MASTERCARD INC - A (M4I.DE) Stock Fundamental Analysis
FRA:M4I - Deutsche Boerse Ag - US57636Q1040 - Common Stock - Currency: EUR
Taking everything into account, M4I scores 6 out of 10 in our fundamental rating. M4I was compared to 51 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
M4I had positive earnings in the past year.
In the past year M4I had a positive cash flow from operations.
M4I had positive earnings in each of the past 5 years.
Each year in the past 5 years M4I had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 26.42%, M4I belongs to the best of the industry, outperforming 92.16% of the companies in the same industry.
M4I has a better Return On Equity (173.00%) than 98.04% of its industry peers.
M4I's Return On Invested Capital of 45.82% is amongst the best of the industry. M4I outperforms 98.04% of its industry peers.
M4I had an Average Return On Invested Capital over the past 3 years of 45.83%. This is significantly above the industry average of 12.61%.
| 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 84.31% of its industry peers.
In the last couple of years the Profit Margin of M4I has remained more or less at the same level.
The Operating Margin of M4I (58.98%) is better than 86.27% of its industry peers.
In the last couple of years the Operating Margin of M4I has remained more or less at the same level.
| 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
M4I 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 M4I has been reduced compared to 1 year ago.
Compared to 5 years ago, M4I has less shares outstanding
M4I has a worse debt/assets ratio than last year.
2.2 Solvency
M4I has an Altman-Z score of 11.01. This indicates that M4I is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.01, M4I belongs to the best of the industry, outperforming 92.16% 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 82.35% 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 72.55% of its industry peers.
Although M4I 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 | 2.42 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 11.01 |
ROIC/WACC5.3
WACC8.65%
2.3 Liquidity
M4I has a Current 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 has a Current ratio of 1.16. This is comparable to the rest of the industry: M4I outperforms 58.82% of its industry peers.
A Quick Ratio of 1.16 indicates that M4I should not have too much problems paying its short term obligations.
M4I's Quick ratio of 1.16 is fine compared to the rest of the industry. M4I outperforms 60.78% 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 15.30% yearly.
The Revenue is expected to grow by 12.52% on average over the next years. This is quite good.
EPS Next Y12.34%
EPS Next 2Y14.46%
EPS Next 3Y15.2%
EPS Next 5Y15.3%
Revenue Next Year13.86%
Revenue Next 2Y12.87%
Revenue Next 3Y12.52%
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
M4I is valuated quite expensively with a Price/Earnings ratio of 36.28.
M4I's Price/Earnings ratio is a bit more expensive when compared to the industry. M4I is more expensive than 60.78% of the companies in the same industry.
When comparing the Price/Earnings ratio of M4I to the average of the S&P500 Index (27.24), we can say M4I is valued slightly more expensively.
A Price/Forward Earnings ratio of 29.55 indicates a quite expensive valuation of M4I.
Compared to the rest of the industry, the Price/Forward Earnings ratio of M4I indicates a slightly more expensive valuation: M4I is more expensive than 60.78% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.42, M4I is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.28 | ||
| Fwd PE | 29.55 |
4.2 Price Multiples
M4I's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of M4I is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.37 | ||
| EV/EBITDA | 27.74 |
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.
M4I's earnings are expected to grow with 15.20% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.94
PEG (5Y)2.7
EPS Next 2Y14.46%
EPS Next 3Y15.2%
5. Dividend
5.1 Amount
M4I has a yearly dividend return of 0.54%, which is pretty low.
M4I's Dividend Yield is comparable with the industry average which is at 3.57.
With a Dividend Yield of 0.54, M4I pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
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
M4I pays out 19.15% of its income as dividend. This is a 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 2Y14.46%
EPS Next 3Y15.2%
FRA:M4I (8/4/2025, 7:00:00 PM)
489.05
+5.4 (+1.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners90.17%
Inst Owner ChangeN/A
Ins Owners0.05%
Ins Owner ChangeN/A
Market Cap444.08B
Analysts80
Price Target550.24 (12.51%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend2.32
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)-3.78%
PT rev (3m)1.87%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)-0.92%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.33%
Revenue NQ rev (1m)0.21%
Revenue NQ rev (3m)0.85%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)1.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.28 | ||
| Fwd PE | 29.55 | ||
| P/S | 16.98 | ||
| P/FCF | 32.37 | ||
| P/OCF | 30.29 | ||
| P/B | 65.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.74 |
EPS(TTM)13.48
EY2.76%
EPS(NY)16.55
Fwd EY3.38%
FCF(TTM)15.11
FCFY3.09%
OCF(TTM)16.14
OCFY3.3%
SpS28.8
BVpS7.48
TBVpS-7.02
PEG (NY)2.94
PEG (5Y)2.7
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 | 11.01 |
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 Y12.34%
EPS Next 2Y14.46%
EPS Next 3Y15.2%
EPS Next 5Y15.3%
Revenue 1Y (TTM)14.59%
Revenue growth 3Y14.26%
Revenue growth 5Y10.78%
Sales Q2Q%16.84%
Revenue Next Year13.86%
Revenue Next 2Y12.87%
Revenue Next 3Y12.52%
Revenue Next 5YN/A
EBIT growth 1Y15.33%
EBIT growth 3Y17.33%
EBIT growth 5Y11.15%
EBIT Next Year20.33%
EBIT Next 3Y15.47%
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%