This analysis attributes an Overall Score to a company by analyzing several aspects that I consider to be among the most important.
In summary, a company to have an overall score close to 100% must have the following characteristics:
- Report high growth rates in the last 3 years (and in the last quarter) in terms of Revenue, Operating Income and Net Income. Furthermore, it must operate with high and improving margins in recent years.
- Analysts expect Earnings Per Share (EPS) and revenues to grow in the short term (in the next quarter) and in the medium to long term (in the next 5 years). Moreover, they expect the company to be undervalued at current prices and in the last quarter their EPS expectations must have been beaten with a consequent rise in share prices.
- The stock price of the company must have outperformed the S&P 500 index and in the last 3 months the Hedge Funds and Insiders bought shares in the company.
The overall score ranges from -100% (if the characteristics listed above are all very negative) to +100% and it is unlikely that there will be a company with a +100% score because the requirements for achieving this score are very high, however a score higher than +40% can be considered good.
This analysis alone is not enough to decide whether or not to invest in a company because it does not provide indications on the timing of entry, but it is a good starting point.
MasterCard Inc. (MA)
Summary
- Overall Score (-100%;+100%): +56,5%
- Analysts expectations on Mastercard:
- undervalued by 13,5% at current prices
- annual EPS growth for the next 5 years +17%
- Clear outperformance compared to the S&P500 index
- YTD performance: +47% vs +19% (S&P500)
- Quarterly revenues up 12,2%, Quarterly profits up 30,5% (net margin up 16,3%)
- Net Income +74,2% in the last 3 years (net margin increased by + 7,2% to 42,2%)
- Hedge Funds and Insiders have reduced their positions in the last 3 months
Full description
Mastercard Incorporated is an American multinational financial services corporation headquartered in the Mastercard International Global Headquarters in Purchase, New York, United States.
The overall score of MA is +57% .
In the last 6 months, MA has overperformed the S&P500 index by 13,1% and analysts believe the company is undervalued by 13,5% .
In the last quarter, the company reported revenues of 4113 million, up by 12,2% compared to the same quarter 12 months earlier. Revenue TTM (Trailing-12-Months) are equal to 15707 million, up by 62,5% in the last 3 years.
MA reported an operating income of 2397 million in the last quarter, an improvement of 23,8% compared to the same quarter 12 months earlier, also reporting an improvement of 10,3% in the operating margin. Considering the sum of the last four quarters (TTM), MA reports an operating income of 8131,0 Million , a growth of 60,1% compared to three years ago and a reduction of -1,5% in the operating margin.
MA reported a net income of 2048 million in the last quarter, an improvement of 30,5% compared to the same quarter 12 months earlier, also reporting an improvement of 16,3% in the net margin. The TTM net income is 6633 million , a growth of 74,2% compared to three years ago and the net margin has improved by 7,2% .
In the next quarter, analysts expect growth in EPS (Earnings Per Share) of 13,5% and a growth in revenue of 13,5% . Furthermore, they expect an annual growth of MA EPS by 17,0% for the next 5 years.
In the last quarter, MA reported better EPS than analysts’ expectations and the stock price reacted by increasing by 1,2% .
Finally, in the last 3 months the Hedge Funds have decreased their positions by 2.3M shares. The Insiders have sold shares worth $42.9M .
Sources & additional info
*The comparison with the S&P 500 index is visible inside the graph.
*Data updated to the last quarterly report available
*Data in Millions of Dollars
*Data from zacks.com, tipranks.com, reuters.com, finance.yahoo.com
*Company information from wikipedia.com
This analysis gives you a general idea of whether a company is good or not, but you may also be interested in finding potential entry points, so I am waiting for you here to know about the best chart patterns of today.
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DISCLAIMER: The information in this blog post represents my own analysis/opinions and does not contain a recommendation for any particular security or investment.
