Mastercard Inc (MA, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With a current share price of $482.61, Mastercard Inc has enjoyed a daily increase of 0.38% and an impressive three-month growth of 9.37%. A detailed analysis, supported by the GF Score, positions Mastercard Inc for significant future growth.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Mastercard Inc boasts a GF Score of 96, signaling strong future performance potential.
- Financial strength rank: 6/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 7/10
- Momentum rank: 7/10
Understanding Mastercard Inc's Business
Mastercard Inc, with a market cap of $445.85 billion and annual sales of $26.39 billion, stands as the second-largest payment processor globally. In 2023 alone, it processed transactions nearing $9 trillion across over 200 countries and in more than 150 currencies. This vast operational scale underscores its pivotal role in the global financial ecosystem.
Financial Strength Breakdown
Mastercard Inc's financial robustness is evident through its Interest Coverage ratio of 25.69, significantly surpassing the benchmark of 5 set by investment guru Benjamin Graham. Additionally, its Altman Z-Score of 11.75 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.59 highlights efficient debt management.
Profitability Rank Breakdown
The Profitability Rank of Mastercard Inc is exceptional. The company's Operating Margin has shown consistent improvement over the past five years, reaching 58.29% in 2023. This trend not only reflects superior operational efficiency but also enhances profitability.
Growth Rank Breakdown
Mastercard Inc's commitment to growth is evident from its 3-Year Revenue Growth Rate of 20.4%, outperforming 69.35% of peers in the Credit Services industry. The company's EBITDA has also seen significant growth, with a three-year growth rate of 22.3%.
Conclusion
Considering Mastercard Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore other high-performing companies using the GF Score Screen.
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.
