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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 9/10

vs
industry
vs
history
Cash to Debt 4.87
MA's Cash to Debt is ranked higher than
89% of the 174 Companies
in the Global Credit Services industry.

( Industry Median: 0.21 vs. MA: 4.87 )
MA' s 10-Year Cash to Debt Range
Min: 0.15   Max: No Debt
Current: 4.87

Equity to Asset 0.44
MA's Equity to Asset is ranked higher than
87% of the 179 Companies
in the Global Credit Services industry.

( Industry Median: 0.24 vs. MA: 0.44 )
MA' s 10-Year Equity to Asset Range
Min: 0.24   Max: 0.62
Current: 0.44

0.24
0.62
Interest Coverage 321.64
MA's Interest Coverage is ranked higher than
90% of the 145 Companies
in the Global Credit Services industry.

( Industry Median: 5.11 vs. MA: 321.64 )
MA' s 10-Year Interest Coverage Range
Min: 3.75   Max: 9999.99
Current: 321.64

3.75
9999.99
F-Score: 4
Z-Score: 10.53
M-Score: -1.61
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 54.54
MA's Operating margin (%) is ranked higher than
94% of the 182 Companies
in the Global Credit Services industry.

( Industry Median: 22.45 vs. MA: 54.54 )
MA' s 10-Year Operating margin (%) Range
Min: -10.71   Max: 53.95
Current: 54.54

-10.71
53.95
Net-margin (%) 37.45
MA's Net-margin (%) is ranked higher than
92% of the 182 Companies
in the Global Credit Services industry.

( Industry Median: 14.66 vs. MA: 37.45 )
MA' s 10-Year Net-margin (%) Range
Min: -17.29   Max: 37.34
Current: 37.45

-17.29
37.34
ROE (%) 49.88
MA's ROE (%) is ranked higher than
98% of the 181 Companies
in the Global Credit Services industry.

( Industry Median: 12.45 vs. MA: 49.88 )
MA' s 10-Year ROE (%) Range
Min: -75.39   Max: 53.87
Current: 49.88

-75.39
53.87
ROA (%) 23.95
MA's ROA (%) is ranked higher than
99% of the 183 Companies
in the Global Credit Services industry.

( Industry Median: 3.29 vs. MA: 23.95 )
MA' s 10-Year ROA (%) Range
Min: -34.13   Max: 23.83
Current: 23.95

-34.13
23.83
ROC (Joel Greenblatt) (%) 955.73
MA's ROC (Joel Greenblatt) (%) is ranked higher than
94% of the 176 Companies
in the Global Credit Services industry.

( Industry Median: 21.81 vs. MA: 955.73 )
MA' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -179.06   Max: 902.4
Current: 955.73

-179.06
902.4
Revenue Growth (3Y)(%) 17.50
MA's Revenue Growth (3Y)(%) is ranked higher than
87% of the 148 Companies
in the Global Credit Services industry.

( Industry Median: 8.10 vs. MA: 17.50 )
MA' s 10-Year Revenue Growth (3Y)(%) Range
Min: -0.2   Max: 20.8
Current: 17.5

-0.2
20.8
EBITDA Growth (3Y)(%) 20.30
MA's EBITDA Growth (3Y)(%) is ranked higher than
90% of the 128 Companies
in the Global Credit Services industry.

( Industry Median: 8.70 vs. MA: 20.30 )
MA' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0   Max: 115.4
Current: 20.3

0
115.4
EPS Growth (3Y)(%) 22.00
MA's EPS Growth (3Y)(%) is ranked higher than
85% of the 124 Companies
in the Global Credit Services industry.

( Industry Median: 16.50 vs. MA: 22.00 )
MA' s 10-Year EPS Growth (3Y)(%) Range
Min: 6.3   Max: 204.6
Current: 22

