Marqeta Inc. Class A Common Stock (MQ)
Fast GrowerFairStock Score: 62/100 — STEADY
Key Financials
| Current Price | $3.81 |
| Market Cap | $1.8B |
| P/E Ratio | 381 |
| ROE | 0.25% |
| Dividend Yield | —% |
| Sector | Technology |
Strengths
- Generates $129 million in annual free cash flow (7.1% yield on market cap)
- Conservative balance sheet with debt-to-equity of just 0.01, providing financial flexibility
- Revenue growth of 26.8% demonstrates strong top-line momentum
Concerns
- Trades significantly above Graham Number ($1) with negative 582% margin of safety—limited downside protection
- Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
- Altman Z-Score of 1.2 places it in the financial distress zone—elevated bankruptcy risk
AI Analysis
Marqeta Inc. Class A Common Stock is a micro-cap technology company valued at $1.8 billion. Revenue stands at $652 million, though the company is currently unprofitable. From a quality standpoint, Marqeta shows distressed Altman Z-Score of 1.2 warrants caution and modest 0% ROE. On valuation, the stock is commanding a steep 419.0x multiple, with trades far above its Graham Number ($1) with no margin of safety. Growth dynamics show revenue growing at 26.8% and profit growth of 94.9%. Our composite FairStock Score of 62/100 reflects above-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.
Bull Case
Marqeta's 27% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $129 million in annual free cash flow (7.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
At 419x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.
Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer