In the world of growth stocks, NASDAQ:META shines as a value proposition.

Last update: Jan 8, 2025

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.

Growth Analysis for NASDAQ:META

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 8 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.
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.
Based on estimates for the next years, META will show a quite strong growth in Earnings Per Share. The EPS will grow by 19.08% on average per year.
META is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.63% yearly.
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Understanding NASDAQ:META's Valuation Score

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 5 out of 10:

Based on the Price/Earnings ratio, META is valued a bit cheaper than 60.61% 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 62.12% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, META is valued a bit cheaper than 62.12% of the companies in the same industry.
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.
META's earnings are expected to grow with 25.35% in the coming years. This may justify a more expensive valuation.

A Closer Look at Health for NASDAQ:META

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:META scores a 8 out of 10:

META has an Altman-Z score of 12.35. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
META has a better Altman-Z score (12.35) than 90.91% 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 75.76% 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.
META has a Current ratio of 2.73. This is in the better half of the industry: META outperforms 66.67% of its industry peers.
META has a Quick Ratio of 2.73. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
META's Quick ratio of 2.73 is fine compared to the rest of the industry. META outperforms 66.67% of its industry peers.

Understanding NASDAQ:META's 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:

META has a better Return On Assets (21.66%) than 95.45% of its industry peers.
META has a Return On Equity of 33.76%. This is amongst the best in the industry. META outperforms 100.00% of its industry peers.
META has a better Return On Invested Capital (23.67%) than 95.45% of its industry peers.
The Average Return On Invested Capital over the past 3 years for META is significantly above the industry average of 11.31%.
The last Return On Invested Capital (23.67%) for META is above the 3 year average (21.73%), which is a sign of increasing profitability.
Looking at the Profit Margin, with a value of 35.55%, META belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
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 better Gross Margin (81.50%) than 74.24% of its industry peers.

More Affordable Growth stocks can be found in our Affordable Growth screener.

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

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.