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 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. This makes 1MA very considerable for quality investing!
1. Profitability
1.1 Basic Checks
1MA had positive earnings in the past year.
1MA had a positive operating cash flow in the past year.
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
1MA has a better Return On Assets (27.12%) than 94.00% of its industry peers.
The Return On Equity of 1MA (197.02%) is better than 98.00% 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 98.00% 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 10.20%.
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 92.00% of its industry peers.
1MA's Profit Margin has been stable in the last couple of years.
1MA's Operating Margin of 58.69% is amongst the best of the industry. 1MA outperforms 88.00% of its industry peers.
1MA's Operating Margin has been stable in the last couple of years.
| 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
1MA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1MA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1MA has been reduced compared to 5 years ago.
Compared to 1 year ago, 1MA has a worse debt to assets ratio.
2.2 Solvency
1MA has an Altman-Z score of 11.66. This indicates that 1MA is financially healthy and has little risk of bankruptcy at the moment.
1MA has a better Altman-Z score (11.66) than 94.00% 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.
1MA's Debt to FCF ratio of 1.31 is amongst the best of the industry. 1MA outperforms 84.00% of its industry peers.
A Debt/Equity ratio of 2.82 is on the high side and indicates that 1MA has dependencies on debt financing.
1MA has a Debt to Equity ratio of 2.82. This is in the lower half of the industry: 1MA underperforms 76.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for 1MA, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.82 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 11.66 |
ROIC/WACC5.15
WACC9%
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.
The Current ratio of 1MA (1.11) is comparable to the rest of the industry.
1MA has a Quick 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.
Looking at the Quick ratio, with a value of 1.11, 1MA is in line with its industry, outperforming 56.00% of the companies in the same industry.
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 | 1.11 | ||
| 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.
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 13.12% 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)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.
The Revenue is expected to grow by 12.56% on average over the next years. This is quite good.
EPS Next Y12.29%
EPS Next 2Y14.47%
EPS Next 3Y15.2%
EPS Next 5Y15.3%
Revenue Next Year13.67%
Revenue Next 2Y12.82%
Revenue Next 3Y12.56%
Revenue Next 5YN/A
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.
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
With a Price/Earnings ratio of 38.98, 1MA can be considered very expensive at the moment.
1MA's Price/Earnings ratio is a bit more expensive when compared to the industry. 1MA is more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.82, 1MA is valued quite expensively.
Based on the Price/Forward Earnings ratio of 30.61, the valuation of 1MA can be described as expensive.
1MA's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. 1MA is more expensive than 60.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. 1MA is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.98 | ||
| Fwd PE | 30.61 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.32 | ||
| EV/EBITDA | 30.24 |
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.
1MA's earnings are expected to grow with 15.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.17
PEG (5Y)2.9
EPS Next 2Y14.47%
EPS Next 3Y15.2%
5. Dividend
5.1 Amount
With a yearly dividend of 0.53%, 1MA is not a good candidate for dividend investing.
1MA's Dividend Yield is comparable with the industry average which is at 3.80.
With a Dividend Yield of 0.53, 1MA pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
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
19.22% 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.
DP19.22%
EPS Next 2Y14.47%
EPS Next 3Y15.2%
BIT:1MA (5/13/2025, 7:00:00 PM)
518.1
+21 (+4.22%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners89.97%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap470.46B
Analysts80.41
Price Target542.85 (4.78%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.53% |
Yearly Dividend2.34
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)-4.8%
PT rev (3m)0.29%
EPS NQ rev (1m)1.73%
EPS NQ rev (3m)1.8%
EPS NY rev (1m)0.29%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)2.25%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)1.16%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.98 | ||
| Fwd PE | 30.61 | ||
| P/S | 18.38 | ||
| P/FCF | 37.32 | ||
| P/OCF | 34.49 | ||
| P/B | 80.08 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.24 |
EPS(TTM)13.29
EY2.57%
EPS(NY)16.93
Fwd EY3.27%
FCF(TTM)13.88
FCFY2.68%
OCF(TTM)15.02
OCFY2.9%
SpS28.19
BVpS6.47
TBVpS-7.97
PEG (NY)3.17
PEG (5Y)2.9
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 | 11.66 |
F-Score5
WACC9%
ROIC/WACC5.15
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 Y12.29%
EPS Next 2Y14.47%
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 2Y12.82%
Revenue Next 3Y12.56%
Revenue Next 5YN/A
EBIT growth 1Y13.54%
EBIT growth 3Y16.72%
EBIT growth 5Y10.81%
EBIT Next Year18.72%
EBIT Next 3Y15.16%
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%