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NASDAQ:META is showing good growth, while it is not too expensive.

By Mill Chart

Last update: Apr 3, 2024

Our stock screening tool has pinpointed META PLATFORMS INC-CLASS A (NASDAQ:META) as a growth stock that isn't overvalued. NASDAQ:META is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

How do we evaluate the Growth for NASDAQ:META?

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 impressive 73.66% over the past year.
  • 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.
  • Looking at the last year, META shows a quite strong growth in Revenue. The Revenue has grown by 15.69% in the last year.
  • META shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.29% yearly.
  • Based on estimates for the next years, META will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.82% on average per year.
  • META is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.57% yearly.

A Closer Look at Valuation for NASDAQ:META

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:META boasts a 5 out of 10:

  • Compared to the rest of the industry, the Price/Earnings ratio of META indicates a somewhat cheap valuation: META is cheaper than 61.19% of the companies listed in the same industry.
  • 64.18% of the companies in the same industry are more expensive than META, based on the Price/Forward Earnings ratio.
  • Based on the Enterprise Value to EBITDA ratio, META is valued a bit cheaper than the industry average as 65.67% of the companies are valued more expensively.
  • Based on the Price/Free Cash Flow ratio, META is valued a bit cheaper than 65.67% of the companies in the same industry.
  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The excellent profitability rating of META may justify a higher PE ratio.
  • A more expensive valuation may be justified as META's earnings are expected to grow with 21.73% in the coming years.

A Closer Look at Health for NASDAQ:META

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:META, the assigned 8 reflects its health status:

  • META has an Altman-Z score of 12.02. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 12.02, 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 0.44, which is an excellent value as it means it would take META, only 0.44 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.44, META belongs to the top of the industry, outperforming 80.60% of the companies in the same industry.
  • A Debt/Equity ratio of 0.12 indicates that META is not too dependend on debt financing.
  • META has a Current Ratio of 2.67. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
  • META has a Quick Ratio of 2.67. This indicates that META is financially healthy and has no problem in meeting its short term obligations.

How do we evaluate the Profitability for NASDAQ:META?

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:META has achieved a 8:

  • META has a better Return On Assets (17.03%) than 92.54% of its industry peers.
  • META has a better Return On Equity (25.53%) than 92.54% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 21.19%, META belongs to the top of the industry, outperforming 95.52% of the companies in the same industry.
  • META had an Average Return On Invested Capital over the past 3 years of 22.24%. This is significantly above the industry average of 9.57%.
  • META has a better Profit Margin (28.98%) than 95.52% of its industry peers.
  • META's Operating Margin of 36.41% is amongst the best of the industry. META outperforms 100.00% of its industry peers.
  • The Gross Margin of META (80.75%) is better than 73.13% of its industry peers.

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

For an up to date full fundamental analysis you can check the fundamental report of META

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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META PLATFORMS INC-CLASS A

NASDAQ:META (4/19/2024, 7:03:20 PM)

After market: 478 -3.07 (-0.64%)

481.07

-20.73 (-4.13%)

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