MASTERCARD INC - A (1MA.MI) Stock Fundamental Analysis
BIT:1MA - Euronext Milan - US57636Q1040 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to 1MA. 1MA was compared to 47 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 valied quite expensively at the moment, while it does show a decent growth rate. This makes 1MA very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year 1MA was profitable.
1MA had a positive operating cash flow in the past year.
Each year in the past 5 years 1MA has been profitable.
In the past 5 years 1MA always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 27.12%, 1MA belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
1MA has a Return On Equity of 197.02%. This is amongst the best in the industry. 1MA outperforms 97.87% 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 97.87% of the companies in the same industry.
1MA had an Average Return On Invested Capital over the past 3 years of 45.59%. This is significantly above the industry average of 11.50%.
The last Return On Invested Capital (46.34%) for 1MA is above the 3 year average (45.59%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 45.21%, 1MA belongs to the top of the industry, outperforming 85.11% of the companies in the same industry.
In the last couple of years the Profit Margin of 1MA has remained more or less at the same level.
1MA has a Operating Margin of 58.69%. This is amongst the best in the industry. 1MA outperforms 82.98% 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
1MA has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, 1MA has less shares outstanding
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.
With an excellent Altman-Z score value of 11.66, 1MA belongs to the best of the industry, outperforming 95.74% of the companies in the same industry.
1MA has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.31, 1MA belongs to the best of the industry, outperforming 82.98% 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.
With a Debt to Equity ratio value of 2.82, 1MA is not doing good in the industry: 78.72% 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 | 2.82 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 11.66 |
ROIC/WACC5.19
WACC8.93%
2.3 Liquidity
A Current Ratio of 1.11 indicates that 1MA should not have too much problems paying 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.
With a Quick ratio value of 1.11, 1MA perfoms like the industry average, outperforming 57.45% 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.
1MA shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.43% yearly.
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 12.52% 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 Year13.68%
Revenue Next 2Y12.78%
Revenue Next 3Y12.52%
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.
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
Based on the Price/Earnings ratio of 39.15, the valuation of 1MA can be described as expensive.
1MA's Price/Earnings is on the same level as the industry average.
1MA's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.32.
A Price/Forward Earnings ratio of 30.75 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 61.70% of the companies in the same industry.
1MA is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.15 | ||
| Fwd PE | 30.75 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1MA.
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 | 37.34 | ||
| EV/EBITDA | 30.26 |
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)3.19
PEG (5Y)2.92
EPS Next 2Y14.47%
EPS Next 3Y15.2%
5. Dividend
5.1 Amount
1MA has a yearly dividend return of 0.52%, which is pretty low.
Compared to an average industry Dividend Yield of 4.00, 1MA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, 1MA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
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
19.22% 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 (6/12/2025, 7:00:00 PM)
508.6
-2.9 (-0.57%)
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 Cap461.83B
Analysts80.42
Price Target553.29 (8.79%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend2.3
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)3.93%
PT rev (3m)-7.03%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)0%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.22%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.15 | ||
| Fwd PE | 30.75 | ||
| P/S | 18.39 | ||
| P/FCF | 37.34 | ||
| P/OCF | 34.51 | ||
| P/B | 80.13 | ||
| P/tB | N/A | ||
| EV/EBITDA | 30.26 |
EPS(TTM)12.99
EY2.55%
EPS(NY)16.54
Fwd EY3.25%
FCF(TTM)13.62
FCFY2.68%
OCF(TTM)14.74
OCFY2.9%
SpS27.66
BVpS6.35
TBVpS-7.82
PEG (NY)3.19
PEG (5Y)2.92
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
WACC8.93%
ROIC/WACC5.19
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 Year13.68%
Revenue Next 2Y12.78%
Revenue Next 3Y12.52%
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%