NASDAQ:META stands out as a growth opportunity that won't break the bank.

Our stock screener has spotted META PLATFORMS INC-CLASS A (NASDAQ:META) as a growth stock which is not overvalued. NASDAQ:META is scoring great on several growth aspects while it also shows decent health and profitability. At the same time it remains remains attractively priced. We'll dive into each aspect below.

ChartMill's Evaluation of Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:META has earned a 7 for growth:

• The Earnings Per Share has grown by an impressive 128.32% over the past year.
• The Earnings Per Share has been growing by 14.50% on average over the past years. This is quite good.
• Looking at the last year, META shows a very strong growth in Revenue. The Revenue has grown by 24.28%.
• 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.
• The Revenue is expected to grow by 12.27% on average over the next years. This is quite good.

Analyzing Valuation Metrics

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:META has achieved a 6 out of 10:

• META's Price/Earnings ratio is a bit cheaper when compared to the industry. META is cheaper than 65.22% of the companies in the same industry.
• 60.87% of the companies in the same industry are more expensive than META, based on the Price/Forward Earnings ratio.
• 66.67% of the companies in the same industry are more expensive than META, based on the Enterprise Value to EBITDA ratio.
• META's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. META is cheaper than 69.57% of the companies in the same industry.
• 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 23.55% in the coming years. This may justify a more expensive valuation.

Understanding NASDAQ:META's Health Score

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:META has achieved a 8 out of 10:

• META has an Altman-Z score of 13.07. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
• META has a Altman-Z score of 13.07. This is amongst the best in the industry. META outperforms 91.30% of its industry peers.
• META has a debt to FCF ratio of 0.37. This is a very positive value and a sign of high solvency as it would only need 0.37 years to pay back of all of its debts.
• With a decent Debt to FCF ratio value of 0.37, META is doing good in the industry, outperforming 79.71% of the companies in the same industry.
• A Debt/Equity ratio of 0.12 indicates that META is not too dependend on debt financing.
• A Current Ratio of 2.83 indicates that META has no problem at all paying its short term obligations.
• The Current ratio of META (2.83) is better than 62.32% of its industry peers.
• META has a Quick Ratio of 2.83. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
• With a decent Quick ratio value of 2.83, META is doing good in the industry, outperforming 62.32% of the companies in the same industry.

Assessing Profitability for NASDAQ:META

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:META scores a 8 out of 10:

• With an excellent Return On Assets value of 22.34%, META belongs to the best of the industry, outperforming 98.55% of the companies in the same industry.
• The Return On Equity of META (32.81%) is better than 97.10% of its industry peers.
• Looking at the Return On Invested Capital, with a value of 24.67%, META belongs to the top of the industry, outperforming 95.65% of the companies in the same industry.
• META had an Average Return On Invested Capital over the past 3 years of 21.73%. This is significantly above the industry average of 10.43%.
• The 3 year average ROIC (21.73%) for META is below the current ROIC(24.67%), indicating increased profibility in the last year.
• META has a better Profit Margin (34.34%) than 97.10% 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.
• The Gross Margin of META (81.49%) is better than 73.91% of its industry peers.

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

Check the latest full fundamental report of META for a complete fundamental analysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.