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. These ratings could make 1MA a good candidate 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.
1MA had positive earnings in each of the past 5 years.
Each year in the past 5 years 1MA had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 26.78%, 1MA belongs to the best of the industry, outperforming 96.08% of the companies in the same industry.
1MA has a better Return On Equity (198.52%) than 100.00% of its industry peers.
1MA has a Return On Invested Capital of 47.64%. This is amongst the best in the industry. 1MA outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1MA is significantly above the industry average of 10.10%.
The last Return On Invested Capital (47.64%) for 1MA is above the 3 year average (45.59%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.78% | ||
| ROE | 198.52% | ||
| ROIC | 47.64% |
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
1MA's Profit Margin of 45.71% is amongst the best of the industry. 1MA outperforms 90.20% 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 Operating Margin of 58.64%. This is amongst the best in the industry. 1MA outperforms 88.24% 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 | 58.64% | ||
| PM (TTM) | 45.71% | ||
| 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.
The number of shares outstanding for 1MA has been reduced compared to 1 year ago.
1MA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1MA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 10.59 indicates that 1MA is not in any danger for bankruptcy at the moment.
1MA has a better Altman-Z score (10.59) than 92.16% of its industry peers.
1MA has a debt to FCF ratio of 1.34. This is a very positive value and a sign of high solvency as it would only need 1.34 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.34, 1MA belongs to the best of the industry, outperforming 84.31% of the companies in the same industry.
A Debt/Equity ratio of 2.69 is on the high side and indicates that 1MA has dependencies on debt financing.
1MA's Debt to Equity ratio of 2.69 is on the low side compared to the rest of the industry. 1MA is outperformed by 72.55% 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 | 2.69 | ||
| Debt/FCF | 1.34 | ||
| Altman-Z | 10.59 |
ROIC/WACC3.08
WACC15.48%
2.3 Liquidity
A Current Ratio of 1.03 indicates that 1MA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.03, 1MA is doing worse than 60.78% of the companies in the same industry.
A Quick Ratio of 1.03 indicates that 1MA should not have too much problems paying its short term obligations.
1MA has a Quick ratio (1.03) which is comparable to the rest of the industry.
1MA does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.03 | ||
| Quick Ratio | 1.03 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.17% over the past year.
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 12.23% in the last year.
The Revenue has been growing by 10.78% on average over the past years. This is quite good.
EPS 1Y (TTM)19.17%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%20.13%
Revenue 1Y (TTM)12.23%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%14.37%
3.2 Future
The Earnings Per Share is expected to grow by 15.30% on average over the next years. This is quite good.
Based on estimates for the next years, 1MA will show a quite strong growth in Revenue. The Revenue will grow by 12.28% on average per year.
EPS Next Y11.96%
EPS Next 2Y14.62%
EPS Next 3Y15.34%
EPS Next 5Y15.3%
Revenue Next Year12.24%
Revenue Next 2Y12.3%
Revenue Next 3Y12.28%
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.
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
Based on the Price/Earnings ratio of 35.05, the valuation of 1MA can be described as expensive.
1MA's Price/Earnings ratio is a bit more expensive when compared to the industry. 1MA is more expensive than 60.78% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1MA to the average of the S&P500 Index (28.22), we can say 1MA is valued slightly more expensively.
The Price/Forward Earnings ratio is 31.29, which means the current valuation is very expensive for 1MA.
1MA's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.86, 1MA is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.05 | ||
| Fwd PE | 31.29 |
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 | 34.35 | ||
| EV/EBITDA | 27.33 |
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 15.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.93
PEG (5Y)2.61
EPS Next 2Y14.62%
EPS Next 3Y15.34%
5. Dividend
5.1 Amount
1MA has a yearly dividend return of 0.57%, which is pretty low.
Compared to an average industry Dividend Yield of 3.96, 1MA has a dividend in line with its industry peers.
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 | 0.57% |
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
1MA pays out 19.02% of its income as dividend. This is a 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.
DP19.02%
EPS Next 2Y14.62%
EPS Next 3Y15.34%
BIT:1MA (4/14/2025, 7:00:00 PM)
450.75
+2.5 (+0.56%)
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 Cap410.95B
Analysts82.08
Price Target532.4 (18.11%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.57% |
Yearly Dividend2.33
Dividend Growth(5Y)14.95%
DP19.02%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.67%
Min EPS beat(2)0.38%
Max EPS beat(2)0.96%
EPS beat(4)2
Avg EPS beat(4)-0.05%
Min EPS beat(4)-0.82%
Max EPS beat(4)0.96%
EPS beat(8)5
Avg EPS beat(8)0.24%
EPS beat(12)8
Avg EPS beat(12)2.69%
EPS beat(16)12
Avg EPS beat(16)3.53%
Revenue beat(2)0
Avg Revenue beat(2)-1.57%
Min Revenue beat(2)-1.59%
Max Revenue beat(2)-1.55%
Revenue beat(4)0
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-2.77%
Max Revenue beat(4)-1.3%
Revenue beat(8)0
Avg Revenue beat(8)-1.81%
Revenue beat(12)2
Avg Revenue beat(12)-1.19%
Revenue beat(16)4
Avg Revenue beat(16)-1.05%
PT rev (1m)-10.54%
PT rev (3m)-3.6%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-2.63%
EPS NY rev (1m)0.05%
EPS NY rev (3m)-2.59%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-0.69%
Revenue NY rev (1m)-0.14%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.05 | ||
| Fwd PE | 31.29 | ||
| P/S | 16.57 | ||
| P/FCF | 34.35 | ||
| P/OCF | 31.58 | ||
| P/B | 71.97 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.33 |
EPS(TTM)12.86
EY2.85%
EPS(NY)14.4
Fwd EY3.2%
FCF(TTM)13.12
FCFY2.91%
OCF(TTM)14.27
OCFY3.17%
SpS27.2
BVpS6.26
TBVpS-7.88
PEG (NY)2.93
PEG (5Y)2.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.78% | ||
| ROE | 198.52% | ||
| ROCE | 57.23% | ||
| ROIC | 47.64% | ||
| ROICexc | 68.44% | ||
| ROICexgc | 252.59% | ||
| OM | 58.64% | ||
| PM (TTM) | 45.71% | ||
| GM | N/A | ||
| FCFM | 48.23% |
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-Score6
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.69 | ||
| Debt/FCF | 1.34 | ||
| Debt/EBITDA | 1 | ||
| Cap/Depr | 133.11% | ||
| Cap/Sales | 4.24% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.87% | ||
| Profit Quality | 105.53% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 1.03 | ||
| Altman-Z | 10.59 |
F-Score6
WACC15.48%
ROIC/WACC3.08
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)19.17%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%20.13%
EPS Next Y11.96%
EPS Next 2Y14.62%
EPS Next 3Y15.34%
EPS Next 5Y15.3%
Revenue 1Y (TTM)12.23%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%14.37%
Revenue Next Year12.24%
Revenue Next 2Y12.3%
Revenue Next 3Y12.28%
Revenue Next 5YN/A
EBIT growth 1Y12.9%
EBIT growth 3Y16.72%
EBIT growth 5Y10.81%
EBIT Next Year18.72%
EBIT Next 3Y15.16%
EBIT Next 5Y13.73%
FCF growth 1Y24.73%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y23.37%
OCF growth 3Y16.02%
OCF growth 5Y12.55%