MASTERCARD INC - A (M4I.DE) Stock Fundamental Analysis
Europe - FRA:M4I - US57636Q1040 - Common Stock
479.2 EUR
+2.85 (+0.6%)
Overall M4I gets a fundamental rating of 6 out of 10. We evaluated M4I against 51 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. These ratings could make M4I a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year M4I was profitable.
In the past year M4I had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 26.42%, M4I belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
M4I has a better Return On Equity (173.00%) than 100.00% of its industry peers.
M4I's Return On Invested Capital of 45.82% is amongst the best of the industry. M4I outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for M4I is significantly above the industry average of 9.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.42% | ||
| ROE | 173% | ||
| ROIC | 45.82% |
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
The Profit Margin of M4I (44.93%) is better than 92.16% of its industry peers.
M4I's Profit Margin has been stable in the last couple of years.
Looking at the Operating Margin, with a value of 58.98%, M4I belongs to the top of the industry, outperforming 90.20% 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 | 58.98% | ||
| PM (TTM) | 44.93% | ||
| 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
M4I has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for M4I has been reduced compared to 1 year ago.
M4I has less shares outstanding than it did 5 years ago.
The debt/assets ratio for M4I is higher compared to a year ago.
2.2 Solvency
M4I has an Altman-Z score of 10.85. This indicates that M4I is financially healthy and has little risk of bankruptcy at the moment.
M4I has a Altman-Z score of 10.85. This is amongst the best in the industry. M4I outperforms 96.08% of its industry peers.
M4I has a debt to FCF ratio of 1.20. This is a very positive value and a sign of high solvency as it would only need 1.20 years to pay back of all of its debts.
M4I's Debt to FCF ratio of 1.20 is amongst the best of the industry. M4I outperforms 80.39% of its industry peers.
M4I has a Debt/Equity ratio of 2.42. This is a high value indicating a heavy dependency on external financing.
M4I has a Debt to Equity ratio of 2.42. This is in the lower half of the industry: M4I underperforms 74.51% 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 | 2.42 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 10.85 |
ROIC/WACC5.43
WACC8.44%
2.3 Liquidity
M4I has a Current Ratio of 1.16. 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 1.16, M4I perfoms like the industry average, outperforming 43.14% of the companies in the same industry.
M4I has a Quick Ratio of 1.16. 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 1.16, M4I perfoms like the industry average, outperforming 45.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
M4I shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.74%, which is quite good.
The Earnings Per Share has been growing by 13.43% on average over the past years. This is quite good.
Looking at the last year, M4I shows a quite strong growth in Revenue. The Revenue has grown by 14.59% in the last year.
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)15.74%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%15.6%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.84%
3.2 Future
M4I is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.33% yearly.
The Revenue is expected to grow by 11.67% on average over the next years. This is quite good.
EPS Next Y15.38%
EPS Next 2Y15.74%
EPS Next 3Y15.99%
EPS Next 5Y15.33%
Revenue Next Year16.11%
Revenue Next 2Y14.08%
Revenue Next 3Y13.33%
Revenue Next 5Y11.67%
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.
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 35.81, the valuation of M4I can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of M4I is on the same level as its industry peers.
M4I's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.40.
The Price/Forward Earnings ratio is 28.52, which means the current valuation is very expensive for M4I.
Based on the Price/Forward Earnings ratio, M4I is valued a bit more expensive than the industry average as 62.75% of the companies are valued more cheaply.
M4I's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.81 | ||
| Fwd PE | 28.52 |
4.2 Price Multiples
M4I's Enterprise Value to EBITDA is on the same level as the industry average.
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 | 31.8 | ||
| EV/EBITDA | 27.11 |
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 decent 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 15.99% in the coming years.
PEG (NY)2.33
PEG (5Y)2.67
EPS Next 2Y15.74%
EPS Next 3Y15.99%
5. Dividend
5.1 Amount
M4I has a yearly dividend return of 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 3.49, M4I has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, M4I's dividend is way lower than the S&P500 average.
| 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
19.15% 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.
DP19.15%
EPS Next 2Y15.74%
EPS Next 3Y15.99%
FRA:M4I (10/17/2025, 7:00:00 PM)
479.2
+2.85 (+0.6%)
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 Cap433.20B
Analysts79.57
Price Target561.06 (17.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend2.29
Dividend Growth(5Y)14.95%
DP19.15%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.75%
Min EPS beat(2)0.08%
Max EPS beat(2)1.41%
EPS beat(4)4
Avg EPS beat(4)0.71%
Min EPS beat(4)0.08%
Max EPS beat(4)1.41%
EPS beat(8)6
Avg EPS beat(8)0.5%
EPS beat(12)8
Avg EPS beat(12)0.4%
EPS beat(16)12
Avg EPS beat(16)2.62%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)-0.87%
Revenue beat(8)0
Avg Revenue beat(8)-1.73%
Revenue beat(12)0
Avg Revenue beat(12)-1.66%
Revenue beat(16)2
Avg Revenue beat(16)-1.28%
PT rev (1m)0.58%
PT rev (3m)-1.89%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)5.44%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)2.71%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.31%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.81 | ||
| Fwd PE | 28.52 | ||
| P/S | 16.69 | ||
| P/FCF | 31.8 | ||
| P/OCF | 29.77 | ||
| P/B | 64.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.11 |
EPS(TTM)13.38
EY2.79%
EPS(NY)16.8
Fwd EY3.51%
FCF(TTM)15.07
FCFY3.14%
OCF(TTM)16.1
OCFY3.36%
SpS28.72
BVpS7.46
TBVpS-7
PEG (NY)2.33
PEG (5Y)2.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.42% | ||
| ROE | 173% | ||
| ROCE | 55.04% | ||
| ROIC | 45.82% | ||
| ROICexc | 64.45% | ||
| ROICexgc | 190.14% | ||
| OM | 58.98% | ||
| PM (TTM) | 44.93% | ||
| GM | N/A | ||
| FCFM | 52.47% |
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%
ROICexcg growth 3Y16.14%
ROICexcg 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-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.42 | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 107.31% | ||
| Cap/Sales | 3.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.95% | ||
| Profit Quality | 116.79% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 10.85 |
F-Score5
WACC8.44%
ROIC/WACC5.43
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)15.74%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%15.6%
EPS Next Y15.38%
EPS Next 2Y15.74%
EPS Next 3Y15.99%
EPS Next 5Y15.33%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.84%
Revenue Next Year16.11%
Revenue Next 2Y14.08%
Revenue Next 3Y13.33%
Revenue Next 5Y11.67%
EBIT growth 1Y15.33%
EBIT growth 3Y17.33%
EBIT growth 5Y11.15%
EBIT Next Year23.18%
EBIT Next 3Y16.18%
EBIT Next 5Y13.75%
FCF growth 1Y52.98%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y46.49%
OCF growth 3Y16.02%
OCF growth 5Y12.55%