Mastercard (MA) AI Stock Analysis

• Market Cap: $501.84B
• Dividend Yield: 0.65%
• Average Volume (3M): 3.09M
• Price to Earnings (P/E): 38.8
• Beta (1Y): 0.81
• Revenue Growth: 12.94%
• EPS Growth: 13.22%
• Country: US
• Employees: 35,300
• Sector: Financial
• Sector Strength: 78
• Industry: Financial - Credit Services
• EPS (TTM): 3.73
• Shares Outstanding: 901,263,200
• 10 Day Avg. Volume: 2,649,271
• 30 Day Avg. Volume: 3,093,457
• PEG Ratio: 14.43
• Price to Book (P/B): 75.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 32.66
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: 4.59
• Enterprise Value/Gross Profit: 22.92
• Enterprise Value/Ebitda: 7.67
• 1Y Price Target: $635.48
• Price Target Upside: 14.57% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 27

• Rating: 82 Outperform
• Price Target: $644.00 ▲(16.11%Upside)

Mastercard's strong financial performance and positive earnings call guidance are the main drivers of its high score. The company shows robust growth in digital and cross-border payments, although high valuation and geopolitical risks are notable concerns. Technical indicators suggest stability but limited upward momentum.

Positive Factors

Consumer protection

Mastercard offers consumer protections like zero liability, fraud protection, chargeback rights, and rewards.

Stablecoin integration

Mastercard can serve as an important interoperability layer between traditional finance and stablecoins.

Negative Factors

Regulatory risks

There are regulatory risks due to Mastercard's dominance in the payment network, which could potentially impact its earnings.

Mastercard Business Overview & Revenue Model

Company Description

Mastercard Incorporated is a global technology company in the payments industry. It provides transaction processing and other payment-related products and services to consumers, financial institutions, governments, and businesses. The company's core offerings include authorization, clearing, and settlement services for payment transactions through its vast network. Mastercard operates in several sectors, including credit, debit, prepaid, and commercial payments, facilitating secure and efficient payment solutions worldwide.

How the Company Makes Money

Mastercard makes money primarily through fees associated with its payment processing services. The company charges financial institutions fees for the services it provides, including transaction processing, which encompasses authorization, clearing, and settlement of payments. Mastercard's revenue model includes assessment fees, which are a percentage of the gross dollar volume of activity on Mastercard-branded cards, and transaction processing fees, which are based on the number of transactions processed. Additionally, Mastercard earns revenue from cross-border fees when cardholders use their cards in a different country from where they were issued. The company also generates income from value-added services such as fraud management, data analytics, consulting, and loyalty solutions. Significant partnerships with financial institutions, merchants, and technology providers further enhance Mastercard's revenue streams by expanding its global reach and facilitating new product offerings.

Mastercard Financial Statement Overview

Summary

Mastercard demonstrates strong financial health with impressive profitability and cash generation capabilities. Income statement metrics are robust, with high margins and revenue growth. The balance sheet shows significant leverage, but the high return on equity indicates effective capital use. Cash flows are strong, supporting overall financial stability.

Income Statement

Mastercard has shown robust growth in its income statement metrics. The TTM (Trailing-Twelve-Months) gross profit margin stands at 82.27%, indicating strong profitability from its operations. The net profit margin is 45.22%, reflecting efficient cost management. Revenue growth over the years is commendable, with a notable increase from 2024 to 2025. The EBIT and EBITDA margins are impressive at 55.48% and 58.47%, respectively, underscoring operational efficiency.

Balance Sheet

The balance sheet reveals a moderately high debt-to-equity ratio of 2.81, indicating significant leverage. However, the return on equity is strong at 196.28%, showing effective use of shareholder capital. The equity ratio is 13.81%, suggesting a lower proportion of assets financed by equity, which could be a potential risk if leverage increases further.

Cash Flow

Cash flow analysis shows a positive trajectory with a free cash flow growth rate of 6.59% from 2024 to TTM. The operating cash flow to net income ratio is 1.18, and the free cash flow to net income ratio is 1.16, indicating strong cash conversion and a healthy cash generation capability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.17B	25.10B	22.24B	18.88B	15.30B
Gross Profit	21.49B	19.08B	16.97B	14.39B	11.51B
EBITDA	16.80B	15.01B	12.95B	11.46B	8.72B
Net Income	12.87B	11.20B	9.93B	8.69B	6.41B
Balance Sheet
Total Assets	48.08B	42.45B	38.72B	37.67B	33.58B
Cash, Cash Equivalents and Short-Term Investments	8.77B	9.18B	7.41B	7.89B	10.60B
Total Debt	18.23B	15.68B	14.02B	13.90B	12.67B
Total Liabilities	41.57B	35.45B	32.35B	30.26B	27.07B
Stockholders Equity	6.49B	6.93B	6.30B	7.31B	6.39B
Cash Flow
Free Cash Flow	14.31B	11.61B	10.10B	8.65B	6.52B
Operating Cash Flow	14.78B	11.98B	11.20B	9.46B	7.22B
Investing Cash Flow	-3.40B	-1.35B	-1.47B	-5.27B	-1.88B
Financing Cash Flow	-10.84B	-9.49B	-10.33B	-6.55B	-2.15B

Mastercard Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 554.65
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MA, the sentiment is Neutral. The current price of 554.65 is below the 20-day moving average (MA) of 556.15, below the 50-day MA of 567.24, and above the 200-day MA of 538.01, indicating a neutral trend. The MACD of -2.69 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 38.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MA.

Mastercard Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MA	82 Outperform	$501.84B	38.77	188.92%	0.65%	12.94%	13.22%
V	79 Outperform	$676.86B	35.50	50.03%	0.65%	10.19%	12.45%
PYPL	78 Outperform	$72.13B	16.79	22.20%	―	4.50%	12.82%
AXP	76 Outperform	$215.75B	21.62	32.58%	1.23%	8.03%	6.26%
COF	76 Outperform	$139.73B	18.33	7.90%	1.11%	6.98%	-6.76%
Sector *	63 Neutral	AU$10.11B	8.32	11.67%	4.97%	32.88%	39.55%

Mastercard Corporate Events

Mastercard Approves Amendments at Annual Stockholders Meeting

On June 24, 2025, Mastercard held its annual stockholders meeting where several amendments to its Certificate of Incorporation were approved. These changes, effective June 25, 2025, include limiting officer liability, eliminating Industry Directors, and implementing other modifications. Additionally, the stockholders elected directors for a one-year term and approved executive compensation and the appointment of PricewaterhouseCoopers LLP as the independent auditor. However, proposals for a racial equity audit and an affirmative action risks report were not approved.

The most recent analyst rating on (MA) stock is a Hold with a $470.00 price target. To see the full list of analyst forecasts on Mastercard stock, see the MA Stock Forecast page.