Mastercard Inc Scores High on Investment Strategies

Mastercard Inc is rated 86% by the Patient Investor model, indicating strong investor interest. This high score reflects robust fundamentals and valuation metrics.

Date: 09-03-2025

AI Rating: 7

Analysis of Mastercard Inc's Financial Metrics

Mastercard Inc has been evaluated based on the Patient Investor model associated with Warren Buffett. This analysis reveals strong financial health portrayed through various metrics.

Earnings Predictability: Mastercard passes this criterion, indicating stable earnings performance that suggests predictable future profits, a favourable indicator for investors.

Return on Equity (ROE): The company also meets the ROE benchmark, which is a positive sign, showcasing effective management in generating profits from shareholders' equity.

Return on Assets (ROA): Mastercard’s ability to utilize its assets efficiently is another strong aspect. This implies that the company is effective in generating earnings from its assets while enhancing investor confidence.

Free Cash Flow (FCF): The passage in this area underscores Mastercard’s ability to generate cash after accounting for capital expenditures. Strong free cash flow is critical for funding growth and providing returns to shareholders.

Use of Retained Earnings: Mastercard’s pass rating in this category indicates it wisely reinvests its earnings back into the company, potentially leading to sustainable growth.

Share Repurchase: The successful share repurchase rate demonstrates that Mastercard is actively returning capital to shareholders, which could enhance stock price and shareholder value over time.

Initial Rate of Return: Despite passing several other key indicators, this area does not meet expectations. This could be a concern for investors, signaling a potential caution regarding returns in the short term.

Expected Return: The expectation for future returns is rated positively, which may instill investor optimism regarding future stock performance.

Investors should weigh these strengths against the initial rate of return failure when making decisions about investing in Mastercard Inc.

Stocks: MA