MASTERCARD INC - A (1MA.MI) Stock Fundamental Analysis
BIT:1MA - US57636Q1040 - Common Stock
509 EUR
+2.4 (+0.47%)
We assign a fundamental rating of 6 out of 10 to 1MA. 1MA was compared to 50 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making 1MA a very profitable company, without any liquidiy or solvency issues. 1MA is quite expensive at the moment. It does show a decent growth rate. With these ratings, 1MA could be worth investigating further 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
Looking at the Return On Assets, with a value of 26.42%, 1MA belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
1MA has a Return On Equity of 173.00%. This is amongst the best in the industry. 1MA outperforms 100.00% of its industry peers.
With an excellent Return On Invested Capital value of 45.82%, 1MA belongs to the best 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 10.94%.
| 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 Profit Margin of 44.93%. This is amongst the best in the industry. 1MA outperforms 86.00% 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 (58.98%) than 88.00% 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
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.
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
1MA has an Altman-Z score of 11.32. This indicates that 1MA is financially healthy and has little risk of bankruptcy at the moment.
1MA has a better Altman-Z score (11.32) than 94.00% of its industry peers.
1MA 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.
Looking at the Debt to FCF ratio, with a value of 1.20, 1MA belongs to the top of the industry, outperforming 82.00% 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.
With a Debt to Equity ratio value of 2.42, 1MA is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
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 | 11.32 |
ROIC/WACC5.3
WACC8.64%
2.3 Liquidity
A Current Ratio of 1.16 indicates that 1MA should not have too much problems paying its short term obligations.
1MA has a Current ratio (1.16) which is comparable to the rest of the 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 comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing by 13.43% on average over the past years. This is quite good.
1MA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.59%.
1MA 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 15.30% on average over the next years. This is quite good.
The Revenue is expected to grow by 11.65% on average over the next years. This is quite good.
EPS Next Y15.4%
EPS Next 2Y15.7%
EPS Next 3Y15.94%
EPS Next 5Y15.3%
Revenue Next Year16.09%
Revenue Next 2Y14.1%
Revenue Next 3Y13.33%
Revenue Next 5Y11.65%
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 38.01, which means the current valuation is very expensive for 1MA.
1MA's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.03. 1MA is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 30.31, 1MA can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1MA is on the same level as its industry peers.
1MA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.01 | ||
| Fwd PE | 30.31 |
4.2 Price Multiples
1MA's Enterprise Value to EBITDA is on the same level as the industry average.
1MA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.78 | ||
| EV/EBITDA | 28.93 |
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.
The decent profitability rating of 1MA may justify a higher PE ratio.
1MA's earnings are expected to grow with 15.94% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.47
PEG (5Y)2.83
EPS Next 2Y15.7%
EPS Next 3Y15.94%
5. Dividend
5.1 Amount
1MA has a yearly dividend return of 0.51%, which is pretty low.
Compared to an average industry Dividend Yield of 3.49, 1MA has a dividend in line with its industry peers.
With a Dividend Yield of 0.51, 1MA pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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
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 2Y15.7%
EPS Next 3Y15.94%
BIT:1MA (8/29/2025, 7:00:00 PM)
509
+2.4 (+0.47%)
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 Cap460.14B
Analysts80
Price Target550.4 (8.13%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
Yearly Dividend2.27
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)-4.05%
PT rev (3m)1.39%
EPS NQ rev (1m)5.45%
EPS NQ rev (3m)3.99%
EPS NY rev (1m)2.73%
EPS NY rev (3m)2.78%
Revenue NQ rev (1m)3.31%
Revenue NQ rev (3m)3.95%
Revenue NY rev (1m)2.13%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.01 | ||
| Fwd PE | 30.31 | ||
| P/S | 17.72 | ||
| P/FCF | 33.78 | ||
| P/OCF | 31.61 | ||
| P/B | 68.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.93 |
EPS(TTM)13.39
EY2.63%
EPS(NY)16.79
Fwd EY3.3%
FCF(TTM)15.07
FCFY2.96%
OCF(TTM)16.1
OCFY3.16%
SpS28.72
BVpS7.46
TBVpS-7
PEG (NY)2.47
PEG (5Y)2.83
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 | 11.32 |
F-Score5
WACC8.64%
ROIC/WACC5.3
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 5Y15.3%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.84%
Revenue Next Year16.09%
Revenue Next 2Y14.1%
Revenue Next 3Y13.33%
Revenue Next 5Y11.65%
EBIT growth 1Y15.33%
EBIT growth 3Y17.33%
EBIT growth 5Y11.15%
EBIT Next Year23.09%
EBIT Next 3Y16.12%
EBIT Next 5Y13.73%
FCF growth 1Y52.98%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y46.49%
OCF growth 3Y16.02%
OCF growth 5Y12.55%