6.3
204.6
» MA's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q4 2013

MA Guru Trades in Q4 2013

Ray Dalio 1,571 sh (New)
Ken Heebner 29,000 sh (New)
Mario Gabelli 219,650 sh (+909.19%)
Murray Stahl 344,378 sh (+828.22%)
Manning & Napier Advisors, Inc 9,580 sh (+257.46%)
Steve Mandel 950,596 sh (+35.68%)
RS Investment Management 3,420 sh (+5.49%)
Pioneer Investments 273,091 sh (+2.99%)
PRIMECAP Management 86,675 sh (+0.99%)
Ron Baron 5,998 sh (+0.49%)
Tom Gayner 8,000 sh (unchged)
Chase Coleman 350,000 sh (unchged)
Warren Buffett 405,000 sh (unchged)
Jeff Auxier 8,011 sh (unchged)
Westport Asset Management 32,500 sh (unchged)
Bill Nygren 313,000 sh (unchged)
Robert Olstein Sold Out
Chuck Akre 396,463 sh (-0.03%)
Ruane Cunniff 545,257 sh (-0.43%)
Jean-Marie Eveillard 283,295 sh (-0.58%)
Tom Russo 990,747 sh (-1.12%)
David Winters 142,826 sh (-10.02%)
Tweedy Browne 42,563 sh (-10.35%)
Wintergreen Fund 126,497 sh (-10.41%)
Andreas Halvorsen 642,087 sh (-15.88%)
Ken Fisher 21,465 sh (-19.14%)
Jeremy Grantham 242,121 sh (-21.13%)
Jim Chanos 14,680 sh (-30.72%)
Jim Simons 183,500 sh (-30.96%)
Charles de Vaulx 105,396 sh (-42.61%)
Chuck Royce 271 sh (-64.85%)
Julian Robertson 6,560 sh (-76.17%)
Chris Davis 1,935 sh (-77.69%)
Steven Cohen 13,400 sh (-81.39%)
Louis Moore Bacon 639 sh (-83.01%)
» More
Q1 2014

MA Guru Trades in Q1 2014

George Soros 250,000 sh (New)
Joel Greenblatt 11,475 sh (New)
John Hussman 150,000 sh (New)
Paul Tudor Jones 4,708 sh (New)
Steven Cohen 618,415 sh (+361.5%)
Louis Moore Bacon 11,580 sh (+81.22%)
Andreas Halvorsen 7,732,820 sh (+20.43%)
Ron Baron 69,980 sh (+16.67%)
Jim Chanos 166,440 sh (+13.38%)
Westport Asset Management 355,000 sh (+9.23%)
Jean-Marie Eveillard 2,848,187 sh (+0.54%)
Ken Fisher 214,966 sh (+0.15%)
PRIMECAP Management 866,750 sh (unchged)
Tom Gayner 80,000 sh (unchged)
Bill Nygren 3,130,000 sh (unchged)
Warren Buffett 4,050,000 sh (unchged)
Chris Davis 19,350 sh (unchged)
Charles de Vaulx 1,053,960 sh (unchged)
Ken Heebner Sold Out
Ray Dalio Sold Out
Ruane Cunniff 5,452,231 sh (-0.01%)
Chuck Akre 3,963,530 sh (-0.03%)
Jeff Auxier 79,910 sh (-0.25%)
Tom Russo 9,827,537 sh (-0.81%)
Chase Coleman 3,440,000 sh (-1.71%)
Jim Simons 1,790,400 sh (-2.43%)
Manning & Napier Advisors, Inc 85,990 sh (-10.24%)
Tweedy Browne 365,680 sh (-14.09%)
Jeremy Grantham 2,004,221 sh (-17.22%)
Steve Mandel 7,294,819 sh (-23.26%)
Pioneer Investments 2,090,700 sh (-23.44%)
Julian Robertson 49,600 sh (-24.39%)
RS Investment Management 23,710 sh (-30.67%)
David Winters 737,848 sh (-48.34%)
Wintergreen Fund 629,601 sh (-50.23%)
Chuck Royce 710 sh (-73.8%)
Murray Stahl 342,934 sh (-90.04%)
Mario Gabelli 216,815 sh (-90.13%)
» More
Q2 2014

