MASTERCARD INC.

NYSE-MA RECENT
PRICE 524.70 P/ERATIO 33.9(Trailing:
Median: 31.0) P/E RATIO 1.82 YLD 0.6%
38.1 RELATIVE DIV’D VALUE
LINE
TIMELINESS 2 Lowered 12/13/24 High:
Low:
83.9
50.1
89.9
68.7
101.8
74.6
108.9
78.5
154.6
104.0
225.4
151.1
301.5
181.0
367.3
200.0
401.5
306.0
399.9
276.9
428.4
340.2
537.7
416.5
Target Price Range
2027 2028 2029
SAFETY 2 Lowered 5/3/24 LEGENDS
30.0 x ″Cash Flow″ p sh 640
TECHNICAL 2 Raised 1/24/25 . . . . Relative Price Strength
10-for-1 split 1/14 480
BETA 1.10 (1.00 = Market) Options: Yes 400
Shaded area indicates recession
18-Month Target Price Range 320
Low-High Midpoint (% to Mid) 240
200
$475-$677 $576 (10%) 160
2027-29 PROJECTIONS 120
Ann’l Total
Price Gain Return 80
High 600 (+15%) 4% 60
Low 440 (-15%) -3%
% TOT. RETURN 12/24
Institutional Decisions THIS VL ARITH.*
1Q2024 2Q2024 3Q2024 STOCK INDEX
Percent 75 1 yr. 24.5 13.6
to Buy 1389 1466 1424 shares 50
to Sell 1283 1237 1315 3 yr. 49.6 14.7
traded 25
Hld’s(000) 706968 721695 785019 5 yr. 81.6 70.9
Mastercard Inc. was founded in 1966 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 © VALUE LINE PUB. LLC 27-29
when a group of banks formed the Interbank 8.13 8.66 9.97 11.86 14.50 16.77 15.38 19.27 23.26 26.87 30.70 35.40 Revenues per sh 50.20
Card Association. In 1969, this association 3.38 3.74 4.10 5.06 7.04 8.40 7.08 9.24 11.17 12.84 15.50 17.60 ‘‘Cash Flow’’ per sh 24.25
bought the rights to use ‘‘Master Charge’’ 3.10 3.35 3.69 4.58 6.49 7.77 6.43 8.40 10.65 12.26 14.50 16.50 Earnings per sh A 22.60
from the California Bank Association; it was .44 .64 .76 .88 1.08 1.32 1.60 1.76 2.04 2.28 2.64 3.04 Div’ds Decl’d per sh D 4.36
renamed Mastercard in 1979. The company .15 .16 .20 .28 .32 .42 .34 .42 .46 .40 .45 .50 Cap’l Spending per sh .65
completed an initial public offering on May 5.83 5.40 5.23 5.19 5.23 5.85 6.42 7.46 6.59 7.42 8.50 9.80 Book Value per sh C 14.40
25, 2006, selling 61.5 million shares of 1165.0 1116.0 1081.0 1054.0 1031.0 1007.0 995.00 980.00 956.00 934.00 912.00 890.00 Common Shs Outst’g B 850.00
Class A common stock at a price of $39 a 25.0 27.6 26.0 27.8 29.4 33.0 48.1 42.5 31.8 31.3 32.5 Avg Ann’l P/E Ratio 23.0
share. Lead underwriters of the offering 1.32 1.39 1.36 1.40 1.59 1.76 2.47 2.30 1.82 1.82 1.80 Relative P/E Ratio 1.30
were Goldman Sachs, Citigroup, and HSBC. .6% .7% .8% .7% .6% .5% .5% .5% .6% .6% .6% Avg Ann’l Div’d Yield .8%
CAPITAL STRUCTURE as of 9/30/24 9473.0 9667.0 10776 12497 14950 16883 15301 18884 22237 25098 28000 31500 Revenues ($mill) 42650
