META PLATFORMS INC-CLASS A (META) Stock Fundamental Analysis
NASDAQ:META - Nasdaq - US30303M1027 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to META. META was compared to 71 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 valued quite expensive, but it does show an excellent growth. 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.
META had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
META has a Return On Assets of 23.78%. This is amongst the best in the industry. META outperforms 97.18% of its industry peers.
META has a Return On Equity of 36.01%. This is amongst the best in the industry. META outperforms 97.18% of its industry peers.
META has a better Return On Invested Capital (25.71%) than 94.37% of its industry peers.
The Average Return On Invested Capital over the past 3 years for META is significantly above the industry average of 11.33%.
The last Return On Invested Capital (25.71%) for META is above the 3 year average (21.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.78% | ||
| ROE | 36.01% | ||
| ROIC | 25.71% |
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 39.11% is amongst the best of the industry. META outperforms 95.77% of its industry peers.
In the last couple of years the Profit Margin of META has grown nicely.
The Operating Margin of META (43.00%) is better than 100.00% of its industry peers.
In the last couple of years the Operating Margin of META has remained more or less at the same level.
Looking at the Gross Margin, with a value of 81.75%, META is in the better half of the industry, outperforming 74.65% of the companies in the same industry.
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 | 43% | ||
| PM (TTM) | 39.11% | ||
| GM | 81.75% |
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
The debt/assets ratio for META is higher compared to a year ago.
2.2 Solvency
META has an Altman-Z score of 12.41. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
META has a better Altman-Z score (12.41) than 95.77% of its industry peers.
The Debt to FCF ratio of META is 0.55, which is an excellent value as it means it would take META, only 0.55 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 0.55, META is doing good in the industry, outperforming 71.83% of the companies in the same industry.
META has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of META (0.16) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 12.41 |
ROIC/WACC2.84
WACC9.06%
2.3 Liquidity
A Current Ratio of 2.66 indicates that META has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.66, META is in the better half of the industry, outperforming 64.79% of the companies in the same industry.
META has a Quick Ratio of 2.66. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
META has a better Quick ratio (2.66) than 67.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 2.66 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 47.27% over the past year.
Measured over the past years, META shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.82% on average per year.
Looking at the last year, META shows a quite strong growth in Revenue. The Revenue has grown by 19.37% in the last year.
The Revenue has been growing by 18.40% on average over the past years. This is quite good.
EPS 1Y (TTM)47.27%
EPS 3Y20.12%
EPS 5Y22.82%
EPS Q2Q%36.52%
Revenue 1Y (TTM)19.37%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%16.07%
3.2 Future
META is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.09% yearly.
The Revenue is expected to grow by 12.05% on average over the next years. This is quite good.
EPS Next Y8.65%
EPS Next 2Y9.56%
EPS Next 3Y11.35%
EPS Next 5Y12.09%
Revenue Next Year14.3%
Revenue Next 2Y14.17%
Revenue Next 3Y13.16%
Revenue Next 5Y12.05%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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 24.85, META is valued on the expensive side.
META's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 26.60. META is around the same levels.
A Price/Forward Earnings ratio of 22.19 indicates a rather expensive valuation of META.
META's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.43. META is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 22.19 |
4.2 Price Multiples
META's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. META is cheaper than 64.79% of the companies in the same industry.
META's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.75 | ||
| EV/EBITDA | 17.18 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates META does not grow enough to justify the current Price/Earnings ratio.
META has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.87
PEG (5Y)1.09
EPS Next 2Y9.56%
EPS Next 3Y11.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.33%, META is not a good candidate for dividend investing.
META's Dividend Yield is rather good when compared to the industry average which is at 3.09. META pays more dividend than 87.32% of the companies in the same industry.
With a Dividend Yield of 0.33, META pays less dividend than the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
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
7.70% of the earnings are spent on dividend by META. This is a low number and sustainable payout ratio.
DP7.7%
EPS Next 2Y9.56%
EPS Next 3Y11.35%
637.1
-3.33 (-0.52%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners79%
Inst Owner Change-13.31%
Ins Owners0.03%
Ins Owner Change-2.38%
Market Cap1608.33B
Analysts83.29
Price Target716.13 (12.4%)
Short Float %1.42%
Short Ratio1.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.33% |
Yearly Dividend1.99
Dividend Growth(5Y)N/A
DP7.7%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.73%
Min EPS beat(2)16.07%
Max EPS beat(2)19.39%
EPS beat(4)4
Avg EPS beat(4)13.76%
Min EPS beat(4)7.03%
Max EPS beat(4)19.39%
EPS beat(8)8
Avg EPS beat(8)10.76%
EPS beat(12)9
Avg EPS beat(12)4.05%
EPS beat(16)11
Avg EPS beat(16)3.9%
Revenue beat(2)2
Avg Revenue beat(2)0.53%
Min Revenue beat(2)0.22%
Max Revenue beat(2)0.85%
Revenue beat(4)2
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)0.85%
Revenue beat(8)4
Avg Revenue beat(8)-0.06%
Revenue beat(12)6
Avg Revenue beat(12)-0.17%
Revenue beat(16)7
Avg Revenue beat(16)-0.48%
PT rev (1m)-6.26%
PT rev (3m)5.68%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)-1.97%
EPS NY rev (1m)1.89%
EPS NY rev (3m)0.53%
Revenue NQ rev (1m)-0.22%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.85 | ||
| Fwd PE | 22.19 | ||
| P/S | 9.44 | ||
| P/FCF | 30.75 | ||
| P/OCF | 16.73 | ||
| P/B | 8.69 | ||
| P/tB | 9.78 | ||
| EV/EBITDA | 17.18 |
EPS(TTM)25.64
EY4.02%
EPS(NY)28.71
Fwd EY4.51%
FCF(TTM)20.72
FCFY3.25%
OCF(TTM)38.07
OCFY5.98%
SpS67.48
BVpS73.29
TBVpS65.11
PEG (NY)2.87
PEG (5Y)1.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 23.78% | ||
| ROE | 36.01% | ||
| ROCE | 29.74% | ||
| ROIC | 25.71% | ||
| ROICexc | 35.97% | ||
| ROICexgc | 40.75% | ||
| OM | 43% | ||
| PM (TTM) | 39.11% | ||
| GM | 81.75% | ||
| FCFM | 30.71% |
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 | 0.16 | ||
| Debt/FCF | 0.55 | ||
| Debt/EBITDA | 0.32 | ||
| Cap/Depr | 273.32% | ||
| Cap/Sales | 25.71% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.64% | ||
| Profit Quality | 78.5% | ||
| Current Ratio | 2.66 | ||
| Quick Ratio | 2.66 | ||
| Altman-Z | 12.41 |
F-Score6
WACC9.06%
ROIC/WACC2.84
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)47.27%
EPS 3Y20.12%
EPS 5Y22.82%
EPS Q2Q%36.52%
EPS Next Y8.65%
EPS Next 2Y9.56%
EPS Next 3Y11.35%
EPS Next 5Y12.09%
Revenue 1Y (TTM)19.37%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%16.07%
Revenue Next Year14.3%
Revenue Next 2Y14.17%
Revenue Next 3Y13.16%
Revenue Next 5Y12.05%
EBIT growth 1Y31.06%
EBIT growth 3Y14.27%
EBIT growth 5Y19.21%
EBIT Next Year68.08%
EBIT Next 3Y31.31%
EBIT Next 5Y24.07%
FCF growth 1Y197.81%
FCF growth 3Y11.4%
FCF growth 5Y20.58%
OCF growth 1Y90.7%
OCF growth 3Y16.55%
OCF growth 5Y20.26%