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META PLATFORMS INC-CLASS A (META) Stock Fundamental Analysis

NASDAQ:META - Nasdaq - US30303M1027 - Common Stock - Currency: USD

719.22  -18.87 (-2.56%)

After market: 717.06 -2.16 (-0.3%)

Fundamental Rating

7

META gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 70 industry peers in the Interactive Media & Services industry. META has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. META shows excellent growth, but is valued quite expensive already. This makes META very considerable for growth and quality investing!


Dividend Valuation Growth Profitability Health

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9

1. Profitability

1.1 Basic Checks

In the past year META was profitable.
META had a positive operating cash flow in the past year.
META had positive earnings in each of the past 5 years.
Each year in the past 5 years META had a positive operating cash flow.
META Yearly Net Income VS EBIT VS OCF VS FCFMETA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

1.2 Ratios

With an excellent Return On Assets value of 23.78%, META belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
META's Return On Equity of 36.01% is amongst the best of the industry. META outperforms 97.14% of its industry peers.
META has a Return On Invested Capital of 25.71%. This is amongst the best in the industry. META outperforms 94.29% of its industry peers.
The Average Return On Invested Capital over the past 3 years for META is significantly above the industry average of 12.03%.
The 3 year average ROIC (21.71%) for META is below the current ROIC(25.71%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 23.78%
ROE 36.01%
ROIC 25.71%
ROA(3y)17.37%
ROA(5y)18.82%
ROE(3y)26.04%
ROE(5y)26.47%
ROIC(3y)21.71%
ROIC(5y)22.52%
META Yearly ROA, ROE, ROICMETA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

Looking at the Profit Margin, with a value of 39.11%, META belongs to the top of the industry, outperforming 95.71% of the companies in the same industry.
In the last couple of years the Profit Margin of META has grown nicely.
META's Operating Margin of 43.00% is amongst the best of the industry. META outperforms 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 a decent Gross Margin value of 81.75%, META is doing good in the industry, outperforming 75.71% of the companies in the same industry.
In the last couple of years the Gross Margin of META has remained more or less at the same level.
Industry RankSector Rank
OM 43%
PM (TTM) 39.11%
GM 81.75%
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%
META Yearly Profit, Operating, Gross MarginsMETA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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8

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.
The number of shares outstanding for META has been reduced compared to 1 year ago.
The number of shares outstanding for META has been reduced compared to 5 years ago.
The debt/assets ratio for META is higher compared to a year ago.
META Yearly Shares OutstandingMETA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B
META Yearly Total Debt VS Total AssetsMETA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B 200B 250B

2.2 Solvency

META has an Altman-Z score of 13.92. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 13.92, META belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
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.
The Debt to FCF ratio of META (0.55) is better than 75.71% of its industry peers.
A Debt/Equity ratio of 0.16 indicates that META is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.16, META perfoms like the industry average, outperforming 47.14% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 0.55
Altman-Z 13.92
ROIC/WACC2.91
WACC8.84%
META Yearly LT Debt VS Equity VS FCFMETA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

2.3 Liquidity

META has a Current Ratio of 2.66. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
META has a Current ratio (2.66) which is in line with its industry peers.
A Quick Ratio of 2.66 indicates that META has no problem at all paying its short term obligations.
META's Quick ratio of 2.66 is fine compared to the rest of the industry. META outperforms 61.43% of its industry peers.
Industry RankSector Rank
Current Ratio 2.66
Quick Ratio 2.66
META Yearly Current Assets VS Current LiabilitesMETA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

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7

3. Growth

3.1 Past

META shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 47.27%, 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.37%.
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)47.27%
EPS 3Y20.12%
EPS 5Y22.82%
EPS Q2Q%36.52%
Revenue 1Y (TTM)19.37%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%16.07%

3.2 Future

Based on estimates for the next years, META will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.03% on average per year.
META is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.99% yearly.
EPS Next Y8.88%
EPS Next 2Y9.61%
EPS Next 3Y11.14%
EPS Next 5Y12.03%
Revenue Next Year14.4%
Revenue Next 2Y14.18%
Revenue Next 3Y13.15%
Revenue Next 5Y11.99%

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.
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.
META Yearly Revenue VS EstimatesMETA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 100B 200B 300B
META Yearly EPS VS EstimatesMETA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 10 20 30 40

