MA
MasterCard Inc
Finance/Real Estate
06/08/2015
Presented
| Date | 06/04/2015 |
| Price | $92.57 |
| Market Cap | N/A |
| Ent Value | $101.28B |
| P/E Ratio | 28.4x |
| Book Value | $5.51 |
| Div Yield | 0.69% |
| Shares O/S | 1,140.24M |
| Ave Daily Vol | 4,340,000 |
| Short Int | 1.38% |
Current
| Price | $507.23 |
| Market Cap | $468.60B |
| MasterCard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. The company facilitates the processing of payment transactions, including authorization, clearing, and settlement, as well as delivers related products and services. It also offers value-added services, such as loyalty and reward programs, and information and consulting services. In addition, the company offers processing services comprising transaction switching-authorization, clearing, and settlement services; cross-border and domestic processing services; and issuer and acquirer processing solutions, and payment and mobile gateways. Further, it provides various payment products and solutions for cardholders, merchants, financial institutions, and governments; programs that enable issuers to provide consumers with cards to defer payments; payment products and solutions that allow its customers to access funds in deposit and other accounts; prepaid program management services; and commercial payment products and solutions. Additionally, the company offers products and services to detect, prevent, and respond to fraud and ensure the safety of transactions. MasterCard Incorporated provides payment solutions and services under the MasterCard, Maestro, and Cirrus brands. The company was founded in 1966 and is headquartered in Purchase, New York. |
Publicly traded companies mentioned herein: American Express Company (AXP), Best Buy Co Inc (BBY), eBay Inc (EBAY), Google Inc (GOOG), MasterCard Incorporated (MA), Moneygram International Inc (MGI), Visa Inc (V), Wal-Mart Stores Inc (WMT), The Western Union Company (WU)
Highlights
The presenter is long shares of Mastercard (MA), and thinks bears who are concerned about its potential susceptibility to global growth slowing/ macro issues and competition are “missing a big opportunity”. At $92 - $93, MA is a $105 billion company with excellent growth prospects. While it has underperformed Visa (V) over the past year, it has historically performed better (i.e., over five years). In the presenter’s opinion, MA’s model is sustainable, and its operating margins are excellent (at 55%) for such a large company. He believes the second largest payments network player can build upon its recent successes and generate substantial growth over the next 3-5 years.
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