Mastercard Inc Rated Strongly by Buffett's Investing Strategy

Mastercard Inc shines with an 86% rating from a top investing strategy. The report highlights the company's predictable profitability and solid fundamentals, indicating potentially favorable stock performance.

Date: 19-03-2025

AI Rating: 7

Mastercard Inc's Performance

According to the report, Mastercard Inc (MA) has received an impressive rating of 86% based on the Patient Investor model driven by Warren Buffett’s investment philosophy. This score indicates a strong alignment with the strategy’s focus on long-term, predictable profitability and low debt. Since the score exceeds 80%, it reflects significant interest in the stock from the strategy.

The key metrics used to evaluate the stock show a remarkable performance across several areas:

Earnings Predictability: The company passes this test, suggesting stable and consistent earnings which are crucial for investor confidence.
Return on Equity (ROE): MA also passes the ROE evaluation, indicating effective use of equity to generate profits.
Return on Assets: The successful pass of this metric suggests the company is efficient in converting investments into net income.
Free Cash Flow (FCF): Another positive signal, showing the company has sufficient cash to reinvest, pay dividends, or repurchase shares.
Use of Retained Earnings: The favorable result here indicates a smart reinvestment approach instead of relying solely on external financing.
Share Repurchase: Passing this test indicates a commitment to returning value to shareholders.

However, it’s important to note that there is a negative point regarding the Initial Rate of Return, where the company did not meet expectations. Despite this failure, the overall performance of Mastercard in the context of this analysis appears strong.

Overall, the report considers all the fundamental aspects of the company’s financial health and might suggest favorable market sentiment towards Mastercard’s stock moving forward.

Stocks: MA