MASTERCARD INC - A (1MA.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MA - US57636Q1040 - Common Stock
483.5 EUR
-2.3 (-0.47%)
We assign a fundamental rating of 6 out of 10 to 1MA. 1MA was compared to 59 industry peers in the Financial Services industry. 1MA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 1MA is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make 1MA a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year 1MA was profitable.
1MA had a positive operating cash flow in the past year.
1MA had positive earnings in each of the past 5 years.
Each year in the past 5 years 1MA had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 26.74%, 1MA belongs to the best of the industry, outperforming 98.25% of the companies in the same industry.
1MA has a Return On Equity of 180.29%. This is amongst the best in the industry. 1MA outperforms 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 47.55%, 1MA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1MA had an Average Return On Invested Capital over the past 3 years of 45.83%. This is significantly above the industry average of 10.74%.
The 3 year average ROIC (45.83%) for 1MA is below the current ROIC(47.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.74% | ||
| ROE | 180.29% | ||
| ROIC | 47.55% |
ROA(3y)26.26%
ROA(5y)24.19%
ROE(3y)172.59%
ROE(5y)147.38%
ROIC(3y)45.83%
ROIC(5y)40.7%
1.3 Margins
1MA has a Profit Margin of 45.28%. This is amongst the best in the industry. 1MA outperforms 92.98% of its industry peers.
In the last couple of years the Profit Margin of 1MA has remained more or less at the same level.
The Operating Margin of 1MA (59.16%) is better than 91.23% of its industry peers.
1MA's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.16% | ||
| PM (TTM) | 45.28% | ||
| GM | N/A |
OM growth 3Y2.69%
OM growth 5Y0.34%
PM growth 3Y-0.21%
PM growth 5Y-1.01%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1MA is creating value.
The number of shares outstanding for 1MA has been reduced compared to 1 year ago.
Compared to 5 years ago, 1MA has less shares outstanding
1MA has a worse debt/assets ratio than last year.
2.2 Solvency
1MA has an Altman-Z score of 10.68. This indicates that 1MA is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.68, 1MA belongs to the top of the industry, outperforming 94.74% of the companies in the same industry.
1MA has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
1MA's Debt to FCF ratio of 1.16 is amongst the best of the industry. 1MA outperforms 87.72% of its industry peers.
A Debt/Equity ratio of 2.40 is on the high side and indicates that 1MA has dependencies on debt financing.
1MA has a worse Debt to Equity ratio (2.40) than 73.68% of its industry peers.
Although 1MA does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 10.68 |
ROIC/WACC5.55
WACC8.57%
2.3 Liquidity
A Current Ratio of 1.12 indicates that 1MA should not have too much problems paying its short term obligations.
1MA has a Current ratio (1.12) which is comparable to the rest of the industry.
1MA has a Quick Ratio of 1.12. This is a normal value and indicates that 1MA is financially healthy and should not expect problems in meeting its short term obligations.
1MA's Quick ratio of 1.12 is in line compared to the rest of the industry. 1MA outperforms 49.12% of its industry peers.
The current and quick ratio evaluation for 1MA is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
1MA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.10%, which is quite good.
Measured over the past years, 1MA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.43% on average per year.
Looking at the last year, 1MA shows a quite strong growth in Revenue. The Revenue has grown by 15.60% in the last year.
The Revenue has been growing by 10.78% on average over the past years. This is quite good.
EPS 1Y (TTM)15.1%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%12.6%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.73%
3.2 Future
The Earnings Per Share is expected to grow by 15.33% on average over the next years. This is quite good.
Based on estimates for the next years, 1MA will show a quite strong growth in Revenue. The Revenue will grow by 11.67% on average per year.
EPS Next Y16.35%
EPS Next 2Y16.16%
EPS Next 3Y16.2%
EPS Next 5Y15.33%
Revenue Next Year16.74%
Revenue Next 2Y14.65%
Revenue Next 3Y13.76%
Revenue Next 5Y11.67%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 35.24, the valuation of 1MA can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of 1MA is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.38. 1MA is valued slightly more expensive when compared to this.
1MA is valuated quite expensively with a Price/Forward Earnings ratio of 28.74.
The rest of the industry has a similar Price/Forward Earnings ratio as 1MA.
The average S&P500 Price/Forward Earnings ratio is at 23.83. 1MA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.24 | ||
| Fwd PE | 28.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MA is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.21 | ||
| EV/EBITDA | 26.24 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1MA may justify a higher PE ratio.
1MA's earnings are expected to grow with 16.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.16
PEG (5Y)2.62
EPS Next 2Y16.16%
EPS Next 3Y16.2%
5. Dividend
5.1 Amount
1MA has a yearly dividend return of 0.61%, which is pretty low.
1MA's Dividend Yield is comparable with the industry average which is at 2.01.
With a Dividend Yield of 0.61, 1MA pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
5.2 History
The dividend of 1MA is nicely growing with an annual growth rate of 14.95%!
