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 47 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. These ratings would make M4I suitable 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
M4I's Return On Assets of 27.12% is amongst the best of the industry. M4I outperforms 95.74% of its industry peers.
M4I has a Return On Equity of 197.02%. 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 46.34%, M4I belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for M4I is significantly above the industry average of 10.14%.
The 3 year average ROIC (45.59%) for M4I is below the current ROIC(46.34%), indicating increased profibility in the last year.
| 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%, M4I belongs to the best of the industry, outperforming 87.23% 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 58.69%, M4I belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
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 | 58.69% | ||
| 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
M4I has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
M4I has a worse debt/assets ratio than last year.
2.2 Solvency
M4I has an Altman-Z score of 11.20. This indicates that M4I is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.20, M4I belongs to the best of the industry, outperforming 95.74% of the companies in the same industry.
The Debt to FCF ratio of M4I is 1.31, which is an excellent value as it means it would take M4I, only 1.31 years of fcf income to pay off all of its debts.
M4I has a Debt to FCF ratio of 1.31. This is amongst the best in the industry. M4I outperforms 85.11% of its industry peers.
A Debt/Equity ratio of 2.82 is on the high side and indicates that M4I has dependencies on debt financing.
The Debt to Equity ratio of M4I (2.82) is worse than 78.72% 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 | 2.82 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 11.2 |
ROIC/WACC5.3
WACC8.75%
2.3 Liquidity
M4I has a Current Ratio of 1.11. 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 Current ratio value of 1.11, M4I perfoms like the industry average, outperforming 53.19% of the companies in the same industry.
A Quick Ratio of 1.11 indicates that M4I should not have too much problems paying its short term obligations.
M4I's Quick ratio of 1.11 is in line compared to the rest of the industry. M4I outperforms 59.57% 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 | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.70% 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 13.12% in the past year. This is quite good.
M4I 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
The Earnings Per Share is expected to grow by 15.30% on average over the next years. This is quite good.
Based on estimates for the next years, M4I will show a quite strong growth in Revenue. The Revenue will grow by 12.48% on average per year.
EPS Next Y12.38%
EPS Next 2Y14.5%
EPS Next 3Y15.22%
EPS Next 5Y15.3%
Revenue Next Year13.67%
Revenue Next 2Y12.77%
Revenue Next 3Y12.48%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
M4I is valuated quite expensively with a Price/Earnings ratio of 36.83.
Compared to the rest of the industry, the Price/Earnings ratio of M4I indicates a slightly more expensive valuation: M4I is more expensive than 61.70% of the companies listed in the same industry.
M4I's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.15.
A Price/Forward Earnings ratio of 28.90 indicates a quite expensive valuation of M4I.
Compared to the rest of the industry, the Price/Forward Earnings ratio of M4I indicates a slightly more expensive valuation: M4I is more expensive than 63.83% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.60. M4I is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.83 | ||
| Fwd PE | 28.9 |
4.2 Price Multiples
M4I's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as M4I.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.11 | ||
| EV/EBITDA | 28.47 |
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 15.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.98
PEG (5Y)2.74
EPS Next 2Y14.5%
EPS Next 3Y15.22%
5. Dividend
5.1 Amount
M4I has a yearly dividend return of 0.56%, which is pretty low.
M4I's Dividend Yield is comparable with the industry average which is at 3.85.
Compared to an average S&P500 Dividend Yield of 2.42, M4I's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
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
19.22% of the earnings are spent on dividend by M4I. This is a low number and 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.
DP19.22%
EPS Next 2Y14.5%
EPS Next 3Y15.22%
FRA:M4I (6/30/2025, 7:00:00 PM)
472.95
+0.25 (+0.05%)
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 Cap429.46B
Analysts80.42
Price Target571.88 (20.92%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.56% |
Yearly Dividend2.26
Dividend Growth(5Y)14.95%
DP19.22%
Div Incr Years6
Div Non Decr Years6
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)2.8%
PT rev (3m)0.36%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.42%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.22%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.83 | ||
| Fwd PE | 28.9 | ||
| P/S | 17.29 | ||
| P/FCF | 35.11 | ||
| P/OCF | 32.45 | ||
| P/B | 75.35 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.47 |
EPS(TTM)12.84
EY2.71%
EPS(NY)16.36
Fwd EY3.46%
FCF(TTM)13.47
FCFY2.85%
OCF(TTM)14.57
OCFY3.08%
SpS27.35
BVpS6.28
TBVpS-7.73
PEG (NY)2.98
PEG (5Y)2.74
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 | 11.2 |
F-Score5
WACC8.75%
ROIC/WACC5.3
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 Y12.38%
EPS Next 2Y14.5%
EPS Next 3Y15.22%
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 2Y12.77%
Revenue Next 3Y12.48%
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%