MA Guru Trades in Q2 2014

John Griffin 1,675,000 sh (New)
Paul Tudor Jones 282,009 sh (+5890%)
Manning & Napier Advisors, Inc 2,257,840 sh (+2525.7%)
Joel Greenblatt 53,437 sh (+365.68%)
Jim Simons 2,934,300 sh (+63.89%)
Steve Mandel 11,766,312 sh (+61.3%)
Jeremy Grantham 2,849,418 sh (+42.17%)
Bill Nygren 4,380,000 sh (+39.94%)
Andreas Halvorsen 9,820,830 sh (+27%)
Jim Chanos 186,250 sh (+11.9%)
Chuck Akre 4,278,795 sh (+7.95%)
Ken Fisher 221,764 sh (+3.16%)
Mario Gabelli 220,200 sh (+1.56%)
Charles de Vaulx 1,062,517 sh (+0.81%)
Tom Russo 9,889,730 sh (+0.63%)
Jean-Marie Eveillard 2,859,765 sh (+0.41%)
Warren Buffett 4,050,000 sh (unchged)
Westport Asset Management 355,000 sh (unchged)
Tom Gayner 80,000 sh (unchged)
Chuck Royce 710 sh (unchged)
Steven Cohen 143,600 sh (unchged)
Chris Davis 19,350 sh (unchged)
Julian Robertson 49,600 sh (unchged)
Tweedy Browne 365,680 sh (unchged)
Wintergreen Fund 629,601 sh (unchged)
Chase Coleman 3,440,000 sh (unchged)
Louis Moore Bacon Sold Out
George Soros Sold Out
RS Investment Management Sold Out
John Hussman Sold Out
Ruane Cunniff 5,450,480 sh (-0.03%)
PRIMECAP Management 862,750 sh (-0.46%)
David Winters 734,243 sh (-0.49%)
Pioneer Investments 1,908,673 sh (-8.71%)
Ron Baron 63,635 sh (-9.07%)
Jeff Auxier 72,510 sh (-9.26%)
Murray Stahl 278,011 sh (-18.93%)
» More
Q3 2014

MA Guru Trades in Q3 2014

Ray Dalio 5,277 sh (New)
Louis Moore Bacon 165,586 sh (New)
George Soros 200,000 sh (New)
Chase Coleman 7,586,471 sh (+120.54%)
Steven Cohen 252,600 sh (+75.91%)
Andreas Halvorsen 13,056,351 sh (+32.95%)
Manning & Napier Advisors, Inc 2,967,599 sh (+31.44%)
Charles de Vaulx 1,377,737 sh (+29.67%)
Steve Mandel 15,082,787 sh (+28.19%)
Warren Buffett 4,715,400 sh (+16.43%)
Bill Nygren 5,050,000 sh (+15.3%)
Jeremy Grantham 3,139,418 sh (+10.18%)
Pioneer Investments 1,952,895 sh (+2.32%)
Mario Gabelli 224,830 sh (+2.1%)
Jean-Marie Eveillard 2,907,868 sh (+1.68%)
Tom Russo 9,956,963 sh (+0.68%)
Westport Asset Management 355,000 sh (unchged)
Tom Gayner 80,000 sh (unchged)
John Griffin 1,675,000 sh (unchged)
Chuck Royce 710 sh (unchged)
Jim Chanos Sold Out
Ruane Cunniff 5,446,115 sh (-0.08%)
Ken Fisher 221,494 sh (-0.12%)
Chuck Akre 4,273,180 sh (-0.13%)
Ron Baron 63,491 sh (-0.23%)
Jeff Auxier 71,510 sh (-1.38%)
Chris Davis 18,570 sh (-4.03%)
PRIMECAP Management 807,750 sh (-6.37%)
Tweedy Browne 304,305 sh (-16.78%)
Julian Robertson 35,025 sh (-29.39%)
Murray Stahl 192,534 sh (-30.75%)
David Winters 474,944 sh (-35.32%)
Wintergreen Fund 404,321 sh (-35.78%)
Jim Simons 1,726,100 sh (-41.18%)
Joel Greenblatt 19,238 sh (-64%)
Paul Tudor Jones 32,661 sh (-88.42%)
» More
» Details

