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)
- 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
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.