META PLATFORMS INC-CLASS A (NASDAQ:META) – A Strong Contender for Quality Investors

META PLATFORMS INC-CLASS A (NASDAQ:META) stands out as a potential candidate for quality investors, based on our Caviar Cruise screening methodology. The company demonstrates strong financial health, consistent growth, and high profitability, making it a compelling choice for long-term investors.

Key Strengths of META

• High Return on Invested Capital (ROIC): META’s ROIC (excluding cash and goodwill) is an impressive 40.75%, well above the 15% threshold for quality stocks. This indicates efficient use of capital to generate profits.
• Strong Revenue and EBIT Growth: Over the past five years, META has delivered 12.05% annual revenue growth and 19.21% EBIT growth, showing both expansion and improving profitability.
• Low Debt Relative to Cash Flow: The company’s debt-to-free-cash-flow ratio is just 0.55, meaning it could repay all its debt in less than a year using current cash flows.
• High Profit Quality: META converts 92.28% of its net income into free cash flow, reflecting strong earnings reliability.

Fundamental Analysis Summary

META earns a 7/10 in our fundamental analysis, with standout scores in profitability (9/10) and financial health (8/10). Key highlights include:

• Profitability: Exceptional margins, with a 43.00% operating margin and 39.11% net profit margin, ranking among the best in its industry.
• Growth: Consistent past growth in revenue and earnings, with analysts expecting 12.05% annual revenue growth in the coming years.
• Valuation: While not cheap, META trades in line with industry averages, justified by its strong fundamentals.

Our Caviar Cruise screener lists more quality stocks and is updated daily. For a deeper dive, review the full fundamental report on META.

Disclaimer

This is not investment advice. Always conduct your own research before making investment decisions.