Mastercard Inc (MA, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With a current share price of $483.34 and a daily gain of 0.53%, coupled with a three-month increase of 9.49%, Mastercard Inc stands out in the financial sector. A detailed analysis, supported by the GF Score, indicates that Mastercard Inc is poised 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: financial strength, profitability, growth, GF Value, and momentum. These components are weighted differently to calculate a total score, which 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 $446.53 billion and annual sales of $26.39 billion, is the second-largest payment processor globally. In 2023, the company processed approximately $9 trillion in transactions across over 200 countries and 150 currencies. This vast operational scale underscores Mastercard's pivotal role in the global financial ecosystem.
Financial Strength Breakdown
Mastercard Inc's financial robustness is reflected in its impressive Interest Coverage ratio of 25.69 and an Altman Z-Score of 11.79, indicating a strong buffer against financial distress. The company's strategic debt management is evident from its Debt-to-Revenue ratio of 0.59, showcasing prudent financial practices.
Profitability Rank Breakdown
Mastercard Inc's profitability is exemplary, with an Operating Margin that has consistently improved over the past five years, reaching 58.29% in 2023. This trend highlights the company's efficiency in managing its operations amidst varying economic conditions.
Growth Rank Breakdown
The company's commitment to growth is evident from its 3-Year Revenue Growth Rate of 20.4%, which surpasses 69.49% of its peers in the Credit Services industry. This is complemented by a strong increase in EBITDA, further affirming Mastercard's growth trajectory.
Conclusion
Considering Mastercard Inc's robust financial strength, exceptional profitability, and consistent growth metrics, the GF Score highlights the company's superior position for potential market outperformance. Investors looking for similar opportunities can explore other high-scoring companies using the GF Score Screen available to GuruFocus Premium members.
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.
