META PLATFORMS INC-CLASS A (META) Stock Fundamental Analysis
USA - NASDAQ:META - US30303M1027 - Common Stock
597.69 USD
-4.32 (-0.72%)
598 USD
+0.31 (+0.05%)
Taking everything into account, META scores 8 out of 10 in our fundamental rating. META was compared to 70 industry peers in the Interactive Media & Services industry. META scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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.
META had a positive operating cash flow in the past year.
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
META's Return On Assets of 19.26% is amongst the best of the industry. META outperforms 90.00% of its industry peers.
With an excellent Return On Equity value of 30.16%, META belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
With an excellent Return On Invested Capital value of 26.56%, META belongs to the best of the industry, outperforming 94.29% 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 13.26%.
The last Return On Invested Capital (26.56%) for META is above the 3 year average (21.71%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.26% | ||
| ROE | 30.16% | ||
| ROIC | 26.56% |
ROA(3y)17.37%
ROA(5y)18.82%
ROE(3y)26.04%
ROE(5y)26.47%
ROIC(3y)21.71%
ROIC(5y)22.52%
1.3 Margins
With an excellent Profit Margin value of 30.89%, META belongs to the best of the industry, outperforming 88.57% of the companies in the same industry.
In the last couple of years the Profit Margin of META has grown nicely.
META has a better Operating Margin (43.28%) than 100.00% of its industry peers.
In the last couple of years the Operating Margin of META has remained more or less at the same level.
With an excellent Gross Margin value of 82.00%, META belongs to the best of the industry, outperforming 81.43% of the companies in the same industry.
META's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 43.28% | ||
| PM (TTM) | 30.89% | ||
| GM | 82% |
OM growth 3Y2.27%
OM growth 5Y0.68%
PM growth 3Y4.33%
PM growth 5Y7.71%
GM growth 3Y0.37%
GM growth 5Y-0.06%
2. Health
2.1 Basic Checks
META has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
META has less shares outstanding than it did 1 year ago.
META has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, META has a worse debt to assets ratio.
2.2 Solvency
META has an Altman-Z score of 10.33. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
META has a better Altman-Z score (10.33) than 90.00% of its industry peers.
META has a debt to FCF ratio of 0.64. This is a very positive value and a sign of high solvency as it would only need 0.64 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 0.64, META is doing good in the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that META is not too dependend on debt financing.
META has a Debt to Equity ratio (0.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 10.33 |
ROIC/WACC2.66
WACC9.99%
2.3 Liquidity
A Current Ratio of 1.98 indicates that META should not have too much problems paying its short term obligations.
With a Current ratio value of 1.98, META perfoms like the industry average, outperforming 55.71% of the companies in the same industry.
META has a Quick Ratio of 1.98. This is a normal value and indicates that META is financially healthy and should not expect problems in meeting its short term obligations.
META's Quick ratio of 1.98 is in line compared to the rest of the industry. META outperforms 55.71% of its industry peers.
META does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 35.85% over the past year.
The Earnings Per Share has been growing by 22.82% on average over the past years. This is a very strong growth
The Revenue has grown by 21.27% in the past year. This is a very strong growth!
Measured over the past years, META shows a quite strong growth in Revenue. The Revenue has been growing by 18.40% on average per year.
EPS 1Y (TTM)35.85%
EPS 3Y20.12%
EPS 5Y22.82%
EPS Q2Q%20.23%
Revenue 1Y (TTM)21.27%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%26.25%
3.2 Future
The Earnings Per Share is expected to grow by 10.78% on average over the next years. This is quite good.
The Revenue is expected to grow by 16.16% on average over the next years. This is quite good.
EPS Next Y16.31%
EPS Next 2Y13.76%
EPS Next 3Y14.04%
EPS Next 5Y10.78%
Revenue Next Year21.32%
Revenue Next 2Y19.36%
Revenue Next 3Y17.96%
Revenue Next 5Y16.16%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 20.72, the valuation of META can be described as rather expensive.
Based on the Price/Earnings ratio, META is valued a bit cheaper than the industry average as 62.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.51, META is valued at the same level.
Based on the Price/Forward Earnings ratio of 19.31, the valuation of META can be described as rather expensive.
META's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.98, META is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.72 | ||
| Fwd PE | 19.31 |
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 61.43% 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 61.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.48 | ||
| EV/EBITDA | 14.57 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
META has an outstanding profitability rating, which may justify a higher PE ratio.
META's earnings are expected to grow with 14.04% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.27
PEG (5Y)0.91
EPS Next 2Y13.76%
EPS Next 3Y14.04%
5. Dividend
5.1 Amount
META has a yearly dividend return of 0.34%, which is pretty low.
The stock price of META dropped by -20.81% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
META's Dividend Yield is rather good when compared to the industry average which is at 2.80. META pays more dividend than 90.00% of the companies in the same industry.
With a Dividend Yield of 0.34, META pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
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
META pays out 8.98% of its income as dividend. This is a sustainable payout ratio.
