MA

Mastercard Inc

Technology • CIK: 0001141391

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Market Cap
$516.49B
P/E (TTM)
34.5x
Rev Growth (TTM)
+16.4%
Net Margin (TTM)
45.6%
FCF Yield (TTM)
3.3%
FCF Margin (TTM)
52.3%

Filing Intelligence

6.0/10
10-K filed Feb 11, 2026 • FY 2025

Executive Summary

Mastercard demonstrated robust revenue growth in 2025, driven by both its core payment network and expanding value-added services and solutions.. Operating expenses also increased significantly,...

Key Concerns

  • ●The company has significant future minimum payments primarily related to sponsorships and licensing arrangements totaling $2.033 billion...
  • ●Customer Concentration (high)
  • ●Cybersecurity Threats (high)

Key Strengths

  • ●Mastercard demonstrated robust revenue growth in 2025, driven by both its core payment network and expanding value-added services and...
  • ●Operating expenses also increased significantly, partly due to acquisitions and strategic investments, impacting operating margin despite...
  • ●The company maintains strong cash flow generation, with a substantial increase in net cash from operations, supporting its capital...
View Full Quarterly Insights →

LATEST EARNINGS

•
Q3 FY2025
•
5 months ago
•View source
Revenue
$8.60B
+17.0%
Net Income
$3.93B
+20.0%
EPS
$4.34
+23.0%
Operating
58.8%↑ +4.5%
Net
45.7%↑ +1.4%
  • •Net revenue increased 17% year-over-year (15% on a currency-neutral basis) to $8.6 billion.
  • •Value-added services and solutions net revenue grew 25% (22% currency-neutral).
  • •Gross dollar volume increased 9% and purchase volume increased 10% on a local currency basis.
  • •Cross-border volume grew 15% on a local currency basis.
View Full Earnings →

Cash Flow Health

Free Cash Flow8/8 positive
TTM$17.2B
Q4 '25
$4.9B-11%
Q3 '25
$5.5B+20%
FCF Margin
TTM52.3%
Q4 '2555.5%-13%
Sector: 9.1%Top 10%
OCF Margin53.8%
OCF/NI1.18x
CapEx Coverage36.1x
FCF Yield3.3%
FCF Growth (2Y)+17%
Cash Conversion Cycle
46 days
DSO: 46+DIO: –−DPO: –
View Insights from Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM2.8%
Div Yield0.6%
+
Buyback (TTM)2.3%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)0.6%
FCF Payout Ratio16.6%
Free Cash Flow (TTM)$17.2B
Stock Repurchases (TTM)$11.7B
Capital Return / FCF84.4%
Est. Dividends Paid (TTM)$2.8B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
58.1%
Stable
+0.1% YoY+5.4%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
46.4%
8Q: 46.5%
Asset Turnover
0.64x
8Q: 0.65x
Leverage (1+D/E)
3.46x
D/E: 2.46x
DuPont: 103.0% ≈ 58.1% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
14.71x
8Q:13.76x
+287.3%
Invested Cap Turn
1.68x
8Q:1.66x
+9.6%
CapEx Intensity
2.5%
8Q:2.7%
CapEx/Depreciation
0.43x
Asset-based ROIC formula
Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$32.8B
$8.8B↑2.4%
$8.6B↑5.8%
$8.1B↑12.2%
$7.3B↓3.2%
$7.5B↑1.6%
$7.4B↑5.9%
$7.0B↑9.7%
$6.3B
Operating Income
$18.9B
$4.9B↓3.0%
$5.1B↑5.9%
$4.8B↑15.1%
$4.1B↑5.4%
$3.9B↓1.6%
$4.0B↓0.8%
$4.0B↑12.0%
$3.6B
Net Income
$15.0B
$4.1B↑3.4%
$3.9B↑6.1%
$3.7B↑12.8%
$3.3B↓1.9%
$3.3B↑2.4%
$3.3B↑0.2%
$3.3B↑8.2%
$3.0B
Operating Cash Flow
$17.6B
$5.0B↓11.7%
$5.7B↑23.0%
$4.6B↑93.4%
$2.4B↓50.8%
$4.8B↓5.9%
$5.1B↑63.7%
$3.1B↑87.7%
$1.7B
Free Cash Flow
$17.2B
$4.9B↓10.8%
$5.5B↑20.2%
$4.6B↑105.4%
$2.2B↓53.1%
$4.7B↓5.8%
$5.0B↑66.4%
$3.0B↑99.5%
$1.5B
Total Equity
N/A
Income StatementCash Flow StatementBalance Sheet

Valuation Analysis

Fair Value
Price-to-EarningsTTM
34.5x
Volatile
8Q: 138.6x-1099%
Valuation Lenses
Earnings
34.5x
vs – sector
Cash Flow
30.5x
EV/FCF vs –
Growth-Adj
1.8xPEG
Fair for growth
Quality-Adj
0.6P/E per %ROIC
ROIC: 58.1%
Shareholder Returns
Dividend
0.6%
Buyback
2.3%
Total Yield
2.8%
Market Cap$516.49B
EV$523.73B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
96/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 10%
2.0%
8Q:–
Return on Invested Capital (ROIC)Top 25%
58.1%
8Q:–
+5.4%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 46.4%
Asset Turnover: 0.64x

Earnings Quality

Cash Conversion

1.18x

OCF / Net Income ✓

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin–

Capital Efficiency

Invested Capital Turnover1.68x

Working Capital

Cash Conversion Cycle46 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
75/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
16.4%
OpInc Growth YoY
24.7%
EPS Growth YoY
18.9%
FCF 3Y CAGR
16.9%

Growth Quality Analysis

✓Sustainability Index: 7.5/10 - Highly sustainable growth

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
—
Operating
57.6%
Top 25% in sector
Net
45.6%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
+6.7 pts
FCF: 52.3% | Net: 45.6%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Leveraged
Net Debt / EBITDA
–Net Debt: $5.75B
Interest Coverage
–
Balance sheet risk & solvency analysis

Research

All research