Fact based stock research
MasterCard (NYSE:MA)

US57636Q1040

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

MasterCard stock research in summary

investor.mastercard.cominvestor-relationsdefault.aspx

ANALYSIS: With an Obermatt Combined Rank of 4 (worse than 96% compared with investment alternatives), MasterCard (Data Processing & Outsourcing, USA) shares have lower financial characteristics compared with similar stocks. Shares of MasterCard are low in value (priced high) with a consolidated Value Rank of 8 (worse than 92% of alternatives), and are riskily financed (Safety Rank of 29, which means above-average debt burdens) but show above-average growth (Growth Rank of 63). ...read more

RECOMMENDATION: A Combined Rank of 4, is a sell recommendation based on MasterCard's financial characteristics. As the company MasterCard shows low value with an Obermatt Value Rank of 8 (92% of comparable investments are less expensive), investors should look at the other ranks. In this case, growth is expected to be above-average, better than 63% of comparable companies (Obermatt Growth Rank is 63). This is a typical case. Companies with above average growth tend to cost more than stocks with slower growth expectations. If this is a high-growth company, the low Obermatt Safety Rank of 29 is a good sign. The more debt a well-performing company has, the higher the returns to shareholders. However, if growth turns negative or interest rates increase, high debt may become a burden. If you believe the future is bright for MasterCard, even a low-value company (in terms of its key financial indicators) can be a good investment. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	8
Growth Rank	63
Safety Rank	29
Combined Rank	4

Country	USA
Industry	Data Processing & Outsourcing
Index	Employee Focus US, Diversity USA, S&P 500
Size class	XX-Large

27-Feb-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: MasterCard

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	13	8	10	8
GROWTH
GROWTH	73	75	55	63
SAFETY
SAFETY	26	29	29	29
SENTIMENT
SENTIMENT	75	78	30	^new
360° VIEW
360° VIEW	23	27	7	^new

Most recent update of the stock research: 27-Feb-2025. Financial reporting date used for calculating ranks: 31-Dec-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better MasterCard is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	13	8	10	8
GROWTH
GROWTH	73	75	55	63
SAFETY
SAFETY	26	29	29	29
COMBINED
COMBINED	4	12	1	4

Last update of combined financial performance: 27-Feb-2025. Stock analysis on combined financial performance: The higher the rank of MasterCard the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 8 (worse than 92% compared with alternatives), MasterCard shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with three out of four indicators below average for MasterCard. Only the metric dividend yield has an above-average rank, reflecting that dividend practices are expected to be higher than 61% of comparable companies, making the stock an attractive buy for dividend investors. However, dividend investors may get disappointed because all other critical financial indicators are below the market median: Price-to-Sales is 3 which means that the stock price compared with what market professionals expect for future profits is higher than 97% of comparable companies, indicating a low value concerning MasterCard's sales levels. The same is valid for Price-to-Profit (also referred to as price-earnings, P/E) with a rank of 14 which means that the stock price compared with what market professionals expect for future profit levels is higher than 86% of comparable companies. In addition, Price-to-Book (also referred to as market-to-book ratio) with a Price-to-Book Rank of 1 is also low. Compared with invested capital, the stock price is higher than for 99% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 8, is a sell recommendation based on MasterCard's stock price compared with the company's operational size and dividend yields. Should dividend investors pick MasterCard? The company-reported financials speak against it. The company is expensive compared with revenue and invested capital levels, two reliable company size indicators. In addition, it currently has a low level of profits. How can future dividends be paid in the case that profits remain low? Dividend investors should choose MasterCard only if they reasonably expect the low current profit levels to be transitory. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	3	1	3	3
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	16	20	15	14
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	1	1	1	1
DIVIDEND YIELD
DIVIDEND YIELD	71	65	61	61
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	13	8	10	8

Last update of Value Rank: 27-Feb-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of MasterCard; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 63 (better than 63% compared with alternatives), MasterCard shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with half of the indicators below and half above average for MasterCard. Sales Growth has a rank of 79 which means that currently professionals expect the company to grow more than 79% of its competitors. Stock Returns are also above average with a rank of 61. But Capital Growth has only a rank of 32, which means that currently professionals expect the company to grow its invested capital less than 68% of its competitors. Profit Growth is also low, with a rank of only 45, which means that, currently, professionals expect the company to grow its profits below average. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 63, is a buy recommendation for growth and momentum investors. This is a surprising picture, as the messages from the operating growth indicators of revenues, profits, and invested capital are mixed, while stock returns are above average. It may indicate new intellectual properties, such as brand improvement or a strong market position that shows in revenues but not in the capital. The low profit-growth rate may indicate an early phase where costs are still high, and revenues don't fully cover upfront investments or fixed costs. The positive investor outlook with a 61% peer outperformance is reaffirmed in this case which may be a good sign for an investment into a well-protected high-growth company. This fact needs to be confirmed by researching the company website and press. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is mixed here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	63	77	79	79
PROFIT GROWTH
PROFIT GROWTH	58	72	42	45
CAPITAL GROWTH
CAPITAL GROWTH	36	10	26	32
STOCK RETURNS
STOCK RETURNS	75	71	61	61
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	73	75	55	63

Last update of Growth Rank: 27-Feb-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of MasterCard.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 29 (better than 29% compared with alternatives), the company MasterCard has financing practices on the riskier side, which means that their overall debt burden is above the industry average. This doesn't mean that the business of MasterCard is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for MasterCard. Liquidity is at 90, meaning the company generates more profit to service its debt than 90% of its competitors. This indicates that the company is safer when it comes to debt service. But Refinancing is riskier at a rank of 25, which means that the portion of the debt that is about to be refinanced is above average. It has more debt in the refinancing stage than 75% of its competitors. Leverage is also high at a rank of 9, which means that the company has an above-average debt-to-equity ratio. It has more debt than 91% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 29 (worse than 71% compared with alternatives), MasterCard has a financing structure that is riskier than that of its competitors. High Leverage (a low Obermatt Leverage Rank) is good in good times, because it usually indicates that shareholders get higher returns. The good Liquidity performance of the company is an indicator that this is the case. However, if you expect an economic downturn, you may stay clear of this stock because they have an above-average debt level that needs refinancing soon. If the company is sailing with good winds, as may be visible from the Growth and Sentiment performance, the refinancing risk may be lower than the low Refinancing rank suggests. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	20	18	9	9
REFINANCING
REFINANCING	26	21	25	25
LIQUIDITY
LIQUIDITY	88	88	91	90
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	26	29	29	29

Last update of Safety Rank: 27-Feb-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of MasterCard and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	74	69	^new
OPINIONS CHANGE
OPINIONS CHANGE	52	50	7	^new
PRO HOLDINGS
PRO HOLDINGS	79	70	58	^new
MARKET PULSE
MARKET PULSE	28	48	46	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	75	78	30	^new

Last update of Sentiment Rank: 27-Feb-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for MasterCard.
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