Mastercard Stock Buy Hold or Sell Recommendation

MA
 Stock
  

USD 318.24  2.76  0.87%   

Allowing for the 90-day total investment horizon and your below-average risk tolerance, our recommendation regarding Mastercard is 'Hold'. Macroaxis provides Mastercard buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding MA positions. The advice algorithm takes into account all of Mastercard's available fundamental, technical, and predictive indicators you will find on this site.
  
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The advice is provided from Mastercard's buy-and-hold perspective. Additionally, see Mastercard Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Mastercard and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Mastercard.

Execute Mastercard Buy or Sell Advice

The Mastercard recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Mastercard. Macroaxis does not own or have any residual interests in Mastercard or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Mastercard's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell MastercardBuy Mastercard
Hold

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very SmallDetails

Economic Sensitivity

Responds to the marketDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Mastercard has a Risk Adjusted Performance of (0.11), Jensen Alpha of 0.0693, Total Risk Alpha of 0.1192 and Treynor Ratio of (0.14)
Macroaxis provides trade recommendations on Mastercard to complement and cross-verify current analyst consensus on Mastercard. Our advice engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Mastercard is not overpriced, please verify all Mastercard fundamentals, including its price to sales, cash per share, short ratio, as well as the relationship between the ebitda and current ratio . Given that Mastercard has a price to earning of 39.68 X, we recommend you to check Mastercard market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Mastercard Trading Alerts and Improvement Suggestions

Mastercard generated a negative expected return over the last 90 days
Mastercard is unlikely to experience financial distress in the next 2 years
Over 78.0% of the company shares are owned by institutional investors
Latest headline from MacroaxisInsider: Payment of 104 shares by Oki Matsumoto of Mastercard subject to Rule 16b-3

Mastercard current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Mastercard analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Mastercard analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price432.35
Target Median Price438.00
Target High Price480.00
Recommendation Mean1.80
Number Of Analyst Opinions36
Target Low Price357.00
Average Consensus Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Mastercard Returns Distribution Density

The distribution of Mastercard's historical returns is an attempt to chart the future uncertainty of Mastercard's future price movements. The chart of the probability distribution of Mastercard stock daily returns describes the distribution of returns around its average expected value. We use Mastercard price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Mastercard returns is essential to provide solid investment advice for Mastercard stock.
Mean Return-0.19Value At Risk-4.11
Potential Upside3.64Standard Deviation2.35
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Mastercard historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Mastercard Stock Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Mastercard is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Mastercard backward and forwards among themselves. Mastercard's institutional investor refers to the entity that pools money to purchase Mastercard's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Security TypeSharesValue
Vanguard Group IncCommon Shares76 M27.2 B
Blackrock IncCommon Shares65.4 M23.4 B
State Street CorpCommon Shares34.9 M12.5 B
Fmr LlcCommon Shares24.9 M8.9 B
Price T Rowe Associates IncCommon Shares23.8 M8.5 B
Jpmorgan Chase CoCommon Shares16.9 MB
Capital International InvestorsCommon Shares16.2 M5.8 B
Note, although Mastercard's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Mastercard Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(423 M)(504 M)(728 M)(708 M)(814 M)(835.42 M)
Depreciation Amortization and Accretion437 M459 M522 M580 M726 M617.16 M
Net Cash Flow or Change in Cash and Cash Equivalents(681 M)745 M632 M3.45 B(2.52 B)(2.58 B)
Issuance Purchase of Equity Shares(3.71 B)(4.83 B)(6.37 B)(4.38 B)(5.84 B)(6.3 B)
Issuance Repayment of Debt Securities(64 M)991 M2.22 B3.96 B1.37 B1.61 B
Payment of Dividends and Other Cash Distributions(942 M)(1.04 B)(1.34 B)(1.6 B)(1.74 B)(1.79 B)
Net Cash Flow from Financing(4.76 B)(4.97 B)(5.87 B)(2.15 B)(6.55 B)(6.73 B)
Net Cash Flow from Investing(1.78 B)(506 M)(1.64 B)(1.88 B)(5.27 B)(5.41 B)
Net Cash Flow Investment Acquisitions and Disposals(182 M)12 M532 M(10 M)(55 M)(59.34 M)
Net Cash Flow from Operations5.66 B6.22 B8.18 B7.22 B9.46 B8.07 B
Effect of Exchange Rate Changes on Cash200 M(6 M)(44 M)257 M(153 M)(157.03 M)
Share Based Compensation176 M196 M250 M254 M273 M225.49 M

