META PLATFORMS INC-CLASS A (META) Stock Fundamental Analysis
USA - NASDAQ:META - US30303M1027 - Common Stock
716.16 USD
+4.09 (+0.57%)
Taking everything into account, META scores 7 out of 10 in our fundamental rating. META was compared to 69 industry peers in the Interactive Media & Services industry. META scores excellent points on both the profitability and health parts. This is a solid base for a good stock. META is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings could make META a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
META had positive earnings in the past year.
META had a positive operating cash flow in the past year.
META had positive earnings in each of the past 5 years.
META had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
META has a better Return On Assets (24.26%) than 97.10% of its industry peers.
The Return On Equity of META (36.66%) is better than 98.55% of its industry peers.
The Return On Invested Capital of META (26.47%) is better than 95.65% 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 13.27%.
The last Return On Invested Capital (26.47%) for META is above the 3 year average (21.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.26% | ||
| ROE | 36.66% | ||
| ROIC | 26.47% |
ROA(3y)17.37%
ROA(5y)18.82%
ROE(3y)26.04%
ROE(5y)26.47%
ROIC(3y)21.71%
ROIC(5y)22.52%
1.3 Margins
META's Profit Margin of 39.99% is amongst the best of the industry. META outperforms 92.75% of its industry peers.
META's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 44.08%, META belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of META has remained more or less at the same level.
The Gross Margin of META (81.95%) is better than 79.71% of its industry peers.
META's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.08% | ||
| PM (TTM) | 39.99% | ||
| GM | 81.95% |
OM growth 3Y2.27%
OM growth 5Y0.68%
PM growth 3Y4.33%
PM growth 5Y7.71%
GM growth 3Y0.37%
GM growth 5Y-0.06%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), META is creating value.
META has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, META has less shares outstanding
META has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 12.91 indicates that META is not in any danger for bankruptcy at the moment.
META's Altman-Z score of 12.91 is amongst the best of the industry. META outperforms 91.30% of its industry peers.
The Debt to FCF ratio of META is 0.58, which is an excellent value as it means it would take META, only 0.58 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.58, META is doing good in the industry, outperforming 76.81% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that META is not too dependend on debt financing.
META has a Debt to Equity ratio of 0.15. This is comparable to the rest of the industry: META outperforms 47.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 12.91 |
ROIC/WACC2.75
WACC9.62%
2.3 Liquidity
META has a Current Ratio of 1.97. This is a normal value and indicates that META is financially healthy and should not expect problems in meeting its short term obligations.
META has a Current ratio of 1.97. This is comparable to the rest of the industry: META outperforms 53.62% of its industry peers.
A Quick Ratio of 1.97 indicates that META should not have too much problems paying its short term obligations.
META has a Quick ratio (1.97) which is in line with its industry peers.
META does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.99% over the past year.
META shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.82% yearly.
The Revenue has grown by 19.38% in the past year. This is quite good.
The Revenue has been growing by 18.40% on average over the past years. This is quite good.
EPS 1Y (TTM)40.99%
EPS 3Y20.12%
EPS 5Y22.82%
EPS Q2Q%38.37%
Revenue 1Y (TTM)19.38%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%21.61%
3.2 Future
Based on estimates for the next years, META will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.83% on average per year.
The Revenue is expected to grow by 14.60% on average over the next years. This is quite good.
EPS Next Y20.11%
EPS Next 2Y13.11%
EPS Next 3Y13.47%
EPS Next 5Y13.83%
Revenue Next Year19.83%
Revenue Next 2Y17.95%
Revenue Next 3Y16.61%
Revenue Next 5Y14.6%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 25.93, META can be considered very expensive at the moment.
META's Price/Earnings ratio is in line with the industry average.
META's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.29.
A Price/Forward Earnings ratio of 23.40 indicates a rather expensive valuation of META.
META's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of META to the average of the S&P500 Index (22.85), we can say META is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.93 | ||
| Fwd PE | 23.4 |
4.2 Price Multiples
62.32% of the companies in the same industry are more expensive than META, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as META.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.88 | ||
| EV/EBITDA | 18.17 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of META may justify a higher PE ratio.
META's earnings are expected to grow with 13.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.29
PEG (5Y)1.14
EPS Next 2Y13.11%
EPS Next 3Y13.47%
5. Dividend
5.1 Amount
With a yearly dividend of 0.29%, META is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.74, META pays a better dividend. On top of this META pays more dividend than 88.41% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, META's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
5.2 History
META is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
META pays out 7.26% of its income as dividend. This is a sustainable payout ratio.
