MASTERCARD INC - A (1MA.MI) Stock Fundamental Analysis
BIT:1MA - Euronext Milan - US57636Q1040 - Common Stock - Currency: EUR
Taking everything into account, 1MA scores 6 out of 10 in our fundamental rating. 1MA was compared to 51 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. While showing a medium growth rate, 1MA is valued expensive at the moment. These ratings could make 1MA a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
1MA had positive earnings in the past year.
In the past year 1MA had a positive cash flow from operations.
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
1MA's Return On Assets of 26.78% is amongst the best of the industry. 1MA outperforms 96.08% of its industry peers.
1MA has a better Return On Equity (198.52%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 47.64%, 1MA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1MA is significantly above the industry average of 10.89%.
The last Return On Invested Capital (47.64%) for 1MA is above the 3 year average (45.59%), which is a sign of increasing profitability.
| 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
1MA's Profit Margin of 45.71% is amongst the best of the industry. 1MA outperforms 90.20% of its industry peers.
1MA's Profit Margin has been stable in the last couple of years.
1MA has a better Operating Margin (58.64%) than 90.20% 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.
1MA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1MA has less shares outstanding
The debt/assets ratio for 1MA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.60 indicates that 1MA is not in any danger for bankruptcy at the moment.
1MA has a better Altman-Z score (10.60) than 92.16% of its industry peers.
1MA has a debt to FCF ratio of 1.34. This is a very positive value and a sign of high solvency as it would only need 1.34 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.34, 1MA belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
1MA has a Debt/Equity ratio of 2.69. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.69, 1MA is doing worse than 72.55% of the companies in the same industry.
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 | 10.6 |
ROIC/WACC3.08
WACC15.48%
2.3 Liquidity
A Current Ratio of 1.03 indicates that 1MA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.03, 1MA is in line with its industry, outperforming 41.18% of the companies in the same industry.
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.
With a Quick ratio value of 1.03, 1MA perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
1MA does not score too well on the current and quick ratio evaluation. However, as it has 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.
The Earnings Per Share has been growing by 13.43% on average over the past years. This is quite good.
Looking at the last year, 1MA shows a quite strong growth in Revenue. The Revenue has grown by 12.23% in the last year.
Measured over the past years, 1MA shows a quite strong growth in Revenue. The Revenue has been growing by 10.78% on average per year.
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 15.30% 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 12.41% on average per year.
EPS Next Y11.96%
EPS Next 2Y14.62%
EPS Next 3Y15.34%
EPS Next 5Y15.3%
Revenue Next Year12.37%
Revenue Next 2Y12.43%
Revenue Next 3Y12.41%
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
1MA is valuated quite expensively with a Price/Earnings ratio of 35.11.
Compared to the rest of the industry, the Price/Earnings ratio of 1MA indicates a slightly more expensive valuation: 1MA is more expensive than 64.71% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.79, 1MA is valued a bit more expensive.
1MA is valuated quite expensively with a Price/Forward Earnings ratio of 31.35.
Based on the Price/Forward Earnings ratio, 1MA is valued a bit more expensive than 60.78% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1MA to the average of the S&P500 Index (21.38), we can say 1MA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.11 | ||
| Fwd PE | 31.35 |
4.2 Price Multiples
1MA's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 34.41 | ||
| EV/EBITDA | 27.37 |
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 15.34% in the coming years.
PEG (NY)2.93
PEG (5Y)2.61
EPS Next 2Y14.62%
EPS Next 3Y15.34%
5. Dividend
5.1 Amount
With a yearly dividend of 0.59%, 1MA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.88, 1MA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, 1MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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
1MA pays out 19.02% of its income as dividend. This is a 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 2Y14.62%
EPS Next 3Y15.34%
BIT:1MA (4/14/2025, 7:00:00 PM)
450.75
+2.5 (+0.56%)
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 Cap410.95B
Analysts82.08
Price Target570.25 (26.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend2.33
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)-4.18%
PT rev (3m)3.25%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-2.63%
EPS NY rev (1m)0.06%
EPS NY rev (3m)-2.59%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.11 | ||
| Fwd PE | 31.35 | ||
| P/S | 16.6 | ||
| P/FCF | 34.41 | ||
| P/OCF | 31.63 | ||
| P/B | 72.09 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.37 |
EPS(TTM)12.84
EY2.85%
EPS(NY)14.38
Fwd EY3.19%
FCF(TTM)13.1
FCFY2.91%
OCF(TTM)14.25
OCFY3.16%
SpS27.16
BVpS6.25
TBVpS-7.87
PEG (NY)2.93
PEG (5Y)2.61
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 | 10.6 |
F-Score6
WACC15.48%
ROIC/WACC3.08
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 Y11.96%
EPS Next 2Y14.62%
EPS Next 3Y15.34%
EPS Next 5Y15.3%
Revenue 1Y (TTM)12.23%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%14.37%
Revenue Next Year12.37%
Revenue Next 2Y12.43%
Revenue Next 3Y12.41%
Revenue Next 5YN/A
EBIT growth 1Y12.9%
EBIT growth 3Y16.72%
EBIT growth 5Y10.81%
EBIT Next Year18.72%
EBIT Next 3Y15.16%
EBIT Next 5Y13.73%
FCF growth 1Y24.73%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y23.37%
OCF growth 3Y16.02%
OCF growth 5Y12.55%