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

META PLATFORMS INC-CLASS A (NASDAQ:META) has caught the eye of our stock screener as an affordable growth stock. NASDAQ:META is displaying robust growth metrics and also excels in terms of profitability, solvency, and liquidity. Additionally, it appears to be reasonably priced. Let's delve into the details.

ChartMill's Evaluation of Growth

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:META boasts a 7 out of 10:

• The Earnings Per Share has grown by an impressive 87.38% 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 23.06%.
• 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.

Valuation Insights: 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 5 out of 10:

• Based on the Price/Earnings ratio, META is valued a bit cheaper than the industry average as 65.28% 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 65.28% 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 65.28% 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.
• META has an outstanding profitability rating, which may justify a higher PE ratio.
• A more expensive valuation may be justified as META's earnings are expected to grow with 25.40% in the coming years.

A Closer Look at Health 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 11.48. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
• META's Altman-Z score of 11.48 is amongst the best of the industry. META outperforms 91.67% 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.
• META has a better Debt to FCF ratio (0.55) than 76.39% of its industry peers.
• A Debt/Equity ratio of 0.18 indicates that META is not too dependend on debt financing.
• META has a Current Ratio of 2.73. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of META (2.73) is better than 63.89% of its industry peers.
• A Quick Ratio of 2.73 indicates that META has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 2.73, META is in the better half of the industry, outperforming 63.89% of the companies in the same industry.

A Closer Look at Profitability for NASDAQ:META

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:META was assigned a score of 8 for profitability:

• META's Return On Assets of 21.66% is amongst the best of the industry. META outperforms 95.83% of its industry peers.
• META's Return On Equity of 33.76% is amongst the best of the industry. META outperforms 100.00% of its industry peers.
• With an excellent Return On Invested Capital value of 23.67%, META belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for META is significantly above the industry average of 11.01%.
• The 3 year average ROIC (21.73%) for META is below the current ROIC(23.67%), indicating increased profibility in the last year.
• META has a Profit Margin of 35.55%. This is amongst the best in the industry. META outperforms 97.22% of its industry peers.
• META has a Operating Margin of 40.87%. This is amongst the best in the industry. META outperforms 100.00% of its industry peers.
• The Gross Margin of META (81.50%) is better than 73.61% of its industry peers.

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

Our latest full fundamental report of META contains the most current fundamental analsysis.

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.