MASTERCARD INC - A (M4I.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:M4I - US57636Q1040 - Common Stock
474.7 EUR
+2.95 (+0.63%)
Overall M4I gets a fundamental rating of 7 out of 10. We evaluated M4I against 53 industry peers in the Financial Services industry. M4I scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, M4I is valued expensive at the moment. This makes M4I very considerable for quality investing!
1. Profitability
1.1 Basic Checks
M4I had positive earnings in the past year.
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 better Return On Assets (26.74%) than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 180.29%, M4I belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
M4I has a better Return On Invested Capital (47.55%) than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for M4I is significantly above the industry average of 8.74%.
The last Return On Invested Capital (47.55%) for M4I is above the 3 year average (45.83%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.74% | ||
| ROE | 180.29% | ||
| ROIC | 47.55% |
ROA(3y)26.26%
ROA(5y)24.19%
ROE(3y)172.59%
ROE(5y)147.38%
ROIC(3y)45.83%
ROIC(5y)40.7%
1.3 Margins
M4I's Profit Margin of 45.28% is amongst the best of the industry. M4I outperforms 94.34% of its industry peers.
M4I's Profit Margin has been stable in the last couple of years.
The Operating Margin of M4I (59.16%) is better than 92.45% of its industry peers.
M4I's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 59.16% | ||
| PM (TTM) | 45.28% | ||
| GM | N/A |
OM growth 3Y2.69%
OM growth 5Y0.34%
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 M4I is creating value.
The number of shares outstanding for M4I has been reduced compared to 1 year ago.
Compared to 5 years ago, M4I has less shares outstanding
The debt/assets ratio for M4I is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.48 indicates that M4I is not in any danger for bankruptcy at the moment.
M4I has a Altman-Z score of 10.48. This is amongst the best in the industry. M4I outperforms 96.23% of its industry peers.
The Debt to FCF ratio of M4I is 1.16, which is an excellent value as it means it would take M4I, only 1.16 years of fcf income to pay off all of its debts.
M4I has a better Debt to FCF ratio (1.16) than 86.79% of its industry peers.
M4I has a Debt/Equity ratio of 2.40. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 2.40, M4I is doing worse than 67.92% of the companies in the same industry.
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 | 2.4 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 10.48 |
ROIC/WACC5.63
WACC8.44%
2.3 Liquidity
A Current Ratio of 1.12 indicates that M4I should not have too much problems paying its short term obligations.
The Current ratio of M4I (1.12) is comparable to the rest of the industry.
M4I has a Quick Ratio of 1.12. This is a normal value and indicates that M4I is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.12, M4I perfoms like the industry average, outperforming 47.17% of the companies in the same industry.
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 | 1.12 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.10% 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.
The Revenue has grown by 15.60% in the past year. This is quite good.
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)15.1%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%12.6%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.73%
3.2 Future
Based on estimates for the next years, M4I will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.33% on average per year.
M4I is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.67% yearly.
EPS Next Y16.07%
EPS Next 2Y16.06%
EPS Next 3Y16.15%
EPS Next 5Y15.33%
Revenue Next Year16.6%
Revenue Next 2Y14.5%
Revenue Next 3Y13.64%
Revenue Next 5Y11.67%
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 34.20, M4I can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as M4I.
The average S&P500 Price/Earnings ratio is at 26.31. M4I is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 27.95 indicates a quite expensive valuation of M4I.
M4I's Price/Forward Earnings is on the same level as the industry average.
M4I's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.2 | ||
| Fwd PE | 27.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of M4I is on the same level as its industry peers.
M4I's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.49 | ||
| EV/EBITDA | 25.49 |
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 16.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.13
PEG (5Y)2.55
EPS Next 2Y16.06%
EPS Next 3Y16.15%
5. Dividend
5.1 Amount
M4I has a yearly dividend return of 0.56%, which is pretty low.
Compared to an average industry Dividend Yield of 3.54, M4I has a dividend in line with its industry peers.
With a Dividend Yield of 0.56, M4I pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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 18.79% 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.