DP7.26%
EPS Next 2Y13.11%
EPS Next 3Y13.47%
NASDAQ:META (10/17/2025, 2:50:07 PM)
716.16
+4.09 (+0.57%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners79.76%
Inst Owner Change-0.13%
Ins Owners0.04%
Ins Owner Change-2.12%
Market Cap1799.09B
Analysts83.47
Price Target868.93 (21.33%)
Short Float %1.21%
Short Ratio2.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
Yearly Dividend1.99
Dividend Growth(5Y)N/A
DP7.26%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.85%
Min EPS beat(2)18.31%
Max EPS beat(2)19.39%
EPS beat(4)4
Avg EPS beat(4)16.58%
Min EPS beat(4)12.55%
Max EPS beat(4)19.39%
EPS beat(8)8
Avg EPS beat(8)13.02%
EPS beat(12)10
Avg EPS beat(12)6.15%
EPS beat(16)11
Avg EPS beat(16)4%
Revenue beat(2)2
Avg Revenue beat(2)2.09%
Min Revenue beat(2)0.22%
Max Revenue beat(2)3.97%
Revenue beat(4)3
Avg Revenue beat(4)0.95%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)3.97%
Revenue beat(8)4
Avg Revenue beat(8)0.34%
Revenue beat(12)7
Avg Revenue beat(12)0.36%
Revenue beat(16)7
Avg Revenue beat(16)-0.38%
PT rev (1m)0.2%
PT rev (3m)19.16%
EPS NQ rev (1m)0.01%
EPS NQ rev (3m)11.86%
EPS NY rev (1m)-0.46%
EPS NY rev (3m)10.31%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)7.28%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)4.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.93 | ||
| Fwd PE | 23.4 | ||
| P/S | 10.06 | ||
| P/FCF | 35.88 | ||
| P/OCF | 17.59 | ||
| P/B | 9.22 | ||
| P/tB | 10.31 | ||
| EV/EBITDA | 18.17 |
EPS(TTM)27.62
EY3.86%
EPS(NY)30.6
Fwd EY4.27%
FCF(TTM)19.96
FCFY2.79%
OCF(TTM)40.72
OCFY5.69%
SpS71.18
BVpS77.65
TBVpS69.43
PEG (NY)1.29
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.26% | ||
| ROE | 36.66% | ||
| ROCE | 30.61% | ||
| ROIC | 26.47% | ||
| ROICexc | 32.39% | ||
| ROICexgc | 35.92% | ||
| OM | 44.08% | ||
| PM (TTM) | 39.99% | ||
| GM | 81.95% | ||
| FCFM | 28.04% |
ROA(3y)17.37%
ROA(5y)18.82%
ROE(3y)26.04%
ROE(5y)26.47%
ROIC(3y)21.71%
ROIC(5y)22.52%
ROICexc(3y)31.35%
ROICexc(5y)34.01%
ROICexgc(3y)37.1%
ROICexgc(5y)41.77%
ROCE(3y)25.11%
ROCE(5y)26.05%
ROICexcg growth 3Y-7.04%
ROICexcg growth 5Y-5.9%
ROICexc growth 3Y-4.25%
ROICexc growth 5Y-1.49%
OM growth 3Y2.27%
OM growth 5Y0.68%
PM growth 3Y4.33%
PM growth 5Y7.71%
GM growth 3Y0.37%
GM growth 5Y-0.06%
F-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.58 | ||
| Debt/EBITDA | 0.3 | ||
| Cap/Depr | 311.81% | ||
| Cap/Sales | 29.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.07% | ||
| Profit Quality | 70.11% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 12.91 |
F-Score6
WACC9.62%
ROIC/WACC2.75
Cap/Depr(3y)282.06%
Cap/Depr(5y)259.9%
Cap/Sales(3y)23.27%
Cap/Sales(5y)20.63%
Profit Quality(3y)93.65%
Profit Quality(5y)92.28%
High Growth Momentum
Growth
EPS 1Y (TTM)40.99%
EPS 3Y20.12%
EPS 5Y22.82%
EPS Q2Q%38.37%
EPS Next Y20.11%
EPS Next 2Y13.11%
EPS Next 3Y13.47%
EPS Next 5Y13.83%
Revenue 1Y (TTM)19.38%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%21.61%
Revenue Next Year19.83%
Revenue Next 2Y17.95%
Revenue Next 3Y16.61%
Revenue Next 5Y14.6%
EBIT growth 1Y30.02%
EBIT growth 3Y14.27%
EBIT growth 5Y19.21%
EBIT Next Year76.64%
EBIT Next 3Y33.07%
EBIT Next 5Y27.17%
FCF growth 1Y108.61%
FCF growth 3Y11.4%
FCF growth 5Y20.58%
OCF growth 1Y84.29%
OCF growth 3Y16.55%
OCF growth 5Y20.26%