Insider Trades

Latest Guru Trades with MA

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
David Winters 2014-09-30 Reduce -35.32%2.44%$74.06 - $78.32 $ 83.610%474944
Steve Mandel 2014-09-30 Add 28.19%0.97%$74.06 - $78.32 $ 83.610%15082787
Andreas Halvorsen 2014-09-30 Add 32.95%0.97%$74.06 - $78.32 $ 83.610%13056351
Julian Robertson 2014-09-30 Reduce -29.39%0.38%$74.06 - $78.32 $ 83.610%35025
Bill Nygren 2014-09-30 Add 15.3%0.32%$74.06 - $78.32 $ 83.610%5050000
George Soros 2014-09-30 New Buy0.11%$74.06 - $78.32 $ 83.610%200000
Joel Greenblatt 2014-09-30 Reduce -64%0.03%$74.06 - $78.32 $ 83.610%19238
Ray Dalio 2014-09-30 New Buy$74.06 - $78.32 $ 83.610%5277
Steve Mandel 2014-06-30 Add 61.3%1.33%$68.68 - $77.47 $ 83.612%11766312
John Griffin 2014-06-30 New Buy1.2%$68.68 - $77.47 $ 83.612%1675000
John Hussman 2014-06-30 Sold Out 0.84%$68.68 - $77.47 $ 83.612%0
Chuck Akre 2014-06-30 Add 7.95%0.67%$68.68 - $77.47 $ 83.612%4278795
Andreas Halvorsen 2014-06-30 Add 27%0.66%$68.68 - $77.47 $ 83.612%9820830
Bill Nygren 2014-06-30 Add 39.94%0.66%$68.68 - $77.47 $ 83.612%4380000
George Soros 2014-06-30 Sold Out 0.18%$68.68 - $77.47 $ 83.612%0
Joel Greenblatt 2014-06-30 Add 365.68%0.04%$68.68 - $77.47 $ 83.612%53437
David Winters 2014-03-31 Reduce -48.34%6.38%$72.84 - $84.36 $ 83.67%737848
John Hussman 2014-03-31 New Buy0.84%$72.84 - $84.36 $ 83.67%150000
Steve Mandel 2014-03-31 Reduce -23.26%0.79%$72.84 - $84.36 $ 83.67%7294819
Ken Heebner 2014-03-31 Sold Out 0.63%$72.84 - $84.36 $ 83.67%0
Julian Robertson 2014-03-31 Reduce -24.39%0.41%$72.84 - $84.36 $ 83.67%49600
Andreas Halvorsen 2014-03-31 Add 20.43%0.41%$72.84 - $84.36 $ 83.67%7732820
George Soros 2014-03-31 New Buy0.18%$72.84 - $84.36 $ 83.67%250000
Tweedy Browne 2014-03-31 Reduce -14.09%0.12%$72.84 - $84.36 $ 83.67%365680
Mario Gabelli 2014-03-31 Reduce -90.13%0.09%$72.84 - $84.36 $ 83.67%216815
Ray Dalio 2014-03-31 Sold Out 0.01%$72.84 - $84.36 $ 83.67%0
Joel Greenblatt 2014-03-31 New Buy0.01%$72.84 - $84.36 $ 83.67%11475
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Guru Investment Theses on MasterCard Inc

Westport Fund Comments on MasterCard Inc - Jul 28, 2014

The largest detractor among the Fund’s holdings was MasterCard, Inc., Class A shares (MA), at minus 45 basis points from a 12% decline in its share price. After an excellent performance in 2013 where earnings growth outpaced expectations and the stock price responded accordingly, 2014 has seen continued earnings growth but a reduction in the price/earnings multiple iii attached to those earnings. The imposition of financial sanctions against Russia for its annexation of Crimea raised questions about MasterCard Inc.’s long term presence in Russia and its earnings growth. However, the outlook is positive as transactions in many countries will continue to move from paper based systems for commerce to electronic transactions.

From Westport Asset Management (Trades, Portfolio)’s Westport Fund Second Quarter 2014 Commentary.

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Chuck Akre Comments on MasterCard Corporation - Jul 23, 2014

MasterCard Corporation (“MasterCard”) (NYSE: MA)

Market cap: $85.8 billion (as of 6/30/14)

Company overview:

MasterCard (MA) is a payment technology and network company, operating the world’s second largest payment network connecting banks, consumers, and merchants in over 210 countries. MasterCard was collectively owned by its member banks until it became a public, stand-alone company in 2006, from which point through 2012 it grew revenue 14% compounded annually and free cash flow per share over 34% compounded annually as operating margins expanded from 20% to over 53%.

Akre Focus Fund Investment:

Our investment in MasterCard began in February 2010 under the cloud of uncertainty presented by the Durbin Amendment (part of Dodd-Frank) and its potential impact on MasterCard’s debit business. Through appreciation and subsequent opportunistic purchases, as of June 2014 MasterCard represented 7.6% of the portfolio.

