MASTERCARD INC - A (M4I.DE) Stock Fundamental Analysis
Europe - FRA:M4I - US57636Q1040 - Common Stock
479.2 EUR
+2.85 (+0.6%)
We assign a fundamental rating of 6 out of 10 to M4I. M4I was compared to 52 industry peers in the Financial Services industry. M4I 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, M4I is valued expensive at the moment. This makes M4I very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year M4I was profitable.
M4I had a positive operating cash flow in the past year.
M4I had positive earnings in each of the past 5 years.
In the past 5 years M4I always reported a positive cash flow from operatings.
1.2 Ratios
M4I has a better Return On Assets (26.42%) than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 173.00%, M4I belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 45.82%, M4I belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for M4I is significantly above the industry average of 9.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.42% | ||
| ROE | 173% | ||
| ROIC | 45.82% |
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
With an excellent Profit Margin value of 44.93%, M4I belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
In the last couple of years the Profit Margin of M4I has remained more or less at the same level.
Looking at the Operating Margin, with a value of 58.98%, M4I belongs to the top of the industry, outperforming 90.38% of the companies in the same industry.
M4I's Operating Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 58.98% | ||
| PM (TTM) | 44.93% | ||
| 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), M4I is creating value.
M4I has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, M4I has less shares outstanding
The debt/assets ratio for M4I is higher compared to a year ago.
2.2 Solvency
M4I has an Altman-Z score of 10.91. This indicates that M4I is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.91, M4I belongs to the top of the industry, outperforming 96.15% of the companies in the same industry.
The Debt to FCF ratio of M4I is 1.20, which is an excellent value as it means it would take M4I, only 1.20 years of fcf income to pay off all of its debts.
M4I's Debt to FCF ratio of 1.20 is amongst the best of the industry. M4I outperforms 80.77% of its industry peers.
M4I has a Debt/Equity ratio of 2.42. This is a high value indicating a heavy dependency on external financing.
M4I's Debt to Equity ratio of 2.42 is on the low side compared to the rest of the industry. M4I is outperformed by 75.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for M4I, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.42 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 10.91 |
ROIC/WACC5.43
WACC8.44%
2.3 Liquidity
A Current Ratio of 1.16 indicates that M4I should not have too much problems paying its short term obligations.
M4I has a Current ratio (1.16) which is in line with its industry peers.
M4I has a Quick Ratio of 1.16. This is a normal value and indicates that M4I is financially healthy and should not expect problems in meeting its short term obligations.
M4I's Quick ratio of 1.16 is in line compared to the rest of the industry. M4I outperforms 44.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
M4I shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.74%, which is quite good.
M4I shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.43% yearly.
The Revenue has grown by 14.59% in the past year. This is quite good.
M4I shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.78% yearly.
EPS 1Y (TTM)15.74%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%15.6%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.84%
3.2 Future
M4I is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.33% yearly.
The Revenue is expected to grow by 11.67% on average over the next years. This is quite good.
EPS Next Y15.38%
EPS Next 2Y15.74%
EPS Next 3Y15.99%
EPS Next 5Y15.33%
Revenue Next Year16.11%
Revenue Next 2Y14.08%
Revenue Next 3Y13.33%
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
A Price/Earnings ratio of 35.90 indicates a quite expensive valuation of M4I.
M4I's Price/Earnings ratio is in line with the industry average.
M4I is valuated rather expensively when we compare the Price/Earnings ratio to 27.40, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 28.60 indicates a quite expensive valuation of M4I.
Based on the Price/Forward Earnings ratio, M4I is valued a bit more expensive than 61.54% of the companies in the same industry.
M4I is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.9 | ||
| Fwd PE | 28.6 |
4.2 Price Multiples
M4I's Enterprise Value to EBITDA ratio is in line with the industry average.
M4I's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.89 | ||
| EV/EBITDA | 27.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates M4I does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of M4I may justify a higher PE ratio.
A more expensive valuation may be justified as M4I's earnings are expected to grow with 15.99% in the coming years.
