MASTERCARD INC - A (M4I.DE) Stock Fundamental Analysis
FRA:M4I - Deutsche Boerse Ag - US57636Q1040 - Common Stock - Currency: EUR
Taking everything into account, M4I scores 6 out of 10 in our fundamental rating. M4I was compared to 50 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 would make M4I suitable 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.
In the past 5 years M4I has always been profitable.
In the past 5 years M4I always reported a positive cash flow from operatings.
1.2 Ratios
M4I has a Return On Assets of 26.78%. This is amongst the best in the industry. M4I outperforms 96.00% of its industry peers.
Looking at the Return On Equity, with a value of 198.52%, M4I belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
M4I's Return On Invested Capital of 47.64% is amongst the best of the industry. M4I outperforms 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 11.19%.
The 3 year average ROIC (45.59%) for M4I is below the current ROIC(47.64%), indicating increased profibility in the last year.
| 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
M4I has a better Profit Margin (45.71%) than 86.00% of its industry peers.
M4I's Profit Margin has been stable in the last couple of years.
M4I has a Operating Margin of 58.64%. This is amongst the best in the industry. M4I outperforms 92.00% 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 | 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
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.
M4I has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, M4I has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.94 indicates that M4I is not in any danger for bankruptcy at the moment.
M4I has a better Altman-Z score (10.94) than 92.00% of its industry peers.
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.
With a decent Debt to FCF ratio value of 1.34, M4I is doing good in the industry, outperforming 78.00% of the companies in the same industry.
M4I has a Debt/Equity ratio of 2.69. This is a high value indicating a heavy dependency on external financing.
M4I's Debt to Equity ratio of 2.69 is on the low side compared to the rest of the industry. M4I is outperformed by 78.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for M4I, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 10.94 |
ROIC/WACC3.07
WACC15.53%
2.3 Liquidity
A Current Ratio of 1.03 indicates that M4I should not have too much problems paying its short term obligations.
M4I's Current ratio of 1.03 is on the low side compared to the rest of the industry. M4I is outperformed by 64.00% of its industry peers.
M4I has a Quick Ratio of 1.03. 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 1.03, M4I is in line with its industry, outperforming 42.00% 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 | 1.03 | ||
| 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.
The Revenue has grown by 12.23% 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)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.
The Revenue is expected to grow by 12.34% on average over the next years. This is quite good.
EPS Next Y11.9%
EPS Next 2Y14.77%
EPS Next 3Y15.41%
EPS Next 5Y15.85%
Revenue Next Year12.4%
Revenue Next 2Y12.47%
Revenue Next 3Y12.34%
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 36.86, M4I can be considered very expensive at the moment.
M4I's Price/Earnings ratio is a bit more expensive when compared to the industry. M4I is more expensive than 60.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of M4I to the average of the S&P500 Index (29.35), we can say M4I is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 32.95, the valuation of M4I can be described as expensive.
Based on the Price/Forward Earnings ratio, M4I is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.10. M4I is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.86 | ||
| Fwd PE | 32.95 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as M4I.
Based on the Price/Free Cash Flow ratio, M4I is valued a bit more expensive than 62.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.15 | ||
| EV/EBITDA | 28.73 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates M4I does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of M4I may justify a higher PE ratio.
A more expensive valuation may be justified as M4I's earnings are expected to grow with 15.41% in the coming years.
PEG (NY)3.1
PEG (5Y)2.74
EPS Next 2Y14.77%
EPS Next 3Y15.41%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, M4I is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.76, M4I has a dividend in line with its industry peers.
With a Dividend Yield of 0.55, M4I pays less dividend than the S&P500 average, which is at 2.33.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
The dividend of M4I is nicely growing with an annual growth rate of 14.95%!
Dividend Growth(5Y)14.95%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
19.02% of the earnings are spent on dividend by M4I. This is a low number and 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.
DP19.02%
EPS Next 2Y14.77%
EPS Next 3Y15.41%
FRA:M4I (3/6/2025, 3:21:38 PM)
496.2
-16.5 (-3.22%)
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 Cap452.39B
Analysts82.04
Price Target594.82 (19.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend2.44
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)0.67%
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)9.08%
PT rev (3m)10.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.86%
EPS NY rev (1m)-2.22%
EPS NY rev (3m)-2.79%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.72%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.86 | ||
| Fwd PE | 32.95 | ||
| P/S | 17.44 | ||
| P/FCF | 36.15 | ||
| P/OCF | 33.23 | ||
| P/B | 75.74 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.73 |
EPS(TTM)13.46
EY2.71%
EPS(NY)15.06
Fwd EY3.03%
FCF(TTM)13.73
FCFY2.77%
OCF(TTM)14.93
OCFY3.01%
SpS28.46
BVpS6.55
TBVpS-8.24
PEG (NY)3.1
PEG (5Y)2.74
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 | 10.94 |
F-Score6
WACC15.53%
ROIC/WACC3.07
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 Y11.9%
EPS Next 2Y14.77%
EPS Next 3Y15.41%
EPS Next 5Y15.85%
Revenue 1Y (TTM)12.23%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%14.37%
Revenue Next Year12.4%
Revenue Next 2Y12.47%
Revenue Next 3Y12.34%
Revenue Next 5YN/A
EBIT growth 1Y12.9%
EBIT growth 3Y16.72%
EBIT growth 5Y10.81%
EBIT Next Year18.79%
EBIT Next 3Y15.04%
EBIT Next 5Y13.87%
FCF growth 1Y24.73%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y23.37%
OCF growth 3Y16.02%
OCF growth 5Y12.55%