Mastercard Inc (MA) Stock Analysis

Analysis from 10-Q filed 2025-10-30. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 61.2%. FCF margin 47.6%. D/E 4.4x. Source: 10-Q filed 2025-10-30.

Metric	Value	Context
ROIC	61.2%	Above industry average
FCF Margin	47.6%	Strong cash generation
Debt/Equity	4.4x	Elevated debt

ROIC 61.2% — Top 5% of sector peers. FCF margin 47.6% — Top 5%.

Explore Mastercard Inc: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for MA: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Mastercard Inc earns 61.2% ROIC, Top 5% in Technology

ROIC TTM 61.2%, sector median 3.5%, Top 5%. DuPont: NOPAT margin 47.0% × asset turnover 0.7x. Gross margin 96.1%. Operating margin 58.3%. Source: 10-Q filed 2025-10-30.

Metric	MA	Rating	Context
Return on Invested Capital (ROIC)	61.2%	Excellent	Above sector median of 3.5%
Return on Equity (ROE)	223.5%	Excellent	Efficient use of shareholder equity
Gross Margin	96.1%	Excellent	Strong pricing power
Operating Margin	58.3%	Excellent	Efficient operations

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Cash Flow: Mastercard Inc generates $16.7B FCF at 47.6% margin, positive NaN/8 quarters

FCF TTM $16.7B. FCF margin 47.6%, Top 5%. OCF/Net income 1.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-30.

Metric	MA	Rating	Context
Free Cash Flow Margin	47.6%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$16.7B	Good	Positive cash generation
OCF/Net Income	1.1x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Mastercard Inc at 4.4x leverage

Debt/Equity 4.4x. Total debt $24.6B, cash & investments $11.3B. Source: 10-Q filed 2025-10-30.

Metric	MA	Rating	Context
Debt to Equity	4.4x	Red flag	Elevated leverage
Net Cash Position	$-13.4B	Warning	Net debt position

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Valuation: Mastercard Inc trades at 28.2x earnings

P/E 28.2x. EV/Sales 0.3x. FCF yield 3.6%. Dividend yield 0.6%. Source: 10-Q filed 2025-10-30.

Metric	MA	Rating	Context
P/E Ratio	28.2x	Adequate	Premium valuation
EV/Sales	0.3x	Excellent	Attractive revenue multiple
FCF Yield	3.6%	Adequate	Lower cash yield
Dividend Yield	0.6%	Adequate	Growth focus over income

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Capital Allocation: Mastercard Inc returns 4.1% shareholder yield

Total shareholder yield 4.1% (div 0.6% + buyback 3.4%). Capital returned $18.7B TTM. Source: 10-Q filed 2025-10-30.

Metric	MA	Rating	Context
Total Shareholder Yield	4.1%	Good	Dividend + buyback yield combined
Buyback Yield	3.4%	Good	Active share repurchases
Total Capital Returned (TTM)	$18.7B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	61.2%	Top 5%	17.3x above
Free Cash Flow Margin	47.6%	Top 5%	5.6x above
Gross Margin	96.1%	Top 10%	1.9x above
Operating Margin	58.3%	Top 5%	12.5x above
Return on Equity (ROE)	223.5%	Top 5%	41.2x above
P/E Ratio	28.2x	N/A	-

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Financial Scorecard

Metric	MA	Rating	Sector Context
Return on Invested Capital (ROIC)	61.2%	Excellent	Top 5% of sector (median: 3.5%)
Free Cash Flow Margin	47.6%	Excellent	Top 5% of sector (median: 8.5%)
Gross Margin	96.1%	Excellent	Top 10% of sector (median: 50.3%)
Debt to Equity Ratio	439.2%	Red flag	High financial leverage
P/E Ratio (Price-to-Earnings)	28.2x	Adequate	Growth premium
Free Cash Flow Yield	3.6%	Adequate	Moderate yield

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Frequently Asked Questions

Q: What is Mastercard Inc's Return on Invested Capital (ROIC)?

Mastercard Inc (MA) has a trailing twelve-month Return on Invested Capital (ROIC) of 61.2%. Sector median 3.5%. Source: 10-Q filed 2025-10-30.

Q: What is Mastercard Inc's Free Cash Flow Margin?

Mastercard Inc (MA) has a free cash flow margin of 47.6%, generating $16.7 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-30.

Q: What is Mastercard Inc's P/E ratio and how does it compare to peers?

Mastercard Inc (MA) trades at a P/E ratio of 28.2x, which is above the sector median of N/A. EV/Sales 0.3x. FCF yield 3.6%. Source: 10-Q filed 2025-10-30.

Q: Does Mastercard Inc pay a dividend?

Mastercard Inc (MA) currently pays a dividend yield of 0.6%. Total shareholder yield (dividend + buybacks) 4.1%. Source: 10-Q filed 2025-10-30.

Q: How much debt does Mastercard Inc have?

Mastercard Inc (MA) has a debt-to-equity ratio of 4.4x with total debt of $24.6 billion. Net debt $13.4 billion. Source: 10-Q filed 2025-10-30.

Q: What is Mastercard Inc's revenue and earnings growth?

Mastercard Inc (MA) grew revenue by 16.0% year-over-year. EPS +22.6% YoY. Source: 10-Q filed 2025-10-30.

Q: Is Mastercard Inc buying back stock?

Mastercard Inc (MA) repurchased $15.8 billion of stock over the trailing twelve months. This represents a buyback yield of 3.4%. Source: 10-Q filed 2025-10-30.

Q: How does Mastercard Inc compare to competitors in Technology?

Compared to other companies in Technology, Mastercard Inc (MA) shows: ROIC 61.2%, sector median 3.5% (Top 5%). FCF margin 47.6%, sector median 8.5% (Top 5%). Gross margin 96.1%, 45.8pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with Mastercard Inc?

Quantitative warning flags for Mastercard Inc (MA): 1) debt/equity 4.4x (above 1.5x threshold). Source: 10-Q filed 2025-10-30.

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Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.