MASTERCARD INC - A (1MA.MI) Stock Fundamental Analysis
BIT:1MA - Borsa Italiana Milan - US57636Q1040 - Common Stock - Currency: EUR
Overall 1MA gets a fundamental rating of 6 out of 10. We evaluated 1MA 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 valued quite expensively, but it does show have an excellent growth rating. These ratings would make 1MA suitable for growth and 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
1MA has a better Return On Assets (26.09%) than 93.18% of its industry peers.
With an excellent Return On Equity value of 165.63%, 1MA belongs to the best of the industry, outperforming 97.73% of the companies in the same industry.
With an excellent Return On Invested Capital value of 44.49%, 1MA belongs to the best of the industry, outperforming 97.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1MA is significantly above the industry average of 10.86%.
The 3 year average ROIC (41.59%) for 1MA is below the current ROIC(44.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.09% | ||
| ROE | 165.63% | ||
| ROIC | 44.49% |
ROA(3y)25.03%
ROA(5y)24.39%
ROE(3y)146.01%
ROE(5y)135.22%
ROIC(3y)41.59%
ROIC(5y)40.58%
1.3 Margins
1MA has a better Profit Margin (45.26%) than 81.82% of its industry peers.
1MA's Profit Margin has improved in the last couple of years.
1MA has a better Operating Margin (58.70%) than 88.64% of its industry peers.
1MA's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.7% | ||
| PM (TTM) | 45.26% | ||
| GM | N/A |
OM growth 3Y3%
OM growth 5Y0.93%
PM growth 3Y2.11%
PM growth 5Y2.62%
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.
Compared to 1 year ago, 1MA has less shares outstanding
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
1MA has an Altman-Z score of 11.69. This indicates that 1MA is financially healthy and has little risk of bankruptcy at the moment.
1MA has a Altman-Z score of 11.69. This is amongst the best in the industry. 1MA outperforms 93.18% of its industry peers.
1MA has a debt to FCF ratio of 1.43. This is a very positive value and a sign of high solvency as it would only need 1.43 years to pay back of all of its debts.
1MA's Debt to FCF ratio of 1.43 is fine compared to the rest of the industry. 1MA outperforms 72.73% of its industry peers.
1MA has a Debt/Equity ratio of 2.37. This is a high value indicating a heavy dependency on external financing.
With a Debt to Equity ratio value of 2.37, 1MA is not doing good in the industry: 77.27% 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 | 2.37 | ||
| Debt/FCF | 1.43 | ||
| Altman-Z | 11.69 |
ROIC/WACC4.94
WACC9%
2.3 Liquidity
1MA has a Current Ratio of 1.29. This is a normal value and indicates that 1MA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.29, 1MA is in line with its industry, outperforming 56.82% of the companies in the same industry.
1MA has a Quick Ratio of 1.29. This is a normal value and indicates that 1MA is financially healthy and should not expect problems in meeting its short term obligations.
1MA has a Quick ratio of 1.29. This is in the better half of the industry: 1MA outperforms 61.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.10% over the past year.
The Earnings Per Share has been growing by 13.57% on average over the past years. This is quite good.
1MA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.73%.
Measured over the past years, 1MA shows a quite strong growth in Revenue. The Revenue has been growing by 10.92% on average per year.
EPS 1Y (TTM)19.1%
EPS 3Y24%
EPS 5Y13.57%
EPS Q2Q%14.75%
Revenue 1Y (TTM)11.73%
Revenue growth 3Y17.93%
Revenue growth 5Y10.92%
Sales Q2Q%12.8%
3.2 Future
1MA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.51% yearly.
The Revenue is expected to grow by 12.07% on average over the next years. This is quite good.
EPS Next Y21.79%
EPS Next 2Y17.04%
EPS Next 3Y16.77%
EPS Next 5Y16.51%
Revenue Next Year12.16%
Revenue Next 2Y12.12%
Revenue Next 3Y12.11%
Revenue Next 5Y12.07%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 40.27 indicates a quite expensive valuation of 1MA.
72.73% of the companies in the same industry are cheaper than 1MA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.47. 1MA is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 33.50, 1MA can be considered very expensive at the moment.
68.18% of the companies in the same industry are cheaper than 1MA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 92.74. 1MA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.27 | ||
| Fwd PE | 33.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1MA is valued a bit more expensive than the industry average as 63.64% of the companies are valued more cheaply.
1MA's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. 1MA is more expensive than 77.27% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.15 | ||
| EV/EBITDA | 31.04 |
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.
A more expensive valuation may be justified as 1MA's earnings are expected to grow with 16.77% in the coming years.
PEG (NY)1.85
PEG (5Y)2.97
EPS Next 2Y17.04%
EPS Next 3Y16.77%
5. Dividend
5.1 Amount
1MA has a yearly dividend return of 0.57%, which is pretty low.
Compared to an average industry Dividend Yield of 4.17, 1MA has a dividend in line with its industry peers.
