658.76 USD
+11.13 (+1.72%)
657.969 USD
-0.79 (-0.12%)
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 not priced too expensively while it is growing strongly. Keep and eye on this one! 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.
- META had a positive operating cash flow in the past year.
- Each year in the past 5 years META has been profitable.
- In the past 5 years META always reported a positive cash flow from operatings.
1.2 Ratios
- With an excellent Return On Assets value of 19.26%, META belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
- META's Return On Equity of 30.16% is amongst the best of the industry. META outperforms 91.43% of its industry peers.
- META has a better Return On Invested Capital (26.56%) than 94.29% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for META is significantly above the industry average of 13.70%.
- 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
- The Profit Margin of META (30.89%) is better 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.
- META's Gross Margin of 82.00% is amongst the best of the industry. META outperforms 81.43% of its industry peers.
- META's Gross Margin has been stable in the last couple of years.
| 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
- META has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for META is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 11.05 indicates that META is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 11.05, 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 80.00% of its industry peers.
- META has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
- META's Debt to Equity ratio of 0.15 is in line compared to the rest of the industry. META outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 11.05 |
ROIC/WACC3.03
WACC8.78%
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.
- Looking at the Current ratio, with a value of 1.98, META is in line with its industry, outperforming 58.57% of the companies in the same industry.
- 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.
- META's Quick ratio of 1.98 is in line compared to the rest of the industry. META outperforms 58.57% of its industry peers.
- 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
- The Earnings Per Share has grown by an impressive 35.85% over the past year.
- META shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.82% yearly.
- META shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.27%.
- 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
- Based on estimates for the next years, META will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.10% on average per year.
- META is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.52% yearly.
EPS Next Y4.96%
EPS Next 2Y13.28%
EPS Next 3Y13.6%
EPS Next 5Y11.1%
Revenue Next Year21.87%
Revenue Next 2Y20.04%
Revenue Next 3Y18.56%
Revenue Next 5Y16.52%
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 22.84, META is valued on the expensive side.
- 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, META is valued at the same level.
- Based on the Price/Forward Earnings ratio of 21.46, the valuation of META can be described as rather expensive.
- META's Price/Forward Earnings ratio is in line with the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 24.26. META is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 21.46 |
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 62.86% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of META indicates a somewhat cheap valuation: META is cheaper than 61.43% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.03 | ||
| EV/EBITDA | 15.88 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates META does not grow enough to justify the current Price/Earnings ratio.
- 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 13.60% in the coming years.
PEG (NY)4.6
PEG (5Y)1
EPS Next 2Y13.28%
EPS Next 3Y13.6%
5. Dividend
5.1 Amount
- META has a yearly dividend return of 0.34%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.52, META pays a better dividend. On top of this META pays more dividend than 88.57% of the companies listed in the same industry.
- With a Dividend Yield of 0.34, META pays less dividend than the S&P500 average, which is at 1.82.
| 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
- META pays out 8.98% of its income as dividend. This is a sustainable payout ratio.
DP8.98%
EPS Next 2Y13.28%
EPS Next 3Y13.6%
META PLATFORMS INC-CLASS A / META FAQ
What is the fundamental rating for META stock?
ChartMill assigns a fundamental rating of 7 / 10 to META.
What is the valuation status for META stock?
ChartMill assigns a valuation rating of 4 / 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 financial health of META PLATFORMS INC-CLASS A (META) stock?
The financial health rating of META PLATFORMS INC-CLASS A (META) is 8 / 10.
How sustainable is the dividend of META PLATFORMS INC-CLASS A (META) stock?
The dividend rating of META PLATFORMS INC-CLASS A (META) is 3 / 10 and the dividend payout ratio is 8.98%.