META PLATFORMS INC-CLASS A (META) Stock Fundamental Analysis
NASDAQ:META - Nasdaq - US30303M1027 - Common Stock - Currency: USD
META gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 71 industry peers in the Interactive Media & Services industry. META gets an excellent profitability rating and is at the same time showing great financial health properties. META is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes META very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year META was profitable.
In the past year META had a positive cash flow from operations.
META had positive earnings in each of the past 5 years.
In the past 5 years META always reported a positive cash flow from operatings.
1.2 Ratios
META's Return On Assets of 21.66% is amongst the best of the industry. META outperforms 95.45% of its industry peers.
Looking at the Return On Equity, with a value of 33.76%, META belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
META has a better Return On Invested Capital (23.67%) than 93.94% of its industry peers.
META had an Average Return On Invested Capital over the past 3 years of 21.73%. This 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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.66% | ||
| ROE | 33.76% | ||
| ROIC | 23.67% |
ROA(3y)17.75%
ROA(5y)17.08%
ROE(3y)25.17%
ROE(5y)23.3%
ROIC(3y)21.73%
ROIC(5y)20.83%
1.3 Margins
With an excellent Profit Margin value of 35.55%, META belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
In the last couple of years the Profit Margin of META has declined.
META has a Operating Margin of 40.87%. This is amongst the best in the industry. META outperforms 100.00% of its industry peers.
META's Operating Margin has declined in the last couple of years.
META's Gross Margin of 81.50% is fine compared to the rest of the industry. META outperforms 75.76% of its industry peers.
META's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.87% | ||
| PM (TTM) | 35.55% | ||
| GM | 81.5% |
OM growth 3Y-0.7%
OM growth 5Y-3.56%
PM growth 3Y-5.09%
PM growth 5Y-6.05%
GM growth 3Y0.06%
GM growth 5Y-0.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so META is creating value.
The number of shares outstanding for META has been reduced compared to 1 year ago.
Compared to 5 years ago, META has less shares outstanding
The debt/assets ratio for META is higher compared to a year ago.
2.2 Solvency
META has an Altman-Z score of 13.04. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
META has a Altman-Z score of 13.04. This is amongst the best in the industry. META outperforms 89.39% 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.
With a decent Debt to FCF ratio value of 0.55, META is doing good in the industry, outperforming 77.27% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that META is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.18, META is in line with its industry, outperforming 48.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 13.04 |
ROIC/WACC2.6
WACC9.11%
2.3 Liquidity
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.
META has a better Current ratio (2.73) than 66.67% 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 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.73 |
3. Growth
3.1 Past
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.
Looking at the last year, META shows a very strong growth in Revenue. 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.
EPS 1Y (TTM)87.38%
EPS 3Y15.03%
EPS 5Y14.5%
EPS Q2Q%37.36%
Revenue 1Y (TTM)23.06%
Revenue growth 3Y16.21%
Revenue growth 5Y19.29%
Sales Q2Q%18.87%
3.2 Future
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.
The Revenue is expected to grow by 13.62% on average over the next years. This is quite good.
EPS Next Y54.62%
EPS Next 2Y31.65%
EPS Next 3Y25.35%
EPS Next 5Y19.08%
Revenue Next Year21.91%
Revenue Next 2Y18.22%
Revenue Next 3Y16.37%
Revenue Next 5Y13.62%
3.3 Evolution
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 31.76, which means the current valuation is very expensive for META.
Compared to the rest of the industry, the Price/Earnings ratio of META indicates a somewhat cheap valuation: META is cheaper than 62.12% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.42, META is valued at the same level.
A Price/Forward Earnings ratio of 26.11 indicates a quite expensive valuation of META.
The rest of the industry has a similar Price/Forward Earnings ratio as META.
META is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.76 | ||
| Fwd PE | 26.11 |
4.2 Price Multiples
META's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. META is cheaper than 62.12% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, META is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.58 | ||
| EV/EBITDA | 20.46 |
4.3 Compensation for Growth
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 25.35% in the coming years.
PEG (NY)0.58
PEG (5Y)2.19
EPS Next 2Y31.65%
EPS Next 3Y25.35%
5. Dividend
5.1 Amount
META has a yearly dividend return of 0.31%, which is pretty low.
