META PLATFORMS INC-CLASS A (META) Stock Fundamental Analysis
NASDAQ:META - Nasdaq - US30303M1027 - Common Stock - Currency: USD
Overall META gets a fundamental rating of 7 out of 10. We evaluated META against 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 expensively, but it does show have an excellent growth rating. These ratings could make META a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year META was profitable.
In the past year META had a positive cash flow from operations.
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
The Return On Assets of META (23.78%) is better than 97.18% of its industry peers.
META's Return On Equity of 36.01% is amongst the best of the industry. META outperforms 97.18% of its industry peers.
With an excellent Return On Invested Capital value of 25.71%, META belongs to the best of the industry, outperforming 94.37% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for META is significantly above the industry average of 12.03%.
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
Looking at the Profit Margin, with a value of 39.11%, META belongs to the top of the industry, outperforming 95.77% of the companies in the same industry.
META's Profit Margin has improved in the last couple of years.
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 76.06% of the companies in the same industry.
META's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so META is creating value.
The number of shares outstanding for META has been reduced compared to 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 13.04 indicates that META is not in any danger for bankruptcy at the moment.
META's Altman-Z score of 13.04 is amongst the best of the industry. META outperforms 91.55% of its industry peers.
META has a debt to FCF ratio of 0.55. This is a very positive value and a sign of high solvency as it would only need 0.55 years to pay back of all of its debts.
META has a Debt to FCF ratio of 0.55. This is in the better half of the industry: META outperforms 76.06% of its industry peers.
META has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.16, META is in line with its industry, outperforming 47.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 13.04 |
ROIC/WACC2.87
WACC8.95%
2.3 Liquidity
A Current Ratio of 2.66 indicates that META has no problem at all paying its short term obligations.
META has a better Current ratio (2.66) than 60.56% of its industry peers.
A Quick Ratio of 2.66 indicates that META has no problem at all paying its short term obligations.
META has a better Quick ratio (2.66) than 61.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 2.66 |
3. Growth
3.1 Past
META shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.27%, which is quite impressive.
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 12.03% yearly.
Based on estimates for the next years, META will show a quite strong growth in Revenue. The Revenue will grow by 11.99% on average per year.
EPS Next Y8.65%
EPS Next 2Y9.56%
EPS Next 3Y11.35%
EPS Next 5Y12.03%
Revenue Next Year14.31%
Revenue Next 2Y14.16%
Revenue Next 3Y13.16%
Revenue Next 5Y11.99%
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.
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
The Price/Earnings ratio is 27.38, which means the current valuation is very expensive for META.
Compared to the rest of the industry, the Price/Earnings ratio of META is on the same level as its industry peers.
META's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.32.
The Price/Forward Earnings ratio is 24.45, which indicates a rather expensive current valuation of META.
The rest of the industry has a similar Price/Forward Earnings ratio as META.
META is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.38 | ||
| Fwd PE | 24.45 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, META is valued a bit cheaper than the industry average as 61.97% of the companies are valued more expensively.
META's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.75 | ||
| EV/EBITDA | 18.3 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
META has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.17
PEG (5Y)1.2
EPS Next 2Y9.56%
EPS Next 3Y11.35%
5. Dividend
5.1 Amount
With a yearly dividend of 0.30%, 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 2.89. META pays more dividend than 88.73% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, META's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
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
META pays out 7.70% of its income as dividend. This is a sustainable payout ratio.
DP7.7%
EPS Next 2Y9.56%
EPS Next 3Y11.35%
NASDAQ:META (6/16/2025, 2:42:08 PM)
702.08
+19.21 (+2.81%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners79.85%
Inst Owner Change-13.31%
Ins Owners0.03%
Ins Owner Change1.59%
Market Cap1765.26B
Analysts83.59
Price Target719.73 (2.51%)
Short Float %1.64%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.3% |
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)0.5%
PT rev (3m)-5.74%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-1.82%
EPS NY rev (1m)0%
EPS NY rev (3m)0.58%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.89%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.38 | ||
| Fwd PE | 24.45 | ||
| P/S | 10.36 | ||
| P/FCF | 33.75 | ||
| P/OCF | 18.37 | ||
| P/B | 9.54 | ||
| P/tB | 10.74 | ||
| EV/EBITDA | 18.3 |
EPS(TTM)25.64
EY3.65%
EPS(NY)28.71
Fwd EY4.09%
FCF(TTM)20.81
FCFY2.96%
OCF(TTM)38.22
OCFY5.44%
SpS67.76
BVpS73.59
TBVpS65.38
PEG (NY)3.17
PEG (5Y)1.2
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 | 13.04 |
F-Score6
WACC8.95%
ROIC/WACC2.87
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 5Y12.03%
Revenue 1Y (TTM)19.37%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%16.07%
Revenue Next Year14.31%
Revenue Next 2Y14.16%
Revenue Next 3Y13.16%
Revenue Next 5Y11.99%
EBIT growth 1Y31.06%
EBIT growth 3Y14.27%
EBIT growth 5Y19.21%
EBIT Next Year66.06%
EBIT Next 3Y31.35%
EBIT Next 5Y24.16%
FCF growth 1Y197.81%
FCF growth 3Y11.4%
FCF growth 5Y20.58%
OCF growth 1Y90.7%
OCF growth 3Y16.55%
OCF growth 5Y20.26%