Looking for growth without the hefty price tag? Consider NASDAQ:META.

Last update: Aug 12, 2024

Here's META PLATFORMS INC-CLASS A (NASDAQ:META) for you, a growth stock our stock screener believes is undervalued. NASDAQ:META is scoring impressively in terms of growth while demonstrating strong financials. On top of that, it remains attractively priced. Let's break it down further.

Understanding NASDAQ:META's Growth

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:META scores a 7 out of 10:

The Earnings Per Share has grown by an impressive 128.32% 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 24.28%.
The Revenue has been growing by 19.29% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 16.58% on average over the next years. This is quite good.
The Revenue is expected to grow by 12.27% on average over the next years. This is quite good.

A Closer Look at Valuation for NASDAQ:META

ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:META was assigned a score of 5 for valuation:

META's Price/Earnings ratio is a bit cheaper when compared to the industry. META is cheaper than 63.77% of the companies in the same industry.
Based on the Enterprise Value to EBITDA ratio, META is valued a bit cheaper than 71.01% 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 69.57% of the companies are valued more expensively.
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 23.02% in the coming years.

Health Assessment of NASDAQ:META

ChartMill employs its own Health Rating for stock assessment. This rating, ranging from 0 to 10, is calculated by examining various liquidity and solvency ratios. In the case of NASDAQ:META, the assigned 8 reflects its health status:

META has an Altman-Z score of 12.83. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
META's Altman-Z score of 12.83 is amongst the best of the industry. META outperforms 91.30% 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 has a Debt to FCF ratio of 0.37. This is in the better half of the industry: META outperforms 79.71% 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.
A Current Ratio of 2.83 indicates that META has no problem at all paying its short term obligations.
With a decent Current ratio value of 2.83, META is doing good in the industry, outperforming 65.22% of the companies in the same industry.
A Quick Ratio of 2.83 indicates that META has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.83, META is in the better half of the industry, outperforming 65.22% of the companies in the same industry.

Understanding NASDAQ:META's Profitability

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:META, the assigned 8 is a significant indicator of profitability:

The Return On Assets of META (22.34%) is better than 97.10% of its industry peers.
With an excellent Return On Equity value of 32.81%, META belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
META has a better Return On Invested Capital (24.67%) than 95.65% of its industry peers.
META had an Average Return On Invested Capital over the past 3 years of 21.73%. This is significantly above the industry average of 10.51%.
The last Return On Invested Capital (24.67%) for META is above the 3 year average (21.73%), which is a sign of increasing profitability.
The Profit Margin of META (34.34%) is better than 95.65% of its industry peers.
META's Operating Margin of 40.47% is amongst the best of the industry. META outperforms 100.00% of its industry peers.
Looking at the Gross Margin, with a value of 81.49%, META is in the better half of the industry, outperforming 75.36% of the companies in the same industry.

Our Affordable Growth screener lists more Affordable Growth stocks and is updated daily.

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

Keep in mind

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.