DP18.79%
EPS Next 2Y16.06%
EPS Next 3Y16.15%
FRA:M4I (11/28/2025, 7:00:00 PM)
474.7
+2.95 (+0.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.32%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap426.28B
Revenue(TTM)31.47B
Net Income(TTM)14.25B
Analysts80.42
Price Target579.79 (22.14%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend2.29
Dividend Growth(5Y)14.95%
DP18.79%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.74%
Min EPS beat(2)-1.55%
Max EPS beat(2)0.08%
EPS beat(4)3
Avg EPS beat(4)0.08%
Min EPS beat(4)-1.55%
Max EPS beat(4)1.41%
EPS beat(8)5
Avg EPS beat(8)-0.01%
EPS beat(12)7
Avg EPS beat(12)0.14%
EPS beat(16)11
Avg EPS beat(16)2.22%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-2.14%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.42%
Min Revenue beat(4)-2.14%
Max Revenue beat(4)-0.87%
Revenue beat(8)0
Avg Revenue beat(8)-1.66%
Revenue beat(12)0
Avg Revenue beat(12)-1.76%
Revenue beat(16)2
Avg Revenue beat(16)-1.27%
PT rev (1m)3.34%
PT rev (3m)3.94%
EPS NQ rev (1m)1.55%
EPS NQ rev (3m)1.57%
EPS NY rev (1m)0.57%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)1.15%
Revenue NQ rev (3m)1.12%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)0.43%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.2 | ||
| Fwd PE | 27.95 | ||
| P/S | 15.8 | ||
| P/FCF | 30.49 | ||
| P/OCF | 28.44 | ||
| P/B | 62.9 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.49 |
EPS(TTM)13.88
EY2.92%
EPS(NY)16.99
Fwd EY3.58%
FCF(TTM)15.57
FCFY3.28%
OCF(TTM)16.69
OCFY3.52%
SpS30.05
BVpS7.55
TBVpS-6.93
PEG (NY)2.13
PEG (5Y)2.55
Graham Number48.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.74% | ||
| ROE | 180.29% | ||
| ROCE | 57.12% | ||
| ROIC | 47.55% | ||
| ROICexc | 70.61% | ||
| ROICexgc | 228.49% | ||
| OM | 59.16% | ||
| PM (TTM) | 45.28% | ||
| GM | N/A | ||
| FCFM | 51.8% |
ROA(3y)26.26%
ROA(5y)24.19%
ROE(3y)172.59%
ROE(5y)147.38%
ROIC(3y)45.83%
ROIC(5y)40.7%
ROICexc(3y)67.38%
ROICexc(5y)62.88%
ROICexgc(3y)222.96%
ROICexgc(5y)196.71%
ROCE(3y)55.06%
ROCE(5y)48.9%
ROICexgc growth 3Y16.14%
ROICexgc growth 5Y5.63%
ROICexc growth 3Y10.13%
ROICexc growth 5Y-4%
OM growth 3Y2.69%
OM growth 5Y0.34%
PM growth 3Y-0.21%
PM growth 5Y-1.01%
GM growth 3YN/A
GM growth 5YN/A
F-Score8
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.4 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 0.96 | ||
| Cap/Depr | 109.1% | ||
| Cap/Sales | 3.73% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.75% | ||
| Profit Quality | 114.42% | ||
| Current Ratio | 1.12 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 10.48 |
F-Score8
WACC8.44%
ROIC/WACC5.63
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)15.1%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%12.6%
EPS Next Y16.07%
EPS Next 2Y16.06%
EPS Next 3Y16.15%
EPS Next 5Y15.33%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.73%
Revenue Next Year16.6%
Revenue Next 2Y14.5%
Revenue Next 3Y13.64%
Revenue Next 5Y11.67%
EBIT growth 1Y16.51%
EBIT growth 3Y17.33%
EBIT growth 5Y11.15%
EBIT Next Year23.18%
EBIT Next 3Y16.18%
EBIT Next 5Y13.75%
FCF growth 1Y66.51%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y59.63%
OCF growth 3Y16.02%
OCF growth 5Y12.55%
MASTERCARD INC - A / M4I.DE FAQ
What is the ChartMill fundamental rating of MASTERCARD INC - A (M4I.DE) stock?
ChartMill assigns a fundamental rating of 7 / 10 to M4I.DE.
What is the valuation status for M4I stock?
ChartMill assigns a valuation rating of 3 / 10 to MASTERCARD INC - A (M4I.DE). This can be considered as Overvalued.
How profitable is MASTERCARD INC - A (M4I.DE) stock?
MASTERCARD INC - A (M4I.DE) has a profitability rating of 8 / 10.
Can you provide the PE and PB ratios for M4I stock?
The Price/Earnings (PE) ratio for MASTERCARD INC - A (M4I.DE) is 34.2 and the Price/Book (PB) ratio is 62.9.
What is the earnings growth outlook for MASTERCARD INC - A?
The Earnings per Share (EPS) of MASTERCARD INC - A (M4I.DE) is expected to grow by 16.07% in the next year.