MASTERCARD INC - A (M4I.DE) Stock Fundamental Analysis
FRA:M4I - Deutsche Boerse Ag - US57636Q1040 - Common Stock - Currency: EUR
Overall M4I gets a fundamental rating of 6 out of 10. We evaluated M4I against 50 industry peers in the Financial Services industry. M4I gets an excellent profitability rating and is at the same time showing great financial health properties. 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
M4I had positive earnings in the past year.
M4I had a positive operating cash flow in the past year.
Each year in the past 5 years M4I has been profitable.
M4I had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 27.12%, M4I belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
The Return On Equity of M4I (197.02%) is better than 100.00% of its industry peers.
The Return On Invested Capital of M4I (46.34%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for M4I is significantly above the industry average of 10.20%.
The last Return On Invested Capital (46.34%) for M4I 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
M4I's Profit Margin of 45.21% is amongst the best of the industry. M4I outperforms 94.00% of its industry peers.
M4I's Profit Margin has been stable in the last couple of years.
The Operating Margin of M4I (58.69%) is better than 90.00% of its industry peers.
M4I's Operating Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so M4I is creating value.
Compared to 1 year ago, M4I has less shares outstanding
M4I has less shares outstanding than it did 5 years ago.
M4I has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.52 indicates that M4I is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.52, M4I belongs to the top of the industry, outperforming 92.00% of the companies in the same industry.
M4I 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.
M4I's Debt to FCF ratio of 1.31 is amongst the best of the industry. M4I outperforms 86.00% of its industry peers.
M4I has a Debt/Equity ratio of 2.82. This is a high value indicating a heavy dependency on external financing.
The Debt to Equity ratio of M4I (2.82) is worse than 74.00% 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 | 2.82 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 11.52 |
ROIC/WACC5.17
WACC8.96%
2.3 Liquidity
M4I has a Current Ratio of 1.11. 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 Current ratio of 1.11 is in line compared to the rest of the industry. M4I outperforms 52.00% of its industry peers.
M4I has a Quick Ratio of 1.11. 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 1.11 is in line compared to the rest of the industry. M4I outperforms 58.00% of its industry peers.
The current and quick ratio evaluation for M4I 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
The Earnings Per Share has grown by an nice 17.70% over the past year.
Measured over the past years, M4I shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.43% on average per year.
The Revenue has grown by 13.12% in the past year. This is quite good.
Measured over the past years, M4I 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
Based on estimates for the next years, M4I will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.30% on average per year.
Based on estimates for the next years, M4I will show a quite strong growth in Revenue. The Revenue will grow by 12.56% on average per year.
EPS Next Y12.29%
EPS Next 2Y14.47%
EPS Next 3Y15.2%
EPS Next 5Y15.3%
Revenue Next Year13.67%
Revenue Next 2Y12.82%
Revenue Next 3Y12.56%
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 37.95, the valuation of M4I can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as M4I.
Compared to an average S&P500 Price/Earnings ratio of 26.03, M4I is valued a bit more expensive.
The Price/Forward Earnings ratio is 29.81, which means the current valuation is very expensive for M4I.
M4I's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 21.94. M4I is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.95 | ||
| Fwd PE | 29.81 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as M4I.
M4I's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.34 | ||
| EV/EBITDA | 29.72 |
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 excellent 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 15.20% in the coming years.
PEG (NY)3.09
PEG (5Y)2.83
EPS Next 2Y14.47%
EPS Next 3Y15.2%
5. Dividend
5.1 Amount
M4I has a yearly dividend return of 0.52%, which is pretty low.
Compared to an average industry Dividend Yield of 3.83, 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 | 0.52% |
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
19.22% 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.
DP19.22%
EPS Next 2Y14.47%
EPS Next 3Y15.2%
FRA:M4I (5/22/2025, 3:32:00 PM)
504
-4.5 (-0.88%)
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 Cap459.50B
Analysts80.41
Price Target556.28 (10.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend2.37
Dividend Growth(5Y)14.95%
DP19.22%
Div Incr Years6
Div Non Decr Years6
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)-2.76%
PT rev (3m)2.02%
EPS NQ rev (1m)1.73%
EPS NQ rev (3m)1.8%
EPS NY rev (1m)0.29%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)2.25%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)1.16%
Revenue NY rev (3m)1.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.95 | ||
| Fwd PE | 29.81 | ||
| P/S | 17.9 | ||
| P/FCF | 36.34 | ||
| P/OCF | 33.59 | ||
| P/B | 77.98 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.72 |
EPS(TTM)13.28
EY2.63%
EPS(NY)16.91
Fwd EY3.36%
FCF(TTM)13.87
FCFY2.75%
OCF(TTM)15.01
OCFY2.98%
SpS28.16
BVpS6.46
TBVpS-7.96
PEG (NY)3.09
PEG (5Y)2.83
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 | 11.52 |
F-Score5
WACC8.96%
ROIC/WACC5.17
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 Year13.67%
Revenue Next 2Y12.82%
Revenue Next 3Y12.56%
Revenue Next 5YN/A
EBIT growth 1Y13.54%
EBIT growth 3Y16.72%
EBIT growth 5Y10.81%
EBIT Next Year18.72%
EBIT Next 3Y15.16%
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%