Dividend Growth(5Y)14.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
18.79% of the earnings are spent on dividend by 1MA. This is a low number and sustainable payout ratio.
1MA's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP18.79%
EPS Next 2Y16.16%
EPS Next 3Y16.2%
BIT:1MA (12/18/2025, 7:00:00 PM)
483.5
-2.3 (-0.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.73%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap434.18B
Revenue(TTM)31.47B
Net Income(TTM)14.25B
Analysts80.82
Price Target577.05 (19.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.61% |
Yearly Dividend2.26
Dividend Growth(5Y)14.95%
DP18.79%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.74%
Min EPS beat(2)-1.55%
Max EPS beat(2)0.08%
EPS beat(4)3
Avg EPS beat(4)0.08%
Min EPS beat(4)-1.55%
Max EPS beat(4)1.41%
EPS beat(8)5
Avg EPS beat(8)-0.01%
EPS beat(12)7
Avg EPS beat(12)0.14%
EPS beat(16)11
Avg EPS beat(16)2.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)-0.87%
Revenue beat(8)0
Avg Revenue beat(8)-1.66%
Revenue beat(12)0
Avg Revenue beat(12)-1.76%
Revenue beat(16)2
Avg Revenue beat(16)-1.27%
PT rev (1m)0.96%
PT rev (3m)4.84%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)1.57%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.82%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)0.12%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.24 | ||
| Fwd PE | 28.74 | ||
| P/S | 16.17 | ||
| P/FCF | 31.21 | ||
| P/OCF | 29.11 | ||
| P/B | 64.37 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.24 |
EPS(TTM)13.72
EY2.84%
EPS(NY)16.82
Fwd EY3.48%
FCF(TTM)15.49
FCFY3.2%
OCF(TTM)16.61
OCFY3.44%
SpS29.91
BVpS7.51
TBVpS-6.9
PEG (NY)2.16
PEG (5Y)2.62
Graham Number48.15
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.74% | ||
| ROE | 180.29% | ||
| ROCE | 57.12% | ||
| ROIC | 47.55% | ||
| ROICexc | 70.61% | ||
| ROICexgc | 228.49% | ||
| OM | 59.16% | ||
| PM (TTM) | 45.28% | ||
| GM | N/A | ||
| FCFM | 51.8% |
ROA(3y)26.26%
ROA(5y)24.19%
ROE(3y)172.59%
ROE(5y)147.38%
ROIC(3y)45.83%
ROIC(5y)40.7%
ROICexc(3y)67.38%
ROICexc(5y)62.88%
ROICexgc(3y)222.96%
ROICexgc(5y)196.71%
ROCE(3y)55.06%
ROCE(5y)48.9%
ROICexgc growth 3Y16.14%
ROICexgc growth 5Y5.63%
ROICexc growth 3Y10.13%
ROICexc growth 5Y-4%
OM growth 3Y2.69%
OM growth 5Y0.34%
PM growth 3Y-0.21%
PM growth 5Y-1.01%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 109.1% | ||
| Cap/Sales | 3.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.75% | ||
| Profit Quality | 114.42% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 10.68 |
F-Score8
WACC8.57%
ROIC/WACC5.55
Cap/Depr(3y)138.52%
Cap/Depr(5y)129.95%
Cap/Sales(3y)4.5%
Cap/Sales(5y)4.49%
Profit Quality(3y)101.51%
Profit Quality(5y)101.14%
High Growth Momentum
Growth
EPS 1Y (TTM)15.1%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%12.6%
EPS Next Y16.35%
EPS Next 2Y16.16%
EPS Next 3Y16.2%
EPS Next 5Y15.33%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.73%
Revenue Next Year16.74%
Revenue Next 2Y14.65%
Revenue Next 3Y13.76%
Revenue Next 5Y11.67%
EBIT growth 1Y16.51%
EBIT growth 3Y17.33%
EBIT growth 5Y11.15%
EBIT Next Year24.87%
EBIT Next 3Y16.84%
EBIT Next 5Y13.75%
FCF growth 1Y66.51%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y59.63%
OCF growth 3Y16.02%
OCF growth 5Y12.55%
MASTERCARD INC - A / 1MA.MI FAQ
What is the ChartMill fundamental rating of MASTERCARD INC - A (1MA.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1MA.MI.
Can you provide the valuation status for MASTERCARD INC - A?
ChartMill assigns a valuation rating of 2 / 10 to MASTERCARD INC - A (1MA.MI). This can be considered as Overvalued.
How profitable is MASTERCARD INC - A (1MA.MI) stock?
MASTERCARD INC - A (1MA.MI) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for 1MA stock?
The Price/Earnings (PE) ratio for MASTERCARD INC - A (1MA.MI) is 35.24 and the Price/Book (PB) ratio is 64.37.
What is the expected EPS growth for MASTERCARD INC - A (1MA.MI) stock?
The Earnings per Share (EPS) of MASTERCARD INC - A (1MA.MI) is expected to grow by 16.35% in the next year.