META PLATFORMS INC-CLASS A (META) Stock Fundamental Analysis
USA - NASDAQ:META - US30303M1027 - Common Stock
621.71 USD
+2.77 (+0.45%)
625.26 USD
+3.55 (+0.57%)
Overall META gets a fundamental rating of 8 out of 10. We evaluated META against 70 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 not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make META suitable 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
Looking at the Return On Assets, with a value of 19.26%, META belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
The Return On Equity of META (30.16%) is better than 95.71% of its industry peers.
META's Return On Invested Capital of 26.56% is amongst the best of the industry. META outperforms 95.71% 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 13.49%.
The last Return On Invested Capital (26.56%) for META is above the 3 year average (21.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.26% | ||
| ROE | 30.16% | ||
| ROIC | 26.56% |
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 has a better Profit Margin (30.89%) than 90.00% of its industry peers.
META's Profit Margin has improved in the last couple of years.
META has a Operating Margin of 43.28%. This is amongst the best in the industry. META outperforms 100.00% of its industry peers.
META's Operating Margin has been stable in the last couple of years.
The Gross Margin of META (82.00%) is better than 81.43% 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 | 43.28% | ||
| PM (TTM) | 30.89% | ||
| GM | 82% |
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.
Compared to 1 year ago, META has less shares outstanding
The number of shares outstanding for META has been reduced compared to 5 years ago.
META has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 10.66 indicates that META is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 10.66, META belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
The Debt to FCF ratio of META is 0.64, which is an excellent value as it means it would take META, only 0.64 years of fcf income to pay off all of its debts.
META has a better Debt to FCF ratio (0.64) than 78.57% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that META is not too dependend on debt financing.
The Debt to Equity ratio of META (0.15) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 10.66 |
ROIC/WACC2.68
WACC9.9%
2.3 Liquidity
META has a Current Ratio of 1.98. 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 (1.98) which is in line with its industry peers.
META has a Quick Ratio of 1.98. This is a normal value and indicates that META is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of META (1.98) is comparable to the rest of the industry.
The current and quick ratio evaluation for META is rather negative, while it does have 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 | 1.98 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
META shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 35.85%, 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
The Revenue has grown by 21.27% in the past year. This is a very strong growth!
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)35.85%
EPS 3Y20.12%
EPS 5Y22.82%
EPS Q2Q%20.23%
Revenue 1Y (TTM)21.27%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%26.25%
3.2 Future
The Earnings Per Share is expected to grow by 10.78% on average over the next years. This is quite good.
Based on estimates for the next years, META will show a quite strong growth in Revenue. The Revenue will grow by 16.16% on average per year.
EPS Next Y16.31%
EPS Next 2Y13.76%
EPS Next 3Y14.04%
EPS Next 5Y10.78%
Revenue Next Year21.32%
Revenue Next 2Y19.36%
Revenue Next 3Y17.96%
Revenue Next 5Y16.16%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.56, META is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of META indicates a somewhat cheap valuation: META is cheaper than 62.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.06, META is valued at the same level.
Based on the Price/Forward Earnings ratio of 20.08, the valuation of META can be described as rather expensive.
META's Price/Forward Earnings is on the same level as the industry average.
META's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 32.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 20.08 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of META indicates a somewhat cheap valuation: META is cheaper than 65.71% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, META is valued a bit cheaper than 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.83 | ||
| EV/EBITDA | 15.17 |
4.3 Compensation for Growth
META's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
META has an outstanding profitability rating, which may justify a higher PE ratio.
META's earnings are expected to grow with 14.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.32
PEG (5Y)0.94
EPS Next 2Y13.76%
EPS Next 3Y14.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.34%, 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 2.74. META pays more dividend than 90.00% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, META's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
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
8.98% of the earnings are spent on dividend by META. This is a low number and sustainable payout ratio.
