Mastercard Inc (MA, Financial) has recently been in the spotlight, drawing interest from investors and financial analysts due to its robust financial stance. With shares currently priced at $460.92, Mastercard Inc has witnessed a daily gain of 0%, marked against a three-month change of 22.19%. A thorough analysis, underlined by the GF Score, suggests that Mastercard Inc is well-positioned for substantial growth in the near future.
What Is the GF Score?
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
- Financial strength rank: 6/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 10/10
Mastercard Inc's GF Score of 97 out of 100 signals the highest outperformance potential, with particularly high ranks in profitability, growth, and momentum, while its financial strength and GF Value ranks are relatively lower but still strong.
Understanding Mastercard Inc's Business
Mastercard Inc, with a market cap of $430.65 billion and sales of $25.1 billion, is the second-largest payment processor in the world, having processed close to over $8 trillion in transactions during 2022. Operating in over 200 countries and processing transactions in over 150 currencies, Mastercard Inc boasts an operating margin of 57.96%, reflecting its efficiency and profitability in the financial services sector.
Financial Strength Breakdown
Mastercard Inc's Financial Strength rating of 6/10 indicates a solid balance sheet. An Interest Coverage ratio of 25.49 signifies its ability to comfortably meet interest obligations. The Altman Z-Score of 11.55 suggests a low probability of financial distress, and a Debt-to-Revenue ratio of 0.64 demonstrates prudent debt management.
Profitability Rank Breakdown
Mastercard Inc's Profitability Rank of 10/10 highlights its exceptional ability to generate earnings compared to its peers. The Piotroski F-Score further confirms its sound financial health, while a Predictability Rank of 5 stars reflects consistent operational performance and reliability for investors.
Growth Rank Breakdown
Mastercard Inc's high Growth Rank is a testament to its commitment to expansion. Its 3-Year Revenue Growth Rate of 11.5% surpasses 66.94% of competitors in the Credit Services industry. The company's EBITDA growth rates over the past three and five years highlight its ability to sustain growth and profitability.
Conclusion: Mastercard Inc's Position for Outperformance
Considering Mastercard Inc's financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors seeking companies with similar characteristics can explore more options using the GF Score Screen. With its strong financial foundation and growth prospects, Mastercard Inc stands as a compelling choice for value investors looking to capitalize on market leadership and innovation.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
