META PLATFORMS INC-CLASS A (NASDAQ:META): a strong growth stock preparing for the next leg up?.

In this article we will dive into META PLATFORMS INC-CLASS A (NASDAQ:META) as a possible candidate for growth investing. Investors should always do their own research, but we noticed META PLATFORMS INC-CLASS A showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Growth Examination for 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. 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 60.54%, which is quite impressive.
• The Earnings Per Share has been growing by 22.82% on average over the past years. This is a very strong growth
• META shows a strong growth in Revenue. In the last year, the Revenue has grown by 21.94%.
• The Revenue has been growing by 18.40% 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 12.53% 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 12.06% on average per year.

Assessing Health Metrics for META

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. META has earned a 8 out of 10:

• An Altman-Z score of 12.31 indicates that META is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 12.31, META belongs to the top of the industry, outperforming 90.14% of the companies in the same industry.
• META has a debt to FCF ratio of 0.53. This is a very positive value and a sign of high solvency as it would only need 0.53 years to pay back of all of its debts.
• The Debt to FCF ratio of META (0.53) is better than 77.46% of its industry peers.
• A Debt/Equity ratio of 0.16 indicates that META is not too dependend on debt financing.
• A Current Ratio of 2.98 indicates that META has no problem at all paying its short term obligations.
• With a decent Current ratio value of 2.98, META is doing good in the industry, outperforming 69.01% of the companies in the same industry.
• META has a Quick Ratio of 2.98. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
• The Quick ratio of META (2.98) is better than 70.42% of its industry peers.

How do we evaluate the Profitability for 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. META was assigned a score of 9 for profitability:

• Looking at the Return On Assets, with a value of 22.59%, META belongs to the top of the industry, outperforming 97.18% of the companies in the same industry.
• META has a Return On Equity of 34.14%. This is amongst the best in the industry. META outperforms 97.18% of its industry peers.
• META's Return On Invested Capital of 24.88% is amongst the best of the industry. META outperforms 94.37% of its industry peers.
• META had an Average Return On Invested Capital over the past 3 years of 21.71%. This is significantly above the industry average of 11.32%.
• The last Return On Invested Capital (24.88%) for META is above the 3 year average (21.71%), which is a sign of increasing profitability.
• Looking at the Profit Margin, with a value of 37.91%, META belongs to the top of the industry, outperforming 97.18% of the companies in the same industry.
• META's Profit Margin has improved in the last couple of years.
• META has a better Operating Margin (42.41%) than 100.00% of its industry peers.
• Looking at the Gross Margin, with a value of 81.68%, META is in the better half of the industry, outperforming 74.65% of the companies in the same industry.

Looking at the Setup

ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for META is 7:

Although the technical rating is only medium, META does present a nice setup opportunity. We see reduced volatility while prices have been consolidating in the most recent period. There is a support zone below the current price at 599.59, a Stop Loss order could be placed below this zone.

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

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

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

Disclaimer

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.