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

Last update: Nov 4, 2024

Take a closer look at META PLATFORMS INC-CLASS A (NASDAQ:META), an affordable growth stock uncovered by our stock screener. NASDAQ:META boasts strong growth prospects and excels in financial health indicators, all while maintaining a reasonable valuation. Let's break it down further.

Exploring NASDAQ:META's Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:META was assigned a score of 7 for growth:

META shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 87.38%, 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 23.06% 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.

Assessing Valuation Metrics 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 64.79% of the companies listed in the same industry.
Based on the Price/Forward Earnings ratio, META is valued a bit cheaper than the industry average as 63.38% of the companies are valued more expensively.
Based on the Enterprise Value to EBITDA ratio, META is valued a bit cheaper than the industry average as 61.97% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of META indicates a somewhat cheap valuation: META is cheaper than 67.61% of the companies listed 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.
META has an outstanding profitability rating, which may justify a higher PE ratio.
META's earnings are expected to grow with 24.79% in the coming years. This may justify a more expensive valuation.

Health Examination for 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 11.52. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of META (11.52) is better than 91.55% of its industry peers.
The Debt to FCF ratio of META is 0.55, which is an excellent value as it means it would take META, only 0.55 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.55, META is in the better half of the industry, outperforming 77.46% of the companies in the same industry.
META has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
A Current Ratio of 2.73 indicates that META has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.73, META is in the better half of the industry, outperforming 66.20% of the companies in the same industry.
A Quick Ratio of 2.73 indicates that META has no problem at all paying its short term obligations.
The Quick ratio of META (2.73) is better than 66.20% of its industry peers.

Looking at the Profitability

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:

The Return On Assets of META (21.66%) is better than 95.77% of its industry peers.
META's Return On Equity of 33.76% is amongst the best of the industry. META outperforms 98.59% of its industry peers.
META has a Return On Invested Capital of 23.67%. This is amongst the best in the industry. META outperforms 95.77% of its industry peers.
The Average Return On Invested Capital over the past 3 years for META is significantly above the industry average of 11.20%.
The 3 year average ROIC (21.73%) for META is below the current ROIC(23.67%), indicating increased profibility in the last year.
META's Profit Margin of 35.55% is amongst the best of the industry. META outperforms 97.18% of its industry peers.
Looking at the Operating Margin, with a value of 40.87%, META belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
META has a Gross Margin of 81.50%. This is in the better half of the industry: META outperforms 74.65% 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.

Keep in mind

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.