MASTERCARD INC - A (1MA.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MA - US57636Q1040 - Common Stock
480.85 EUR
-11.05 (-2.25%)
Overall 1MA gets a fundamental rating of 6 out of 10. We evaluated 1MA against 58 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 could make 1MA a good candidate 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.
Each year in the past 5 years 1MA has been profitable.
1MA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 26.74%, 1MA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Equity of 1MA (180.29%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 47.55%, 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 9.69%.
The 3 year average ROIC (45.83%) for 1MA 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
1MA has a Profit Margin of 45.28%. This is amongst the best in the industry. 1MA outperforms 93.10% of its industry peers.
In the last couple of years the Profit Margin of 1MA has remained more or less at the same level.
The Operating Margin of 1MA (59.16%) is better than 91.38% 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 | 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1MA is creating value.
Compared to 1 year ago, 1MA has less shares outstanding
1MA has less shares outstanding than it did 5 years ago.
1MA has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.62 indicates that 1MA is not in any danger for bankruptcy at the moment.
The Altman-Z score of 1MA (10.62) is better than 93.10% of its industry peers.
1MA 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.
1MA has a better Debt to FCF ratio (1.16) than 86.21% of its industry peers.
A Debt/Equity ratio of 2.40 is on the high side and indicates that 1MA has dependencies on debt financing.
1MA has a Debt to Equity ratio of 2.40. This is in the lower half of the industry: 1MA underperforms 72.41% 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 | 2.4 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | 10.62 |
ROIC/WACC5.54
WACC8.59%
2.3 Liquidity
A Current Ratio of 1.12 indicates that 1MA should not have too much problems paying its short term obligations.
The Current ratio of 1MA (1.12) is comparable to the rest of the industry.
1MA has a Quick Ratio of 1.12. This is a normal value and indicates that 1MA is financially healthy and should not expect problems in meeting its short term obligations.
1MA has a Quick ratio (1.12) which is in line with its industry peers.
The current and quick ratio evaluation for 1MA 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
1MA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.10%, which is quite good.
The Earnings Per Share has been growing by 13.43% on average over the past years. This is quite good.
Looking at the last year, 1MA shows a quite strong growth in Revenue. The Revenue has grown by 15.60% in the last year.
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)15.1%
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
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.
1MA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.67% yearly.
EPS Next Y16.34%
EPS Next 2Y16.18%
EPS Next 3Y16.23%
EPS Next 5Y15.33%
Revenue Next Year16.73%
Revenue Next 2Y14.64%
Revenue Next 3Y13.76%
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
1MA is valuated quite expensively with a Price/Earnings ratio of 34.95.
1MA's Price/Earnings ratio is in line with the industry average.
1MA is valuated rather expensively when we compare the Price/Earnings ratio to 26.92, which is the current average of the S&P500 Index.
1MA is valuated quite expensively with a Price/Forward Earnings ratio of 28.49.
Based on the Price/Forward Earnings ratio, 1MA is valued a bit more expensive than 60.34% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1MA to the average of the S&P500 Index (23.57), we can say 1MA is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.95 | ||
| Fwd PE | 28.49 |
4.2 Price Multiples
1MA's Enterprise Value to EBITDA ratio is in line with the industry average.
1MA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.94 | ||
| EV/EBITDA | 26.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of 1MA may justify a higher PE ratio.
A more expensive valuation may be justified as 1MA's earnings are expected to grow with 16.23% in the coming years.
PEG (NY)2.14
PEG (5Y)2.6
EPS Next 2Y16.18%
EPS Next 3Y16.23%
5. Dividend
5.1 Amount
1MA has a yearly dividend return of 0.60%, which is pretty low.
1MA's Dividend Yield is comparable with the industry average which is at 2.04.
Compared to an average S&P500 Dividend Yield of 1.94, 1MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
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
18.79% of the earnings are spent on dividend by 1MA. This is a low number and 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.
DP18.79%
EPS Next 2Y16.18%
EPS Next 3Y16.23%
BIT:1MA (1/2/2026, 7:00:00 PM)
480.85
-11.05 (-2.25%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.73%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap431.80B
Revenue(TTM)31.47B
Net Income(TTM)14.25B
Analysts80.82
Price Target565.69 (17.64%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.6% |
Yearly Dividend2.25
Dividend Growth(5Y)14.95%
DP18.79%
Div Incr Years0
Div Non Decr Years0
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)-1.03%
PT rev (3m)2.78%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)1.52%
EPS NY rev (1m)0.23%
EPS NY rev (3m)0.81%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.07%
Revenue NY rev (1m)0.11%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.95 | ||
| Fwd PE | 28.49 | ||
| P/S | 16.03 | ||
| P/FCF | 30.94 | ||
| P/OCF | 28.86 | ||
| P/B | 63.83 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26.02 |
EPS(TTM)13.76
EY2.86%
EPS(NY)16.88
Fwd EY3.51%
FCF(TTM)15.54
FCFY3.23%
OCF(TTM)16.66
OCFY3.46%
SpS30
BVpS7.53
TBVpS-6.92
PEG (NY)2.14
PEG (5Y)2.6
Graham Number48.29
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 | 10.62 |
F-Score8
WACC8.59%
ROIC/WACC5.54
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 Y16.34%
EPS Next 2Y16.18%
EPS Next 3Y16.23%
EPS Next 5Y15.33%
Revenue 1Y (TTM)15.6%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.73%
Revenue Next Year16.73%
Revenue Next 2Y14.64%
Revenue Next 3Y13.76%
Revenue Next 5Y11.67%
EBIT growth 1Y16.51%
EBIT growth 3Y17.33%
EBIT growth 5Y11.15%
EBIT Next Year24.88%
EBIT Next 3Y16.79%
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 / 1MA.MI FAQ
What is the ChartMill fundamental rating of MASTERCARD INC - A (1MA.MI) stock?
ChartMill assigns a fundamental rating of 6 / 10 to 1MA.MI.
What is the valuation status of MASTERCARD INC - A (1MA.MI) stock?
ChartMill assigns a valuation rating of 2 / 10 to MASTERCARD INC - A (1MA.MI). This can be considered as Overvalued.
What is the profitability of 1MA stock?
MASTERCARD INC - A (1MA.MI) has a profitability rating of 8 / 10.
What is the earnings growth outlook for MASTERCARD INC - A?
The Earnings per Share (EPS) of MASTERCARD INC - A (1MA.MI) is expected to grow by 16.34% in the next year.
How sustainable is the dividend of MASTERCARD INC - A (1MA.MI) stock?
The dividend rating of MASTERCARD INC - A (1MA.MI) is 4 / 10 and the dividend payout ratio is 18.79%.