What Has Driven Master Card’s EPS Growth In The Last Four Years?
Over the last four years, Master Card has grown its top line at a rate of 7% annually. This growth has come at the expense of a decline in the operating and pre-tax margins. However, owing to reduction in tax payments over the period, the company’s profit margin has increased by 210 basis points or 2.1 percentage points. This has led its EPS over the period to grow by 38% over the period. Additionally, buying back nearly 10% of its outstanding share count over the period has helped boost EPS growth by 14.6 percentage points to a cumulative EPS growth of 52.6% over the period.
Have more questions about MasterCard? See the links below:
- How Much Did MasterCard’s Revenue & Gross Profit Grow In The Last Five Years?
- How Much Can MasterCard’s Revenue Grow In The Next Five Years?
- What Is MasterCard’s Fundamental Value Based On Expected 2016 Results?
- How Has MasterCard’s Revenue Composition Changed In The Last Five Years?
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Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for MasterCard
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