META's Dividend Yield is rather good when compared to the industry average which is at 2.89. META pays more dividend than 87.88% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, META's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
5.2 History
META is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
DPN/A
EPS Next 2Y31.65%
EPS Next 3Y25.35%
META PLATFORMS INC-CLASS A
NASDAQ:META (1/28/2025, 8:00:01 PM)
After market: 677.89 +3.56 (+0.53%)674.33
+14.45 (+2.19%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners79.19%
Inst Owner Change-0.07%
Ins Owners0.04%
Ins Owner Change-3.97%
Market Cap1702.34B
Analysts82.56
Price Target656.42 (-2.66%)
Short Float %1.16%
Short Ratio1.95
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.31% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.79%
Min EPS beat(2)7.03%
Max EPS beat(2)12.55%
EPS beat(4)4
Avg EPS beat(4)7.96%
Min EPS beat(4)5.4%
Max EPS beat(4)12.55%
EPS beat(8)7
Avg EPS beat(8)4.35%
EPS beat(12)8
Avg EPS beat(12)0.93%
EPS beat(16)11
Avg EPS beat(16)5.11%
Revenue beat(2)0
Avg Revenue beat(2)-0.62%
Min Revenue beat(2)-1.22%
Max Revenue beat(2)-0.02%
Revenue beat(4)1
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-1.22%
Max Revenue beat(4)0.38%
Revenue beat(8)4
Avg Revenue beat(8)0.01%
Revenue beat(12)4
Avg Revenue beat(12)-0.6%
Revenue beat(16)7
Avg Revenue beat(16)0.23%
PT rev (1m)0.26%
PT rev (3m)13.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)12.74%
EPS NY rev (1m)0%
EPS NY rev (3m)6.5%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.31%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.76 | ||
| Fwd PE | 26.11 | ||
| P/S | 10.9 | ||
| P/FCF | 32.58 | ||
| P/OCF | 20.57 | ||
| P/B | 10.35 | ||
| P/tB | 11.91 | ||
| EV/EBITDA | 20.46 |
EPS(TTM)21.23
EY3.15%
EPS(NY)25.83
Fwd EY3.83%
FCF(TTM)20.7
FCFY3.07%
OCF(TTM)32.78
OCFY4.86%
SpS61.88
BVpS65.17
TBVpS56.61
PEG (NY)0.58
PEG (5Y)2.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.66% | ||
| ROE | 33.76% | ||
| ROCE | 28.62% | ||
| ROIC | 23.67% | ||
| ROICexc | 34.7% | ||
| ROICexgc | 40.44% | ||
| OM | 40.87% | ||
| PM (TTM) | 35.55% | ||
| GM | 81.5% | ||
| FCFM | 33.44% |
ROA(3y)17.75%
ROA(5y)17.08%
ROE(3y)25.17%
ROE(5y)23.3%
ROIC(3y)21.73%
ROIC(5y)20.83%
ROICexc(3y)31.61%
ROICexc(5y)33.08%
ROICexgc(3y)38.78%
ROICexgc(5y)42.82%
ROCE(3y)26.27%
ROCE(5y)25.19%
ROICexcg growth 3Y-4.55%
ROICexcg growth 5Y-11.65%
ROICexc growth 3Y-1.45%
ROICexc growth 5Y-5.6%
OM growth 3Y-0.7%
OM growth 5Y-3.56%
PM growth 3Y-5.09%
PM growth 5Y-6.05%
GM growth 3Y0.06%
GM growth 5Y-0.61%
F-Score8
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.55 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 214.61% | ||
| Cap/Sales | 19.52% | ||
| Interest Coverage | 127.18 | ||
| Cash Conversion | 106.01% | ||
| Profit Quality | 94.07% | ||
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.73 | ||
| Altman-Z | 13.04 |
F-Score8
WACC9.11%
ROIC/WACC2.6
Cap/Depr(3y)279.61%
Cap/Depr(5y)264.43%
Cap/Sales(3y)20.97%
Cap/Sales(5y)20.37%
Profit Quality(3y)97.86%
Profit Quality(5y)97.88%
High Growth Momentum
Growth
EPS 1Y (TTM)87.38%
EPS 3Y15.03%
EPS 5Y14.5%
EPS Q2Q%37.36%
EPS Next Y54.62%
EPS Next 2Y31.65%
EPS Next 3Y25.35%
EPS Next 5Y19.08%
Revenue 1Y (TTM)23.06%
Revenue growth 3Y16.21%
Revenue growth 5Y19.29%
Sales Q2Q%18.87%
Revenue Next Year21.91%
Revenue Next 2Y18.22%
Revenue Next 3Y16.37%
Revenue Next 5Y13.62%
EBIT growth 1Y46.16%
EBIT growth 3Y15.4%
EBIT growth 5Y15.04%
EBIT Next Year108.52%
EBIT Next 3Y41.5%
EBIT Next 5Y29.24%
FCF growth 1Y98.58%
FCF growth 3Y22.88%
FCF growth 5Y23.34%
OCF growth 1Y53.04%
OCF growth 3Y22.43%
OCF growth 5Y19.42%