With a market cap of about $ 500 billion, Master card ,MA 1.15%, Is a true corporate veteran. In fact, it ranks as the 16th largest American company by the market CapNext to others Financial Beamoth Like Bank of America, Wells Fargo, American ExpressAnd Morgan Stanley,

But why? And perhaps even more important thing is whether the master card will retain its place in the coming years? Let’s know.

Its business is the biggest property of the master card Sample

Like its main rival VisaMasterCard is one Business model based But payment processing. The company operates a huge network that facilitates payment transactions between traders, card holders and card-recovering institutions.

In other words, the MasterCard is a classic middleman. Fees for this Using the Its network. And where , broadly speaking , Everyone Person The fee is small, they In fact Add

In the last 12 months, MasterCard produced $ 29 billion IncomeThis is about 12% from a year ago when the company produced $ 26 billion in revenue. Is growth Thank you The world continues to run as a growing global payment volume closer to A cashless society. especially, Emerging market economies Continue infection away from cash and infection towards cards as an increase in living standards and expansion of internet access.

In addition, the mastercard’s network scale benefits from the economies. That is, as the network increases in size, the master card can get maximum benefits it, Such as the benefits of the network grow faster than its costs.

In fact, in the last 10 yearsMaster card operating margin It has increased from 53% to 58%, while its net income is Increased Over $ 3.7 billion to $ 13.1 billion.

MA operating margin Data by Ycharts

How and why MasterCard stock is over

After reviewing its business model, this is not Wonder That mastercard stock has upgraded Leap and border, In Fact, MasterCard has been one of the best shares with 10 years in the last 10 years Total return 518%, easily move on S&P 500A total return of 246% in the same period.

Supporting this excellent performance is a solid mix of mastercard Dividend payment And Share buyback, The company currently pays a minor quarterly dividend of $ 0.76 per sGreen dividend yield 0.55%. MasterCard also announced a $ 12 billion share renovation scheme in December Of 2024, which will help run the shareholder price by reducing the outstanding shares.

MasterCard can support these initiatives for their strong -free cash flow. In the last 12 months, the company produced $ 14.3 billion in free cash flow, Or $ 15.53 per share.

Is MasterCard Stock Buying Now?

Di, there are risks of owning the mastercard stock.

For one, the company is subject to large -scale regulatory risks. MasterCard is subject to Many ongoing cases related to antitrust and consumer protection issues. With any such litigation, legal fees, settlements or monetary fines exit Its future profits.

Other than thisCompetitive disruption Crypto -like Or emerging fintech companies can take market stake from MasterCard going forward, Finally, there is a common risk of an economic recession which will be Look Global payment volume slow,

However, each of these is risk Be taken away Seriously, the main occupation of MasterCard is the model Only Very good to ignore. Investors Will be intelligent for If they are not already with them, buy and catch the shares of the master card.