Is Mastercard Stock a Good Investment?

Mastercard Investment Advice

To provide specific investment advice or recommendations on Mastercard stock, we recommend investors consider the following general factors when evaluating Mastercard. This will help you to make an informed decision on whether to include Mastercard in one of your diversified portfolios:

Examine Mastercard's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
Research Mastercard's leadership team and their track record. Good management can help Mastercard navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
Consider the overall health of the Transaction & Payment Processing Services space and any emerging trends that could impact Mastercard's business and its evolving consumer preferences.
Compare Mastercard's performance and market position to its competitors. Analyze how Mastercard is positioned in terms of product offerings, innovation, and market share.
Check if Mastercard pays a dividend and its dividend yield and payout ratio.
Review what financial analysts are saying about Mastercard's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.

It's important to note that investing in Mastercard stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Mastercard is a good investment.

Sell

Buy

Macroaxis provides trade recommendations on Mastercard to complement and cross-verify current analyst consensus on Mastercard. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Mastercard is not overpriced, please verify all Mastercard fundamentals, including its cash per share, short ratio, and the relationship between the ebitda and current ratio . Given that Mastercard has a price to earning of 35.09 X, we recommend you to check Mastercard market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Market Performance	OK	Details
Volatility	Very steady	Details
Hype Condition	Low key	Details
Current Valuation	Overvalued	Details
Odds Of Distress	Very Small	Details
Economic Sensitivity	Follows the market closely	Details
Investor Sentiment	Alarmed	Details
Analyst Consensus	Strong Buy	Details
Financial Strenth (F Score)	Healthy	Details
Financial Leverage	Not Rated	Details
Reporting Quality (M-Score)	Unlikely Manipulator	Details

Examine Mastercard Stock

Researching Mastercard's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 80.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.02. Mastercard recorded earning per share (EPS) of 13.2. The entity last dividend was issued on the 9th of October 2024. The firm had 10:1 split on the 22nd of January 2014.

To determine if Mastercard is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Mastercard's research are outlined below:

	Mastercard is unlikely to experience financial distress in the next 2 years
	Over 80.0% of the company shares are owned by institutional investors
	On 8th of November 2024 Mastercard paid $ 0.66 per share dividend to its current shareholders
	Latest headline from finance.yahoo.com: Visa vs. Mastercard Which Stock Should You Buy For 2025

Mastercard Quarterly Liabilities And Stockholders Equity

47.24 Billion

Mastercard uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Mastercard. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Mastercard's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.

	31st of January 2024 Upcoming Quarterly Report	View
	25th of April 2024 Next Financial Report	View
	31st of December 2023 Next Fiscal Quarter End	View
	31st of January 2024 Next Fiscal Year End	View
	30th of September 2023 Last Quarter Report	View
	31st of December 2022 Last Financial Announcement	View

Earnings surprises can significantly impact Mastercard's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Mastercard's investors have experienced.

Reported	Fiscal Date	Estimated EPS	Reported EPS	Surprise
2007-02-09	2006-12-31	0.02	0.03	0.01	50
2006-08-02	2006-06-30	0.06	0.07	0.01	16
2008-01-31	2007-12-31	0.07	0.09	0.02	28
2010-02-04	2009-12-31	0.25	0.22	-0.03	12
2009-07-30	2009-06-30	0.24	0.27	0.03	12
2009-02-05	2008-12-31	0.16	0.19	0.03	18
2008-11-03	2008-09-30	0.22	0.25	0.03	13
2006-11-01	2006-09-30	0.11	0.14	0.03	27

Know Mastercard's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Mastercard is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Mastercard backward and forwards among themselves. Mastercard's institutional investor refers to the entity that pools money to purchase Mastercard's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.

		Shares
Bank Of New York Mellon Corp	2024-09-30	9.4 M
Wellington Management Company Llp	2024-09-30	8.9 M
International Assets Investment Management, Llc	2024-09-30	8 M
Northern Trust Corp	2024-09-30	7.9 M
Nuveen Asset Management, Llc	2024-09-30	7.5 M
Franklin Resources Inc	2024-09-30	7.5 M
Legal & General Group Plc	2024-09-30	7.3 M
Hhg Plc	2024-09-30	7.2 M
Jennison Associates Llc	2024-09-30	6.5 M
Vanguard Group Inc	2024-09-30	76.8 M
Blackrock Inc	2024-06-30	69.8 M

Note, although Mastercard's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Mastercard's market capitalization trends

The company currently falls under 'Mega-Cap' category with a market capitalization of 486.73 B.

Market Cap

185.58 Billion

Mastercard's profitablity analysis

	Last Reported	Projected for Next Year
Return On Tangible Assets	0.36	0.38
Return On Capital Employed	0.53	0.56
Return On Assets	0.26	0.28
Return On Equity	1.62	1.70

The company has Net Profit Margin (PM) of 0.45 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is way below average. Likewise, it shows Net Operating Margin (NOM) of 0.59 %, which signifies that for every $100 of sales, it has a net operating income of $0.59.

Determining Mastercard's profitability involves analyzing its financial statements and using various financial metrics to determine if Mastercard is a good buy. For example, gross profit margin measures Mastercard's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Mastercard's profitability and make more informed investment decisions.

Mastercard's Earnings Breakdown by Geography

Please note, the presentation of Mastercard's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Mastercard's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Mastercard's management manipulating its earnings.

