MASTERCARD INC - A (1MA.MI) Stock Fundamental Analysis
BIT:1MA - Euronext Milan - US57636Q1040 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 1MA. 1MA was compared to 51 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making 1MA a very profitable company, without any liquidiy or solvency issues. 1MA is quite expensive at the moment. It does show a decent growth rate. With these ratings, 1MA could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
1MA had positive earnings in the past year.
1MA had a positive operating cash flow in the past year.
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
The Return On Assets of 1MA (27.12%) is better than 94.12% of its industry peers.
1MA has a better Return On Equity (197.02%) than 98.04% of its industry peers.
1MA has a better Return On Invested Capital (46.34%) than 98.04% of its industry peers.
1MA had an Average Return On Invested Capital over the past 3 years of 45.59%. This is significantly above the industry average of 11.50%.
The last Return On Invested Capital (46.34%) for 1MA is above the 3 year average (45.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.12% | ||
| ROE | 197.02% | ||
| ROIC | 46.34% |
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 45.21%, 1MA belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
1MA's Profit Margin has been stable in the last couple of years.
1MA's Operating Margin of 58.69% is amongst the best of the industry. 1MA outperforms 84.31% of its industry peers.
In the last couple of years the Operating Margin of 1MA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.69% | ||
| PM (TTM) | 45.21% | ||
| 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
1MA has an Altman-Z score of 11.23. This indicates that 1MA is financially healthy and has little risk of bankruptcy at the moment.
1MA has a Altman-Z score of 11.23. This is amongst the best in the industry. 1MA outperforms 96.08% of its industry peers.
1MA has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
1MA has a better Debt to FCF ratio (1.31) than 82.35% of its industry peers.
A Debt/Equity ratio of 2.82 is on the high side and indicates that 1MA has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 2.82, 1MA is doing worse than 78.43% 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 | 2.82 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 11.23 |
ROIC/WACC5.22
WACC8.88%
2.3 Liquidity
1MA has a Current Ratio of 1.11. 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 Current ratio value of 1.11, 1MA perfoms like the industry average, outperforming 54.90% of the companies in the same industry.
1MA has a Quick Ratio of 1.11. 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 decent Quick ratio value of 1.11, 1MA is doing good in the industry, outperforming 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
1MA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.70%, 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.
1MA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.12%.
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)17.7%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%12.69%
Revenue 1Y (TTM)13.12%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%14.21%
3.2 Future
Based on estimates for the next years, 1MA will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.30% on average per year.
1MA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.47% yearly.
EPS Next Y12.34%
EPS Next 2Y14.46%
EPS Next 3Y15.2%
EPS Next 5Y15.3%
Revenue Next Year13.67%
Revenue Next 2Y12.73%
Revenue Next 3Y12.47%
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
With a Price/Earnings ratio of 36.96, 1MA can be considered very expensive at the moment.
1MA's Price/Earnings ratio is a bit more expensive when compared to the industry. 1MA is more expensive than 62.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.30, 1MA is valued a bit more expensive.
The Price/Forward Earnings ratio is 29.02, which means the current valuation is very expensive for 1MA.
Based on the Price/Forward Earnings ratio, 1MA is valued a bit more expensive than 64.71% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, 1MA is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.96 | ||
| Fwd PE | 29.02 |
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 60.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.23 | ||
| EV/EBITDA | 28.58 |
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.
1MA has an outstanding profitability rating, which may justify a higher PE ratio.
1MA's earnings are expected to grow with 15.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)3
PEG (5Y)2.75
EPS Next 2Y14.46%
EPS Next 3Y15.2%
5. Dividend
5.1 Amount
1MA has a yearly dividend return of 0.54%, which is pretty low.
1MA's Dividend Yield is comparable with the industry average which is at 3.49.
Compared to an average S&P500 Dividend Yield of 2.35, 1MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
On average, the dividend of 1MA grows each year by 14.95%, which is quite nice.
Dividend Growth(5Y)14.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1MA pays out 19.22% 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.
DP19.22%
EPS Next 2Y14.46%
EPS Next 3Y15.2%
BIT:1MA (7/2/2025, 7:00:00 PM)
475.35
+10.45 (+2.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.17%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap431.64B
Analysts80
Price Target573.65 (20.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend2.27
Dividend Growth(5Y)14.95%
DP19.22%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.9%
Min EPS beat(2)0.38%
Max EPS beat(2)1.41%
EPS beat(4)3
Avg EPS beat(4)0.48%
Min EPS beat(4)-0.82%
Max EPS beat(4)1.41%
EPS beat(8)5
Avg EPS beat(8)0.41%
EPS beat(12)8
Avg EPS beat(12)0.84%
EPS beat(16)12
Avg EPS beat(16)3.14%
Revenue beat(2)0
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-1.55%
Max Revenue beat(2)-1.13%
Revenue beat(4)0
Avg Revenue beat(4)-1.39%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)-1.13%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)1
Avg Revenue beat(12)-1.47%
Revenue beat(16)3
Avg Revenue beat(16)-1.18%
PT rev (1m)3.68%
PT rev (3m)0.6%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)1.64%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)2.18%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.96 | ||
| Fwd PE | 29.02 | ||
| P/S | 17.35 | ||
| P/FCF | 35.23 | ||
| P/OCF | 32.56 | ||
| P/B | 75.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.58 |
EPS(TTM)12.86
EY2.71%
EPS(NY)16.38
Fwd EY3.45%
FCF(TTM)13.49
FCFY2.84%
OCF(TTM)14.6
OCFY3.07%
SpS27.4
BVpS6.29
TBVpS-7.74
PEG (NY)3
PEG (5Y)2.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 27.12% | ||
| ROE | 197.02% | ||
| ROCE | 55.68% | ||
| ROIC | 46.34% | ||
| ROICexc | 62.43% | ||
| ROICexgc | 180.6% | ||
| OM | 58.69% | ||
| PM (TTM) | 45.21% | ||
| GM | N/A | ||
| FCFM | 49.24% |
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-Score5
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.82 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 1.04 | ||
| Cap/Depr | 122.7% | ||
| Cap/Sales | 4.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.97% | ||
| Profit Quality | 108.92% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 11.23 |
F-Score5
WACC8.88%
ROIC/WACC5.22
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)17.7%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%12.69%
EPS Next Y12.34%
EPS Next 2Y14.46%
EPS Next 3Y15.2%
EPS Next 5Y15.3%
Revenue 1Y (TTM)13.12%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%14.21%
Revenue Next Year13.67%
Revenue Next 2Y12.73%
Revenue Next 3Y12.47%
Revenue Next 5YN/A
EBIT growth 1Y13.54%
EBIT growth 3Y16.72%
EBIT growth 5Y10.81%
EBIT Next Year20.33%
EBIT Next 3Y15.47%
EBIT Next 5Y13.73%
FCF growth 1Y40.66%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y36.67%
OCF growth 3Y16.02%
OCF growth 5Y12.55%