Mastercard Incorporated (MA): What Does Valuation Ratios Tell Us?

0
2
BEPC Stock
BEPC Stock

Mastercard Incorporated (NYSE:MA) saw an upside of 0.38% to close Tuesday at $380.01 after adding $1.44 on the day. The 5-day average trading volume is 3,044,340 shares of the company’s common stock. It has gained $390.00 in the past week and touched a new high 4 times within the past 5 days. An average of 2,873,905 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,698,156.

MA’s 1-month performance is 9.93% or $36.41 on its low of $341.78 reached on 12/28/22. The company’s shares have touched a 52-week low of $276.87 and high of $399.92, with the stock’s rally to the 52-week high happening on 01/24/23. YTD, MA has achieved 9.28% or $32.28 and has reached a new high 9 times. However, the current price is down -4.98% from the 52-week high price.


Will You Miss Out On This Growth Stock Boom?

A new megatrend in the fintech market is well underway. Mobile payments are projected to boom into a massive $12 trillion market by 2028. According to Motley Fool this growth stock could "deliver huge returns." Not only in the immediate future but also over the next decade. Especially since the man behind this company is a serial entrepreneur who has been wildly successful over the years.

And this is just one of our 5 Best Growth Stocks To Own For 2023.

Sponsored


Insider Transactions

MA stock investors last saw insider trading activity on Jan 12.Vosburg Craig (Chief Product Officer) most recently sold 6,333 shares at $380.05 per share on Jan 12. This transaction cost the insider $2,406,826. President Cyber & Intelligence, Bhalla Ajay, sold 14,200 shares at a price of $371.33 on Jan 09. Then, on Dec 01, Chief Product Officer Vosburg Craig sold 6,334 shares at a price of $360.03 per share. This transaction amounted to $2,280,429.

Valuation Metrics

MA stock has a beta of 1.09. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 16.51 while the price-to-book (PB) in the most recent quarter is 57.66, with the price to cash flow ratio at 39.76.

Mastercard Incorporated’s quick ratio for the period ended September 29 was 1.20, with the current ratio over the same period at 1.20. As well, the company’s long term debt to equity for the quarter ending September 29 was 2.13, while the total debt to equity was 2.28. The firm’s gross profit as reported stood at $8.8 billion against revenue of $18.88 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Mastercard Incorporated’s cash and short-term investments amounted to $1.53 billion against total debt of $14.53 billion. Net income and sales went up compared to those figures reported in the previous quarter. Net income grew 3.4% to $2.5 billion, while revenue of $2.27 billion was 8.96% off the previous quarter. Analysts expected MA to announce $2.56 per share in earnings in its latest quarter, but it posted $2.68, representing a 4.70% surprise. EBITDA for the quarter stood at more than $3.68 billion. MA stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 31.19 billion, with total debt at $14.53 billion. Shareholders hold equity totaling $961.46 million.

Let’s look briefly at Mastercard Incorporated (MA) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 69.26% to suggest the stock is trending Neutral, with historical volatility in this time period at 18.63%.

The stock’s 5-day moving average is $374.34, reflecting a +1.34% or $5.01 change from its current price. MA is currently trading +11.27% above its 20-day SMA, +15.92% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +20.39% and SMA200 by+7.48%.

Stochastic %K and %D was 85.07% and 80.08% and the average true range (ATR) pointed at 10.76. The RSI (14) points at 66.62%, while the 14-day stochastic is at 75.63% with the period’s ATR at 9.65. The stock’s 9-day MACD Oscillator is pointing at 2.74 and 7.11 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Mastercard Incorporated (NYSE: MA), KeyBanc Capital Markets upgraded it to an Overweight rating. They previously had a Sector weight rating on the stock.

What is MA’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $310.00 and a high of $455.87, with their median price target at $412.50. Looking at these predictions, the average price target given by analysts is for Mastercard Incorporated (MA) stock is $408.21.

LEAVE A REPLY

Please enter your comment!
Please enter your name here