Mastercard Incorporated (MA)

FairStock Score: 63/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a durable business whose earnings power is visible and whose price leaves room for error. Mastercard's filed results show a strong franchise: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $9.3B, net income $4.4B, and diluted EPS $4.97. The comparable filed fiscal Q2 2025 figures were $8.1B, $3.7B, and $4.07, so growth was substantial. For FY2025, revenue was $32.8B, net income $15.0B, and diluted EPS $16.52; FY2024 had $28.2B, $12.9B, and $13.89. The business is highly profitable and cash-generative: TTM free cash flow was $16.0B, a 2.9% FCF yield. FairStock classifies it as a STALWART—steady growth, with profit growing 18.5% a year over five years and revenue 6.8%. Financial health looks sound on the supplied gauges: Piotroski 7/9 and Altman Z 9.02, though P/B of 96.47 makes book value a poor anchor and ROE of 241.20% is flattered by a thin equity base. Valuation is the rub. At the 2026-10-16 close of $617.42, FairStock shows P/E 33.92, PEG 1.82, EV/EBITDA 25.21, and a Graham Number of $51.15—a margin of safety of -1104.93%. That is not a Graham bargain. The quality is evident, but the price depends on continued double-digit growth; I would require a wider discount before calling it attractive.

In plain English: Mastercard processes payments and provides related services. Its latest filed quarter showed strong growth and a very high profit margin, and the company generates substantial cash. At the 2026-10-16 close of $617.42, the shares look expensive compared with its earnings and what the books show as value.

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Data as of 2026-10-16 close · note generated 2026-10-20 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer