MASTERCARD INC - A (1MA.MI) Stock Fundamental Analysis
BIT:1MA - Euronext Milan - US57636Q1040 - Common Stock - Currency: EUR
1MA gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 50 industry peers in the Financial Services industry. 1MA scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
In the past year 1MA had a positive cash flow from operations.
1MA had positive earnings in each of the past 5 years.
1MA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 26.78%, 1MA belongs to the top of the industry, outperforming 94.00% of the companies in the same industry.
1MA has a better Return On Equity (198.52%) than 98.00% of its industry peers.
1MA has a better Return On Invested Capital (47.64%) than 98.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1MA is significantly above the industry average of 11.19%.
The 3 year average ROIC (45.59%) for 1MA is below the current ROIC(47.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.78% | ||
| ROE | 198.52% | ||
| ROIC | 47.64% |
ROA(3y)26.26%
ROA(5y)24.19%
ROE(3y)172.59%
ROE(5y)147.38%
ROIC(3y)45.59%
ROIC(5y)40.55%
1.3 Margins
With an excellent Profit Margin value of 45.71%, 1MA belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
In the last couple of years the Profit Margin of 1MA has remained more or less at the same level.
1MA's Operating Margin of 58.64% is amongst the best of the industry. 1MA outperforms 90.00% of its industry peers.
1MA's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.64% | ||
| PM (TTM) | 45.71% | ||
| GM | N/A |
OM growth 3Y2.16%
OM growth 5Y0.03%
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
Compared to 1 year ago, 1MA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.16 indicates that 1MA is not in any danger for bankruptcy at the moment.
1MA has a Altman-Z score of 11.16. This is amongst the best in the industry. 1MA outperforms 94.00% of its industry peers.
The Debt to FCF ratio of 1MA is 1.34, which is an excellent value as it means it would take 1MA, only 1.34 years of fcf income to pay off all of its debts.
1MA has a Debt to FCF ratio of 1.34. This is in the better half of the industry: 1MA outperforms 76.00% of its industry peers.
1MA has a Debt/Equity ratio of 2.69. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.69, 1MA is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
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 | 2.69 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 11.16 |
ROIC/WACC3.07
WACC15.54%
2.3 Liquidity
1MA has a Current Ratio of 1.03. 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 Current ratio of 1.03 is on the low side compared to the rest of the industry. 1MA is outperformed by 66.00% of its industry peers.
1MA has a Quick Ratio of 1.03. This is a normal value and indicates that 1MA is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of 1MA (1.03) is worse than 60.00% 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 | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.17% over the past year.
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.
1MA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.23%.
1MA shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.78% yearly.
EPS 1Y (TTM)19.17%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%20.13%
Revenue 1Y (TTM)12.23%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%14.37%
3.2 Future
The Earnings Per Share is expected to grow by 15.85% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.34% on average over the next years. This is quite good.
EPS Next Y11.9%
EPS Next 2Y14.77%
EPS Next 3Y15.41%
EPS Next 5Y15.85%
Revenue Next Year12.4%
Revenue Next 2Y12.47%
Revenue Next 3Y12.34%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 38.00 indicates a quite expensive valuation of 1MA.
Compared to the rest of the industry, the Price/Earnings ratio of 1MA indicates a slightly more expensive valuation: 1MA is more expensive than 62.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 29.35. 1MA is valued slightly more expensive when compared to this.
Based on the Price/Forward Earnings ratio of 33.97, the valuation of 1MA can be described as expensive.
Based on the Price/Forward Earnings ratio, 1MA is valued a bit more expensive than the industry average as 62.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.10. 1MA is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38 | ||
| Fwd PE | 33.97 |
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.
Based on the Price/Free Cash Flow ratio, 1MA is valued a bit more expensive than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.27 | ||
| EV/EBITDA | 29.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1MA does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of 1MA may justify a higher PE ratio.
1MA's earnings are expected to grow with 15.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.19
PEG (5Y)2.83
EPS Next 2Y14.77%
EPS Next 3Y15.41%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, 1MA is not a good candidate for dividend investing.
