Mastercard: Earnings Beat, High Margins, Trading At Fair Value


  • Mastercard is one of the big two major card network providers and has a solid position in multiple markets.
  • The company reported strong financial results for the fourth quarter of 2022, as it beat both revenue and earnings estimates for growth.
  • Mastercard is poised to benefit from the growth in open banking and has connections with over 3,000 banks and financial institutions across 18 markets.
  • I forecast its innovative “Pay by Bank” solution will continue to grow rapidly and focus on SMB partnerships will also pay off positively.
  • Mastercard has experienced strong growth in its cross border payment volume as travel continues to have a strong multi-year rebound.

Mastercard Credit Card


Mastercard (NYSE:MA) is one of the big two credit card networks which had a 23.7% market share, just behind Visa which has a 52.6% market share according to 2021 data (which was the latest I could find). Despite not being the “leading” card network Mastercard

Visa Mastercard Market share

Visa Mastercard Market share (SEC filings, Upgraded Points)

Revenue growth rate

Revenue growth rate (Income statement)


Revenue (Q4,22 report)

Cross Border Fees

Cross Border Fees (Wise)

Pay by Bank App

Pay by Bank App example flight booking (Worldpay)

Operating Expenses

Operating Expenses (Q4,22 report)

Data by YCharts


Outlook (Q4,22 report)

Mastercard stock valuation 1

Mastercard stock valuation 1 (created by author Deep Tech Insights)

Mastercard stock valuation 2

Mastercard stock valuation 2 (created by author Deep Tech Insights)

Data by YCharts

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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