MASTERCARD INC - A (1MA.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1MA - US57636Q1040 - Common Stock
480.85 EUR
-11.05 (-2.25%)
Taking everything into account, 1MA scores 6 out of 10 in our fundamental rating. 1MA was compared to 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. 1MA is quite expensive at the moment. It does show a decent growth rate. These ratings would make 1MA suitable 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's Return On Assets of 26.74% is amongst the best of the industry. 1MA outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 180.29%, 1MA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
1MA has a better Return On Invested Capital (47.55%) than 100.00% of its industry peers.
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 last Return On Invested Capital (47.55%) for 1MA is above the 3 year average (45.83%), which is a sign of increasing profitability.
| 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.
1MA has a better Operating Margin (59.16%) than 91.38% of its industry peers.
1MA's Operating Margin has been stable in the last couple of years.
| 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
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.
1MA has a worse debt/assets ratio than last year.
2.2 Solvency
1MA has an Altman-Z score of 10.61. This indicates that 1MA is financially healthy and has little risk of bankruptcy at the moment.
1MA's Altman-Z score of 10.61 is amongst the best of the industry. 1MA outperforms 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's Debt to FCF ratio of 1.16 is amongst the best of the industry. 1MA outperforms 86.21% of its industry peers.
1MA has a Debt/Equity ratio of 2.40. This is a high value indicating a heavy dependency on external financing.
1MA has a worse Debt to Equity ratio (2.40) than 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 | 10.61 |
ROIC/WACC5.54
WACC8.59%
2.3 Liquidity
1MA has a Current 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.
Looking at the Current ratio, with a value of 1.12, 1MA is in line with its industry, outperforming 46.55% of the companies in the same 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.
The Quick ratio of 1MA (1.12) is comparable to the rest of the 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 | 1.12 | ||
| 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.
Measured over the past years, 1MA shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.43% on average per year.
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
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
1MA is valuated quite expensively with a Price/Earnings ratio of 34.92.
1MA's Price/Earnings is on the same level as the industry average.
1MA is valuated rather expensively when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.47, 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 60.34% of the companies in the same industry.
1MA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.92 | ||
| Fwd PE | 28.47 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1MA is on the same level as its industry peers.
1MA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.92 | ||
| EV/EBITDA | 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 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
With a yearly dividend of 0.60%, 1MA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.04, 1MA has a dividend in line with its industry peers.
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
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
1MA pays out 18.79% of its income as dividend. This is a 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.
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 | 34.92 | ||
| Fwd PE | 28.47 | ||
| P/S | 16.02 | ||
| P/FCF | 30.92 | ||
| P/OCF | 28.84 | ||
| P/B | 63.78 | ||
| P/tB | N/A | ||
| EV/EBITDA | 26 |
EPS(TTM)13.77
EY2.86%
EPS(NY)16.89
Fwd EY3.51%
FCF(TTM)15.55
FCFY3.23%
OCF(TTM)16.67
OCFY3.47%
SpS30.02
BVpS7.54
TBVpS-6.93
PEG (NY)2.14
PEG (5Y)2.6
Graham Number48.33
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 | 10.61 |
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%.