1MA's Dividend Yield is comparable with the industry average which is at 3.76.
Compared to an average S&P500 Dividend Yield of 2.33, 1MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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
19.02% of the earnings are spent on dividend by 1MA. This is a low number and sustainable payout ratio.
The dividend of 1MA is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP19.02%
EPS Next 2Y14.77%
EPS Next 3Y15.41%
BIT:1MA (3/6/2025, 7:00:00 PM)
511.5
-25.1 (-4.68%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners89.97%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap466.34B
Analysts82.04
Price Target595.15 (16.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend2.44
Dividend Growth(5Y)14.95%
DP19.02%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.67%
Min EPS beat(2)0.38%
Max EPS beat(2)0.96%
EPS beat(4)2
Avg EPS beat(4)-0.05%
Min EPS beat(4)-0.82%
Max EPS beat(4)0.96%
EPS beat(8)5
Avg EPS beat(8)0.24%
EPS beat(12)8
Avg EPS beat(12)2.69%
EPS beat(16)12
Avg EPS beat(16)3.53%
Revenue beat(2)0
Avg Revenue beat(2)-1.57%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)-1.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-2.77%
Max Revenue beat(4)-1.3%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)2
Avg Revenue beat(12)-1.19%
Revenue beat(16)4
Avg Revenue beat(16)-1.05%
PT rev (1m)9.96%
PT rev (3m)10.46%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.86%
EPS NY rev (1m)-2.22%
EPS NY rev (3m)-2.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38 | ||
| Fwd PE | 33.97 | ||
| P/S | 17.98 | ||
| P/FCF | 37.27 | ||
| P/OCF | 34.26 | ||
| P/B | 78.07 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.6 |
EPS(TTM)13.46
EY2.63%
EPS(NY)15.06
Fwd EY2.94%
FCF(TTM)13.73
FCFY2.68%
OCF(TTM)14.93
OCFY2.92%
SpS28.46
BVpS6.55
TBVpS-8.24
PEG (NY)3.19
PEG (5Y)2.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.78% | ||
| ROE | 198.52% | ||
| ROCE | 57.23% | ||
| ROIC | 47.64% | ||
| ROICexc | 68.44% | ||
| ROICexgc | 252.59% | ||
| OM | 58.64% | ||
| PM (TTM) | 45.71% | ||
| GM | N/A | ||
| FCFM | 48.23% |
ROA(3y)26.26%
ROA(5y)24.19%
ROE(3y)172.59%
ROE(5y)147.38%
ROIC(3y)45.59%
ROIC(5y)40.55%
ROICexc(3y)67.03%
ROICexc(5y)62.66%
ROICexgc(3y)221.66%
ROICexgc(5y)195.93%
ROCE(3y)54.77%
ROCE(5y)48.72%
ROICexcg growth 3Y15.54%
ROICexcg growth 5Y5.3%
ROICexc growth 3Y9.56%
ROICexc growth 5Y-4.29%
OM growth 3Y2.16%
OM growth 5Y0.03%
PM growth 3Y-0.21%
PM growth 5Y-1.01%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 1.34 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 133.11% | ||
| Cap/Sales | 4.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.87% | ||
| Profit Quality | 105.53% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 11.16 |
F-Score6
WACC15.54%
ROIC/WACC3.07
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)19.17%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%20.13%
EPS Next Y11.9%
EPS Next 2Y14.77%
EPS Next 3Y15.41%
EPS Next 5Y15.85%
Revenue 1Y (TTM)12.23%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%14.37%
Revenue Next Year12.4%
Revenue Next 2Y12.47%
Revenue Next 3Y12.34%
Revenue Next 5YN/A
EBIT growth 1Y12.9%
EBIT growth 3Y16.72%
EBIT growth 5Y10.81%
EBIT Next Year18.79%
EBIT Next 3Y15.04%
EBIT Next 5Y13.87%
FCF growth 1Y24.73%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y23.37%
OCF growth 3Y16.02%
OCF growth 5Y12.55%