MARQETA INC-A (MQ) Stock Fundamental Analysis
NASDAQ:MQ - Nasdaq - US57142B1044 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to MQ. MQ was compared to 99 industry peers in the Financial Services industry. No worries on liquidiy or solvency for MQ as it has an excellent financial health rating, but there are worries on the profitability. MQ is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MQ was profitable.
MQ had a positive operating cash flow in the past year.
In the past 5 years MQ reported 4 times negative net income.
Of the past 5 years MQ 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MQ (4.08%) is better than 72.73% of its industry peers.
MQ has a Return On Equity of 5.58%. This is in the lower half of the industry: MQ underperforms 63.64% of its industry peers.
MQ has a Return On Invested Capital of 0.54%. This is in the lower half of the industry: MQ underperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 5.58% | ||
| ROIC | 0.54% |
ROA(3y)-7.53%
ROA(5y)-8.4%
ROE(3y)-9.32%
ROE(5y)-10.99%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 10.43%, MQ is in line with its industry, outperforming 51.52% of the companies in the same industry.
With a Operating Margin value of 1.30%, MQ is not doing good in the industry: 74.75% of the companies in the same industry are doing better.
Looking at the Gross Margin, with a value of 69.37%, MQ belongs to the top of the industry, outperforming 82.83% of the companies in the same industry.
MQ's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.3% | ||
| PM (TTM) | 10.43% | ||
| GM | 69.37% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y15.71%
GM growth 5Y10.45%
2. Health
2.1 Basic Checks
MQ has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MQ has been reduced compared to 1 year ago.
MQ has less shares outstanding than it did 5 years ago.
MQ has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 4.43 indicates that MQ is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 4.43, MQ belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
MQ has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.43 |
ROIC/WACC0.06
WACC9.05%
2.3 Liquidity
MQ has a Current Ratio of 3.18. This indicates that MQ is financially healthy and has no problem in meeting its short term obligations.
MQ's Current ratio of 3.18 is amongst the best of the industry. MQ outperforms 83.84% of its industry peers.
A Quick Ratio of 3.18 indicates that MQ has no problem at all paying its short term obligations.
MQ's Quick ratio of 3.18 is amongst the best of the industry. MQ outperforms 84.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.18 | ||
| Quick Ratio | 3.18 |
3. Growth
3.1 Past
MQ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 127.47%, which is quite impressive.
The Revenue has decreased by -8.44% in the past year.
Measured over the past years, MQ shows a very strong growth in Revenue. The Revenue has been growing by 28.75% on average per year.
EPS 1Y (TTM)127.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%71.43%
Revenue 1Y (TTM)-8.44%
Revenue growth 3Y-0.66%
Revenue growth 5Y28.75%
Sales Q2Q%17.89%
3.2 Future
The Earnings Per Share is expected to decrease by -3.80% on average over the next years.
The Revenue is expected to grow by 17.13% on average over the next years. This is quite good.
EPS Next Y-332.22%
EPS Next 2Y-70.81%
EPS Next 3Y14.74%
EPS Next 5Y-3.8%
Revenue Next Year16.53%
Revenue Next 2Y19.22%
Revenue Next 3Y19.77%
Revenue Next 5Y17.13%
3.3 Evolution
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 55.70, which means the current valuation is very expensive for MQ.
Compared to the rest of the industry, the Price/Earnings ratio of MQ indicates a slightly more expensive valuation: MQ is more expensive than 77.78% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.32, MQ is valued quite expensively.
