Valuation
26% of the score
58median 56
Mastercard is valued at 22.4x its operating profit before acquisition amortisation (EBITA), including debt: a rich multiple.
60x
50x
35x
25x
18x
12x
8x
22.4x
Full points at 8x or less, none from 60xfull points
MAMastercard
$568.33-2.3% 1Y
$568.33
$471.5552 weeks$599.81
RyuScore
Seven criteria, each scored 0 to 100 on a published scale, weighted into one number.
RyuScore 81 out of 100, Strong
Today's price. Only valuation depends on it.
Strong. Mastercard scores higher than 95% of the 1,794 companies Ryufin scores.
Carried by return on capital and return on new capital, with nothing holding it far back.
Financial Services median 63 · all companies 57
How the score has moved
At each fiscal year end, from the reports and price of the time68
70
77
74
74
78
81
202020212022202320242025today
The biggest move was up 7 points from 2021 to 2022, mostly valuation.
Return on capital
18% of the score
100median 34
Over 7 years the business earned 67% a year after tax on the capital it uses.
2%
8%
15%
25%
67%
None at 2% or less, full points from 25%full points
7 years agolatest 71%
Return on new capital
16% of the score
96median 49
For every dollar of operating profit earned over 6 years, yearly profit grew by 11 cents. New capital earned 96%, and 12% of profit went back into the business.
-5%
12%
11%
None at minus 5 cents, full points from 12 centsfull points
Capital allocation
14% of the score
93median 64
How management spends the money: shares bought back or issued, and whether assets grow faster than the business they serve.
Share countDown 2.1% a year over 5 years: buybacks
885%
-3%
-2.1%
0 pointsfull points
Assets against salesAssets grew 10% a year, sales 16%
10012%
-2%
-6.4%
0 pointsfull points
Cycle position
12% of the score
61median 62
Today's operating margin of 58% is 1.05x its normal 55%: close to its usual level. Normal is half the 10 year median, half the last four years, so a margin that has held is not taken for a peak.
2x
1.5x
1x
0.7x
1.1x
A trough earns points, a peak costs themfull points
10 years agonow 58%
Balance sheet
8% of the score
100median 50
What the debt weighs against the profit that has to carry it.
Net debt to EBITDA0.4x a year of EBITDA
1004.5x
0.5x
0.4x
0 pointsfull points
Interest coverOperating profit covers interest 26x
1001.5x
12x
26.2x
0 pointsfull points
Earnings quality
6% of the score
82median 90
Whether the reported profit arrives as cash, and whether the accounts show the usual signs of stretching.
Cash against profitOperating cash flow was 1.14x profit over 3 years
780.7x
1x
1.3x
1.1x
0 pointsfull points
AccrualsCash ran ahead of profit by 5.2% of assets
868%
0%
-8%
-5.2%
0 pointsfull points
How the RyuScore works
Each criterion earns 0 to 100 points on the scale drawn under it, and the RyuScore is their average weighted 26, 18, 16, 14, 12, 8 and 6. Scales bend in the company's favour between their ends, so an ordinary figure is never already near zero. Where a criterion cannot be measured from the filings it is taken out and the remaining weights scale up; a company needs 60% of the weight covered, and always a price, to get a score.
Built from the company's annual and quarterly filings with the SEC and today's share price. Banks, insurers and property trusts are not scored: their debt is their raw material, so these yardsticks mean something else there.
On our screens:Stocks that buy back more than they dilute
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