MASTERCARD INC - A (M4I.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:M4I - US57636Q1040 - Common Stock
447.5 EUR
+0.3 (+0.07%)
Taking everything into account, M4I scores 7 out of 10 in our fundamental rating. M4I was compared to 59 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making M4I a very profitable company, without any liquidiy or solvency issues. M4I is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make M4I a good candidate 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.
- In the past 5 years M4I has always been profitable.
- M4I had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of M4I (26.74%) is better than 98.36% of its industry peers.
- M4I has a Return On Equity of 180.29%. This is amongst the best in the industry. M4I outperforms 100.00% of its industry peers.
- M4I's Return On Invested Capital of 47.55% is amongst the best of the industry. M4I outperforms 100.00% of its industry peers.
- M4I had an Average Return On Invested Capital over the past 3 years of 45.83%. This is significantly above the industry average of 10.02%.
- 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 91.80% of its industry peers.
- In the last couple of years the Profit Margin of M4I has remained more or less at the same level.
- M4I's Operating Margin of 59.16% is amongst the best of the industry. M4I outperforms 91.80% of its industry peers.
- In the last couple of years the Operating Margin of M4I has remained more or less at the same level.
| 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.
- 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.
- The debt/assets ratio for M4I is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 10.19 indicates that M4I is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 10.19, M4I belongs to the top of the industry, outperforming 91.80% of the companies in the same industry.
- 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's Debt to FCF ratio of 1.16 is amongst the best of the industry. M4I outperforms 88.52% 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.
- M4I has a Debt to Equity ratio of 2.40. This is in the lower half of the industry: M4I underperforms 72.13% 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 | 2.4 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 10.19 |
ROIC/WACC5.51
WACC8.63%
2.3 Liquidity
- M4I has a Current 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.
- 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.
- Looking at the Quick ratio, with a value of 1.12, M4I is in line with its industry, outperforming 50.82% 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
- M4I shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.10%, which is quite good.
- 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 15.60% in the last year.
- The Revenue has been growing by 10.78% on average over the past years. This is quite good.
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.
- Based on estimates for the next years, M4I will show a quite strong growth in Revenue. The Revenue will grow by 11.67% on average per year.
EPS Next Y16.34%
EPS Next 2Y16.2%
EPS Next 3Y16.27%
EPS Next 5Y15.33%
Revenue Next Year16.7%
Revenue Next 2Y14.61%
Revenue Next 3Y13.76%
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
- Based on the Price/Earnings ratio of 32.69, the valuation of M4I can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as M4I.
- The average S&P500 Price/Earnings ratio is at 27.21. M4I is valued slightly more expensive when compared to this.
- Based on the Price/Forward Earnings ratio of 26.64, the valuation of M4I can be described as expensive.
- M4I's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, M4I is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.69 | ||
| Fwd PE | 26.64 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of M4I is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.94 | ||
| EV/EBITDA | 24.36 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- M4I has an outstanding profitability rating, which may justify a higher PE ratio.
- A more expensive valuation may be justified as M4I's earnings are expected to grow with 16.27% in the coming years.
PEG (NY)2
PEG (5Y)2.43
EPS Next 2Y16.2%
EPS Next 3Y16.27%
5. Dividend
5.1 Amount
- M4I has a yearly dividend return of 0.65%, which is pretty low.
- Compared to an average industry Dividend Yield of 1.97, M4I has a dividend in line with its industry peers.
- With a Dividend Yield of 0.65, M4I pays less dividend than the S&P500 average, which is at 1.81.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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.
- The dividend of M4I is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP18.79%
EPS Next 2Y16.2%
EPS Next 3Y16.27%
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.
Can you provide the valuation status for MASTERCARD INC - A?
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.
What is the financial health of MASTERCARD INC - A (M4I.DE) stock?
The financial health rating of MASTERCARD INC - A (M4I.DE) is 8 / 10.
Can you provide the dividend sustainability for M4I stock?
The dividend rating of MASTERCARD INC - A (M4I.DE) is 4 / 10 and the dividend payout ratio is 18.79%.