Mastercard Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Mastercard or Financial Services sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Mastercard stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Mastercard stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.07
β
Beta against DOW1.40
σ
Overall volatility
2.38
Ir
Information ratio -0.0029

Mastercard Volatility Alert

Mastercard exhibits very low volatility with skewness of -0.09 and kurtosis of -0.08. However, we advise investors to further study Mastercard technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Mastercard's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Mastercard's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Mastercard Implied Volatility

Mastercard's implied volatility exposes the market's sentiment of Mastercard stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Mastercard's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Mastercard stock will not fluctuate a lot when Mastercard's options are near their expiration.

Mastercard Fundamentals Vs Peers

Comparing Mastercard's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Mastercard's direct or indirect competition across all of the common fundamentals between Mastercard and the related equities. This way, we can detect undervalued stocks with similar characteristics as Mastercard or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Mastercard's fundamental indicators could also be used in its relative valuation, which is a method of valuing Mastercard by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Mastercard to competition
FundamentalsMastercardPeer Average
Return On Equity139.73 %(0.31) %
Return On Asset19.20 %(0.14) %
Profit Margin47.70 %(1.27) %
Operating Margin59.36 %(5.51) %
Current Valuation360.85 B16.62 B
Shares Outstanding974.71 M571.82 M
Shares Owned by Insiders10.95 %10.09 %
Shares Owned by Institutions77.85 %39.21 %
Number of Shares Shorted5.71 M4.71 M
Price to Earning39.68 X28.72 X
Price to Book47.34 X9.51 X
Price to Sales15.93 X11.42 X
Revenue19.9 B9.43 B
Gross Profit18.88 B27.38 B
EBITDA11.81 B3.9 B
Net Income9.49 B570.98 M
Cash and Equivalents7.33 B2.7 B
Cash per Share7.53 X5.01 X
Total Debt14.65 B5.32 B
Debt to Equity2.05 %48.70 %
Current Ratio1.34 X2.16 X
Book Value Per Share6.81 X1.93 K
Cash Flow from Operations9.78 B971.22 M
Short Ratio1.62 X4.00 X
Earnings Per Share8.13 X3.12 X
Price to Earnings To Growth1.31 X4.89 X
Number of Employees24 K18.84 K
Beta1.08-0.15
Market Capitalization316.96 B19.03 B
Total Asset16.25 B29.47 B
Retained Earnings36.67 B9.33 B
Working Capital4.71 B1.48 B
Current Asset10.98 B9.34 B
   Payment of 104 shares by Oki Matsumoto of Mastercard subject to Rule 16b-3 [view details]

About Mastercard Buy or Sell Advice

When is the right time to buy or sell Mastercard? Buying financial instruments such as Mastercard Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Mastercard investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Accounts Payable489 M527 M738 M600.74 M
Receivables5.51 B4.35 B4.33 B3.54 B

Use Investing Ideas to Build Portfolios

In addition to having Mastercard in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Social Domain Thematic Idea Now

Social Domain
Social Domain Theme
New or established large and mid-sized companies that are involved in the social media industry, including entities that provide web-based or mobile media applications and services across across large segment of population in multiple geographical areas. The Social Domain theme has 35 constituents.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Social Domain Theme or any other thematic opportunities.
View All  Next Launch Social Domain
Additionally, see Mastercard Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Mastercard information on this page should be used as a complementary analysis to other Mastercard's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Transaction History module to view history of all your transactions and understand their impact on performance.

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Is Mastercard's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Mastercard. If investors know Mastercard will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Mastercard listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.46
Market Capitalization
309.5 B
Quarterly Revenue Growth YOY
0.24
Return On Assets
0.19
Return On Equity
1.4
The market value of Mastercard is measured differently than its book value, which is the value of Mastercard that is recorded on the company's balance sheet. Investors also form their own opinion of Mastercard's value that differs from its market value or its book value, called intrinsic value, which is Mastercard's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Mastercard's market value can be influenced by many factors that don't directly affect Mastercard's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Mastercard's value and its price as these two are different measures arrived at by different means. Investors typically determine Mastercard value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mastercard's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.