META PLATFORMS INC-CLASS A (META)
US30303M1027 - Common Stock
Taking everything into account, META scores 7 out of 10 in our fundamental rating. META was compared to 68 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 showing excellent growth while it is valued at reasonable prices. 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
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 17.03%, META belongs to the top of the industry, outperforming 92.54% of the companies in the same industry.
META's Return On Equity of 25.53% is amongst the best of the industry. META outperforms 92.54% of its industry peers.
With an excellent Return On Invested Capital value of 21.19%, META belongs to the best of the industry, outperforming 95.52% 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 9.61%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.03% | ||
| ROE | 25.53% | ||
| ROIC | 21.19% |
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
With an excellent Profit Margin value of 28.98%, META belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
META's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 36.41%, 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 (80.75%) than 73.13% 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 | 36.41% | ||
| PM (TTM) | 28.98% | ||
| GM | 80.75% |
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%
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.
The debt/assets ratio for META is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 12.08 indicates that META is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 12.08, META belongs to the best of the industry, outperforming 89.55% of the companies in the same industry.
The Debt to FCF ratio of META is 0.44, which is an excellent value as it means it would take META, only 0.44 years of fcf income to pay off all of its debts.
META has a Debt to FCF ratio of 0.44. This is amongst the best in the industry. META outperforms 80.60% 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.
META has a Debt to Equity ratio of 0.12. This is comparable to the rest of the industry: META outperforms 40.30% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.44 | ||
| Altman-Z | 12.08 |
ROIC/WACC2.27
WACC9.35%
2.3 Liquidity
META has a Current Ratio of 2.67. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
META's Current ratio of 2.67 is in line compared to the rest of the industry. META outperforms 53.73% of its industry peers.
META has a Quick Ratio of 2.67. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
META's Quick ratio of 2.67 is in line compared to the rest of the industry. META outperforms 53.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.67 | ||
| Quick Ratio | 2.67 |
3. Growth
3.1 Past
META shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 73.66%, which is quite impressive.
The Earnings Per Share has been growing by 14.50% on average over the past years. This is quite good.
META shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.69%.
Measured over the past years, META shows a quite strong growth in Revenue. The Revenue has been growing by 19.29% on average per year.
EPS 1Y (TTM)73.66%
EPS 3Y15.03%
EPS 5Y14.5%
EPS growth Q2Q202.84%
Revenue 1Y (TTM)15.69%
Revenue growth 3Y16.21%
Revenue growth 5Y19.29%
Revenue growth Q2Q24.7%
3.2 Future
The Earnings Per Share is expected to grow by 14.82% on average over the next years. This is quite good.
META is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.57% yearly.
EPS Next Y37.06%
EPS Next 2Y25.9%
EPS Next 3Y21.93%
EPS Next 5Y14.82%
Revenue Next Year18.31%
Revenue Next 2Y15.46%
Revenue Next 3Y14.12%
Revenue Next 5Y10.57%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 33.57 indicates a quite expensive valuation of META.
Based on the Price/Earnings ratio, META is valued a bit cheaper than 62.69% of the companies in the same industry.
META is valuated rather expensively when we compare the Price/Earnings ratio to 25.05, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 24.49, META is valued on the expensive side.
Based on the Price/Forward Earnings ratio, META is valued a bit cheaper than the industry average as 64.18% of the companies are valued more expensively.
META is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.53, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.57 | ||
| Fwd PE | 24.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, META is valued a bit cheaper than the industry average as 67.16% 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 64.18% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.08 | ||
| EV/EBITDA | 19.99 |
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.
The excellent profitability rating of META may justify a higher PE ratio.
META's earnings are expected to grow with 21.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.91
PEG (5Y)2.31
EPS Next 2Y25.9%
EPS Next 3Y21.93%
5. Dividend
5.1 Amount
With a yearly dividend of 0.38%, 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 16.33. META pays more dividend than 91.04% of the companies in the same industry.
With a Dividend Yield of 0.38, META pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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
DPN/A
EPS Next 2Y25.9%
EPS Next 3Y21.93%
META PLATFORMS INC-CLASS A
NASDAQ:META (4/15/2024, 7:18:22 PM)
Premarket: 498.38 -1.85 (-0.37%)500.23
-11.67 (-2.28%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
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Market Cap1275.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Dividend Growth(5Y)
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Surprises & Revisions
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.57 | ||
| Fwd PE | 24.49 | ||
| 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)0.91
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.03% | ||
| ROE | 25.53% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 36.41% | ||
| PM (TTM) | 28.98% | ||
| GM | 80.75% | ||
| 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 | 0.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.67 | ||
| Quick Ratio | 2.67 | ||
| 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)73.66%
EPS 3Y15.03%
EPS 5Y
EPS growth Q2Q
EPS Next Y37.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)15.69%
Revenue growth 3Y16.21%
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
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