Evaluate Mastercard's management efficiency

Mastercard has Return on Asset (ROA) of 0.2289 % which means that for every $100 of assets, it generated a profit of $0.2289. This is way below average. Likewise, it shows a return on total equity (ROE) of 1.7758 %, which means that it produced $1.7758 on every 100 dollars invested by current stockholders. Mastercard's management efficiency ratios could be used to measure how well Mastercard manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Tangible Assets is expected to grow to 0.38. The current year's Return On Capital Employed is expected to grow to 0.56. At present, Mastercard's Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 24.7 B, whereas Total Current Assets are forecasted to decline to about 10.2 B.

	Last Reported	Projected for Next Year
Book Value Per Share	7.41	7.78
Tangible Book Value Per Share	(5.03)	(4.78)
Enterprise Value Over EBITDA	27.05	24.61
Price Book Value Ratio	58.11	61.01
Enterprise Value Multiple	27.05	24.61
Price Fair Value	58.11	61.01
Enterprise Value	176.4 B	185.3 B

Evaluating the management effectiveness of Mastercard allows investors to assess its financial health and operational efficiency. Coupled with an analysis of its growth prospects and the current market dynamics, we evaluate the stock's true value and future potential. Key indicators such as revenue, earnings or debt levels are examined alongside external factors like economic trends and regulatory changes. The Mastercard Stock analysis seeks to determine whether the stock is undervalued, appropriately priced, or overvalued, thereby guiding your investment decisions.

Dividend Yield

0.005

Forward Dividend Yield

0.005

Forward Dividend Rate

2.64

Beta

1.101

Basic technical analysis of Mastercard Stock

As of the 17th of December 2024, Mastercard secures the Mean Deviation of 0.7097, risk adjusted performance of 0.092, and Downside Deviation of 0.9155. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Mastercard, as well as the relationship between them.

Mastercard's Outstanding Corporate Bonds

Mastercard issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Mastercard uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Mastercard bonds can be classified according to their maturity, which is the date when Mastercard has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

	Boeing Co 2196 Corp Bond US097023DG73	View
	MASTERCARD INC 395 Corp Bond US57636QAK04	View
	MASTERCARD INC 35 Corp Bond US57636QAJ31	View
	MASTERCARD INC Corp Bond US57636QAN43	View
	MASTERCARD INC Corp Bond US57636QAM69	View
	MASTERCARD INC Corp Bond US57636QAL86	View
	MASTERCARD INC 295 Corp Bond US57636QAG91	View
	MASTERCARD INC 38 Corp Bond US57636QAH74	View

View All Mastercard Corporate Bonds

Understand Mastercard's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Mastercard's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

	Risk Adjusted Performance	0.092
	Market Risk Adjusted Performance	0.1668
	Mean Deviation	0.7097
	Semi Deviation	0.7862
	Downside Deviation	0.9155
	Coefficient Of Variation	804.45
	Standard Deviation	0.9315
	Variance	0.8676
	Information Ratio	0.0327
	Jensen Alpha	0.055
	Total Risk Alpha	0.0086
	Sortino Ratio	0.0333
	Treynor Ratio	0.1568
	Maximum Drawdown	4.46
	Value At Risk	(1.33)
	Potential Upside	1.35
	Downside Variance	0.8382
	Semi Variance	0.618
	Expected Short fall	(0.78)
	Skewness	(0.12)
	Kurtosis	1.52

	Risk Adjusted Performance	0.092
	Market Risk Adjusted Performance	0.1668
	Mean Deviation	0.7097
	Semi Deviation	0.7862
	Downside Deviation	0.9155
	Coefficient Of Variation	804.45
	Standard Deviation	0.9315
	Variance	0.8676
	Information Ratio	0.0327
	Jensen Alpha	0.055
	Total Risk Alpha	0.0086
	Sortino Ratio	0.0333
	Treynor Ratio	0.1568
	Maximum Drawdown	4.46
	Value At Risk	(1.33)
	Potential Upside	1.35
	Downside Variance	0.8382
	Semi Variance	0.618
	Expected Short fall	(0.78)
	Skewness	(0.12)
	Kurtosis	1.52

Consider Mastercard's intraday indicators

Mastercard intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Mastercard stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

	Accumulation Distribution	32322.12
	Daily Balance Of Power	0.1032
	Rate Of Daily Change	1.0
	Day Median Price	528.39
	Day Typical Price	529.26
	Price Action Indicator	2.97
	Period Momentum Indicator	0.7

Mastercard Corporate Filings

F4	9th of December 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities	View Verify
8K	13th of November 2024 Report filed with the SEC to announce major events that shareholders should know about	View Verify
	4th of September 2024 Prospectus used primarily for registering securities for public sale.	View Verify
	31st of July 2024 Other Reports	View Verify

Mastercard time-series forecasting models is one of many Mastercard's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Mastercard's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Mastercard Stock media impact

Far too much social signal, news, headlines, and media speculation about Mastercard that are available to investors today. That information is available publicly through Mastercard media outlets and privately through word of mouth or via Mastercard internal channels. However, regardless of the origin, that massive amount of Mastercard data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.

A primary focus of Mastercard news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Mastercard relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Mastercard's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Mastercard alpha.

Mastercard Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Mastercard can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.

Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Mastercard Historical Investor Sentiment

Investor biases related to Mastercard's public news can be used to forecast risks associated with an investment in Mastercard. The trend in average sentiment can be used to explain how an investor holding Mastercard can time the market purely based on public headlines and social activities around Mastercard. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.

Mastercard's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Mastercard and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Mastercard news discussions. The higher the estimate score, the more favorable the investor's outlook on Mastercard.