NASDAQ:META is showing decent growth, but is still valued reasonably.

META PLATFORMS INC-CLASS A (NASDAQ:META) was identified as an affordable growth stock by our stock screener. NASDAQ:META is showing great growth, but also scores well on profitability, solvency and liquidity. At the same time it seems to be priced reasonably. We'll explore this a bit deeper below.

Evaluating Growth: NASDAQ:META

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:META has earned a 7 for growth:

• The Earnings Per Share has grown by an impressive 73.66% over the past year.
• The Earnings Per Share has been growing by 14.50% on average over the past years. This is quite good.
• META shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.69%.
• META shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.29% yearly.
• META is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.82% yearly.
• META is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.57% yearly.

Understanding NASDAQ:META's Valuation

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:

• META's Price/Earnings ratio is a bit cheaper when compared to the industry. META is cheaper than 62.69% of the companies 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.
• Compared to the rest of the industry, the Price/Free Cash Flow ratio of META indicates a somewhat cheap valuation: META is cheaper than 65.67% of the companies listed in the same industry.
• META's 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 21.93% in the coming years.

Unpacking NASDAQ:META's Health Rating

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:META scores a 8 out of 10:

• An Altman-Z score of 12.00 indicates that META is not in any danger for bankruptcy at the moment.
• META's Altman-Z score of 12.00 is amongst the best of the industry. META outperforms 91.04% of its industry peers.
• META has a debt to FCF ratio of 0.44. This is a very positive value and a sign of high solvency as it would only need 0.44 years to pay back of 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?

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:META, the assigned 8 is noteworthy for profitability:

• META's Return On Assets of 17.03% is amongst the best of the industry. META outperforms 92.54% of its industry peers.
• With an excellent Return On Equity value of 25.53%, META belongs to the best of the industry, outperforming 92.54% of the companies in the same industry.
• 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.
• The Average Return On Invested Capital over the past 3 years for META is significantly above the industry average of 9.61%.
• The Profit Margin of META (28.98%) is better 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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.