NASDAQ:META is showing decent growth, but is still valued reasonably.

Last update: Jul 1, 2024

Uncover the potential of META PLATFORMS INC-CLASS A (NASDAQ:META), a growth stock that our stock screener found to be reasonably priced. NASDAQ:META is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Growth Assessment of NASDAQ:META

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:META has received a 7 out of 10:

META shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 116.00%, which is quite impressive.
META shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.50% yearly.
Looking at the last year, META shows a very strong growth in Revenue. 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.
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.

Valuation Analysis for NASDAQ:META

ChartMill assigns a Valuation Rating to every stock. This score ranges from 0 to 10 and evaluates the different valuation aspects and compares the price to earnings and cash flows, while taking into account profitability and growth. NASDAQ:META scores a 6 out of 10:

META's Price/Earnings ratio is a bit cheaper when compared to the industry. META is cheaper than 61.19% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, META is valued a bit cheaper than the industry average as 62.69% of the companies are valued more expensively.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of META indicates a somewhat cheap valuation: META is cheaper than 68.66% of the companies listed in the same industry.
70.15% of the companies in the same industry are more expensive than META, based on the Price/Free Cash Flow ratio.
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.
A more expensive valuation may be justified as META's earnings are expected to grow with 22.09% in the coming years.

Understanding NASDAQ:META's Health Score

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:META was assigned a score of 7 for health:

An Altman-Z score of 12.66 indicates that META is not in any danger for bankruptcy at the moment.
META's Altman-Z score of 12.66 is amongst the best of the industry. META outperforms 92.54% 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.
With a decent Debt to FCF ratio value of 0.37, META is doing good in the industry, outperforming 79.10% 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 Current Ratio of 2.68. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 2.68 indicates that META has no problem at all paying its short term obligations.

What does the Profitability looks like for NASDAQ:META

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:META has achieved a 8:

The Return On Assets of META (20.53%) is better than 97.01% of its industry peers.
META's Return On Equity of 30.60% is amongst the best of the industry. META outperforms 95.52% of its industry peers.
META has a better Return On Invested Capital (24.19%) than 95.52% of its industry peers.
The Average Return On Invested Capital over the past 3 years for META is significantly above the industry average of 10.03%.
The 3 year average ROIC (22.24%) for META is below the current ROIC(24.19%), indicating increased profibility in the last year.
Looking at the Profit Margin, with a value of 32.06%, META belongs to the top of the industry, outperforming 95.52% of the companies in the same industry.
Looking at the Operating Margin, with a value of 38.70%, META belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Gross Margin of META (81.50%) is better than 74.63% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of META

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.