With a Dividend Yield of 0.57, 1MA pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
5.2 History
The dividend of 1MA is nicely growing with an annual growth rate of 17.92%!
Dividend Growth(5Y)17.92%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
19.28% of the earnings are spent on dividend by 1MA. This is a low number and sustainable payout ratio.
1MA's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP19.28%
EPS Next 2Y17.04%
EPS Next 3Y16.77%
MASTERCARD INC - A
BIT:1MA (2/3/2025, 7:00:00 PM)
544.4
+16.9 (+3.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners79.61%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap499.67B
Analysts81.2
Price Target552.27 (1.45%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend2.28
Dividend Growth(5Y)17.92%
DP19.28%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.07%
Min EPS beat(2)-0.82%
Max EPS beat(2)0.96%
EPS beat(4)2
Avg EPS beat(4)-0.11%
Min EPS beat(4)-0.82%
Max EPS beat(4)0.96%
EPS beat(8)4
Avg EPS beat(8)0.18%
EPS beat(12)8
Avg EPS beat(12)2.94%
EPS beat(16)12
Avg EPS beat(16)3.84%
Revenue beat(2)0
Avg Revenue beat(2)-1.45%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)-1.3%
Revenue beat(4)0
Avg Revenue beat(4)-1.9%
Min Revenue beat(4)-2.77%
Max Revenue beat(4)-1.3%
Revenue beat(8)0
Avg Revenue beat(8)-1.92%
Revenue beat(12)2
Avg Revenue beat(12)-1.22%
Revenue beat(16)5
Avg Revenue beat(16)-0.95%
PT rev (1m)2.5%
PT rev (3m)16.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.35%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)1.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.18%
Revenue NY rev (1m)-0.07%
Revenue NY rev (3m)0.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.27 | ||
| Fwd PE | 33.5 | ||
| P/S | 18.97 | ||
| P/FCF | 40.15 | ||
| P/OCF | 36.69 | ||
| P/B | 69.41 | ||
| P/tB | N/A | ||
| EV/EBITDA | 31.04 |
EPS(TTM)13.52
EY2.48%
EPS(NY)16.25
Fwd EY2.98%
FCF(TTM)13.56
FCFY2.49%
OCF(TTM)14.84
OCFY2.73%
SpS28.7
BVpS7.84
TBVpS-4.76
PEG (NY)1.85
PEG (5Y)2.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.09% | ||
| ROE | 165.63% | ||
| ROCE | 53.37% | ||
| ROIC | 44.49% | ||
| ROICexc | 71.85% | ||
| ROICexgc | 202.28% | ||
| OM | 58.7% | ||
| PM (TTM) | 45.26% | ||
| GM | N/A | ||
| FCFM | 47.25% |
ROA(3y)25.03%
ROA(5y)24.39%
ROE(3y)146.01%
ROE(5y)135.22%
ROIC(3y)41.59%
ROIC(5y)40.58%
ROICexc(3y)61.74%
ROICexc(5y)66.07%
ROICexgc(3y)192.79%
ROICexgc(5y)184.89%
ROCE(3y)49.9%
ROCE(5y)48.68%
ROICexcg growth 3Y14.71%
ROICexcg growth 5Y-19.77%
ROICexc growth 3Y5.5%
ROICexc growth 5Y-12.75%
OM growth 3Y3%
OM growth 5Y0.93%
PM growth 3Y2.11%
PM growth 5Y2.62%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.37 | ||
| Debt/FCF | 1.43 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 139.26% | ||
| Cap/Sales | 4.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.53% | ||
| Profit Quality | 104.38% | ||
| Current Ratio | 1.29 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 11.69 |
F-Score6
WACC9%
ROIC/WACC4.94
Cap/Depr(3y)131.52%
Cap/Depr(5y)131.22%
Cap/Sales(3y)4.53%
Cap/Sales(5y)4.5%
Profit Quality(3y)99.52%
Profit Quality(5y)98.4%
High Growth Momentum
Growth
EPS 1Y (TTM)19.1%
EPS 3Y24%
EPS 5Y13.57%
EPS Q2Q%14.75%
EPS Next Y21.79%
EPS Next 2Y17.04%
EPS Next 3Y16.77%
EPS Next 5Y16.51%
Revenue 1Y (TTM)11.73%
Revenue growth 3Y17.93%
Revenue growth 5Y10.92%
Sales Q2Q%12.8%
Revenue Next Year12.16%
Revenue Next 2Y12.12%
Revenue Next 3Y12.11%
Revenue Next 5Y12.07%
EBIT growth 1Y13.15%
EBIT growth 3Y21.47%
EBIT growth 5Y11.95%
EBIT Next Year19.61%
EBIT Next 3Y15.47%
EBIT Next 5Y13.69%
FCF growth 1Y24.91%
FCF growth 3Y18.68%
FCF growth 5Y13.75%
OCF growth 1Y24.74%
OCF growth 3Y18.37%
OCF growth 5Y14%