuation


BUY. MASTERCARD INC's P/E ratio indicates a premium compared to an average of 29.22 for the IT Services industry and a premium compared to the S&P 500 average of 26.73. For additional comparison, its price-to-book ratio of 21.53 indicates a significant premium versus the S&P 500 average of 2.98 and a significant premium versus the industry average of 9.98. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
MA 30.53 Peers 29.22   MA 27.16 Peers 20.95

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
MA 22.74 Peers 21.57   MA 1.96 Peers 1.39

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 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
MA 21.53 Peers 9.98   MA 10.14 Peers 4.34

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.

 

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

MA is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
MA 11.30 Peers 5.54   MA 11.47 Peers 12.42

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

MA is keeping pace with its peers on the basis of sales growth.

 

 

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