META PLATFORMS INC-CLASS A (META)
US30303M1027 - Common Stock
Overall META gets a fundamental rating of 7 out of 10. We evaluated META against 68 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 not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, META could be worth investigating further 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
Looking at the Return On Assets, with a value of 20.53%, META belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
META has a better Return On Equity (30.60%) than 95.52% of its industry peers.
Looking at the Return On Invested Capital, with a value of 24.19%, META belongs to the top 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 9.68%.
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 Rank | Sector 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
META has a better Profit Margin (32.06%) than 95.52% of its industry peers.
In the last couple of years the Profit Margin of META has declined.
META has a better Operating Margin (38.70%) than 100.00% of its industry peers.
META's Operating Margin has declined in the last couple of years.
META's Gross Margin of 81.50% is fine compared to the rest of the industry. META outperforms 74.63% of its industry peers.
META's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector 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%
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
Compared to 5 years ago, META has less shares outstanding
META has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 11.91 indicates that META is not in any danger for bankruptcy at the moment.
The Altman-Z score of META (11.91) is better than 91.04% of its industry peers.
The Debt to FCF ratio of META is 0.37, which is an excellent value as it means it would take META, only 0.37 years of fcf income to pay off all of its debts.
META's Debt to FCF ratio of 0.37 is amongst the best of 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's Debt to Equity ratio of 0.12 is on the low side compared to the rest of the industry. META is outperformed by 61.19% of its industry peers.
Even though the debt/equity ratio score it not favorable for META, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 11.91 |
ROIC/WACC2.67
WACC9.05%
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 52.24% 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's Quick ratio of 2.68 is in line compared to the rest of the industry. META outperforms 52.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 116.00% 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.
META shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.62%.
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)116%
EPS 3Y15.03%
EPS 5Y14.5%
EPS growth Q2Q114.09%
Revenue 1Y (TTM)21.62%
Revenue growth 3Y16.21%
Revenue growth 5Y19.29%
Revenue growth Q2Q27.26%
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.
The Revenue is expected to grow by 12.27% on average over the next years. This is quite good.
EPS Next Y37.06%
EPS Next 2Y25.9%
EPS Next 3Y21.93%
EPS Next 5Y16.58%
Revenue Next Year18.31%
Revenue Next 2Y15.46%
Revenue Next 3Y14.12%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 27.04 indicates a quite expensive valuation of META.
70.15% of the companies in the same industry are more expensive than META, based on the Price/Earnings ratio.
META's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.11.
With a Price/Forward Earnings ratio of 19.93, META is valued on the expensive side.
70.15% of the companies in the same industry are more expensive than META, based on the Price/Forward Earnings ratio.
META's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.04 | ||
| Fwd PE | 19.93 |
4.2 Price Multiples
META's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. META is cheaper than 71.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, META is valued a bit cheaper than the industry average as 71.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.11 | ||
| EV/EBITDA | 16.69 |
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 21.93% in the coming years.
PEG (NY)0.73
PEG (5Y)1.86
EPS Next 2Y25.9%
EPS Next 3Y21.93%
5. Dividend
5.1 Amount
META has a yearly dividend return of 0.45%, which is pretty low.
META's Dividend Yield is rather good when compared to the industry average which is at 14.35. META pays more dividend than 88.06% of the companies in the same industry.
With a Dividend Yield of 0.45, META pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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 2Y25.9%
EPS Next 3Y21.93%
META PLATFORMS INC-CLASS A
NASDAQ:META (5/8/2024, 12:13:06 PM)
470.76
+2.52 (+0.54%)
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 Cap1194.10B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 27.04 | ||
| Fwd PE | 19.93 | ||
| 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)1.86
Profitability
| Industry Rank | Sector 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 Rank | Sector 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)
Growth
EPS 1Y (TTM)116%
EPS 3Y15.03%
EPS 5Y
EPS growth Q2Q
EPS Next Y37.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.62%
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
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