MQ is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.7 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MQ is valued a bit more expensive than the industry average as 65.66% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MQ is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.08 | ||
| EV/EBITDA | 52.61 |
4.3 Compensation for Growth
A more expensive valuation may be justified as MQ's earnings are expected to grow with 14.74% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-70.81%
EPS Next 3Y14.74%
5. Dividend
5.1 Amount
No dividends for MQ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.57
+0.19 (+3.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners80.84%
Inst Owner Change-0.56%
Ins Owners5.73%
Ins Owner Change16.83%
Market Cap2.61B
Analysts76.52
Price Target5.36 (-3.77%)
Short Float %3.26%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)28.93%
Min EPS beat(2)7.54%
Max EPS beat(2)50.33%
EPS beat(4)3
Avg EPS beat(4)21.22%
Min EPS beat(4)-7.87%
Max EPS beat(4)50.33%
EPS beat(8)5
Avg EPS beat(8)9.21%
EPS beat(12)7
Avg EPS beat(12)8.99%
EPS beat(16)11
Avg EPS beat(16)24.69%
Revenue beat(2)0
Avg Revenue beat(2)-0.79%
Min Revenue beat(2)-0.89%
Max Revenue beat(2)-0.69%
Revenue beat(4)0
Avg Revenue beat(4)-1.27%
Min Revenue beat(4)-3.29%
Max Revenue beat(4)-0.2%
Revenue beat(8)3
Avg Revenue beat(8)1.14%
Revenue beat(12)5
Avg Revenue beat(12)0.85%
Revenue beat(16)8
Avg Revenue beat(16)2.85%
PT rev (1m)5.75%
PT rev (3m)5%
EPS NQ rev (1m)20.72%
EPS NQ rev (3m)41.65%
EPS NY rev (1m)0%
EPS NY rev (3m)35.4%
Revenue NQ rev (1m)-0.41%
Revenue NQ rev (3m)-0.78%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.7 | ||
| Fwd PE | N/A | ||
| P/S | 4.94 | ||
| P/FCF | 57.08 | ||
| P/OCF | 38.51 | ||
| P/B | 2.64 | ||
| P/tB | 3.12 | ||
| EV/EBITDA | 52.61 |
EPS(TTM)0.1
EY1.8%
EPS(NY)-0.05
Fwd EYN/A
FCF(TTM)0.1
FCFY1.75%
OCF(TTM)0.14
OCFY2.6%
SpS1.13
BVpS2.11
TBVpS1.78
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 5.58% | ||
| ROCE | 0.69% | ||
| ROIC | 0.54% | ||
| ROICexc | 128.29% | ||
| ROICexgc | N/A | ||
| OM | 1.3% | ||
| PM (TTM) | 10.43% | ||
| GM | 69.37% | ||
| FCFM | 8.65% |
ROA(3y)-7.53%
ROA(5y)-8.4%
ROE(3y)-9.32%
ROE(5y)-10.99%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y15.71%
GM growth 5Y10.45%
F-Score8
Asset Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 114.47% | ||
| Cap/Sales | 4.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 259.49% | ||
| Profit Quality | 82.95% | ||
| Current Ratio | 3.18 | ||
| Quick Ratio | 3.18 | ||
| Altman-Z | 4.43 |
F-Score8
WACC9.05%
ROIC/WACC0.06
Cap/Depr(3y)113.7%
Cap/Depr(5y)97.34%
Cap/Sales(3y)2.19%
Cap/Sales(5y)1.59%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)127.47%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%71.43%
EPS Next Y-332.22%
EPS Next 2Y-70.81%
EPS Next 3Y14.74%
EPS Next 5Y-3.8%
Revenue 1Y (TTM)-8.44%
Revenue growth 3Y-0.66%
Revenue growth 5Y28.75%
Sales Q2Q%17.89%
Revenue Next Year16.53%
Revenue Next 2Y19.22%
Revenue Next 3Y19.77%
Revenue Next 5Y17.13%
EBIT growth 1Y102.79%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year254.73%
EBIT Next 3Y80.14%
EBIT Next 5Y67.34%
FCF growth 1Y179.98%
FCF growth 3Y-12%
FCF growth 5YN/A
OCF growth 1Y191.44%
OCF growth 3Y0.7%
OCF growth 5YN/A