MA – Market expectations are for Uniform ROA expansion, but management may be concerned about their growth, market share, and acquisitions

• Mastercard Incorporated (MA:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 33.2x Uniform P/E, suggesting bullish expectations for the firm. However, management may be concerned about growth, market share, and their acquisitions
  
  

• Specifically, management may lack confidence in their ability to mitigate rebates and incentives growth, drive organic revenue growth from new acquisitions, and continue to gain market share. In addition, they may be exaggerating the potential of their RiskRecon and Vocalink services and the payment capabilities of Mastercard Track. Furthermore, they may lack confidence in their ability to sustain card growth, achieve breakeven across their acquisitions, and properly handle consumer data in their increasingly digital lives. Finally, they may lack confidence in their ability to manage expenses, and they may be concerned about continued weakness in the Latin America and Caribbean region