MASTERCARD INC - A (M4I.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:M4I - US57636Q1040 - Common Stock
474.55 EUR
+3.93 (+0.83%)
We assign a fundamental rating of 7 out of 10 to M4I. M4I was compared to 53 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. 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
In the past year M4I was profitable.
In the past year M4I had a positive cash flow from operations.
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's Return On Assets of 26.74% is amongst the best of the industry. M4I outperforms 100.00% 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.
With an excellent Return On Invested Capital value of 47.55%, M4I belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
M4I had an Average Return On Invested Capital over the past 3 years of 45.83%. This is significantly above the industry average of 8.74%.
The 3 year average ROIC (45.83%) for M4I is below the current ROIC(47.55%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 45.28%, M4I belongs to the best of the industry, outperforming 94.34% of the companies in the same industry.
In the last couple of years the Profit Margin of M4I has remained more or less at the same level.
M4I has a better Operating Margin (59.16%) than 92.45% 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.
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 10.45 indicates that M4I is not in any danger for bankruptcy at the moment.
M4I's Altman-Z score of 10.45 is amongst the best of the industry. M4I outperforms 96.23% of its industry peers.
M4I has a debt to FCF ratio of 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of 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 | 10.45 |
ROIC/WACC5.64
WACC8.43%
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.
M4I has a Current ratio (1.12) which is comparable to the rest of the industry.
A Quick Ratio of 1.12 indicates that M4I should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, M4I is in line with its industry, outperforming 47.17% of the companies in the same industry.
The current and quick ratio evaluation for M4I is rather negative, while it does have 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.
M4I shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.60%.
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.
The Revenue is expected to grow by 11.67% on average over the next years. This is quite good.
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
The Price/Earnings ratio is 34.09, which means the current valuation is very expensive for M4I.
M4I's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of M4I to the average of the S&P500 Index (25.98), we can say M4I is valued slightly more expensively.
Based on the Price/Forward Earnings ratio of 27.85, the valuation of M4I can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of M4I is on the same level as its industry peers.
M4I is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.79, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.09 | ||
| Fwd PE | 27.85 |
4.2 Price Multiples
M4I's Enterprise Value to EBITDA ratio is in line with the industry average.
M4I's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.39 | ||
| EV/EBITDA | 25.36 |
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.
M4I's earnings are expected to grow with 16.15% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.12
PEG (5Y)2.54
EPS Next 2Y16.06%
EPS Next 3Y16.15%
5. Dividend
5.1 Amount
M4I has a yearly dividend return of 0.58%, which is pretty low.
Compared to an average industry Dividend Yield of 3.54, M4I has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.41, M4I's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
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 2Y16.06%
EPS Next 3Y16.15%
FRA:M4I (11/26/2025, 11:31:14 AM)
474.55
+3.93 (+0.83%)
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 Cap429.00B
Revenue(TTM)31.47B
Net Income(TTM)14.25B
Analysts80.42
Price Target579.79 (22.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.58% |
Yearly Dividend2.3
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 | 34.09 | ||
| Fwd PE | 27.85 | ||
| P/S | 15.74 | ||
| P/FCF | 30.39 | ||
| P/OCF | 28.35 | ||
| P/B | 62.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.36 |
EPS(TTM)13.92
EY2.93%
EPS(NY)17.04
Fwd EY3.59%
FCF(TTM)15.61
FCFY3.29%
OCF(TTM)16.74
OCFY3.53%
SpS30.14
BVpS7.57
TBVpS-6.95
PEG (NY)2.12
PEG (5Y)2.54
Graham Number48.69
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 | 10.45 |
F-Score8
WACC8.43%
ROIC/WACC5.64
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 34.09 and the Price/Book (PB) ratio is 62.69.
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.