META PLATFORMS INC-CLASS A (META)
US30303M1027 - Common Stock
We assign a fundamental rating of 7 out of 10 to META. META was compared to 68 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! These ratings could make META a good candidate 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.
In the past 5 years META has always been profitable.
In the past 5 years META always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 20.53%, META belongs to the top of the industry, outperforming 97.01% of the companies in the same industry.
With an excellent Return On Equity value of 30.60%, META belongs to the best of the industry, outperforming 95.52% of the companies in the same industry.
The Return On Invested Capital of META (24.19%) is better than 95.52% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for META is significantly above the industry average of 10.06%.
The last Return On Invested Capital (24.19%) for META is above the 3 year average (22.24%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.53% | ||
| ROE | 30.6% | ||
| ROIC | 24.19% |
ROA(3y)17.75%
ROA(5y)17.08%
ROE(3y)25.17%
ROE(5y)23.3%
ROIC(3y)22.24%
ROIC(5y)21.38%
1.3 Margins
Looking at the Profit Margin, with a value of 32.06%, META belongs to the top of the industry, outperforming 95.52% of the companies in the same industry.
META's Profit Margin has declined in the last couple of years.
META's Operating Margin of 38.70% is amongst the best of 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 74.63% of its industry peers.
In the last couple of years the Gross Margin of META has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.7% | ||
| PM (TTM) | 32.06% | ||
| GM | 81.5% |
OM growth 3Y-1.49%
OM growth 5Y-4.03%
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
META has a worse debt/assets ratio than last year.
2.2 Solvency
META has an Altman-Z score of 12.08. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of META (12.08) is better than 91.04% of its industry peers.
The Debt to FCF ratio of META is 0.37, which is an excellent value as it means it would take META, only 0.37 years of fcf income to pay off all of its debts.
META has a Debt to FCF ratio of 0.37. This is amongst the best in the industry. META outperforms 80.60% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that META is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.12, META is in line with its industry, outperforming 40.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 0.37 | ||
| Altman-Z | 12.08 |
ROIC/WACC2.67
WACC9.06%
2.3 Liquidity
META has a Current Ratio of 2.68. 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 2.68, META is in line with its industry, outperforming 50.75% of the companies in the same industry.
META has a Quick Ratio of 2.68. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.68, META is in line with its industry, outperforming 50.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 116.00% over the past year.
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 21.62%.
The Revenue has been growing by 19.29% on average over the past years. This is quite good.
EPS 1Y (TTM)116%
EPS 3Y15.03%
EPS 5Y14.5%
EPS growth Q2Q114.09%
Revenue 1Y (TTM)21.62%
Revenue growth 3Y16.21%
Revenue growth 5Y19.29%
Revenue growth Q2Q27.26%
3.2 Future
The Earnings Per Share is expected to grow by 16.58% on average over the next years. This is quite good.
META is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.27% yearly.
EPS Next Y37.06%
EPS Next 2Y25.9%
EPS Next 3Y21.93%
EPS Next 5Y16.58%
Revenue Next Year18.31%
Revenue Next 2Y15.46%
Revenue Next 3Y14.12%
Revenue Next 5Y12.27%
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 stable.
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 26.88, which means the current valuation is very expensive for META.
70.15% of the companies in the same industry are more expensive than META, based on the Price/Earnings ratio.
META is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.32, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.82, which indicates a rather expensive current valuation of META.
META's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. META is cheaper than 68.66% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.24. META is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.88 | ||
| Fwd PE | 19.82 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of META indicates a somewhat cheap valuation: META is cheaper than 68.66% of the companies listed in the same industry.
META's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. META is cheaper than 73.13% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.96 | ||
| EV/EBITDA | 16.99 |
4.3 Compensation for Growth
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 21.93% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)1.85
EPS Next 2Y25.9%
EPS Next 3Y21.93%
5. Dividend
5.1 Amount
META has a yearly dividend return of 0.42%, which is pretty low.
Compared to an average industry Dividend Yield of 16.14, META pays a better dividend. On top of this META pays more dividend than 88.06% of the companies listed in the same industry.
With a Dividend Yield of 0.42, META pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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 2Y25.9%
EPS Next 3Y21.93%
META PLATFORMS INC-CLASS A
NASDAQ:META (5/13/2024, 7:00:02 PM)
Premarket: 467.66 -0.35 (-0.07%)468.01
-8.19 (-1.72%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1187.12B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.88 | ||
| Fwd PE | 19.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.73
PEG (5Y)1.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.53% | ||
| ROE | 30.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 38.7% | ||
| PM (TTM) | 32.06% | ||
| GM | 81.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.68 | ||
| Quick Ratio | 2.68 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)116%
EPS 3Y15.03%
EPS 5Y
EPS growth Q2Q
EPS Next Y37.06%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)21.62%
Revenue growth 3Y16.21%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y