Marqeta, Inc. (MQ) Stock Analysis and Metrics

Sector: Technology Industry: Software - Infrastructure CIK: 0001522540

P/B 2.58

P/E -54.67

P/S 3.68

Market Cap 2.17 Bn

ROIC (Qtr) -10.36

Div Yield % 0.00

Rev 1y % (Qtr) 27.62

Total Debt (Qtr) 4.84 Mn

Debt/Equity (Qtr) 0.01

About

Marqeta, Inc., often referred to as Marqeta, is a financial technology company that aims to revolutionize the payment experience through its cloud-based, open API platform. The company's primary goal is to enable businesses to create tailored and innovative payment card programs, offering configurability, flexibility, and control. Marqeta's platform empowers customers to construct and manage their card programs, providing a variety of services such as debit, prepaid, and credit card programs, as well as banking and money movement, risk management,...

Marqeta, Inc., often referred to as Marqeta, is a financial technology company that aims to revolutionize the payment experience through its cloud-based, open API platform. The company's primary goal is to enable businesses to create tailored and innovative payment card programs, offering configurability, flexibility, and control. Marqeta's platform empowers customers to construct and manage their card programs, providing a variety of services such as debit, prepaid, and credit card programs, as well as banking and money movement, risk management, and rewards products.

Marqeta's platform is designed to alleviate complexity for its customers, allowing them to concentrate on their areas of expertise while the company handles the complexities of managing the card programs. The platform is built on a cloud-native infrastructure, ensuring global scalability and reliability. Marqeta's customers can access the platform via a comprehensive self-service portal, the Marqeta Dashboard, which enables them to manage all aspects of their card program, including card configuration, servicing cardholders, tracking data and insights, managing disputes, and accessing risk control capabilities.

Marqeta's platform offers a unique advantage by providing a single, global platform for card issuing and transaction processing. This capability allows customers to swiftly and easily launch and manage their card programs, issue cards, and authorize and settle payment transactions. Furthermore, Marqeta's platform is highly scalable, enabling customers to expand their card programs efficiently and rapidly.

Marqeta has established relationships with major card networks, including Visa, Mastercard, and PULSE, and has agreements in place with these networks to process transactions on behalf of its customers. These agreements provide Marqeta with tiered incentives based on the processing volume of its customers' transactions, thereby reducing the overall cost of processing transactions. Marqeta's competitors primarily consist of other fintech companies and financial institutions that offer similar payment processing and card issuing services. However, Marqeta's platform and business model are intended to provide a more comprehensive and adaptable solution for customers, setting it apart from its competitors.

Marqeta's portfolio of intellectual property includes patents, trademarks, copyrights, trade secrets, license agreements, confidentiality procedures, non-disclosure agreements, and employee confidential information and invention assignment agreements. The company has a patent program designed to cover various aspects of its business in the United States and internationally. Marqeta is also subject to various government regulations, including consumer protection laws, privacy and data protection laws, anti-money laundering laws, and anti-bribery laws. To ensure compliance, the company has implemented an anti-money laundering program and appropriate privacy and data protection measures.

Marqeta's primary product and service offerings include its cloud-based, open API platform, which allows customers to build and manage their card programs. The company's platform supports various card types, including debit, prepaid, and credit cards, as well as banking and money movement, risk management, and rewards products. Marqeta's platform is designed to provide a comprehensive solution for businesses seeking to create customized payment card programs, with a focus on configurability, scalability, and reliability.

Stock Price Chart

Analysis

Pros

Strong operating cash flow of 134.06M provides robust 27.68x coverage of total debt 4.84M, indicating excellent debt servicing capability and financial flexibility.
Strong tangible asset base of 1.28B provides 264.36x coverage of total debt 4.84M, indicating robust asset backing and low credit risk.
Robust free cash flow of 106.34M exceeds capital expenditure of 27.71M by 3.84x, indicating strong organic growth funding capability.
Cash reserves of 981.77M provide ample 5.31x coverage of acquisition spending 185.04M, enabling strategic growth opportunities.
Operating cash flow of 134.06M fully covers other non-current liabilities 7.59M by 17.66x, showing strong long-term stability.