DP8.98%
EPS Next 2Y13.76%
EPS Next 3Y14.04%
621.71
+2.77 (+0.45%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners79.76%
Inst Owner Change9.27%
Ins Owners0.04%
Ins Owner Change-1.39%
Market Cap1.56T
Revenue(TTM)189.46B
Net Income(TTM)58.53B
Analysts82.67
Price Target878.29 (41.27%)
Short Float %1.13%
Short Ratio2.18
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
Yearly Dividend1.99
Dividend Growth(5Y)N/A
DP8.98%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.27%
Min EPS beat(2)6.23%
Max EPS beat(2)18.31%
EPS beat(4)4
Avg EPS beat(4)15%
Min EPS beat(4)6.23%
Max EPS beat(4)19.39%
EPS beat(8)8
Avg EPS beat(8)11.48%
EPS beat(12)11
Avg EPS beat(12)7.9%
EPS beat(16)12
Avg EPS beat(16)4.45%
Revenue beat(2)2
Avg Revenue beat(2)2.83%
Min Revenue beat(2)1.68%
Max Revenue beat(2)3.97%
Revenue beat(4)4
Avg Revenue beat(4)1.68%
Min Revenue beat(4)0.22%
Max Revenue beat(4)3.97%
Revenue beat(8)5
Avg Revenue beat(8)0.58%
Revenue beat(12)8
Avg Revenue beat(12)0.56%
Revenue beat(16)8
Avg Revenue beat(16)-0.03%
PT rev (1m)1.08%
PT rev (3m)3.02%
EPS NQ rev (1m)1.99%
EPS NQ rev (3m)6.79%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)6.45%
Revenue NQ rev (1m)1.78%
Revenue NQ rev (3m)3.96%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)5.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.56 | ||
| Fwd PE | 20.08 | ||
| P/S | 8.24 | ||
| P/FCF | 34.83 | ||
| P/OCF | 14.52 | ||
| P/B | 8.05 | ||
| P/tB | 9.03 | ||
| EV/EBITDA | 15.17 |
EPS(TTM)28.84
EY4.64%
EPS(NY)30.96
Fwd EY4.98%
FCF(TTM)17.85
FCFY2.87%
OCF(TTM)42.82
OCFY6.89%
SpS75.42
BVpS77.25
TBVpS68.83
PEG (NY)1.32
PEG (5Y)0.94
Graham Number223.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.26% | ||
| ROE | 30.16% | ||
| ROCE | 30.72% | ||
| ROIC | 26.56% | ||
| ROICexc | 31.87% | ||
| ROICexgc | 35.22% | ||
| OM | 43.28% | ||
| PM (TTM) | 30.89% | ||
| GM | 82% | ||
| FCFM | 23.67% |
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%
ROICexgc growth 3Y-7.04%
ROICexgc 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-Score7
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.64 | ||
| Debt/EBITDA | 0.29 | ||
| Cap/Depr | 355.13% | ||
| Cap/Sales | 33.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.95% | ||
| Profit Quality | 76.61% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 10.66 |
F-Score7
WACC9.9%
ROIC/WACC2.68
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)35.85%
EPS 3Y20.12%
EPS 5Y22.82%
EPS Q2Q%20.23%
EPS Next Y16.31%
EPS Next 2Y13.76%
EPS Next 3Y14.04%
EPS Next 5Y10.78%
Revenue 1Y (TTM)21.27%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%26.25%
Revenue Next Year21.32%
Revenue Next 2Y19.36%
Revenue Next 3Y17.96%
Revenue Next 5Y16.16%
EBIT growth 1Y28.42%
EBIT growth 3Y14.27%
EBIT growth 5Y19.21%
EBIT Next Year76.64%
EBIT Next 3Y33.07%
EBIT Next 5Y27.74%
FCF growth 1Y19.33%
FCF growth 3Y11.4%
FCF growth 5Y20.58%
OCF growth 1Y62.45%
OCF growth 3Y16.55%
OCF growth 5Y20.26%
META PLATFORMS INC-CLASS A / META FAQ
What is the fundamental rating for META stock?
ChartMill assigns a fundamental rating of 8 / 10 to META.
What is the valuation status of META PLATFORMS INC-CLASS A (META) stock?
ChartMill assigns a valuation rating of 5 / 10 to META PLATFORMS INC-CLASS A (META). This can be considered as Fairly Valued.
What is the profitability of META stock?
META PLATFORMS INC-CLASS A (META) has a profitability rating of 9 / 10.
What is the valuation of META PLATFORMS INC-CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for META PLATFORMS INC-CLASS A (META) is 21.56 and the Price/Book (PB) ratio is 8.05.
Is the dividend of META PLATFORMS INC-CLASS A sustainable?
The dividend rating of META PLATFORMS INC-CLASS A (META) is 3 / 10 and the dividend payout ratio is 8.98%.