Mastercard Inc (MA)
Fun Fact
- MasterCard was originally called MasterCharge.
- The first credit card hologram was introduced by MasterCard in 1983.
- Mastercard has grown revenue at 12% annually since 2010.
- MA is a constituent stock of the S&P 500 index.
Price | USD 352.39.
Market Capitalization | USD 353B vs Enterprise Value (EV) USD 354B.
Price /Earnings (PE) | 49X. Not cheap at all vs S&P average PE of 35X.
Price /Book (PB) | 55X. Very expensive vs S&P average PB of 3.9X.
Dividend Yield (DY) | 0.45%. Very low vs average DY of S&P 1.7%.
Net Income | USD 7.3B (-7.9%). A 3-year downtrend based on TTM net income.
Net Margin | 43%. This is HIGHER than 87% of the Credit Services industry.
Interest Coverage | 17X. This is LOWER than 67% of the Credit Services industry.
Technical Analysis
Long Term Trend | Up.
Short Term Trend | Uptrend channel.
Support Line | USD 327, next support USD 303.
Resistance Line | USD 368.
Stochastic | Inside overbought zone. Does not indicate an immediate downtrend. However, the investor should monitor this stock closely for any temporary trend weakness.
Analyst Consensus
Target Price | USD 363.61.
Call | BUY.
Conclusion
MA is expensive valuation wise. Trends are nicely upwards based on charting. MA is pushing into the online payment & security business using its big data, AI & machine learning technology advantage. I also like MA for it's 1) worldwide payment network, 2) products and services technology, 3) security capability, 4) strong branding and 5) high net margin.
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