Investment thesis:

Approximately 85% of the world’s purchase transactions today are done using cash and checks. This presents an enormous market opportunity for MasterCard - perhaps the largest imaginable if one thinks of Gross Domestic Product as the summation of all the purchase transactions in an economy. In MasterCard, we believe we own a business with increasing odds of being involved and potentially profiting from the growth and secular movement of those purchase transactions to electronic means of payment, earning a small piece on the trillions of dollars transacted over its network. This ongoing shift continued to be aided by the growth of ecommerce, new acceptance locations/categories (taxis, toll roads), the increasing inclusion via prepaid cards of 2.5 billion unbanked consumers worldwide, mobile commerce (given the lack of wireline infrastructure in many countries), and governments moving payment disbursement programs (e.g. Social Security, Veterans benefits) from paper checks to electronic payments. Furthermore, MasterCard has no debt, a nearly 40% free cash flow margin, pricing power, and the company is able to repurchase billions of dollars annually of its stock while reinvesting in what it calls “the war on cash.”

The examples of specific discrete investments are included merely to illustrate Akre Capital Management’s investment process and strategy, and a portfolio will typically contain a much larger number of positions than the examples set forth herein. Accordingly, the examples are not intended to indicate overall portfolio performance that may be expected to be achieved.

From Chuck Akre (Trades, Portfolio)’s 2014 Q2 Fund Pitchbook .

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Baron Funds Comments on MasterCard - May 29, 2014

After rising 70% last year, shares of credit card company MasterCard, Inc. fell 11% in the first quarter on lower than expected fourth quarter earnings and forward guidance, due to higher incentive payments to card issuers and the loss of a large bank customer. In addition, a recent court decision reduced the likelihood that MasterCard would take market share from Visa in signature debit processing. We retain conviction based on high barriers to entry and a long runway for growth in electronic payments, particularly outside the U.S., where MasterCard generates most of its revenue.





From Baron Funds' first quarter 2014 commentary.



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Westport Asset Management Comments on MasterCard Inc. - Apr 16, 2014

The greatest disappointment in the quarter was from MasterCard, Inc. (MA) whose stock price declined 10.6% and negatively impacted performance in the quarter by 37 basis points. This negative performance is attributable to results for the fourth quarter of 2013 coming in below estimates. The company decided to invest additional money in support of new customers which reduced earnings. The outlook for MasterCard, Inc. and Visa Inc. is positive as the volume of business increases when countries move from paper based systems for commerce to electronic ones.





From Westport Funds First Quarter 2014 investor letter.





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Sequoia Fund's Discussion of MasterCard - Mar 07, 2014

MasterCard’s 2013 earnings per share increased nearly 20%, driven by the continued trend toward electronic payments globally. As we believe this trend should continue for years to come, MasterCard’s long-term prospects strike us as excellent. The company’s business model is essentially a royalty on global consumption growth, supplemented by the transition away from cash as a payment medium. MasterCard is set up to produce natural expense leverage over time and requires little capital. Processing costs are highly fixed, making for high incremental margins and high returns on capital.





Source: Sequoia Fund's 2013 Annual Report - Management's Discussion of Fund Performance



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Top Ranked Articles about MasterCard Inc