Total Debt $18.358 bill. Due in 5 Yrs $2.1 bill. 57.3% 56.9% 58.0% 65.6% 59.3% 60.3% 57.1% 57.7% 58.5% 59.0% 59.0% 59.0% Operating Margin 59.0%
LT Debt $17.608 bill. LT Interest $525.0 mill. 321.0 366.0 373.0 436.0 459.0 522.0 580.0 726.0 750.0 799.0 900 1000 Depreciation ($mill) 1400
(70% of Capital)
Leases, Uncapitalized: Annual rentals $141.0 3617.0 3808.0 4059.0 4896.0 6800.0 7937.0 6463.0 8333.0 9930.0 11195 13225 14685 Net Profit ($mill) 19200
mill. 28.8% 23.2% 28.1% 34.7% 18.4% 17.0% 17.2% 16.3% 15.4% 17.9% 17.0% 17.0% Income Tax Rate 17.0%
Pension Assets-12/23 $449 mill. 38.2% 39.4% 37.7% 39.2% 45.5% 47.0% 42.2% 44.1% 44.7% 44.6% 47.2% 46.6% Net Profit Margin 45.0%
Oblig. $466 mill. 4775.0 4716.0 6022.0 5004.0 4578.0 4998.0 7266.0 3787.0 2435.0 2697.0 3000 3400 Working Cap’l ($mill) 4775
1494.0 3287.0 5180.0 5424.0 5834.0 8527.0 12023 13109 13749 14344 18000 20000 Long-Term Debt ($mill) 25250
Pfd Stock None
Common Stock 917,831,028 shs. B 6790.0 6028.0 5656.0 5468.0 5395.0 5893.0 6391.0 7312.0 6298.0 6929.0 7750 8700 Shr. Equity ($mill) 12250
as of 10/28/24 44.0% 41.2% 38.0% 45.7% 61.4% 55.8% 36.1% 41.9% 50.7% NMF NMF NMF Return on Total Cap’l NMF
53.3% 63.2% 71.8% 89.5% NMF NMF NMF NMF 72.2% NMF NMF NMF Return on Shr. Equity NMF
MARKET CAP: $482 billion (Large Cap) 45.7% 51.1% 57.0% 72.3% NMF NMF NMF 90.2% NMF NMF NMF NMF Retained to Com Eq NMF
CURRENT POSITION 2022 2023 9/30/24 14% 19% 21% 19% 15% 17% 25% 21% 19% 19% 18% 18% All Div’ds to Net Prof 19%
($MILL.)
Cash Assets 7008 8588 11063 BUSINESS: Mastercard Inc. is a global leader in electronic pay- and dollar volume. Has about 33,400 employees. Off. and dir. own
Receivables 3425 4060 4014 ments. It serves as a processor, franchisor, and advisor to about less than 1% of Class A and Class B common stock; Mastercard
Securities 400 592 338 25,000 financial institutions, in support of their credit, debit, and re- Foundation, 10.5%; Vanguard, 8.1%; BlackRock, 7.3% (4/24
Other 5773 5721 6885
Current Assets 16606 18961 22300 lated payment programs. The company licenses card brands, in- proxy). Chairman: Ajaypal S. Banga. Pres. and CEO: Michael
Accts Payable 926 834 911 cluding Mastercard, Mastercard Electronic, Maestro, and Cirrus, to Miebach. Inc.: DE. Address: 2000 Purchase Street, Purchase, New
Debt Due 274 1337 750 clients worldwide. Revenue is derived from both transaction volume York 10577. Tel.: 914-249-2000. Internet: www.mastercard.com.
