Fundamental analysis · SEC EDGAR · TTM through 30/06/2026

Fundamental analysis of Mastercard Inc

MA · NYSE · Financial

Fundamental quality

EXCELLENT

93

out of 100

Mastercard Inc fits the profile of a quality compounder: it pairs high return on capital (ROE 289.7%) with wide margins (net margin 46.3%) and a business that keeps growing (16.3% a year). On fundamental quality it scores 93 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Mastercard runs one of the world's largest payment networks. Like Visa, it doesn't lend money or issue cards: it takes a small fee on every transaction across its network, a high-margin and very stable model.

What will shape its future

  • The worldwide shift from cash to digital payments, its main tailwind.
  • Consumer spending volume, tied to the health of the economy.
  • Competition from new payment methods and regulation of interchange fees.

Breakdown by area

I.Growth
81

EPS growth: 21% · Revenue growth: 16.3%

II.Profitability
95

Net margin: 46.3% · ROE: 289.7% · ROIC: 87%

III.Financial health
94

Net debt/EBITDA: 0.62x · FCF: 47.6%

Source: SEC EDGAR · TTM through 30/06/2026

The score includes +3 for dividend strength: 12 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 71 Financial companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 96%
ROEbeats 100%
Growthbeats 80%
Cash generationbeats 95%
Less debtbeats 55%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Mastercard Inc strengths

  • Solid return on capital: its ROE (289.7%) is inflated by buybacks, but ROIC —which strips that out— is 87%.
  • Excellent free-cash-flow generation (FCF margin of 47.6%): profit turns into real cash.
  • Exceptional net margin (46.3%), high even for its sector: the business is clearly profitable.
  • Growing earnings per share (21% annualized).

Mastercard Inc risks and weaknesses

  • Its net debt has grown over the period.

Mastercard Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
202015,3016,4116,8852,559
202118,8848,6879,0566,480
202222,2379,93010,7537,015
202325,09811,19511,6097,093
202428,16712,87414,3069,784
202532,79114,96817,1598,434

Between 2020 and 2025, revenue went from $15,301M to $32,791M (+114%) and net income went from $6,411M to $14,968M (+133%). Meanwhile, its margins have widened (from 42% to 46%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the half-year ended June 30, 2026, versus the half-year ended June 30, 2025 (SEC filings):

  • Revenue+14.9%
  • Net income+18.5%

What changed with the June 30, 2026 results

Compared with the previous close (March 31, 2026), this is what moved in its accounts:

  • ROE231.7%289.7%
  • FCF margin52.4%47.6%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$3.15

per share, yearly

18.4% of earnings

Payout

at least 12 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Mastercard Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Mastercard Inc a good company to invest in?

In terms of business quality, Mastercard Inc scores 93 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Mastercard Inc a profitable company?

Very. Mastercard Inc shows a net margin of 46.3% and an ROE of 289.7%, typical of a highly profitable business.

Does Mastercard Inc have a lot of debt?

Not particularly. Its net debt is 0.62 times its EBITDA, a low level.

Is Mastercard Inc growing?

Its revenue has grown 16.3% annualized in recent years and its earnings per share 21%, and without interruption since 2020.

Does Mastercard Inc generate cash?

Yes. It converts about 47.6% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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