PEG (NY)2.33
PEG (5Y)2.67
EPS Next 2Y15.74%
EPS Next 3Y15.99%
5. Dividend
5.1 Amount
With a yearly dividend of 0.55%, M4I is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.52, M4I has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.36, M4I's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
5.2 History
The dividend of M4I is nicely growing with an annual growth rate of 14.95%!
Dividend Growth(5Y)14.95%
Div Incr Years6
Div Non Decr Years6
5.3 Sustainability
19.15% of the earnings are spent on dividend by M4I. This is a low number and sustainable payout ratio.
M4I's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP19.15%
EPS Next 2Y15.74%
EPS Next 3Y15.99%
FRA:M4I (10/17/2025, 7:00:00 PM)
479.2
+2.85 (+0.6%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.32%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap433.20B
Analysts79.57
Price Target561.06 (17.08%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
Yearly Dividend2.27
Dividend Growth(5Y)14.95%
DP19.15%
Div Incr Years6
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)0.75%
Min EPS beat(2)0.08%
Max EPS beat(2)1.41%
EPS beat(4)4
Avg EPS beat(4)0.71%
Min EPS beat(4)0.08%
Max EPS beat(4)1.41%
EPS beat(8)6
Avg EPS beat(8)0.5%
EPS beat(12)8
Avg EPS beat(12)0.4%
EPS beat(16)12
Avg EPS beat(16)2.62%
Revenue beat(2)0
Avg Revenue beat(2)-1%
Min Revenue beat(2)-1.13%
Max Revenue beat(2)-0.87%
Revenue beat(4)0
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-1.59%
Max Revenue beat(4)-0.87%
Revenue beat(8)0
Avg Revenue beat(8)-1.73%
Revenue beat(12)0
Avg Revenue beat(12)-1.66%
Revenue beat(16)2
Avg Revenue beat(16)-1.28%
PT rev (1m)1.52%
PT rev (3m)-1.89%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)5.48%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)2.71%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)3.34%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35.9 | ||
| Fwd PE | 28.6 | ||
| P/S | 16.73 | ||
| P/FCF | 31.89 | ||
| P/OCF | 29.85 | ||
| P/B | 64.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.34 |
EPS(TTM)13.35
EY2.79%
EPS(NY)16.76
Fwd EY3.5%
FCF(TTM)15.03
FCFY3.14%
OCF(TTM)16.05
OCFY3.35%
SpS28.64
BVpS7.44
TBVpS-6.98
PEG (NY)2.33
PEG (5Y)2.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 26.42% | ||
| ROE | 173% | ||
| ROCE | 55.04% | ||
| ROIC | 45.82% | ||
| ROICexc | 64.45% | ||
| ROICexgc | 190.14% | ||
| OM | 58.98% | ||
| PM (TTM) | 44.93% | ||
| GM | N/A | ||
| FCFM | 52.47% |
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%
ROICexcg growth 3Y16.14%
ROICexcg 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-Score5
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.42 | ||
| Debt/FCF | 1.2 | ||
| Debt/EBITDA | 1.01 | ||
| Cap/Depr | 107.31% | ||
| Cap/Sales | 3.59% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 89.95% | ||
| Profit Quality | 116.79% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 | ||
| Altman-Z | 10.91 |
F-Score5
WACC8.44%
ROIC/WACC5.43
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)15.74%
EPS 3Y20.21%
EPS 5Y13.43%
EPS Q2Q%15.6%
EPS Next Y15.38%
EPS Next 2Y15.74%
EPS Next 3Y15.99%
EPS Next 5Y15.33%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.84%
Revenue Next Year16.11%
Revenue Next 2Y14.08%
Revenue Next 3Y13.33%
Revenue Next 5Y11.67%
EBIT growth 1Y15.33%
EBIT growth 3Y17.33%
EBIT growth 5Y11.15%
EBIT Next Year23.18%
EBIT Next 3Y16.18%
EBIT Next 5Y13.75%
FCF growth 1Y52.98%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y46.49%
OCF growth 3Y16.02%
OCF growth 5Y12.55%