MASTERCARD INC - A (1MA.MI) Stock Fundamental Analysis
BIT:1MA - Euronext Milan - US57636Q1040 - Common Stock - Currency: EUR
Taking everything into account, 1MA scores 6 out of 10 in our fundamental rating. 1MA was compared to 46 industry peers in the Financial Services industry. 1MA gets an excellent profitability rating and is at the same time showing great financial health properties. 1MA is quite expensive at the moment. It does show a decent growth rate. These ratings would make 1MA suitable for quality investing!
1. Profitability
1.1 Basic Checks
1MA had positive earnings in the past year.
In the past year 1MA had a positive cash flow from operations.
1MA had positive earnings in each of the past 5 years.
In the past 5 years 1MA always reported a positive cash flow from operatings.
1.2 Ratios
1MA has a Return On Assets of 27.12%. This is amongst the best in the industry. 1MA outperforms 94.12% of its industry peers.
1MA has a Return On Equity of 197.02%. This is amongst the best in the industry. 1MA outperforms 98.04% of its industry peers.
Looking at the Return On Invested Capital, with a value of 46.34%, 1MA belongs to the top of the industry, outperforming 98.04% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1MA is significantly above the industry average of 9.04%.
The 3 year average ROIC (45.59%) for 1MA 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
The Profit Margin of 1MA (45.21%) is better than 84.31% of its industry peers.
In the last couple of years the Profit Margin of 1MA has remained more or less at the same level.
1MA has a better Operating Margin (58.69%) than 84.31% of its industry peers.
In the last couple of years the Operating Margin of 1MA 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1MA is creating value.
The number of shares outstanding for 1MA has been reduced compared to 1 year ago.
The number of shares outstanding for 1MA has been reduced compared to 5 years ago.
The debt/assets ratio for 1MA is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.23 indicates that 1MA is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1MA (11.23) is better than 96.08% of its industry peers.
The Debt to FCF ratio of 1MA is 1.31, which is an excellent value as it means it would take 1MA, only 1.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.31, 1MA belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
1MA has a Debt/Equity ratio of 2.82. This is a high value indicating a heavy dependency on external financing.
1MA has a worse Debt to Equity ratio (2.82) than 78.43% of its industry peers.
Although 1MA 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 | 11.23 |
ROIC/WACC5.22
WACC8.88%
2.3 Liquidity
1MA has a Current Ratio of 1.11. This is a normal value and indicates that 1MA is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.11, 1MA perfoms like the industry average, outperforming 54.90% of the companies in the same industry.
A Quick Ratio of 1.11 indicates that 1MA should not have too much problems paying its short term obligations.
1MA's Quick ratio of 1.11 is fine compared to the rest of the industry. 1MA outperforms 60.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
1MA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.70%, which is quite good.
1MA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.43% yearly.
The Revenue has grown by 13.12% in the past year. This is quite good.
Measured over the past years, 1MA shows a quite strong growth in Revenue. The Revenue has been growing by 10.78% on average per year.
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
1MA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.30% yearly.
Based on estimates for the next years, 1MA will show a quite strong growth in Revenue. The Revenue will grow by 12.47% on average per year.
EPS Next Y12.34%
EPS Next 2Y14.46%
EPS Next 3Y15.2%
EPS Next 5Y15.3%
Revenue Next Year13.67%
Revenue Next 2Y12.73%
Revenue Next 3Y12.47%
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
A Price/Earnings ratio of 36.96 indicates a quite expensive valuation of 1MA.
62.75% of the companies in the same industry are cheaper than 1MA, based on the Price/Earnings ratio.
1MA's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 27.50.
With a Price/Forward Earnings ratio of 29.02, 1MA can be considered very expensive at the moment.
64.71% of the companies in the same industry are cheaper than 1MA, based on the Price/Forward Earnings ratio.
1MA's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.96 | ||
| Fwd PE | 29.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MA is on the same level as its industry peers.
60.78% of the companies in the same industry are cheaper than 1MA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.23 | ||
| EV/EBITDA | 28.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1MA does not grow enough to justify the current Price/Earnings ratio.
1MA has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1MA's earnings are expected to grow with 15.20% in the coming years.
PEG (NY)3
PEG (5Y)2.75
EPS Next 2Y14.46%
EPS Next 3Y15.2%
5. Dividend
5.1 Amount
1MA has a yearly dividend return of 0.54%, which is pretty low.
1MA's Dividend Yield is comparable with the industry average which is at 3.83.
With a Dividend Yield of 0.54, 1MA pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
On average, the dividend of 1MA grows each year by 14.95%, which is quite nice.
Dividend Growth(5Y)14.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
1MA pays out 19.22% of its income as dividend. This is a sustainable payout ratio.
The dividend of 1MA is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP19.22%
EPS Next 2Y14.46%
EPS Next 3Y15.2%
BIT:1MA (7/2/2025, 7:00:00 PM)
475.35
+10.45 (+2.25%)
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 Cap431.64B
Analysts80
Price Target573.65 (20.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend2.27
Dividend Growth(5Y)14.95%
DP19.22%
Div Incr Years0
Div Non Decr Years0
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)3.68%
PT rev (3m)0.6%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)1.64%
EPS NY rev (1m)0.04%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)2.18%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.96 | ||
| Fwd PE | 29.02 | ||
| P/S | 17.35 | ||
| P/FCF | 35.23 | ||
| P/OCF | 32.56 | ||
| P/B | 75.59 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.58 |
EPS(TTM)12.86
EY2.71%
EPS(NY)16.38
Fwd EY3.45%
FCF(TTM)13.49
FCFY2.84%
OCF(TTM)14.6
OCFY3.07%
SpS27.4
BVpS6.29
TBVpS-7.74
PEG (NY)3
PEG (5Y)2.75
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 | 11.23 |
F-Score5
WACC8.88%
ROIC/WACC5.22
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 Y12.34%
EPS Next 2Y14.46%
EPS Next 3Y15.2%
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 2Y12.73%
Revenue Next 3Y12.47%
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%