DP8.98%
EPS Next 2Y13.76%
EPS Next 3Y14.04%
597.69
-4.32 (-0.72%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners79.76%
Inst Owner Change-15.6%
Ins Owners0.04%
Ins Owner Change-4.84%
Market Cap1.50T
Revenue(TTM)189.46B
Net Income(TTM)58.53B
Analysts82.67
Price Target878.29 (46.95%)
Short Float %1.29%
Short Ratio1.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
Yearly Dividend1.99
Dividend Growth(5Y)N/A
DP8.98%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.27%
Min EPS beat(2)6.23%
Max EPS beat(2)18.31%
EPS beat(4)4
Avg EPS beat(4)15%
Min EPS beat(4)6.23%
Max EPS beat(4)19.39%
EPS beat(8)8
Avg EPS beat(8)11.48%
EPS beat(12)11
Avg EPS beat(12)7.9%
EPS beat(16)12
Avg EPS beat(16)4.45%
Revenue beat(2)2
Avg Revenue beat(2)2.83%
Min Revenue beat(2)1.68%
Max Revenue beat(2)3.97%
Revenue beat(4)4
Avg Revenue beat(4)1.68%
Min Revenue beat(4)0.22%
Max Revenue beat(4)3.97%
Revenue beat(8)5
Avg Revenue beat(8)0.58%
Revenue beat(12)8
Avg Revenue beat(12)0.56%
Revenue beat(16)8
Avg Revenue beat(16)-0.03%
PT rev (1m)1.08%
PT rev (3m)3.02%
EPS NQ rev (1m)1.94%
EPS NQ rev (3m)3.01%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)6.45%
Revenue NQ rev (1m)1.45%
Revenue NQ rev (3m)2.1%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)5.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.72 | ||
| Fwd PE | 19.31 | ||
| P/S | 7.93 | ||
| P/FCF | 33.48 | ||
| P/OCF | 13.96 | ||
| P/B | 7.74 | ||
| P/tB | 8.68 | ||
| EV/EBITDA | 14.57 |
EPS(TTM)28.84
EY4.83%
EPS(NY)30.96
Fwd EY5.18%
FCF(TTM)17.85
FCFY2.99%
OCF(TTM)42.82
OCFY7.16%
SpS75.42
BVpS77.25
TBVpS68.83
PEG (NY)1.27
PEG (5Y)0.91
Graham Number223.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 19.26% | ||
| ROE | 30.16% | ||
| ROCE | 30.72% | ||
| ROIC | 26.56% | ||
| ROICexc | 31.87% | ||
| ROICexgc | 35.22% | ||
| OM | 43.28% | ||
| PM (TTM) | 30.89% | ||
| GM | 82% | ||
| FCFM | 23.67% |
ROA(3y)17.37%
ROA(5y)18.82%
ROE(3y)26.04%
ROE(5y)26.47%
ROIC(3y)21.71%
ROIC(5y)22.52%
ROICexc(3y)31.35%
ROICexc(5y)34.01%
ROICexgc(3y)37.1%
ROICexgc(5y)41.77%
ROCE(3y)25.11%
ROCE(5y)26.05%
ROICexgc growth 3Y-7.04%
ROICexgc growth 5Y-5.9%
ROICexc growth 3Y-4.25%
ROICexc growth 5Y-1.49%
OM growth 3Y2.27%
OM growth 5Y0.68%
PM growth 3Y4.33%
PM growth 5Y7.71%
GM growth 3Y0.37%
GM growth 5Y-0.06%
F-Score7
Asset Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.64 | ||
| Debt/EBITDA | 0.29 | ||
| Cap/Depr | 355.13% | ||
| Cap/Sales | 33.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.95% | ||
| Profit Quality | 76.61% | ||
| Current Ratio | 1.98 | ||
| Quick Ratio | 1.98 | ||
| Altman-Z | 10.33 |
F-Score7
WACC9.99%
ROIC/WACC2.66
Cap/Depr(3y)282.06%
Cap/Depr(5y)259.9%
Cap/Sales(3y)23.27%
Cap/Sales(5y)20.63%
Profit Quality(3y)93.65%
Profit Quality(5y)92.28%
High Growth Momentum
Growth
EPS 1Y (TTM)35.85%
EPS 3Y20.12%
EPS 5Y22.82%
EPS Q2Q%20.23%
EPS Next Y16.31%
EPS Next 2Y13.76%
EPS Next 3Y14.04%
EPS Next 5Y10.78%
Revenue 1Y (TTM)21.27%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%26.25%
Revenue Next Year21.32%
Revenue Next 2Y19.36%
Revenue Next 3Y17.96%
Revenue Next 5Y16.16%
EBIT growth 1Y28.42%
EBIT growth 3Y14.27%
EBIT growth 5Y19.21%
EBIT Next Year76.64%
EBIT Next 3Y33.07%
EBIT Next 5Y27.74%
FCF growth 1Y19.33%
FCF growth 3Y11.4%
FCF growth 5Y20.58%
OCF growth 1Y62.45%
OCF growth 3Y16.55%
OCF growth 5Y20.26%
META PLATFORMS INC-CLASS A / META FAQ
What is the fundamental rating for META stock?
ChartMill assigns a fundamental rating of 7 / 10 to META.
What is the valuation status of META PLATFORMS INC-CLASS A (META) stock?
ChartMill assigns a valuation rating of 4 / 10 to META PLATFORMS INC-CLASS A (META). This can be considered as Fairly Valued.
What is the profitability of META stock?
META PLATFORMS INC-CLASS A (META) has a profitability rating of 9 / 10.
What is the valuation of META PLATFORMS INC-CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for META PLATFORMS INC-CLASS A (META) is 20.72 and the Price/Book (PB) ratio is 7.74.
Is the dividend of META PLATFORMS INC-CLASS A sustainable?
The dividend rating of META PLATFORMS INC-CLASS A (META) is 3 / 10 and the dividend payout ratio is 8.98%.