Marqeta (MQ) AI Stock Analysis

• Market Cap: $2.56B
• Dividend Yield: N/A
• Average Volume (3M): 8.83M
• Price to Earnings (P/E): 54.5
• Beta (1Y): 0.55
• Revenue Growth: -8.44%
• EPS Growth: N/A
• Country: US
• Employees: 854
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Infrastructure
• EPS (TTM): -0.02
• Shares Outstanding: 434,975,920
• 10 Day Avg. Volume: 7,376,022
• 30 Day Avg. Volume: 8,832,748
• PEG Ratio: 0.93
• Price to Book (P/B): 2.14
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 58.56
• Enterprise Value/Market Cap: 0.49
• Enterprise Value/Revenue: 0.61
• Enterprise Value/Gross Profit: 5.13
• Enterprise Value/Ebitda: -4.27
• 1Y Price Target: $5.07
• Price Target Upside: -7.31% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 68 Neutral
• Price Target: $6.00 ▲(9.69%Upside)

The primary strengths are strong financial performance and technical indicators, suggesting growth potential. However, high valuation and some earnings call challenges pose risks.

Positive Factors

Financial Performance

Net revenue rose 18%, benefiting from a more favorable business mix.

Partnerships

Marqeta announced a partnership that will enable its customers to access American Express, which could help bring low-cost deposits and enhance its offerings.

Strategic Initiatives

The acquisition of TransactPay is seen as a positive move to accelerate capabilities and simplify customer experiences in Europe.

Negative Factors

Investor Confidence

Various factors are complicating year-over-year comparisons at Marqeta, leading to limited visibility and expected cautious investor behavior.

Operational Challenges

Launch delays and select customers moving services in-house have pressured the company’s revenue and gross profit growth.

Regulatory Environment

Regulatory pressures are moderating but remain a headwind, impacting stock performance due to delays in new card program launches.

Marqeta Business Overview & Revenue Model

Company Description

Marqeta, Inc. operates a cloud-based open application programming interface platform that delivers card issuing and transaction processing services to developers, technical product managers, and visionary entrepreneurs. It offers its solutions in various verticals, including commerce disruptors, digital banks, tech giants, and financial institutions. As of December 31, 2021, the company had approximately 200 customers. Marqeta, Inc. was incorporated in 2010 and is headquartered in Oakland, California.

How the Company Makes Money

Marqeta generates revenue primarily through its modern card issuing platform by charging its clients transaction-based fees. These fees are incurred whenever a card issued through Marqeta's platform is used for a transaction. Additionally, Marqeta earns revenue from service fees for providing card issuing and processing services, as well as through interchange fees shared with its clients. The company also benefits from strategic partnerships with major financial institutions and technology companies, which contribute to its revenue through collaboration on payment solutions and increased transaction volumes. Marqeta's business model is highly dependent on the growth of digital payments and the adoption of its platform by a diverse range of clients across different sectors.

Marqeta Financial Statement Overview

Summary

Marqeta shows a mixed financial performance. While the company has improved its net income position to a profit and maintains a strong equity ratio, its operational efficiency is challenged by negative EBIT margins. The cash flow position is stable, yet revenue fluctuations pose potential risks.

Income Statement

Marqeta shows a mixed performance in its income statement. The company achieved a gross profit margin of approximately 69.4% in 2024, demonstrating strong revenue efficiency. However, the net profit margin is approximately 5.38%, indicating modest profitability amidst past losses. Despite a reduction in revenue from the previous year, the company has significantly improved its net income position from a loss to a profit, which is a positive trajectory. Nevertheless, the EBIT margin is negative, reflecting challenges in operational efficiency.

Balance Sheet

Marqeta's balance sheet is strong, with a healthy equity ratio of 74.2% in 2024, indicating high financial stability and low reliance on debt. The debt-to-equity ratio is very low at 0.0008, suggesting minimal financial leverage. Return on equity is modest at 2.51%, showing limited efficiency in generating returns from shareholders' equity. Overall, the balance sheet reflects a robust financial position with substantial equity backing.

Cash Flow

The cash flow statement for Marqeta reveals a positive trend in operating cash flow and free cash flow, with a significant improvement from previous losses. The free cash flow to net income ratio shows efficient cash conversion. However, the free cash flow growth rate from 2023 to 2024 was negative due to a decline in revenue, which impacts the overall cash flow strength. Despite this, the company maintains a strong liquidity position.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
507.00M	676.17M	748.21M	517.17M	290.29M
	Gross Profit
351.85M	329.51M	320.00M	231.71M	117.91M
	EBIT
-24.47M	-283.01M	-209.81M	-162.01M	-47.09M
	EBITDA
-7.01M	-272.27M	-205.96M	-158.47M	-43.59M
	Net Income Common Stockholders
27.29M	-222.96M	-184.78M	-163.93M	-47.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.10B	1.25B	1.62B	1.70B	370.34M
	Total Assets
1.46B	1.59B	1.77B	1.83B	457.68M
	Total Debt
13.22M	16.93M	12.43M	12.43M	18.22M
	Net Debt
-909.80M	-964.05M	-1.17B	-1.24B	-202.21M
	Total Liabilities
378.19M	346.30M	297.39M	256.95M	169.52M
	Stockholders Equity
1.09B	1.24B	1.47B	1.57B	288.16M
Cash Flow		Free Cash Flow
55.75M	8.45M	-16.89M	52.60M	47.90M
	Operating Cash Flow
58.17M	21.10M	-12.97M	55.35M	50.27M
	Investing Cash Flow
70.79M	38.52M	28.72M	-329.12M	-57.56M
	Financing Cash Flow
-186.91M	-261.79M	-79.49M	1.30B	167.38M

Marqeta Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.47
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MQ, the sentiment is Positive. The current price of 5.47 is above the 20-day moving average (MA) of 5.16, above the 50-day MA of 4.45, and above the 200-day MA of 4.38, indicating a bullish trend. The MACD of 0.30 indicates Positive momentum. The RSI at 71.85 is Negative, neither overbought nor oversold. The STOCH value of 82.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MQ.

Marqeta Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATEN	74 Outperform	$1.32B	27.43	24.36%	1.31%	4.90%	9.91%
PAYO	73 Outperform	$2.54B	23.51	15.97%	―	14.86%	-0.94%
MQ	68 Neutral	$2.56B	54.54	5.01%	―	-8.44%	―
DOCN	66 Neutral	$2.61B	26.22	-41.63%	―	13.21%	109.61%
AVPT	65 Neutral	$3.98B	―	-8.39%	―	21.70%	-67.95%
BASE	64 Neutral	$1.05B	―	-55.90%	―	12.76%	16.97%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%

Marqeta Corporate Events

Marqeta Appoints New Board Members on April 18

On April 10, 2025, Marqeta, Inc. announced the upcoming resignation of two board members, Godfrey Sullivan and Helen Riley, effective as of the Annual Meeting on June 12, 2025. Both resignations are not due to any disagreements with the company, and the board expressed gratitude for their years of service. Subsequently, on April 18, 2025, the board appointed Wendy Thomas and Elaine Paul as new members, with both joining the Audit Committee. Ms. Paul will also serve on the Nomination and Governance Committee, while Ms. Thomas will join the Payments Innovation Committee. There are no conflicts of interest or prior transactions involving the new appointees that require disclosure.