META PLATFORMS INC-CLASS A (META)
US30303M1027 - Common Stock
We assign a fundamental rating of 7 out of 10 to META. META was compared to 68 industry peers in the Interactive Media & Services industry. META scores excellent points on both the profitability and health parts. This is a solid base for a good stock. META is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make META suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
META had positive earnings in the past year.
In the past year META had a positive cash flow from operations.
Each year in the past 5 years META has been profitable.
META had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
META's Return On Assets of 20.53% is amongst the best of the industry. META outperforms 97.01% of its industry peers.
META has a better Return On Equity (30.60%) than 95.52% of its industry peers.
With an excellent Return On Invested Capital value of 24.19%, META belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for META is significantly above the industry average of 9.68%.
The 3 year average ROIC (22.24%) for META is below the current ROIC(24.19%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.53% | ||
| ROE | 30.6% | ||
| ROIC | 24.19% |
ROA(3y)17.75%
ROA(5y)17.08%
ROE(3y)25.17%
ROE(5y)23.3%
ROIC(3y)22.24%
ROIC(5y)21.38%
1.3 Margins
META has a Profit Margin of 32.06%. This is amongst the best in the industry. META outperforms 95.52% of its industry peers.
META's Profit Margin has declined in the last couple of years.
The Operating Margin of META (38.70%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of META has declined.
The Gross Margin of META (81.50%) is better than 74.63% of its industry peers.
In the last couple of years the Gross Margin of META has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.7% | ||
| PM (TTM) | 32.06% | ||
| GM | 81.5% |
OM growth 3Y-1.49%
OM growth 5Y-4.03%
PM growth 3Y-5.09%
PM growth 5Y-6.05%
GM growth 3Y0.06%
GM growth 5Y-0.61%
2. Health
2.1 Basic Checks
META has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
META has less shares outstanding than it did 1 year ago.
META has less shares outstanding than it did 5 years ago.
The debt/assets ratio for META is higher compared to a year ago.
2.2 Solvency
META has an Altman-Z score of 11.86. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 11.86, META belongs to the best of the industry, outperforming 91.04% of the companies in the same industry.
The Debt to FCF ratio of META is 0.37, which is an excellent value as it means it would take META, only 0.37 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.37, META belongs to the top of the industry, outperforming 80.60% of the companies in the same industry.
META has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
META's Debt to Equity ratio of 0.12 is on the low side compared to the rest of the industry. META is outperformed by 61.19% of its industry peers.
Even though the debt/equity ratio score it not favorable for META, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 11.86 |
ROIC/WACC2.67
WACC9.05%
2.3 Liquidity
META has a Current Ratio of 2.68. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.68, META is in line with its industry, outperforming 52.24% of the companies in the same industry.
META has a Quick Ratio of 2.68. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
META has a Quick ratio (2.68) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.68 |
3. Growth
3.1 Past
META shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 116.00%, which is quite impressive.
Measured over the past years, META shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.50% on average per year.
META shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.62%.
META shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.29% yearly.
EPS 1Y (TTM)116%
EPS 3Y15.03%
EPS 5Y14.5%
EPS growth Q2Q114.09%
Revenue 1Y (TTM)21.62%
Revenue growth 3Y16.21%
Revenue growth 5Y19.29%
Revenue growth Q2Q27.26%
3.2 Future
The Earnings Per Share is expected to grow by 16.58% on average over the next years. This is quite good.
META is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.27% yearly.
EPS Next Y37.06%
EPS Next 2Y25.9%
EPS Next 3Y21.93%
EPS Next 5Y16.58%
Revenue Next Year18.31%
Revenue Next 2Y15.46%
Revenue Next 3Y14.12%
Revenue Next 5Y12.27%
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.
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
Based on the Price/Earnings ratio of 26.86, the valuation of META can be described as expensive.
Based on the Price/Earnings ratio, META is valued a bit cheaper than 68.66% of the companies in the same industry.
META is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.02, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.80, the valuation of META can be described as rather expensive.
META's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. META is cheaper than 70.15% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of META to the average of the S&P500 Index (20.58), we can say META is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.86 | ||
| Fwd PE | 19.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, META is valued a bit cheaper than the industry average as 71.64% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, META is valued a bit cheaper than the industry average as 71.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.94 | ||
| EV/EBITDA | 16.59 |
4.3 Compensation for Growth
META's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
META has an outstanding profitability rating, which may justify a higher PE ratio.
META's earnings are expected to grow with 21.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)1.85
EPS Next 2Y25.9%
EPS Next 3Y21.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.45%, META is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 14.65, META pays a better dividend. On top of this META pays more dividend than 88.06% of the companies listed in the same industry.
With a Dividend Yield of 0.45, META pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
5.2 History
META is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y25.9%
EPS Next 3Y21.93%
META PLATFORMS INC-CLASS A
NASDAQ:META (5/7/2024, 2:44:09 PM)
467.585
+1.9 (+0.41%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
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Market Cap1186.04B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
Dividend Growth(5Y)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.86 | ||
| Fwd PE | 19.8 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
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EPS(NY)
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SpS
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PEG (NY)0.72
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.53% | ||
| ROE | 30.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.7% | ||
| PM (TTM) | 32.06% | ||
| GM | 81.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
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ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
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Growth
EPS 1Y (TTM)116%
EPS 3Y15.03%
EPS 5Y
EPS growth Q2Q
EPS Next Y37.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.62%
Revenue growth 3Y16.21%
Revenue growth 5Y
Revenue growth Q2Q
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Revenue Next 3Y
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