MAMA
US • FINANCIAL SERVICES
$513.60
P/E
29.72
PEG
1.40
FCF Yield
3.8%
Rev Growth YoY
+15.8% YoY
Gross Margin
100.0%
Health Score
8/10
D/E Ratio
2.46
Confidence
MEDIUM
Business Snapshot
Mastercard operates as a global technology company in the payments industry, connecting consumers, financial institutions, merchants, and governments through its electronic payment network. Its primary revenue is generated from transaction processing fees, cross-border volume fees, and value-added services like data analytics and cybersecurity. As a dominant duopolist alongside Visa, Mastercard benefits from powerful network effects, with TTM revenue of $33.94 billion. The company is a large-cap leader with a market capitalisation of $452.09B, characterised by an asset-light, highly profitable business model that generates significant free cash flow.
Financial Health
Gross margin stands at 100.0%, reflecting that data in the payload presents gross profit as a percentage of revenue without cost of goods sold, while net margin (TTM) is a robust 45.9%. The balance sheet is stretched in terms of leverage, with a debt/equity ratio of 2.46x, though the current ratio of 1.03x indicates adequate short-term liquidity...
Risk Assessment
- VALUATION — P/E of 29.72x is elevated versus the sector average of 22x, suggesting the stock is priced for continued high growth.
- DEBT / LIQUIDITY — Debt/equity of 2.46x is highly leveraged, increasing financial risk and interest expense exposure.
- TECHNICALS — Price below the 200-day moving average of $532.37, indicating an intermediate-term downtrend despite recent price strength.
- 52-WEEK POSITION — Current price of $513.6 is significantly below the 52-week high of $599.05, representing a 14.3% decline from the peak.
- EARNINGS QUALITY — The company beat estimates in 3 of 4 recent quarters, which is above-average credibility, though not a perfect record....
Gross margin stands at 100.0%, reflecting that data in the payload presents gross profit as a percentage of revenue without cost of goods sold, while net margin (TTM) is a robust 45.9%. The balance sheet is stretched in terms of leverage, with a debt/equity ratio of 2.46x, though the current ratio of 1.03x indicates adequate short-term liquidity. Free cash flow is substantial at $17.09B, yielding 3.8%, demonstrating the company's exceptional cash generation capability. Overall, Mastercard's financial health is very strong, with ample cash flow supporting reinvestment and capital returns, though the elevated debt load requires monitoring.
- VALUATION — P/E of 29.72x is elevated versus the sector average of 22x, suggesting the stock is priced for continued high growth. - DEBT / LIQUIDITY — Debt/equity of 2.46x is highly leveraged, increasing financial risk and interest expense exposure. - TECHNICALS — Price below the 200-day moving average of $532.37, indicating an intermediate-term downtrend despite recent price strength. - 52-WEEK POSITION — Current price of $513.6 is significantly below the 52-week high of $599.05, representing a 14.3% decline from the peak. - EARNINGS QUALITY — The company beat estimates in 3 of 4 recent quarters, which is above-average credibility, though not a perfect record.
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