The Top Net Buys Of The Hedge Fund Gurus
Now that the second quarter portfolios have been filed with the SEC, I used the GuruFocus S&P 500 Grid to get a look at what the hedge fund gurus have been buying. I prefer to use “net buys” over “buys” because it also factors in what the hedge fund gurus have been selling. When using the S&P 500 Grid, I adjusted the settings to only include the hedge fund gurus and examined the results for both S&P 500 and non-S&P 500 companies. The top results were MasterCard (MA), eBay (EBAY), Occidental Petroleum (OXY), Ally Financial (ALLY), Actavis (ACT), and Allergan (AGN). Read more...
Westport Fund Comments on MasterCard Inc
The largest detractor among the Fund’s holdings was MasterCard, Inc., Class A shares (MA), at minus 45 basis points from a 12% decline in its share price. After an excellent performance in 2013 where earnings growth outpaced expectations and the stock price responded accordingly, 2014 has seen continued earnings growth but a reduction in the price/earnings multiple iii attached to those earnings. The imposition of financial sanctions against Russia for its annexation of Crimea raised questions about MasterCard Inc.’s long term presence in Russia and its earnings growth. However, the outlook is positive as transactions in many countries will continue to move from paper based systems for commerce to electronic transactions. Read more...
Chuck Akre Comments on MasterCard Corporation
MasterCard Corporation (“MasterCard”) (NYSE: MA) Read more...
Baron Funds Comments on MasterCard
After rising 70% last year, shares of credit card company MasterCard, Inc. fell 11% in the first quarter on lower than expected fourth quarter earnings and forward guidance, due to higher incentive payments to card issuers and the loss of a large bank customer. In addition, a recent court decision reduced the likelihood that MasterCard would take market share from Visa in signature debit processing. We retain conviction based on high barriers to entry and a long runway for growth in electronic payments, particularly outside the U.S., where MasterCard generates most of its revenue. Read more...
Don't Be Afraid to Pay a Little Bit More
“Whether appropriate or not, the term ‘value investing’ is widely used. Typically, it connotes the purchase of stocks having attributes such as a low ratio of price to book value, a low price-earnings ratio, or a high dividend yield. Unfortunately, such characteristics, even if they appear in combination, are far from determinative as to whether an investor is indeed buying something for what it is worth and is therefore truly operating on the principle of obtaining value in his investments. Correspondingly, opposite characteristics – a high ratio of price to book value, a high price-earnings ratio, a low dividend yield – are in no way inconsistent with a ‘value’ purchase.” Read more...
Chuck Akre: Investing in Compounding Machines
We had the honor to hear from Mr. Chuck Akre (Trades, Portfolio) from Akre Capital Management at the Value Investor Conference, which was held in Omaha on May 1-2, the days before the Berkshire Hathaway shareholder meeting. Mr. Akre’s topic is “Investing in Compounding Machines.” Below are the notes from his speech. Read more...
Westport Asset Management Comments on MasterCard Inc.
The greatest disappointment in the quarter was from MasterCard, Inc. (MA) whose stock price declined 10.6% and negatively impacted performance in the quarter by 37 basis points. This negative performance is attributable to results for the fourth quarter of 2013 coming in below estimates. The company decided to invest additional money in support of new customers which reduced earnings. The outlook for MasterCard, Inc. and Visa Inc. is positive as the volume of business increases when countries move from paper based systems for commerce to electronic ones. Read more...
Sequoia Fund Comments on TJX, Rolls-Royce, MasterCard, and O’Reilly Automotive
Other large holdings that generated significant outperformance included TJX, which rose 51%; Rolls-Royce, up 51%; MasterCard, up 71%; and O’Reilly Automotive, which rose 44%. We have owned each of these businesses for at least six years. We think our strategy of identifying great businesses, buying their stocks when they seem mispriced, then holding them as long as management continues to execute (and the share prices don’t become extremely overvalued) is working as well today as it ever has. We expect that our portfolio companies will grow earnings at a good rate in the future, but not at the 23% rate we saw in 2013. Read more...
Sequoia Fund's Discussion of MasterCard
MasterCard’s 2013 earnings per share increased nearly 20%, driven by the continued trend toward electronic payments globally. As we believe this trend should continue for years to come, MasterCard’s long-term prospects strike us as excellent. The company’s business model is essentially a royalty on global consumption growth, supplemented by the transition away from cash as a payment medium. MasterCard is set up to produce natural expense leverage over time and requires little capital. Processing costs are highly fixed, making for high incremental margins and high returns on capital. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 28.40
MA's P/E(ttm) is ranked higher than
66% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 15.60 vs. MA: 28.40 )
MA' s 10-Year P/E(ttm) Range
Min: 15.07   Max: 310.24
Current: 28.4

15.07
310.24
Forward P/E 18.98
MA's Forward P/E is ranked higher than
75% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 15.60 vs. MA: 18.98 )
N/A
PE(NRI) 28.80
MA's PE(NRI) is ranked higher than
65% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 15.30 vs. MA: 28.80 )
MA' s 10-Year PE(NRI) Range
Min: 14.9   Max: 369.87
Current: 28.8

14.9
369.87
P/B 14.80
MA's P/B is ranked higher than
53% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 2.18 vs. MA: 14.80 )
MA' s 10-Year P/B Range
Min: 2.8   Max: 18.6
Current: 14.8

