Despite its growth, NASDAQ:META remains within the realm of affordability.

Last update: May 15, 2024

Our stock screener has singled out META PLATFORMS INC-CLASS A (NASDAQ:META) as an attractive growth opportunity. NASDAQ:META is demonstrating remarkable growth potential while maintaining strong financial indicators, making it a reasonably priced option. We'll explore this further.

Growth Analysis 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:

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.
The Earnings Per Share has been growing by 14.50% on average over the past years. This is quite good.
The Revenue has grown by 21.62% in the past year. This is a very strong growth!
The Revenue has been growing by 19.29% on average over the past years. This is quite good.
Based on estimates for the next years, META will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.58% on average per year.
The Revenue is expected to grow by 12.27% on average over the next years. This is quite good.

Valuation Analysis for NASDAQ:META

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:META, the assigned 6 reflects its valuation:

Based on the Price/Earnings ratio, META is valued a bit cheaper than the industry average as 70.15% of the companies are valued more expensively.
Based on the Price/Forward Earnings ratio, META is valued a bit cheaper than 68.66% of the companies in the same industry.
68.66% of the companies in the same industry are more expensive than META, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of META indicates a somewhat cheap valuation: META is cheaper than 71.64% 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.
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.

Health Analysis for NASDAQ:META

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:META has earned a 8 out of 10:

META has an Altman-Z score of 11.99. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of META (11.99) is better than 91.04% of its industry peers.
META has a debt to FCF ratio of 0.37. This is a very positive value and a sign of high solvency as it would only need 0.37 years to pay back of 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 has a Current 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 of 2.68. This indicates that META is financially healthy and has no problem in meeting its short term obligations.

Understanding NASDAQ:META's Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:META was assigned a score of 8 for profitability:

META has a better Return On Assets (20.53%) than 97.01% of its industry peers.
META has a better Return On Equity (30.60%) than 95.52% of its industry peers.
The Return On Invested Capital of META (24.19%) is better than 95.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for META is significantly above the industry average of 10.06%.
The last Return On Invested Capital (24.19%) for META is above the 3 year average (22.24%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 32.06%, META belongs to the top of the industry, outperforming 95.52% of the companies in the same industry.
Looking at the Operating Margin, with a value of 38.70%, META belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Gross Margin, with a value of 81.50%, META is in the better half of the industry, outperforming 74.63% of the companies in the same industry.

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.