MasterCard IncFind Ratings Reports
MASTERCARD INC's gross profit margin for the second 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 1.42 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 decreased by 8.85% 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 FY16||Q2 FY15|
|Net Sales ($mil)||2694.0||2390.0|
|Net Income ($mil)||983.0||921.0|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||6989.0||5618.0|
|Total Assets ($mil)||16282.0||15272.0|
|Total Debt ($mil)||3306.0||1495.0|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||58.65||58.74|
|Return on Assets||23.39||24.6|
|Return on Equity||65.25||58.66|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||1098.0||1134.02|
|Div / share||0.19||0.16|
|Book value / share||5.32||5.65|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||4103543.0||3660968.0|
BUY. MASTERCARD INC's P/E ratio indicates a premium compared to an average of 26.72 for the IT Services industry and a premium compared to the S&P 500 average of 25.30. For additional comparison, its price-to-book ratio of 17.92 indicates a significant premium versus the S&P 500 average of 2.83 and a significant premium versus the industry average of 7.87. 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.
|MA 28.02||Peers 26.72||MA 23.95||Peers 19.93|
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 premium to its peers.
|MA 22.79||Peers 21.20||MA 3.48||Peers 2.34|
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.
|MA 17.92||Peers 7.87||MA 4.29||Peers 20.51|
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.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, MA is expected to significantly trail its peers on the basis of its earnings growth rate.
|MA 10.27||Peers 5.31||MA 6.99||Peers 22.03|
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