Mastercard Incorporated [NYSE:MA]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to Mastercard Incorporated [MA], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in December. On average, stock market experts give MA an Outperform rating. Its stock price has been found in the range of 171.89 to 257.43. This is compared to its latest closing price of $249.15.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Mastercard Incorporated [MA] is sitting at 1.58. This is compared to 1 month ago, when its average rating was 1.62.
For the quarter ending in Mar-19 Mastercard Incorporated [MA] generated $3.89 billion in sales. That’s 0.87% higher than the average estimate of $3.86 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Thu 25 Jul (In 70 Days).
Fundamental Analysis of Mastercard Incorporated [MA]
Now let’s turn to look at profitability: with a current Operating Margin for Mastercard Incorporated [MA] sitting at +55.90, this company’s Net Margin is now 40.80%. These measurements indicate that Mastercard Incorporated [MA] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 73.26, and its Return on Invested Capital has reached 50.00%. Its Return on Equity is 107.87, and its Return on Assets is 25.37. These metrics all suggest that Mastercard Incorporated is doing well at using the money it earns to generate returns.
Turning to investigate this organization’s capital structure, Mastercard Incorporated [MA] has generated a Total Debt to Total Equity ratio of 117.41. Similarly, its Total Debt to Total Capital is 54.00, while its Total Debt to Total Assets stands at 25.48. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 108.14, and its Long-Term Debt to Total Capital is 49.74. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is 28.39 and its Total Debt to EBITDA Value is 0.72. The Enterprise Value to Sales for this firm is now 16.40, and its Total Debt to Enterprise Value stands at 0.03. Mastercard Incorporated [MA] has a Price to Book Ratio of 36.05, a Price to Cash Flow Ratio of 31.71 and P/E Ratio of 42.42. These metrics suggest that this publicly-traded organization will not likely result in investment gains.
Shifting the focus to workforce efficiency, Mastercard Incorporated [MA] earns $1,010,135 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 3.69 and its Total Asset Turnover is 0.65. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.39 and its Current Ratio is 1.39. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Mastercard Incorporated [MA] has 1.00B shares outstanding, amounting to a total market cap of $249.45B. Its stock price has been found in the range of 171.89 to 257.43. At its current price, it has moved by -1.35% from its 52-week high, and it has moved 47.74% from its 52-week low.
This stock’s Beta value is currently 1.16, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 65.33. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Mastercard Incorporated [MA] a Reliable Buy?
Shares of Mastercard Incorporated [MA], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.