Download PDF

1. Company Snapshot

1.a. Company Description

Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally.It facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers other payment-related products and services.The company offers integrated products and value-added services for account holders, merchants, financial institutions, businesses, governments, and other organizations, such as programs that enable issuers to provide consumers with credits to defer payments; prepaid programs and management services; commercial credit and debit payment products and solutions; and payment products and solutions that allow its customers to access funds in deposit and other accounts.


It also provides value-added products and services comprising cyber and intelligence solutions for parties to transact, as well as proprietary insights, drawing on principled use of consumer, and merchant data services.In addition, the company offers analytics, test and learn, consulting, managed services, loyalty, processing, and payment gateway solutions for e-commerce merchants.Further, it provides open banking and digital identity platforms services.


The company offers payment solutions and services under the MasterCard, Maestro, and Cirrus.Mastercard Incorporated was founded in 1966 and is headquartered in Purchase, New York.

Show Full description

1.b. Last Insights on MA

Breaking News: Mastercard Incorporated has seen several changes in its shareholder base. Elefante Mark B raised its position by 9.1% to 12,240 shares, while Broderick Brian C trimmed its stake by 2.8% to 35,718 shares. Delaney Dennis R also reduced its position by 6.0% to 15,661 shares. Alliance Wealth Advisors LLC UT decreased its stake by 16.7% to 6,414 shares. There is no recent earnings release available. Analysts at various firms have not released any new recommendations on the stock. Several shareholders adjustments have been noted recently.

1.c. Company Highlights

2. Mastercard's Q4 2025 Earnings: A Strong Finish to a Robust Year

Mastercard reported a strong Q4 2025 with net revenue growth of 15% to $6.4 billion, exceeding analyst estimates. Earnings per share (EPS) came in at $4.76, significantly higher than the estimated $4.24. The company's operating income grew 17%, driven by a 12% increase in operating expenses, which was largely offset by the strong revenue growth. The net income margin expanded by 120 basis points to 43.6%. The company's financial performance was driven by its payment network and value-added services and solutions, with the latter growing 22% year over year.

Publication Date: Feb -03

📋 Highlights
  • Q4 Net Revenue Growth: 15% year-over-year, driven by payment network and value-added services
  • Full-Year VAS Revenue Growth: 21% increase, fueled by AI/data capabilities and new solutions like Agent Pay
  • Net Income & EPS Growth: 17-20% increase, supported by operating income growth and tax benefits
  • Global GDV Expansion: 7% YoY (7% cross-border), with 9% growth in international markets (9% credit/debit)
  • Stock Repurchases: $3.6B repurchased in Q4, $715M additional committed through 2026, contributing 10¢ to EPS

Revenue Growth Drivers

The revenue growth was driven by a 7% increase in worldwide gross dollar volume (GDV), a 10% growth in switch transactions, and a 17% increase in cross-border assessments. The company's value-added services and solutions, which include data and AI capabilities, also contributed to the revenue growth. As Michael Miebach noted, "Our virtuous cycle is in motion, and we're positioning ourselves to increase our share in the market." The growth in value-added services and solutions was driven by the company's proprietary data and AI capabilities, as well as its payment network reach.

Segment Performance

Mastercard's Consumer Payments segment continued to innovate and drive incremental growth, with approval rates increasing by 270 basis points over the last five years. The company's commercial and new payment flows segment also performed well, with commercial credit and debit volumes growing 11% year over year. The disbursements and remittances capability, Mastercard Move, has more than 17 billion endpoints available and is positioned to be the money movement platform with the greatest reach in the industry.

Valuation and Outlook

Mastercard's guidance for 2026 expects net revenues to grow at the high end of a low double-digit range on a currency-neutral basis, excluding inorganic activity. The company's P/E ratio of 33.28 and P/S ratio of 15.13 indicate that the stock is trading at a premium to its historical averages. However, the company's strong growth prospects and expanding margins justify the premium. With analysts estimating next year's revenue growth at 12.2%, Mastercard is expected to continue its strong performance.

Key Metrics

The company's return on equity (ROE) of 198.19% and return on invested capital (ROIC) of 48.63% indicate a high level of profitability. The dividend yield of 0.57% is relatively low, but the company's share repurchase program, which has $3.6 billion worth of stock repurchased in the quarter, is expected to support the stock price. The EV/EBITDA ratio of 24.99 is slightly higher than the industry average, but the company's strong growth prospects justify the premium.

