MASTERCARD INC - A (M4I.DE) Stock Fundamental Analysis
FRA:M4I - Deutsche Boerse Ag - US57636Q1040 - Common Stock - Currency: EUR
Overall M4I gets a fundamental rating of 6 out of 10. We evaluated M4I against 50 industry peers in the Financial Services industry. M4I has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. M4I is valied quite expensively at the moment, while it does show a decent growth rate. This makes M4I very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year M4I was profitable.
M4I had a positive operating cash flow in the past year.
M4I had positive earnings in each of the past 5 years.
Each year in the past 5 years M4I had a positive operating cash flow.
1.2 Ratios
M4I has a Return On Assets of 26.78%. This is amongst the best in the industry. M4I outperforms 95.45% of its industry peers.
M4I has a Return On Equity of 198.52%. This is amongst the best in the industry. M4I outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 47.59%, M4I belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
M4I had an Average Return On Invested Capital over the past 3 years of 45.59%. This is significantly above the industry average of 10.86%.
The 3 year average ROIC (45.59%) for M4I is below the current ROIC(47.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.78% | ||
| ROE | 198.52% | ||
| ROIC | 47.59% |
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%, M4I belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
M4I's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 58.58%, M4I belongs to the best of the industry, outperforming 86.36% of the companies in the same industry.
M4I's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.58% | ||
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), M4I is creating value.
M4I has less shares outstanding than it did 1 year ago.
The number of shares outstanding for M4I has been reduced compared to 5 years ago.
Compared to 1 year ago, M4I has a worse debt to assets ratio.
2.2 Solvency
M4I has an Altman-Z score of 11.24. This indicates that M4I is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.24, M4I belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
M4I 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.
M4I has a better Debt to FCF ratio (1.34) than 75.00% of its industry peers.
M4I has a Debt/Equity ratio of 2.69. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of M4I (2.69) is worse than 86.36% of its industry peers.
Although M4I 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 | 11.24 |
ROIC/WACC5.28
WACC9.02%
2.3 Liquidity
A Current Ratio of 1.03 indicates that M4I should not have too much problems paying its short term obligations.
M4I has a worse Current ratio (1.03) than 75.00% of its industry peers.
A Quick Ratio of 1.03 indicates that M4I should not have too much problems paying its short term obligations.
M4I has a worse Quick ratio (1.03) than 68.18% of its industry peers.
M4I 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.
M4I shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.43% yearly.
Looking at the last year, M4I shows a quite strong growth in Revenue. The Revenue has grown by 12.23% in the last year.
Measured over the past years, M4I 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 15.85% on average over the next years. This is quite good.
M4I is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.04% yearly.
EPS Next Y14.44%
EPS Next 2Y15.33%
EPS Next 3Y15.15%
EPS Next 5Y15.85%
Revenue Next Year12.08%
Revenue Next 2Y12.09%
Revenue Next 3Y12.04%
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.
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
With a Price/Earnings ratio of 38.04, M4I can be considered very expensive at the moment.
70.45% of the companies in the same industry are cheaper than M4I, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of M4I to the average of the S&P500 Index (28.47), we can say M4I is valued slightly more expensively.
A Price/Forward Earnings ratio of 33.25 indicates a quite expensive valuation of M4I.
Based on the Price/Forward Earnings ratio, M4I is valued a bit more expensive than 65.91% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 92.74. M4I is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.04 | ||
| Fwd PE | 33.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, M4I is valued a bit more expensive than 61.36% of the companies in the same industry.
75.00% of the companies in the same industry are cheaper than M4I, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.56 | ||
| EV/EBITDA | 29.94 |
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 M4I may justify a higher PE ratio.
M4I's earnings are expected to grow with 15.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.63
PEG (5Y)2.83
EPS Next 2Y15.33%
EPS Next 3Y15.15%
5. Dividend
5.1 Amount
With a yearly dividend of 0.54%, M4I is not a good candidate for dividend investing.
M4I's Dividend Yield is comparable with the industry average which is at 4.17.
With a Dividend Yield of 0.54, M4I pays less dividend than the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
On average, the dividend of M4I grows each year by 14.95%, which is quite nice.
Dividend Growth(5Y)14.95%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
M4I pays out 19.02% of its income as dividend. This is a sustainable payout ratio.
M4I's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP19.02%
EPS Next 2Y15.33%
EPS Next 3Y15.15%
MASTERCARD INC - A
FRA:M4I (2/5/2025, 3:15:49 PM)
537.95
-1.55 (-0.29%)
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 Cap493.75B
Analysts81.2
Price Target545.29 (1.36%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend2.65
Dividend Growth(5Y)14.95%
DP19.02%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.69%
Min EPS beat(2)0.41%
Max EPS beat(2)0.96%
EPS beat(4)2
Avg EPS beat(4)-0.04%
Min EPS beat(4)-0.82%
Max EPS beat(4)0.96%
EPS beat(8)5
Avg EPS beat(8)0.25%
EPS beat(12)8
Avg EPS beat(12)2.7%
EPS beat(16)12
Avg EPS beat(16)3.53%
Revenue beat(2)0
Avg Revenue beat(2)-1.56%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)-1.54%
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)-1.8%
Revenue beat(12)2
Avg Revenue beat(12)-1.19%
Revenue beat(16)4
Avg Revenue beat(16)-1.05%
PT rev (1m)-1.36%
PT rev (3m)9.96%
EPS NQ rev (1m)-0.48%
EPS NQ rev (3m)-3.3%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-2.6%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-0.15%
Revenue NY rev (1m)-0.17%
Revenue NY rev (3m)0.24%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.04 | ||
| Fwd PE | 33.25 | ||
| P/S | 18.12 | ||
| P/FCF | 37.56 | ||
| P/OCF | 34.53 | ||
| P/B | 78.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.94 |
EPS(TTM)14.14
EY2.63%
EPS(NY)16.18
Fwd EY3.01%
FCF(TTM)14.32
FCFY2.66%
OCF(TTM)15.58
OCFY2.9%
SpS29.69
BVpS6.84
TBVpS-8.6
PEG (NY)2.63
PEG (5Y)2.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.78% | ||
| ROE | 198.52% | ||
| ROCE | 57.17% | ||
| ROIC | 47.59% | ||
| ROICexc | 68.37% | ||
| ROICexgc | 252.35% | ||
| OM | 58.58% | ||
| 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 | 84.95% | ||
| Profit Quality | 105.53% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 11.24 |
F-Score6
WACC9.02%
ROIC/WACC5.28
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 Y14.44%
EPS Next 2Y15.33%
EPS Next 3Y15.15%
EPS Next 5Y15.85%
Revenue 1Y (TTM)12.23%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%14.37%
Revenue Next Year12.08%
Revenue Next 2Y12.09%
Revenue Next 3Y12.04%
Revenue Next 5YN/A
EBIT growth 1Y12.79%
EBIT growth 3Y16.72%
EBIT growth 5Y10.81%
EBIT Next Year20.16%
EBIT Next 3Y14.71%
EBIT Next 5Y13.86%
FCF growth 1Y24.73%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y23.37%
OCF growth 3Y16.02%
OCF growth 5Y12.55%