MASTERCARD INC - A (M4I.DE) Stock Fundamental Analysis
FRA:M4I - US57636Q1040 - Common Stock
511.3 EUR
+2.4 (+0.47%)
We assign a fundamental rating of 6 out of 10 to M4I. M4I was compared to 50 industry peers in the Financial Services industry. Both the health and profitability get an excellent rating, making M4I a very profitable company, without any liquidiy or solvency issues. While showing a medium growth rate, M4I is valued expensive at the moment. These ratings could make M4I a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year M4I was profitable.
In the past year M4I had a positive cash flow from operations.
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 Return On Assets of 26.42%. This is amongst the best in the industry. M4I outperforms 96.00% of its industry peers.
With an excellent Return On Equity value of 173.00%, M4I belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With an excellent Return On Invested Capital value of 45.82%, M4I belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
M4I had an Average Return On Invested Capital over the past 3 years of 45.83%. This is significantly above the industry average of 10.94%.
| 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
M4I has a Profit Margin of 44.93%. This is amongst the best in the industry. M4I outperforms 86.00% of its industry peers.
M4I's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 58.98%, M4I belongs to the best of the industry, outperforming 88.00% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so M4I is creating value.
M4I has less shares outstanding than it did 1 year ago.
The number of shares outstanding for M4I has been reduced compared to 5 years ago.
Compared to 1 year ago, M4I has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 11.33 indicates that M4I is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 11.33, M4I belongs to the best of the industry, outperforming 94.00% of the companies in the same industry.
M4I has a debt to FCF ratio of 1.20. This is a very positive value and a sign of high solvency as it would only need 1.20 years to pay back of all of its debts.
M4I has a Debt to FCF ratio of 1.20. This is amongst the best in the industry. M4I outperforms 82.00% of its industry peers.
A Debt/Equity ratio of 2.42 is on the high side and indicates that M4I has dependencies on debt financing.
M4I has a Debt to Equity ratio of 2.42. This is in the lower half of the industry: M4I underperforms 70.00% 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 | 11.33 |
ROIC/WACC5.3
WACC8.65%
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 of 1.16. This is comparable to the rest of the industry: M4I outperforms 48.00% of its industry peers.
A Quick Ratio of 1.16 indicates that M4I should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.16, M4I perfoms like the industry average, outperforming 48.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 1.16 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 15.74% over the past year.
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 15.30% yearly.
Based on estimates for the next years, M4I will show a quite strong growth in Revenue. The Revenue will grow by 11.65% on average per year.
EPS Next Y15.4%
EPS Next 2Y15.7%
EPS Next 3Y15.94%
EPS Next 5Y15.3%
Revenue Next Year16.09%
Revenue Next 2Y14.1%
Revenue Next 3Y13.33%
Revenue Next 5Y11.65%
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
M4I is valuated quite expensively with a Price/Earnings ratio of 38.24.
M4I's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.13. M4I is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 30.48, M4I can be considered very expensive at the moment.
M4I's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.76. M4I is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.24 | ||
| Fwd PE | 30.48 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of M4I is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as M4I.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.96 | ||
| EV/EBITDA | 28.95 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
M4I has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as M4I's earnings are expected to grow with 15.94% in the coming years.
PEG (NY)2.48
PEG (5Y)2.85
EPS Next 2Y15.7%
EPS Next 3Y15.94%
5. Dividend
5.1 Amount
With a yearly dividend of 0.51%, M4I is not a good candidate for dividend investing.
M4I's Dividend Yield is comparable with the industry average which is at 3.49.
With a Dividend Yield of 0.51, M4I pays less dividend than the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
5.2 History
On average, the dividend of M4I grows each year by 14.95%, which is quite nice.
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.
The dividend of M4I is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP19.15%
EPS Next 2Y15.7%
EPS Next 3Y15.94%
FRA:M4I (9/1/2025, 4:48:02 PM)
511.3
+2.4 (+0.47%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.29%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap462.22B
Analysts80
Price Target557.83 (9.1%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.51% |
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)1.38%
PT rev (3m)0.28%
EPS NQ rev (1m)4.95%
EPS NQ rev (3m)3.99%
EPS NY rev (1m)2.73%
EPS NY rev (3m)2.78%
Revenue NQ rev (1m)3.07%
Revenue NQ rev (3m)3.95%
Revenue NY rev (1m)1.97%
Revenue NY rev (3m)2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.24 | ||
| Fwd PE | 30.48 | ||
| P/S | 17.82 | ||
| P/FCF | 33.96 | ||
| P/OCF | 31.79 | ||
| P/B | 68.62 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.95 |
EPS(TTM)13.37
EY2.61%
EPS(NY)16.78
Fwd EY3.28%
FCF(TTM)15.06
FCFY2.94%
OCF(TTM)16.09
OCFY3.15%
SpS28.69
BVpS7.45
TBVpS-7
PEG (NY)2.48
PEG (5Y)2.85
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 | 11.33 |
F-Score5
WACC8.65%
ROIC/WACC5.3
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 Y15.4%
EPS Next 2Y15.7%
EPS Next 3Y15.94%
EPS Next 5Y15.3%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.84%
Revenue Next Year16.09%
Revenue Next 2Y14.1%
Revenue Next 3Y13.33%
Revenue Next 5Y11.65%
EBIT growth 1Y15.33%
EBIT growth 3Y17.33%
EBIT growth 5Y11.15%
EBIT Next Year23.09%
EBIT Next 3Y16.12%
EBIT Next 5Y13.73%
FCF growth 1Y52.98%
FCF growth 3Y16.25%
FCF growth 5Y12.75%
OCF growth 1Y46.49%
OCF growth 3Y16.02%
OCF growth 5Y12.55%