META PLATFORMS INC-CLASS A (META)

US30303M1027 - Common Stock

487.4  +10.61 (+2.23%)

After market: 487.883 +0.48 (+0.1%)

Fundamental Rating

7

META gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making META a very profitable company, without any liquidiy or solvency issues. META is growing strongly while it is still valued neutral. This is a good combination! With these ratings, META could be worth investigating further for growth and quality investing!.



8

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.
In the past 5 years META has always 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 20.53%, META belongs to the top of the industry, outperforming 97.10% of the companies in the same industry.
Looking at the Return On Equity, with a value of 30.60%, META belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
The Return On Invested Capital of META (24.19%) is better than 95.65% of its industry peers.
META had an Average Return On Invested Capital over the past 3 years of 22.24%. This is significantly above the industry average of 10.03%.
The last Return On Invested Capital (24.19%) for META is above the 3 year average (22.24%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 20.53%
ROE 30.6%
ROIC 24.19%
ROA(3y)17.75%
ROA(5y)17.08%
ROE(3y)25.17%
ROE(5y)23.3%
ROIC(3y)22.24%
ROIC(5y)21.38%

1.3 Margins

Looking at the Profit Margin, with a value of 32.06%, META belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
In the last couple of years the Profit Margin of META has declined.
Looking at the Operating Margin, with a value of 38.70%, 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 declined.
META has a better Gross Margin (81.50%) than 75.36% 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 RankSector Rank
OM 38.7%
PM (TTM) 32.06%
GM 81.5%
OM growth 3Y-1.49%
OM growth 5Y-4.03%
PM growth 3Y-5.09%
PM growth 5Y-6.05%
GM growth 3Y0.06%
GM growth 5Y-0.61%

8

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.
The number of shares outstanding for META has been reduced compared to 5 years ago.
Compared to 1 year ago, META has a worse debt to assets ratio.

2.2 Solvency

META has an Altman-Z score of 12.09. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
META's Altman-Z score of 12.09 is amongst the best of the industry. META outperforms 91.30% of its industry peers.
META has a debt to FCF ratio of 0.37. This is a very positive value and a sign of high solvency as it would only need 0.37 years to pay back of all of its debts.
META has a Debt to FCF ratio of 0.37. This is in the better half of the industry: META outperforms 79.71% of its industry peers.
META has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.12, META is not doing good in the industry: 60.87% of the companies in the same industry are doing better.
Although META does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 0.37
Altman-Z 12.09
ROIC/WACC2.74
WACC8.82%

2.3 Liquidity

A Current Ratio of 2.68 indicates that META has no problem at all paying its short term obligations.
With a Current ratio value of 2.68, META perfoms like the industry average, outperforming 57.97% of the companies in the same industry.
META has a Quick Ratio of 2.68. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
META has a Quick ratio of 2.68. This is comparable to the rest of the industry: META outperforms 57.97% of its industry peers.
Industry RankSector Rank
Current Ratio 2.68
Quick Ratio 2.68

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 116.00% over the past year.
META shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.50% yearly.
Looking at the last year, META shows a very strong growth in Revenue. The Revenue has grown by 21.62%.
META shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.29% yearly.
EPS 1Y (TTM)116%
EPS 3Y15.03%
EPS 5Y14.5%
EPS Q2Q%114.09%
Revenue 1Y (TTM)21.62%
Revenue growth 3Y16.21%
Revenue growth 5Y19.29%
Sales Q2Q%27.26%

3.2 Future

The Earnings Per Share is expected to grow by 16.58% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.27% on average over the next years. This is quite good.
EPS Next Y38.23%
EPS Next 2Y25.73%
EPS Next 3Y22.09%
EPS Next 5Y16.58%
Revenue Next Year18.71%
Revenue Next 2Y15.68%
Revenue Next 3Y14.33%
Revenue Next 5Y12.27%

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 28.00, the valuation of META can be described as expensive.
65.22% of the companies in the same industry are more expensive than META, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 28.69, META is valued at the same level.
A Price/Forward Earnings ratio of 20.69 indicates a rather expensive valuation of META.
Compared to the rest of the industry, the Price/Forward Earnings ratio of META indicates a somewhat cheap valuation: META is cheaper than 65.22% of the companies listed in the same industry.
META is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.54, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 28
Fwd PE 20.69

4.2 Price Multiples

71.01% of the companies in the same industry are more expensive than META, based on the Enterprise Value to EBITDA ratio.
META's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. META is cheaper than 71.01% of the companies in the same industry.
Industry RankSector Rank
P/FCF 24.96
EV/EBITDA 17.01

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap 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 22.09% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)1.93
EPS Next 2Y25.73%
EPS Next 3Y22.09%

2

5. Dividend

5.1 Amount

META has a yearly dividend return of 0.42%, which is pretty low.
META's Dividend Yield is rather good when compared to the industry average which is at 15.82. META pays more dividend than 88.41% of the companies in the same industry.
With a Dividend Yield of 0.42, META pays less dividend than the S&P500 average, which is at 2.29.
Industry RankSector Rank
Dividend Yield 0.42%

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

DPN/A
EPS Next 2Y25.73%
EPS Next 3Y22.09%

META PLATFORMS INC-CLASS A

NASDAQ:META (7/22/2024, 4:17:06 PM)

After market: 487.883 +0.48 (+0.1%)

487.4

+10.61 (+2.23%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1236.30B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 0.42%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 28
Fwd PE 20.69
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.73
PEG (5Y)1.93
Profitability
Industry RankSector Rank
ROA 20.53%
ROE 30.6%
ROCE
ROIC
ROICexc
ROICexgc
OM 38.7%
PM (TTM) 32.06%
GM 81.5%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.68
Quick Ratio 2.68
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)116%
EPS 3Y15.03%
EPS 5Y
EPS Q2Q%
EPS Next Y38.23%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.62%
Revenue growth 3Y16.21%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y