MASTERCARD INC - A (M4I.DE) Stock Fundamental Analysis
Europe - FRA:M4I - US57636Q1040 - Common Stock
492.1 EUR
-3.6 (-0.73%)
Taking everything into account, M4I scores 6 out of 10 in our fundamental rating. M4I was compared to 46 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. With these ratings, M4I could be worth investigating further for quality investing!.
1. Profitability
1.1 Basic Checks
M4I had positive earnings in the past year.
In the past year M4I had a positive cash flow from operations.
Each year in the past 5 years M4I has been profitable.
In the past 5 years M4I always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 26.42%, M4I belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
M4I's Return On Equity of 173.00% is amongst the best of the industry. M4I outperforms 100.00% of its industry peers.
M4I has a better Return On Invested Capital (45.82%) than 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 10.06%.
| 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
With an excellent Profit Margin value of 44.93%, M4I belongs to the best of the industry, outperforming 86.96% 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.
With an excellent Operating Margin value of 58.98%, M4I belongs to the best of the industry, outperforming 86.96% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so M4I 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.
Compared to 1 year ago, M4I has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.17 indicates that M4I is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.17, M4I belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
The Debt to FCF ratio of M4I is 1.20, which is an excellent value as it means it would take M4I, only 1.20 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.20, M4I belongs to the top of the industry, outperforming 80.43% of the companies in the same industry.
M4I has a Debt/Equity ratio of 2.42. This is a high value indicating a heavy dependency on external financing.
M4I's Debt to Equity ratio of 2.42 is on the low side compared to the rest of the industry. M4I is outperformed by 73.91% 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 | 11.17 |
ROIC/WACC5.41
WACC8.47%
2.3 Liquidity
A Current Ratio of 1.16 indicates that M4I should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, M4I is in line with its industry, outperforming 45.65% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that M4I should not have too much problems paying its short term obligations.
M4I's Quick ratio of 1.16 is in line compared to the rest of the industry. M4I outperforms 45.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.74% over the past year.
Measured over the past years, M4I shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.43% on average per year.
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
The Earnings Per Share is expected to grow by 15.33% 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 11.67% on average per year.
EPS Next Y15.4%
EPS Next 2Y15.7%
EPS Next 3Y15.94%
EPS Next 5Y15.33%
Revenue Next Year16.1%
Revenue Next 2Y14.09%
Revenue Next 3Y13.33%
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.
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
The Price/Earnings ratio is 37.28, which means the current valuation is very expensive for M4I.
60.87% of the companies in the same industry are cheaper than M4I, based on the Price/Earnings ratio.
M4I is valuated rather expensively when we compare the Price/Earnings ratio to 27.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 29.71, which means the current valuation is very expensive for M4I.
M4I's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. M4I is more expensive than 60.87% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.71. M4I is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.28 | ||
| Fwd PE | 29.71 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, M4I is valued a bit more expensive than 60.87% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of M4I indicates a slightly more expensive valuation: M4I is more expensive than 60.87% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.1 | ||
| EV/EBITDA | 28.36 |
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.
M4I has a very decent 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 15.94% in the coming years.
PEG (NY)2.42
PEG (5Y)2.78
EPS Next 2Y15.7%
EPS Next 3Y15.94%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, M4I is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.73, 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 | 0.52% |
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 19.15% 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.
DP19.15%
EPS Next 2Y15.7%
EPS Next 3Y15.94%
FRA:M4I (9/16/2025, 7:00:00 PM)
492.1
-3.6 (-0.73%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.29%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap444.86B
Analysts80
Price Target552.68 (12.31%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend2.26
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)-0.59%
PT rev (3m)-0.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.29%
EPS NY rev (1m)2.73%
EPS NY rev (3m)2.78%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.31%
Revenue NY rev (1m)1.97%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.28 | ||
| Fwd PE | 29.71 | ||
| P/S | 17.37 | ||
| P/FCF | 33.1 | ||
| P/OCF | 30.98 | ||
| P/B | 66.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.36 |
EPS(TTM)13.2
EY2.68%
EPS(NY)16.57
Fwd EY3.37%
FCF(TTM)14.87
FCFY3.02%
OCF(TTM)15.88
OCFY3.23%
SpS28.33
BVpS7.36
TBVpS-6.91
PEG (NY)2.42
PEG (5Y)2.78
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 | 11.17 |
F-Score5
WACC8.47%
ROIC/WACC5.41
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 Y15.4%
EPS Next 2Y15.7%
EPS Next 3Y15.94%
EPS Next 5Y15.33%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.84%
Revenue Next Year16.1%
Revenue Next 2Y14.09%
Revenue Next 3Y13.33%
Revenue Next 5Y11.67%
EBIT growth 1Y15.33%
EBIT growth 3Y17.33%
EBIT growth 5Y11.15%
EBIT Next Year23.09%
EBIT Next 3Y16.12%
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%