Don't overlook NASDAQ:META—a stock with solid growth prospects and a reasonable valuation.

Consider META PLATFORMS INC-CLASS A (NASDAQ:META) as an affordable growth stock, identified by our stock screening tool. NASDAQ:META is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Exploring NASDAQ:META's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:META scores a 7 out of 10:

• The Earnings Per Share has grown by an nice 8.01% over the past year.
• META shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.46% yearly.
• META is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.36% yearly.
• The Revenue is expected to grow by 11.74% on average over the next years. This is quite good.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

What does the Valuation looks like for NASDAQ:META

ChartMill employs its own Valuation Rating system for all stocks. This score, ranging from 0 to 10, is determined by evaluating different valuation factors, including price to earnings and free cash flow, both in absolute terms and relative to the market and industry. NASDAQ:META has earned a 6 for valuation:

• Compared to the rest of the industry, the Price/Earnings ratio of META indicates a somewhat cheap valuation: META is cheaper than 67.19% of the companies listed in the same industry.
• Based on the Price/Forward Earnings ratio, META is valued a bit cheaper than 70.31% of the companies in the same industry.
• META's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. META is cheaper than 64.06% of the companies in the same industry.
• 70.31% of the companies in the same industry are more expensive than META, based on the Price/Free Cash Flow ratio.
• 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 34.21% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Health for NASDAQ:META?

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:META, the assigned 8 for health provides valuable insights:

• An Altman-Z score of 8.91 indicates that META is not in any danger for bankruptcy at the moment.
• META's Altman-Z score of 8.91 is amongst the best of the industry. META outperforms 89.06% of its industry peers.
• The Debt to FCF ratio of META is 0.51, which is an excellent value as it means it would take META, only 0.51 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of META (0.51) is better than 84.38% of its industry peers.
• META has a Debt/Equity ratio of 0.13. This is a healthy value indicating a solid balance between debt and equity.
• A Current Ratio of 2.57 indicates that META has no problem at all paying its short term obligations.
• A Quick Ratio of 2.57 indicates that META has no problem at all paying its short term obligations.

Exploring NASDAQ:META's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:META scores a 8 out of 10:

• With an excellent Return On Assets value of 13.75%, META belongs to the best of the industry, outperforming 92.19% of the companies in the same industry.
• META has a better Return On Equity (20.81%) than 90.63% of its industry peers.
• META has a Return On Invested Capital of 17.30%. This is amongst the best in the industry. META outperforms 95.31% of its industry peers.
• META had an Average Return On Invested Capital over the past 3 years of 21.42%. This is significantly above the industry average of 11.39%.
• The 3 year average ROIC (21.42%) for META is well above the current ROIC(17.30%). The reason for the recent decline needs to be investigated.
• Looking at the Profit Margin, with a value of 23.42%, META belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
• With an excellent Operating Margin value of 29.95%, META belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 78.96%, META is in the better half of the industry, outperforming 71.88% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

Check the latest full fundamental report of META for a complete fundamental analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.