2.8
18.6
P/S 10.60
MA's P/S is ranked higher than
56% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 2.63 vs. MA: 10.60 )
MA' s 10-Year P/S Range
Min: 1.98   Max: 12.15
Current: 10.6

1.98
12.15
PFCF 27.40
MA's PFCF is ranked higher than
79% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 0.00 vs. MA: 27.40 )
MA' s 10-Year PFCF Range
Min: 15.28   Max: 85.53
Current: 27.4

15.28
85.53
POCF 25.65
MA's POCF is ranked higher than
75% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 25.65 vs. MA: 25.65 )
MA' s 10-Year POCF Range
Min: 12.85   Max: 53.84
Current: 25.65

12.85
53.84
EV-to-EBIT 18.28
MA's EV-to-EBIT is ranked higher than
77% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 20.11 vs. MA: 18.28 )
MA' s 10-Year EV-to-EBIT Range
Min: -188.1   Max: 66.9
Current: 18.28

-188.1
66.9
PEG 1.43
MA's PEG is ranked higher than
88% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 0.00 vs. MA: 1.43 )
MA' s 10-Year PEG Range
Min: 1.17   Max: 1.51
Current: 1.43

1.17
1.51
Shiller P/E 42.80
MA's Shiller P/E is ranked higher than
75% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 43.23 vs. MA: 42.80 )
MA' s 10-Year Shiller P/E Range
Min: 35.38   Max: 204.71
Current: 42.8

35.38
204.71
Current Ratio 1.87
MA's Current Ratio is ranked higher than
71% of the 126 Companies
in the Global Credit Services industry.

( Industry Median: 2.05 vs. MA: 1.87 )
MA' s 10-Year Current Ratio Range
Min: 1.33   Max: 2.24
Current: 1.87

1.33
2.24
Quick Ratio 1.87
MA's Quick Ratio is ranked higher than
71% of the 126 Companies
in the Global Credit Services industry.

( Industry Median: 1.95 vs. MA: 1.87 )
MA' s 10-Year Quick Ratio Range
Min: 1.33   Max: 2.24
Current: 1.87

1.33
2.24
Days Sales Outstanding 89.79
MA's Days Sales Outstanding is ranked higher than
71% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 82.93 vs. MA: 89.79 )
MA' s 10-Year Days Sales Outstanding Range
Min: 38.37   Max: 84.29
Current: 89.79

38.37
84.29

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 0.60
MA's Dividend Yield is ranked lower than
91% of the 120 Companies
in the Global Credit Services industry.

( Industry Median: 2.05 vs. MA: 0.60 )
MA' s 10-Year Dividend Yield Range
Min: 0.09   Max: 0.62
Current: 0.6

0.09
0.62
Dividend Payout 0.15
MA's Dividend Payout is ranked higher than
97% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 1.52 vs. MA: 0.15 )
MA' s 10-Year Dividend Payout Range
Min: 0.03   Max: 1
Current: 0.15

0.03
1
Dividend growth (3y) 69.10
MA's Dividend growth (3y) is ranked higher than
98% of the 88 Companies
in the Global Credit Services industry.

( Industry Median: 12.60 vs. MA: 69.10 )
MA' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 88.2
Current: 69.1

0
88.2
Yield on cost (5-Year) 4.10
MA's Yield on cost (5-Year) is ranked higher than
57% of the 123 Companies
in the Global Credit Services industry.

( Industry Median: 3.76 vs. MA: 4.10 )
MA' s 10-Year Yield on cost (5-Year) Range
Min: 0.62   Max: 4.24
Current: 4.1

0.62
4.24
Share Buyback Rate 2.50
MA's Share Buyback Rate is ranked higher than
90% of the 131 Companies
in the Global Credit Services industry.

