Mastercard Delivers $63 Bil To Shareholders Over The Last 10 Years

Core Insights - Mastercard (MA) has returned $63 billion to shareholders over the past ten years through dividends and share repurchases, ranking 39th in total returns to shareholders in history [2][3] Capital Return Analysis - Dividends and share repurchases are direct returns of capital to shareholders, reflecting management's assessment of financial stability and cash flow sustainability [3] - The total capital returned to shareholders as a percentage of market cap appears inversely related to growth prospects, with companies like Meta and Microsoft showing lower capital returns despite higher growth [5] Financial Performance - Mastercard's revenue growth stands at 13.1% for the last twelve months (LTM) and an average of 13.5% over the last three years [11] - The company has a free cash flow margin of approximately 49.2% and an operating margin of 58.0% LTM [11] - The lowest annual revenue growth for Mastercard in the last three years was 12.6% [11] Valuation Metrics - Mastercard stock trades at a price-to-earnings (P/E) ratio of 39.9, indicating a higher valuation compared to the S&P [11] - The company offers greater revenue growth and improved margins relative to the S&P [11] Historical Risk - Mastercard has experienced significant declines in the past, including a 63% drop during the Global Financial Crisis and a 41% drop during the COVID pandemic [8] - Declines of 20% or greater are not uncommon for strong companies like Mastercard during market shifts [8]