Cons

Operating cash flow of 134.06M barely covers its investment activities of 291.99M, with a coverage ratio of 0.46, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
The company's operating cash flow of 134.06M shows concerning coverage of stock compensation expenses of 111.99M, with a 1.20 ratio indicating potential earnings quality issues.
Operating earnings of (38.32M) show weak coverage of depreciation charges of 26.99M, with a -1.42 ratio indicating high capital intensity and potential reinvestment needs.
Retained earnings of (810.44M) provide limited buffer against comprehensive income items of 1.40M, which is -580.13x, indicating elevated exposure to market risks.
Operating cash flow of 134.06M is outpaced by equity issuance of (307.70M) (-0.44 ratio), indicating concerning reliance on equity markets for funding operations.

Peer Comparison

Companies in the Software - Infrastructure

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	MSFT	Microsoft Corp	3,542.10 Bn	33.76	12.06	60.56 Bn
2	ORCL	Oracle Corp	533.93 Bn	34.61	8.75	124.39 Bn
3	PLTR	Palantir Technologies Inc.	437.56 Bn	399.47	112.31	0.24 Bn
4	PANW	Palo Alto Networks Inc	125.16 Bn	112.03	13.10	0.35 Bn
5	CRWD	CrowdStrike Holdings, Inc.	120.85 Bn	-384.67	26.47	0.82 Bn
6	SNPS	Synopsys Inc	71.69 Bn	35.89	11.14	15.14 Bn
7	NET	Cloudflare, Inc.	67.84 Bn	-658.43	33.70	3.50 Bn
8	FTNT	Fortinet, Inc.	63.33 Bn	33.80	9.66	1.00 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	0.96	2.56
EV to Cash from Ops.	10.67	38.32
EV to Debt	295.30	-11.37
EV to EBIT	-37.32	-12.79
EV to EBITDA	-29.44	7.72
EV to Free Cash Flow [EV/FCF]	13.45	24.22
EV to Market Cap	0.66	0.58
EV to Revenue	2.43	-35.00
Price to Book Value [P/B]	2.58	3.74
Price to Earnings [P/E]	-54.67	-18.61

Dividend Metrics

Metric	Value	Industry	Percentile
Dividend Coverage Ratio	0.00	-0.30
Dividend Payout Ratio %	0.00	2.69
Dividend per Basic Share	0.00	0.10
FCF Dividend Payout Ratio %	0.00	1.67
Interest Coverage	0.00	-13.15

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-42.86	-404.11
Cash and Equivalents Growth (1y) %	9.70	226.02
Dividend Growth (1y) %	0.00	-0.27
EBIAT Growth (1y) %	-382.60	31.15
EBITDA Growth (1y) %	-82.58	49.02
EBIT Growth (1y) %	-385.94	25.85
EBT Growth (1y) %	-385.94	17.82
EPS Growth (1y) %	-550.00	70.69
FCF Growth (1y) %	248.24	295.45
Gross Profit Growth (1y) %	23.34	49.96

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.40	0.68
Cash Payout Ratio	0.00	0.02
Cash Ratio	1.54	1.21
Current Ratio	1.89	2.57
Debt to Equity Ratio	0.01	-0.93
Interest Cover Ratio	0.00	-13.15
Times Interest Earned	0.00	-13.15

Profitability

Metric	Value	Industry
EBITDA Margin %	-1.90	-544.82
EBIT Margin %	-6.51	-197.78
EBT Margin %	-6.51	-602.74
Gross Margin %	70.60	52.06
Net Profit Margin %	-6.70	-605.52

Marqeta, Inc. (NASDAQ: MQ)