META PLATFORMS INC-CLASS A (META)
US30303M1027 - Common Stock
We assign a fundamental rating of 7 out of 10 to META. META was compared to 68 industry peers in the Interactive Media & Services industry. META has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
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
META has a Return On Assets of 13.75%. This is amongst the best in the industry. META outperforms 92.19% of its industry peers.
Looking at the Return On Equity, with a value of 20.81%, META belongs to the top of the industry, outperforming 90.63% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 17.30%, META belongs to the top of the industry, outperforming 95.31% 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 11.39%.
The 3 year average ROIC (21.42%) for META is well above the current ROIC(17.30%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.75% | ||
| ROE | 20.81% | ||
| ROIC | 17.3% |
ROA(3y)18.17%
ROA(5y)18.22%
ROE(3y)24.23%
ROE(5y)23.46%
ROIC(3y)21.42%
ROIC(5y)21.66%
1.3 Margins
Looking at the Profit Margin, with a value of 23.42%, META belongs to the top of the industry, outperforming 96.88% 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 29.95%, META belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
META's Operating Margin has declined in the last couple of years.
META has a better Gross Margin (78.96%) than 71.88% of its industry peers.
In the last couple of years the Gross Margin of META has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.95% | ||
| PM (TTM) | 23.42% | ||
| GM | 78.96% |
OM growth 3Y-11.13%
OM growth 5Y-10.35%
PM growth 3Y-8.71%
PM growth 5Y-12.67%
GM growth 3Y-0.95%
GM growth 5Y-1.66%
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.
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
The debt/assets ratio for META is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 8.91 indicates that META is not in any danger for bankruptcy at the moment.
META has a Altman-Z score of 8.91. This is amongst the best in the industry. META outperforms 89.06% of its industry peers.
META has a debt to FCF ratio of 0.51. This is a very positive value and a sign of high solvency as it would only need 0.51 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.51, META belongs to the top of the industry, outperforming 84.38% of the companies in the same industry.
A Debt/Equity ratio of 0.13 indicates that META is not too dependend on debt financing.
The Debt to Equity ratio of META (0.13) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | 0.51 | ||
| Altman-Z | 8.91 |
ROIC/WACC1.76
WACC9.81%
2.3 Liquidity
META has a Current Ratio of 2.57. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
With a Current ratio value of 2.57, META perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
A Quick Ratio of 2.57 indicates that META has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.57, META is in line with its industry, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.57 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.01% over the past year.
Measured over the past 5 years, META shows a small growth in Earnings Per Share. The EPS has been growing by 5.97% on average per year.
Looking at the last year, META shows a small growth in Revenue. The Revenue has grown by 7.48% in the last year.
META shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 23.46% yearly.
EPS 1Y (TTM)8.01%
EPS 3Y0.08%
EPS 5Y5.97%
EPS growth Q2Q167.68%
Revenue 1Y (TTM)7.48%
Revenue growth 3Y18.15%
Revenue growth 5Y23.46%
Revenue growth Q2Q23.21%
3.2 Future
META is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 25.36% yearly.
META is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.74% yearly.
EPS Next Y70.58%
EPS Next 2Y43.78%
EPS Next 3Y34.21%
EPS Next 5Y25.36%
Revenue Next Year15.01%
Revenue Next 2Y14.04%
Revenue Next 3Y13.27%
Revenue Next 5Y11.74%
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 accelerating.
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 29.37, META can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of META indicates a somewhat cheap valuation: META is cheaper than 67.19% of the companies listed in the same industry.
META's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.97.
With a Price/Forward Earnings ratio of 18.76, META is valued on the expensive side.
META's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. META is cheaper than 70.31% of the companies in the same industry.
META is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.05, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.37 | ||
| Fwd PE | 18.76 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, META is valued a bit cheaper than the industry average as 64.06% of the companies are valued more expensively.
META's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. META is cheaper than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.76 | ||
| EV/EBITDA | 16.3 |
4.3 Compensation for Growth
META's 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 34.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.42
PEG (5Y)4.92
EPS Next 2Y43.78%
EPS Next 3Y34.21%
5. Dividend
5.1 Amount
META does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
META PLATFORMS INC-CLASS A
NASDAQ:META (12/8/2023, 7:03:39 PM)
After market: 332.8 +0.05 (+0.02%)332.75
+6.16 (+1.89%)
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 Cap855.12B
Analysts
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Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.37 | ||
| Fwd PE | 18.76 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
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FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.42
PEG (5Y)4.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.75% | ||
| ROE | 20.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 29.95% | ||
| PM (TTM) | 23.42% | ||
| GM | 78.96% | ||
| 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 Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.13 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.57 | ||
| Quick Ratio | 2.57 | ||
| 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)
Growth
EPS 1Y (TTM)8.01%
EPS 3Y0.08%
EPS 5Y
EPS growth Q2Q
EPS Next Y70.58%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.48%
Revenue growth 3Y18.15%
Revenue growth 5Y
Revenue growth 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
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