3. NewsRoom

Card image cap

This Is My Retirement Blueprint: The 4% Rule That Builds Wealth And Income

12:30

Source: seekingalpha.com

Card image cap

Alliance Wealth Advisors LLC UT Has $3.65 Million Stake in Mastercard Incorporated $MA

Feb -22

Source: defenseworld.net

Card image cap

Mastercard Incorporated $MA Shares Sold by Broderick Brian C

Feb -20

Source: defenseworld.net

Card image cap

Delaney Dennis R Trims Stock Position in Mastercard Incorporated $MA

Feb -20

Source: defenseworld.net

Card image cap

Mastercard Incorporated $MA Position Lifted by Elefante Mark B

Feb -20

Source: defenseworld.net

Card image cap

Moodys Corp (MCO) Q4 2025 Earnings Call Highlights: Record Revenue and Strategic Growth Initiatives

Feb -18

Source: gurufocus.com

Card image cap

5 Financial Transaction Stocks to Watch Despite Elevated Expense Level

Feb -18

Source: zacks.com

Card image cap

Payments Power Play: MA or AXP, Who Has the Deeper Moat in 2026?

Feb -18

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.00%)

6. Segments

Payment Solutions

Expected Growth: 12.0%

The expected growth rate for Payment Solutions is aligned with the global revenue growth hypothesis of 12.0%. This is because Payment Solutions is a core segment for Mastercard, driving a significant portion of its revenue through transaction fees and other related services. The growth is supported by increasing transaction volumes and the expanding global acceptance of Mastercard-branded cards.

7. Detailed Products

Payment Processing

Mastercard provides payment processing services that enable merchants to accept various payment methods, including credit, debit, and prepaid cards, as well as digital payments.

Digital Payments

Mastercard offers digital payment solutions, such as Masterpass, that allow consumers to make online and in-app purchases using their mobile devices.

Cross-Border Payments

Mastercard facilitates cross-border payments, enabling individuals and businesses to send and receive payments across different countries and currencies.

Card Services

Mastercard provides card services, including card issuance, card processing, and card management, to financial institutions and merchants.

Data Analytics

Mastercard offers data analytics services that provide insights and intelligence to businesses, helping them to optimize their operations and improve customer experiences.

Security Solutions

Mastercard provides security solutions, such as fraud detection and prevention, to protect transactions and prevent fraudulent activities.

Loyalty and Rewards

Mastercard offers loyalty and rewards programs that enable businesses to incentivize customers and drive loyalty.

Consulting Services

Mastercard provides consulting services to businesses, helping them to optimize their payment strategies and improve operational efficiency.

8. Mastercard Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Mastercard's business model is highly dependent on its network effects, making it difficult for substitutes to emerge. Additionally, the company's strong brand recognition and partnerships with financial institutions further reduce the threat of substitutes.

Bargaining Power Of Customers

Mastercard's customers, primarily financial institutions, have some bargaining power due to their large transaction volumes. However, the company's diversified customer base and strong relationships mitigate this power.

Bargaining Power Of Suppliers

Mastercard's suppliers, primarily financial institutions and merchants, have limited bargaining power due to the company's dominant market position and the lack of alternative payment processing networks.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the payment processing industry, including significant capital requirements, regulatory hurdles, and the need for a large network of merchants and financial institutions.

Intensity Of Rivalry

The payment processing industry is highly competitive, with Mastercard facing intense rivalry from Visa, American Express, and other players. The company must continually innovate and invest in its products and services to maintain its market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 69.35%
Debt Cost 4.47%
Equity Weight 30.65%
Equity Cost 9.47%
WACC 6.00%
Leverage 226.31%

11. Quality Control: Mastercard Incorporated passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Discover

A-Score: 6.2/10

Value: 6.6

Growth: 7.8

Quality: 7.8

Yield: 3.0

Momentum: 7.5

Volatility: 4.3

1-Year Total Return ->

View Full Report
Stock-Card
Visa

A-Score: 5.9/10

Value: 0.8

Growth: 7.8

Quality: 8.8

Yield: 1.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Amex

A-Score: 5.8/10

Value: 3.0

Growth: 6.3

Quality: 6.9

Yield: 2.0

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Mastercard

A-Score: 5.5/10

Value: 0.8

Growth: 7.6

Quality: 8.1

Yield: 1.0

Momentum: 6.0

Volatility: 9.7

1-Year Total Return ->

View Full Report
Stock-Card
Capital One

A-Score: 5.5/10

Value: 4.1

Growth: 6.3

Quality: 5.4

Yield: 3.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
PayPal

A-Score: 4.9/10

Value: 6.2

Growth: 7.6

Quality: 7.2

Yield: 0.0

Momentum: 2.5

Volatility: 6.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

494.26$

Current Price

494.26$

Potential

-0.00%

Expected Cash-Flows