Other 12971 13093 15633
Current Liab. 14171 16264 17294 In all likelihood, Mastercard con- We look for 2025 to be another record-
cluded 2024 with strong fourth- setting year for Mastercard. Our
ANNUAL RATES Past Past Est’d ’21-’23 quarter results. (The electronic pay- respective revenue and adjusted earnings
of change (per sh) 10 Yrs. 5 Yrs. to ’27-’29
Revenues 14.5% 14.0% 14.0% ments processor was expected to release estimates for the current year, at $31.5
‘‘Cash Flow’’ 18.0% 17.0% 14.0% full-year financials shortly after this Issue billion and $16.50 per share, would mark
Earnings 18.0% 17.5% 14.5% went to press.) We think revenues and ad- annual gains of 12%–13% and 13%–14%.
Dividends 38.5% 20.5% 14.0%
Book Value 6.0% 3.5% 12.5% justed earnings advanced 11%–12% and Note that the growth we envision is partly
16%–17%, respectively, in the recent De- contingent on the state of the global econo-
Cal- QUARTERLY REVENUES ($ mill.) Full cember period, to $7.32 billion and $3.71 my, in particular inflation and interest
endar Mar.31 Jun. 30 Sep. 30 Dec. 31 Year per share. For full-year 2024, the top and rates in the U.S. and Europe.
2021 4155 4528 4985 5216 18884 bottom lines probably climbed 11%–12% The stock is ranked to outperform the
2022 5167 5497 5756 5817 22237 and 18%–19%, respectively, to all-time broader-market averages in the next
2023 5748 6269 6533 6548 25098 highs of $28 billion and $14.50 per share. six to 12 months. Mastercard remains a
2024 6348 6961 7369 7322 28000
2025 7225 7900 8175 8200 31500 Transaction activity remains healthy. leading global provider of electronic pay-
Through the first three quarters of 2024, ments solutions, with GDV expanding at a
Cal- EARNINGS PER SHARE A Full gross dollar volume (GDV) expanded 7.8% double-digit yearly pace, on average, for
endar Mar.31 Jun. 30 Sep. 30 Dec. 31 Year
from the like-2023 stretch, to a whopping more than a decade. Revenues and ad-
2021 1.74 1.95 2.37 2.35 8.40 $7.2 trillion, and likely increased 8%–9% justed earnings have increased an average
2022 2.76 2.56 2.68 2.65 10.65 in the latest year ended, to more than $9.7 of 12% and 18%, respectively, over the last
2023 2.80 2.89 3.39 3.18 12.26
2024 3.31 3.59 3.89 3.71 14.50 trillion. All geographies reported positive 10 years, and we expect the top and bot-
2025 3.85 4.05 4.35 4.25 16.50 GDV comps during the first nine months tom lines to each improve another
of 2024, including Europe (+15.0%), Latin 10%–11% per annum to 2027–2029. The
Cal- QUARTERLY DIVIDENDS PAID D Full America (+18.5%), and the segment com- stock and the company garner excellent
endar Mar.31 Jun.30 Sep.30 Dec.31 Year
prised of the Asia/Pacific, Middle East, ranks for Safety (2, Above Average) and
2021 .44 .44 .44 .44 1.76 and Africa regions (+6.4%). Domestic Financial Strength (A+), respectively.
2022 .49 .49 .49 .49 1.96 volume was also brisk, with GDV up 6.5% However, at the recent price, long-term to-
2023 .57 .57 .57 .57 2.28
2024 .66 .66 .66 .66 2.64 and 6.1%, respectively, in the United tal return potential is lacking.
2025 .76 States and Canada. Sharif Abdou January 31, 2025
(A) Diluted earnings, excludes nonrecurring Next earnings report due late April. (B) In- (D) Dividends paid early January, April, July, Company’s Financial Strength A+
gain (losses): ’17, ($0.93); ’18, ($0.89); ’19, cludes Class A and Class B shares. Adjusted October. Stock’s Price Stability 85
$0.17; ’20, ($0.06); ’23, ($0.43); ’24 Q1-Q3, for stock split. (C) Includes intangibles. In 2023: Price Growth Persistence 95
($0.54). EPS may not sum due to rounding. $11,746.0 million, $12.69/share. Earnings Predictability 85
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