Investors seeking growth at a reasonable cost should explore NASDAQ:META.

Last update: Sep 23, 2024

Our stock screening tool has pinpointed META PLATFORMS INC-CLASS A (NASDAQ:META) as a growth stock that isn't overvalued. NASDAQ:META is excelling in various growth indicators while maintaining a solid financial footing. Furthermore, it remains attractively priced. Let's delve into the specifics below.

How We Gauge Growth for NASDAQ:META

ChartMill assigns a Growth Rating to each stock, ranging from 0 to 10. This rating is determined by analyzing different growth elements, including EPS and revenue growth, spanning both historical and future figures. In the case of NASDAQ:META, the assigned 7 reflects its growth potential:

META shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 128.32%, which is quite impressive.
The Earnings Per Share has been growing by 14.50% on average over the past years. This is quite good.
The Revenue has grown by 24.28% in the past year. This is a very strong growth!
META shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.29% yearly.
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.
Based on estimates for the next years, META will show a quite strong growth in Revenue. The Revenue will grow by 12.27% on average per year.

Valuation Analysis for NASDAQ:META

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:

Compared to the rest of the industry, the Price/Earnings ratio of META indicates a somewhat cheap valuation: META is cheaper than 63.77% of the companies listed in the same industry.
META's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. META is cheaper than 60.87% of the companies in the same industry.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of META indicates a somewhat cheap valuation: META is cheaper than 63.77% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, META is valued a bit cheaper than the industry average as 68.12% of the companies are valued more expensively.
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 23.58% in the coming years.

Health Examination for NASDAQ:META

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:META has earned a 8 out of 10:

An Altman-Z score of 13.87 indicates that META is not in any danger for bankruptcy at the moment.
The Altman-Z score of META (13.87) is better than 95.65% 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.
META's Debt to FCF ratio of 0.37 is fine compared to the rest of the industry. META outperforms 79.71% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that META is not too dependend on debt financing.
META has a Current Ratio of 2.83. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
META has a Current ratio of 2.83. This is in the better half of the industry: META outperforms 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.
META has a better Quick ratio (2.83) than 62.32% of its industry peers.

Evaluating Profitability: NASDAQ:META

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:META has earned a 8 out of 10:

META has a Return On Assets of 22.34%. This is amongst the best in the industry. META outperforms 98.55% of its industry peers.
META has a Return On Equity of 32.81%. This is amongst the best in the industry. META outperforms 97.10% of its industry peers.
The Return On Invested Capital of META (24.67%) is better than 95.65% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for META is significantly above the industry average of 10.42%.
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.
META's Profit Margin of 34.34% is amongst the best of the industry. META outperforms 97.10% of its industry peers.
Looking at the Operating Margin, with a value of 40.47%, META belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
With a decent Gross Margin value of 81.49%, META is doing good in the industry, outperforming 73.91% of the companies in the same industry.

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

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.