( Industry Median: -1.10 vs. MA: 2.50 )
MA' s 10-Year Share Buyback Rate Range
Min: 2.5   Max: -16.1
Current: 2.5

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 120.56
MA's Price/Net Current Asset Value is ranked higher than
92% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 0.00 vs. MA: 120.56 )
MA' s 10-Year Price/Net Current Asset Value Range
Min: 19.49   Max: 215.2
Current: 120.56

19.49
215.2
Price/Tangible Book 22.45
MA's Price/Tangible Book is ranked higher than
57% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 2.64 vs. MA: 22.45 )
MA' s 10-Year Price/Tangible Book Range
Min: 3.97   Max: 24.36
Current: 22.45

3.97
24.36
Price/DCF (Projected) 2.48
MA's Price/DCF (Projected) is ranked higher than
76% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 2.72 vs. MA: 2.48 )
MA' s 10-Year Price/DCF (Projected) Range
Min: 2.01   Max: 6.4
Current: 2.48

2.01
6.4
Price/Median PS Value 1.68
MA's Price/Median PS Value is ranked higher than
64% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 1.17 vs. MA: 1.68 )
MA' s 10-Year Price/Median PS Value Range
Min: 0.33   Max: 1.88
Current: 1.68

0.33
1.88
Price/Peter Lynch Fair Value 1.43
MA's Price/Peter Lynch Fair Value is ranked higher than
89% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 0.00 vs. MA: 1.43 )
MA' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.1   Max: 1.36
Current: 1.43

0.1
1.36
Price/Graham Number 5.32
MA's Price/Graham Number is ranked higher than
61% of the 202 Companies
in the Global Credit Services industry.

( Industry Median: 1.41 vs. MA: 5.32 )
MA' s 10-Year Price/Graham Number Range
Min: 2.11   Max: 10.75
Current: 5.32

2.11
10.75
Earnings Yield (Greenblatt) 5.50
MA's Earnings Yield (Greenblatt) is ranked higher than
75% of the 183 Companies
in the Global Credit Services industry.

( Industry Median: 5.20 vs. MA: 5.50 )
MA' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.5   Max: 11.9
Current: 5.5

1.5
11.9
Forward Rate of Return (Yacktman) 22.68
MA's Forward Rate of Return (Yacktman) is ranked higher than
86% of the 112 Companies
in the Global Credit Services industry.

( Industry Median: 13.16 vs. MA: 22.68 )
MA' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 1   Max: 24.8
Current: 22.68

1
24.8

Business Description

Industry: Credit Services » Credit Services
Compare:V, TCAP, DFS, COF, RDCRL » details
Traded in other countries:M4I.Germany, MSCD34.Brazil, MA.Mexico,
MasterCard Inc was incorporated as a Delaware stock corporation in May 2001. It is a global payment solutions company that provides a variety of services in support of the credit, debit and related payment programs of over 23,000 financial institutions and other entities that are its customers. It conducts its business mainly through subsidiaries, including MasterCard International Incorporated subsidiaries, including MasterCard International Incorporated provide payment solutions, including transaction processing and related services to customers principally in support of their credit, deposit access (debit), electronic cash and Automated Teller Machine ('ATM') payment card programs, and travelers cheque programs. Through its three-tiered business model as franchisor, processor and advisor, it develops and markets payment solutions, process payment transactions, and provides support services to its customers and, depending upon the service, to merchants and other clients.The Company operate in the global payments industry which consists of all forms of payment including: Paper-personal checks, cash, money orders, official checks, travelers cheques and other paper-based means of transferring value; Cards-credit cards, charge cards, debit cards, stored value cards and other types of cards; and Emerging and Other Forms of Payment—wire transfers, electronic benefits transfers, bill payments, Automated Clearing House payments and payments using mobile devices, among others. The Company manages a family of well-known, widely accepted payment card brands, including MasterCard, Maestro and Cirrus which it licenses to its customers. As part of managing these brands, it also establishes and enforces rules and standards surrounding the use of its payment card network. MasterCard offers a range of payment solutions to enable its customers to design, package and implement programs targeted to the specific needs of their customers, the cardholders. The payment programs, which are facilitated through its brands, include consumer credit and debit programs, commercial payment solutions, prepaid programs, contactless payment solutions and emerging technologies. MasterCard offers a number of consumer credit and charge programs that are designed to meet the needs of its customers. It offers customized programs to customers to address specific consumer segments. The consumer credit programs include Standard, Gold, Platinum,World Elite MasterCard cards. MasterCard offers to customers' cards targeted to affluent consumers outside of the United States, such as the MasterCard Black card in Latin America, World and World Signia MasterCard in Europe and World and Titanium MasterCard in Asia/Pacific, Middle East and Africa. Maestro is its global online debit program. MasterCard offers commercial payment solutions that help large corporations, mid-sized companies, small businesses and public sector organizations to streamline their payment processes, mana
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