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 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. M4I is valied quite expensively at the moment, while it does show a decent growth rate. 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.
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 better Return On Assets (27.12%) than 96.00% of its industry peers.
The Return On Equity of M4I (197.02%) is better than 100.00% of its industry peers.
M4I has a better Return On Invested Capital (46.34%) 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 11.75%.
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
With an excellent Profit Margin value of 45.21%, M4I belongs to the best of the industry, outperforming 86.00% 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 58.69%, M4I belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
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 | 58.69% | ||
| 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.
The number of shares outstanding for M4I has been reduced compared to 1 year ago.
The number of shares outstanding for M4I has been reduced compared to 5 years ago.
The debt/assets ratio for M4I is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 11.28 indicates that M4I is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 11.28, M4I belongs to the top of the industry, outperforming 94.00% 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 84.00% of its industry peers.
A Debt/Equity ratio of 2.82 is on the high side and indicates that M4I has dependencies on debt financing.
M4I has a Debt to Equity ratio of 2.82. This is in the lower half of the industry: M4I underperforms 76.00% 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 | 2.82 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | 11.28 |
ROIC/WACC5.22
WACC8.87%
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.
The Current ratio of M4I (1.11) is comparable to the rest of the industry.
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 60.00% 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
M4I shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.70%, which is quite good.
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
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 Y12.29%
EPS Next 2Y14.47%
EPS Next 3Y15.2%
EPS Next 5Y15.3%
Revenue Next Year13.68%
Revenue Next 2Y12.78%
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.
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
Based on the Price/Earnings ratio of 37.19, the valuation of M4I can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of M4I indicates a slightly more expensive valuation: M4I is more expensive than 60.00% of the companies listed in the same industry.
M4I's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 26.31.
Based on the Price/Forward Earnings ratio of 29.21, the valuation of M4I can be described as expensive.
60.00% of the companies in the same industry are cheaper than M4I, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.13. M4I is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.19 | ||
| Fwd PE | 29.21 |
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.
M4I's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.47 | ||
| EV/EBITDA | 28.77 |
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 an outstanding 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 15.20% in the coming years.
PEG (NY)3.03
PEG (5Y)2.77
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 3.87, M4I has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, 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.
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.
DP19.22%
EPS Next 2Y14.47%
EPS Next 3Y15.2%
FRA:M4I (6/13/2025, 7:00:00 PM)
485.75
-22.85 (-4.49%)
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 Cap441.09B
Analysts80.42
Price Target552.97 (13.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend2.3
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)-0.6%
PT rev (3m)-7.04%
EPS NQ rev (1m)0.07%
EPS NQ rev (3m)1.87%
EPS NY rev (1m)0%
EPS NY rev (3m)0.35%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)2.22%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.19 | ||
| Fwd PE | 29.21 | ||
| P/S | 17.47 | ||
| P/FCF | 35.47 | ||
| P/OCF | 32.79 | ||
| P/B | 76.12 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.77 |
EPS(TTM)13.06
EY2.69%
EPS(NY)16.63
Fwd EY3.42%
FCF(TTM)13.69
FCFY2.82%
OCF(TTM)14.82
OCFY3.05%
SpS27.81
BVpS6.38
TBVpS-7.86
PEG (NY)3.03
PEG (5Y)2.77
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 | 11.28 |
F-Score5
WACC8.87%
ROIC/WACC5.22
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 Year13.68%
Revenue Next 2Y12.78%
Revenue Next 3Y12.52%
Revenue Next 5YN/A
EBIT growth 1Y13.54%
EBIT growth 3Y16.72%
EBIT growth 5Y10.81%
EBIT Next Year20.33%
EBIT Next 3Y15.47%
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%