Don't overlook NASDAQ:META—a stock with solid growth prospects and a reasonable valuation.

Uncover the potential of META PLATFORMS INC-CLASS A (NASDAQ:META), a growth stock that our stock screener found to be reasonably priced. NASDAQ:META is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

What does the Growth looks like for NASDAQ:META

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:META scores a 8 out of 10:

• 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.
• 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%.
• 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.
• META is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.08% yearly.
• Based on estimates for the next years, META will show a quite strong growth in Revenue. The Revenue will grow by 13.62% on average per year.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

ChartMill's Evaluation of Valuation

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:

• META's Price/Earnings ratio is a bit cheaper when compared to the industry. META is cheaper than 62.12% 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.
• 62.12% of the companies in the same industry are more expensive than META, based on the Price/Free Cash Flow ratio.
• The 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 25.35% in the coming years.

How We Gauge Health for NASDAQ:META

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:META, the assigned 8 for health provides valuable insights:

• META has an Altman-Z score of 13.28. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
• META has a Altman-Z score of 13.28. This is amongst the best in the industry. META outperforms 89.39% 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 77.27% 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.
• 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.
• Looking at the Current ratio, with a value of 2.73, META is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
• 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 has a Quick ratio of 2.73. This is in the better half of the industry: META outperforms 66.67% of its industry peers.

Looking at the Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:META scores a 8 out of 10:

• META's Return On Assets of 21.66% is amongst the best of the industry. META outperforms 95.45% of its industry peers.
• META has a better Return On Equity (33.76%) than 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 93.94% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for META is significantly above the industry average of 12.59%.
• 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 better Profit Margin (35.55%) than 96.97% of its industry peers.
• META's Operating Margin of 40.87% is amongst the best of the industry. META outperforms 100.00% of its industry peers.
• With a decent Gross Margin value of 81.50%, META is doing good in the industry, outperforming 75.76% of the companies in the same industry.

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.