META PLATFORMS INC-CLASS A (META) Stock Fundamental Analysis
NASDAQ:META - US30303M1027 - Common Stock
735.11 USD
-3.59 (-0.49%)
736.3 USD
+1.19 (+0.16%)
Overall META gets a fundamental rating of 7 out of 10. We evaluated META against 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! This makes META very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
META had positive earnings in the past year.
In the past year META had a positive cash flow from operations.
Each year in the past 5 years META has been profitable.
Each year in the past 5 years META had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 24.26%, META belongs to the top of the industry, outperforming 98.55% of the companies in the same industry.
META has a better Return On Equity (36.66%) than 98.55% of its industry peers.
META's Return On Invested Capital of 26.47% is amongst the best of the industry. META outperforms 97.10% of its industry peers.
META had an Average Return On Invested Capital over the past 3 years of 21.71%. This is significantly above the industry average of 12.98%.
The 3 year average ROIC (21.71%) for META is below the current ROIC(26.47%), indicating increased profibility in the last year.
| 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 94.20% of its industry peers.
In the last couple of years the Profit Margin of META has grown nicely.
With an excellent Operating Margin value of 44.08%, META belongs to the best 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.
META has a Gross Margin of 81.95%. This is in the better half of the industry: META outperforms 79.71% of its industry peers.
In the last couple of years the Gross Margin of META has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so META is creating value.
META has less shares outstanding than it did 1 year ago.
META has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, META has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 13.31 indicates that META is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 13.31, META belongs to the top of the industry, outperforming 91.30% of the companies in the same industry.
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 | 13.31 |
ROIC/WACC2.82
WACC9.38%
2.3 Liquidity
A Current Ratio of 1.97 indicates that META should not have too much problems paying its short term obligations.
With a Current ratio value of 1.97, META perfoms like the industry average, outperforming 52.17% of the companies in the same industry.
A Quick Ratio of 1.97 indicates that META should not have too much problems paying its short term obligations.
The Quick ratio of META (1.97) is comparable to the rest of the industry.
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
META shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.99%, which is quite impressive.
The Earnings Per Share has been growing by 22.82% on average over the past years. This is a very strong growth
META shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.38%.
Measured over the past years, META shows a quite strong growth in Revenue. The Revenue has been growing by 18.40% on average per year.
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
The Earnings Per Share is expected to grow by 13.83% on average over the next years. This is quite good.
META is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.60% yearly.
EPS Next Y20.67%
EPS Next 2Y12.96%
EPS Next 3Y13.19%
EPS Next 5Y13.83%
Revenue Next Year19.73%
Revenue Next 2Y17.83%
Revenue Next 3Y16.56%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
META is valuated quite expensively with a Price/Earnings ratio of 26.62.
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 27.13.
Based on the Price/Forward Earnings ratio of 24.09, the valuation of META can be described as rather expensive.
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 (22.76), we can say META is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.62 | ||
| Fwd PE | 24.09 |
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 | 36.83 | ||
| EV/EBITDA | 18.87 |
4.3 Compensation for Growth
META's 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.
A more expensive valuation may be justified as META's earnings are expected to grow with 13.19% in the coming years.
PEG (NY)1.29
PEG (5Y)1.17
EPS Next 2Y12.96%
EPS Next 3Y13.19%
5. Dividend
5.1 Amount
META has a yearly dividend return of 0.28%, which is pretty low.
Compared to an average industry Dividend Yield of 2.91, 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 2.32, META's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
5.2 History
META does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
7.26% of the earnings are spent on dividend by META. This is a low number and sustainable payout ratio.
DP7.26%
EPS Next 2Y12.96%
EPS Next 3Y13.19%
735.11
-3.59 (-0.49%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners79.87%
Inst Owner Change0.25%
Ins Owners0.02%
Ins Owner Change-3.26%
Market Cap1846.70B
Analysts84.16
Price Target865.94 (17.8%)
Short Float %1.28%
Short Ratio2.3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
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)15.49%
PT rev (3m)20.92%
EPS NQ rev (1m)7.18%
EPS NQ rev (3m)5.96%
EPS NY rev (1m)10.44%
EPS NY rev (3m)11.06%
Revenue NQ rev (1m)3.61%
Revenue NQ rev (3m)5.2%
Revenue NY rev (1m)4.11%
Revenue NY rev (3m)4.74%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.62 | ||
| Fwd PE | 24.09 | ||
| P/S | 10.33 | ||
| P/FCF | 36.83 | ||
| P/OCF | 18.05 | ||
| P/B | 9.47 | ||
| P/tB | 10.59 | ||
| EV/EBITDA | 18.87 |
EPS(TTM)27.62
EY3.76%
EPS(NY)30.52
Fwd EY4.15%
FCF(TTM)19.96
FCFY2.71%
OCF(TTM)40.72
OCFY5.54%
SpS71.18
BVpS77.65
TBVpS69.43
PEG (NY)1.29
PEG (5Y)1.17
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 | 13.31 |
F-Score6
WACC9.38%
ROIC/WACC2.82
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 Y20.67%
EPS Next 2Y12.96%
EPS Next 3Y13.19%
EPS Next 5Y13.83%
Revenue 1Y (TTM)19.38%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%21.61%
Revenue Next Year19.73%
Revenue Next 2Y17.83%
Revenue Next 3Y16.56%
Revenue Next 5Y14.6%
EBIT growth 1Y30.02%
EBIT growth 3Y14.27%
EBIT growth 5Y19.21%
EBIT Next Year75.14%
EBIT Next 3Y32.64%
EBIT Next 5Y27.12%
FCF growth 1Y108.61%
FCF growth 3Y11.4%
FCF growth 5Y20.58%
OCF growth 1Y84.29%
OCF growth 3Y16.55%
OCF growth 5Y20.26%