META PLATFORMS INC-CLASS A (META)
US30303M1027 - Common Stock
META gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 71 industry peers in the Interactive Media & Services industry. META gets an excellent profitability rating and is at the same time showing great financial health properties. META is growing strongly while it is still valued neutral. This is a good combination! These ratings could make META a good candidate 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.
META had positive earnings in each of the past 5 years.
Each year in the past 5 years META had a positive operating cash flow.
1.2 Ratios
META has a better Return On Assets (22.34%) than 98.57% of its industry peers.
META has a better Return On Equity (32.81%) than 97.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.67%, META belongs to the top of the industry, outperforming 95.71% 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 10.42%.
The last Return On Invested Capital (24.67%) for META is above the 3 year average (21.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.34% | ||
| ROE | 32.81% | ||
| ROIC | 24.67% |
ROA(3y)17.75%
ROA(5y)17.08%
ROE(3y)25.17%
ROE(5y)23.3%
ROIC(3y)21.73%
ROIC(5y)20.83%
1.3 Margins
META's Profit Margin of 34.34% is amongst the best of the industry. META outperforms 97.14% of its industry peers.
In the last couple of years the Profit Margin of META has declined.
Looking at the Operating Margin, with a value of 40.47%, 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.
The Gross Margin of META (81.49%) is better than 74.29% of its industry peers.
META's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.47% | ||
| PM (TTM) | 34.34% | ||
| GM | 81.49% |
OM growth 3Y-0.7%
OM growth 5Y-3.56%
PM growth 3Y-5.09%
PM growth 5Y-6.05%
GM growth 3Y0.06%
GM growth 5Y-0.61%
2. Health
2.1 Basic Checks
META has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
Compared to 1 year ago, META has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 14.15 indicates that META is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 14.15, META belongs to the top of the industry, outperforming 94.29% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 0.37, META is doing good in the industry, outperforming 80.00% of the companies in the same industry.
META has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
META has a worse Debt to Equity ratio (0.12) than 60.00% of its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 14.15 |
ROIC/WACC2.85
WACC8.66%
2.3 Liquidity
A Current Ratio of 2.83 indicates that META has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.83, META is doing good in the industry, outperforming 62.86% of the companies in the same industry.
META has a Quick Ratio of 2.83. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
META has a Quick ratio of 2.83. This is in the better half of the industry: META outperforms 62.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.83 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 128.32% over the past year.
Measured over the past years, META shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.50% on average per year.
Looking at the last year, META shows a very strong growth in Revenue. The Revenue has grown by 24.28%.
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)128.32%
EPS 3Y15.03%
EPS 5Y14.5%
EPS Q2Q%73.15%
Revenue 1Y (TTM)24.28%
Revenue growth 3Y16.21%
Revenue growth 5Y19.29%
Sales Q2Q%22.1%
3.2 Future
Based on estimates for the next years, META will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.58% on average per year.
META is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.27% yearly.
EPS Next Y45.19%
EPS Next 2Y28.49%
EPS Next 3Y23.58%
EPS Next 5Y16.58%
Revenue Next Year20.9%
Revenue Next 2Y17.33%
Revenue Next 3Y15.51%
Revenue Next 5Y12.27%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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
A Price/Earnings ratio of 29.56 indicates a quite expensive valuation of META.
META's Price/Earnings ratio is a bit cheaper when compared to the industry. META is cheaper than 64.29% of the companies in the same industry.
META's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 31.46.
With a Price/Forward Earnings ratio of 23.54, META is valued on the expensive side.
61.43% of the companies in the same industry are more expensive than META, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of META to the average of the S&P500 Index (22.63), we can say META is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.56 | ||
| Fwd PE | 23.54 |
4.2 Price Multiples
62.86% of the companies in the same industry are more expensive than META, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, META is valued a bit cheaper than the industry average as 68.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.51 | ||
| EV/EBITDA | 18.86 |
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.
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 23.58% in the coming years.
PEG (NY)0.65
PEG (5Y)2.04
EPS Next 2Y28.49%
EPS Next 3Y23.58%
5. Dividend
5.1 Amount
META has a yearly dividend return of 0.35%, which is pretty low.
Compared to an average industry Dividend Yield of 18.91, META pays a better dividend. On top of this META pays more dividend than 87.14% of the companies listed in the same industry.
With a Dividend Yield of 0.35, META pays less dividend than the S&P500 average, which is at 2.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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 2Y28.49%
EPS Next 3Y23.58%
META PLATFORMS INC-CLASS A
NASDAQ:META (10/22/2024, 1:29:05 PM)
579.025
+3.87 (+0.67%)
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 Cap1464.83B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.56 | ||
| Fwd PE | 23.54 | ||
| 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)0.65
PEG (5Y)2.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.34% | ||
| ROE | 32.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 40.47% | ||
| PM (TTM) | 34.34% | ||
| GM | 81.49% | ||
| 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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.83 | ||
| 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)128.32%
EPS 3Y15.03%
EPS 5Y
EPS Q2Q%
EPS Next Y45.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)24.28%
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