MASTERCARD INC - A (M4I.DE) Stock Fundamental Analysis
Europe - FRA:M4I - US57636Q1040 - Common Stock
492.75 EUR
-2.35 (-0.47%)
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. Both the health and profitability get an excellent rating, making M4I a very profitable company, without any liquidiy or solvency issues. M4I is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make M4I suitable 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.
In the past 5 years M4I has always been profitable.
M4I had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
M4I's Return On Assets of 26.42% is amongst the best of the industry. M4I outperforms 100.00% of its industry peers.
M4I's Return On Equity of 173.00% is amongst the best of the industry. M4I outperforms 100.00% of its industry peers.
The Return On Invested Capital of M4I (45.82%) is better than 100.00% 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 8.73%.
| 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 better Profit Margin (44.93%) than 94.00% of its industry peers.
In the last couple of years the Profit Margin of M4I has remained more or less at the same level.
With an excellent Operating Margin value of 58.98%, M4I belongs to the best of the industry, outperforming 92.00% 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 | 58.98% | ||
| 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.
The number of shares outstanding for M4I has been reduced compared to 1 year ago.
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 11.08 indicates that M4I is not in any danger for bankruptcy at the moment.
The Altman-Z score of M4I (11.08) is better than 96.00% of its industry peers.
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.
The Debt to FCF ratio of M4I (1.20) is better than 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 worse Debt to Equity ratio (2.42) 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 | 2.42 | ||
| Debt/FCF | 1.2 | ||
| Altman-Z | 11.08 |
ROIC/WACC5.45
WACC8.41%
2.3 Liquidity
A Current Ratio of 1.16 indicates that M4I should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, M4I is doing worse than 60.00% of the companies in the same industry.
A Quick Ratio of 1.16 indicates that M4I should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.16, M4I is in line with its industry, outperforming 42.00% 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.
The Earnings Per Share has been growing by 13.43% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 15.33% on average over the next years. This is quite good.
M4I is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.67% yearly.
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.
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
The Price/Earnings ratio is 36.64, which means the current valuation is very expensive for M4I.
M4I's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.57, M4I is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 29.17, the valuation of M4I can be described as expensive.
M4I's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. M4I is more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.09, M4I is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.64 | ||
| Fwd PE | 29.17 |
4.2 Price Multiples
M4I's Enterprise Value to EBITDA is on the same level as the industry average.
M4I's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.53 | ||
| EV/EBITDA | 28.01 |
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)2.38
PEG (5Y)2.73
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 3.62, M4I has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, M4I's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.55% |
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 2Y15.74%
EPS Next 3Y15.99%
FRA:M4I (10/23/2025, 11:51:10 AM)
492.75
-2.35 (-0.47%)
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 Cap445.45B
Revenue(TTM)30.24B
Net Income(TTM)13.59B
Analysts79.57
Price Target561.06 (13.86%)
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 | 36.64 | ||
| Fwd PE | 29.17 | ||
| P/S | 17.07 | ||
| P/FCF | 32.53 | ||
| P/OCF | 30.45 | ||
| P/B | 65.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 28.01 |
EPS(TTM)13.45
EY2.73%
EPS(NY)16.89
Fwd EY3.43%
FCF(TTM)15.15
FCFY3.07%
OCF(TTM)16.18
OCFY3.28%
SpS28.87
BVpS7.5
TBVpS-7.04
PEG (NY)2.38
PEG (5Y)2.73
Graham Number47.63
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%
ROICexgc growth 3Y16.14%
ROICexgc 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 | 11.08 |
F-Score5
WACC8.41%
ROIC/WACC5.45
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%