MASTERCARD INC - A (1MA.MI) Stock Fundamental Analysis
Europe - BIT:1MA - US57636Q1040 - Common Stock
490.55 EUR
+6.45 (+1.33%)
Overall 1MA gets a fundamental rating of 6 out of 10. We evaluated 1MA against 50 industry peers in the Financial Services industry. 1MA has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, 1MA is valued expensive at the moment. These ratings would make 1MA suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year 1MA was profitable.
In the past year 1MA had a positive cash flow from operations.
Each year in the past 5 years 1MA has been profitable.
Each year in the past 5 years 1MA had a positive operating cash flow.
1.2 Ratios
1MA has a better Return On Assets (26.42%) than 100.00% of its industry peers.
With an excellent Return On Equity value of 173.00%, 1MA belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 45.82%, 1MA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1MA had an Average Return On Invested Capital over the past 3 years of 45.83%. This is significantly above the industry average of 11.22%.
| 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
1MA has a better Profit Margin (44.93%) than 92.00% of its industry peers.
1MA's Profit Margin has been stable in the last couple of years.
1MA has a Operating Margin of 58.98%. This is amongst the best in the industry. 1MA outperforms 90.00% 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 | 58.98% | ||
| 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 1MA is creating value.
1MA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1MA has less shares outstanding
Compared to 1 year ago, 1MA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.11 indicates that 1MA is not in any danger for bankruptcy at the moment.
1MA has a Altman-Z score of 11.11. This is amongst the best in the industry. 1MA outperforms 94.00% of its industry peers.
The Debt to FCF ratio of 1MA is 1.20, which is an excellent value as it means it would take 1MA, 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, 1MA is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
1MA has a Debt/Equity ratio of 2.42. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of 1MA (2.42) is worse than 76.00% 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 | 2.42 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 11.11 |
ROIC/WACC5.36
WACC8.55%
2.3 Liquidity
1MA has a Current Ratio of 1.16. This is a normal value and indicates that 1MA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.16, 1MA is in line with its industry, outperforming 42.00% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that 1MA should not have too much problems paying its short term obligations.
1MA has a Quick ratio (1.16) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
1MA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.74%, which is quite good.
Measured over the past years, 1MA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.43% on average per year.
The Revenue has grown by 14.59% 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)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
1MA 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
The Price/Earnings ratio is 36.91, which means the current valuation is very expensive for 1MA.
The rest of the industry has a similar Price/Earnings ratio as 1MA.
1MA is valuated rather expensively when we compare the Price/Earnings ratio to 27.86, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 29.41 indicates a quite expensive valuation of 1MA.
1MA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1MA is more expensive than 62.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, 1MA is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.91 | ||
| Fwd PE | 29.41 |
4.2 Price Multiples
1MA's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1MA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.79 | ||
| EV/EBITDA | 28.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1MA has a very decent 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 15.99% in the coming years.
PEG (NY)2.4
PEG (5Y)2.75
EPS Next 2Y15.74%
EPS Next 3Y15.99%
5. Dividend
5.1 Amount
1MA has a yearly dividend return of 0.53%, which is pretty low.
1MA's Dividend Yield is comparable with the industry average which is at 3.74.
Compared to an average S&P500 Dividend Yield of 2.44, 1MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
5.2 History
The dividend of 1MA is nicely growing with an annual growth rate of 14.95%!
Dividend Growth(5Y)14.95%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
19.15% of the earnings are spent on dividend by 1MA. This is a low number and sustainable payout ratio.
1MA's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP19.15%
EPS Next 2Y15.74%
EPS Next 3Y15.99%
BIT:1MA (10/2/2025, 7:00:00 PM)
490.55
+6.45 (+1.33%)
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 Cap443.46B
Analysts79.57
Price Target561.52 (14.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend2.26
Dividend Growth(5Y)14.95%
DP19.15%
Div Incr Years0
Div Non Decr Years0
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)2.02%
PT rev (3m)-2.11%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)5.29%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)2.67%
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 | 36.91 | ||
| Fwd PE | 29.41 | ||
| P/S | 17.21 | ||
| P/FCF | 32.79 | ||
| P/OCF | 30.69 | ||
| P/B | 66.26 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.1 |
EPS(TTM)13.29
EY2.71%
EPS(NY)16.68
Fwd EY3.4%
FCF(TTM)14.96
FCFY3.05%
OCF(TTM)15.98
OCFY3.26%
SpS28.51
BVpS7.4
TBVpS-6.95
PEG (NY)2.4
PEG (5Y)2.75
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 | 11.11 |
F-Score5
WACC8.55%
ROIC/WACC5.36
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%