Despite its growth, NASDAQ:META remains within the realm of affordability.

Last update: Dec 18, 2024

Consider META PLATFORMS INC-CLASS A (NASDAQ:META) as an affordable growth stock, identified by our stock screening tool. NASDAQ:META is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Analysis for NASDAQ:META

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:META has achieved a 8 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.
The Revenue has grown by 23.06% in the past year. This is a very strong growth!
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.
The Earnings Per Share is expected to grow by 19.08% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.63% on average over the next years. This is quite good.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Valuation Insights: NASDAQ:META

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:META boasts a 6 out of 10:

Based on the Price/Earnings ratio, META is valued a bit cheaper than 62.50% of the companies in the same industry.
Based on the Price/Forward Earnings ratio, META is valued a bit cheaper than the industry average as 61.11% 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 65.28% of the companies are valued more expensively.
META's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. META is cheaper than 65.28% 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.
A more expensive valuation may be justified as META's earnings are expected to grow with 25.24% in the coming years.

How do we evaluate the Health for NASDAQ:META?

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

An Altman-Z score of 12.38 indicates that META is not in any danger for bankruptcy at the moment.
META's Altman-Z score of 12.38 is amongst the best of the industry. META outperforms 91.67% of its industry peers.
META has a debt to FCF ratio of 0.55. This is a very positive value and a sign of high solvency as it would only need 0.55 years to pay back of 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.
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 63.89% 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 63.89% of its industry peers.

Profitability Insights: NASDAQ:META

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:META, the assigned 8 is noteworthy for profitability:

With an excellent Return On Assets value of 21.66%, META belongs to the best of the industry, outperforming 95.83% of the companies in the same industry.
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.
META had an Average Return On Invested Capital over the past 3 years of 21.73%. This is significantly above the industry average of 10.97%.
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.
With an excellent Operating Margin value of 40.87%, META belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
With a decent Gross Margin value of 81.50%, META is doing good in the industry, outperforming 73.61% of the companies in the same industry.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

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.