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MA – Market expectations are for Uniform ROA to reach new peaks, but management may be concerned about cryptocurrency, bank partnerships, and growth

July 2, 2021

  • Mastercard Incorporated (MA:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) earnings, with a 42.3x Uniform P/E, suggesting bullish expectations for the firm. However, management may be concerned about their cryptocurrency exposure, partnerships with credit unions and banks, and top-line growth
  • Specifically, management may have concerns about their NETS acquisition and the sustainability of the U.S. airline spending rebound. Additionally, they may be exaggerating their positive momentum for top-line growth and the potential of Ekata to improve their cyber solutions. Moreover, management may have concerns about their partnership with Airtel Payments Bank in India, their investments in Airtel Mobile Commerce, and the progress of the Transfast integration. Furthermore, they may lack confidence in their ability to improve EPS, execute their digital strategy, and expand their relationship with the United Nations Federal Credit Union and Saudi British Bank. Finally, management may have concerns about the launch of the crypto currency rewards system for credit cards and lower-yielding intra-Europe cross-border volumes, and they may lack confidence in their ability to efficiently manage expenses