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 28.05, which means the current valuation is very expensive for META.
The rest of the industry has a similar Price/Earnings ratio as META.
The average S&P500 Price/Earnings ratio is at 27.21. META is around the same levels.
Based on the Price/Forward Earnings ratio of 25.03, the valuation of META can be described as expensive.
META's Price/Forward Earnings is on the same level as the industry average.
META's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.70.
Industry RankSector Rank
PE 28.05
Fwd PE 25.03
META Price Earnings VS Forward Price EarningsMETA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

61.43% of the companies in the same industry are more expensive than META, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as META.
Industry RankSector Rank
P/FCF 34.57
EV/EBITDA 19.86
META Per share dataMETA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates META does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of META may justify a higher PE ratio.
PEG (NY)3.16
PEG (5Y)1.23
EPS Next 2Y9.61%
EPS Next 3Y11.14%

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3

5. Dividend

5.1 Amount

With a yearly dividend of 0.29%, META is not a good candidate for dividend investing.
META's Dividend Yield is rather good when compared to the industry average which is at 3.05. META pays more dividend than 88.57% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, META's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.29%

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
META Yearly Dividends per shareMETA Yearly Dividends per shareYearly Dividends per share 2024 2025 0.5 1 1.5

5.3 Sustainability

7.70% of the earnings are spent on dividend by META. This is a low number and sustainable payout ratio.
DP7.7%
EPS Next 2Y9.61%
EPS Next 3Y11.14%
META Yearly Income VS Free CF VS DividendMETA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B
META Dividend Payout.META Dividend Payout, showing the Payout Ratio.META Dividend Payout.PayoutRetained Earnings

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META PLATFORMS INC-CLASS A

NASDAQ:META (7/1/2025, 10:12:59 PM)

After market: 717.06 -2.16 (-0.3%)

719.22

-18.87 (-2.56%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)04-30 2025-04-30/amc
Earnings (Next)07-23 2025-07-23/amc
Inst Owners79.85%
Inst Owner Change-13.31%
Ins Owners0.03%
Ins Owner Change1.68%
Market Cap1808.36B
Analysts83.59
Price Target729.22 (1.39%)
Short Float %1.39%
Short Ratio2.15
Dividend
Industry RankSector Rank
Dividend Yield 0.29%
Yearly Dividend1.99
Dividend Growth(5Y)N/A
DP7.7%
Div Incr Years0
Div Non Decr Years0
Ex-Date06-16 2025-06-16 (0.525)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)17.73%
Min EPS beat(2)16.07%
Max EPS beat(2)19.39%
EPS beat(4)4
Avg EPS beat(4)13.76%
Min EPS beat(4)7.03%
Max EPS beat(4)19.39%
EPS beat(8)8
Avg EPS beat(8)10.76%
EPS beat(12)9
Avg EPS beat(12)4.05%
EPS beat(16)11
Avg EPS beat(16)3.9%
Revenue beat(2)2
Avg Revenue beat(2)0.53%
Min Revenue beat(2)0.22%
Max Revenue beat(2)0.85%
Revenue beat(4)2
Avg Revenue beat(4)-0.05%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)0.85%
Revenue beat(8)4
Avg Revenue beat(8)-0.06%
Revenue beat(12)6
Avg Revenue beat(12)-0.17%
Revenue beat(16)7
Avg Revenue beat(16)-0.48%
PT rev (1m)1.83%
PT rev (3m)-4.5%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-1.99%
EPS NY rev (1m)0.21%
EPS NY rev (3m)0.8%
Revenue NQ rev (1m)0.05%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)-0.81%
Valuation
Industry RankSector Rank
PE 28.05
Fwd PE 25.03
P/S 10.61
P/FCF 34.57
P/OCF 18.82
P/B 9.77
P/tB 11
EV/EBITDA 19.86
EPS(TTM)25.64
EY3.56%
EPS(NY)28.74
Fwd EY4%
FCF(TTM)20.81
FCFY2.89%
OCF(TTM)38.22
OCFY5.31%
SpS67.76
BVpS73.59
TBVpS65.38
PEG (NY)3.16
PEG (5Y)1.23
Profitability
Industry RankSector Rank
ROA 23.78%
ROE 36.01%
ROCE 29.74%
ROIC 25.71%
ROICexc 35.97%
ROICexgc 40.75%
OM 43%
PM (TTM) 39.11%
GM 81.75%
FCFM 30.71%
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%
ROICexcg growth 3Y-7.04%
ROICexcg 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-Score6
Asset Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 0.55
Debt/EBITDA 0.32
Cap/Depr 273.32%
Cap/Sales 25.71%
Interest Coverage 250
Cash Conversion 107.64%
Profit Quality 78.5%
Current Ratio 2.66
Quick Ratio 2.66
Altman-Z 13.92
F-Score6
WACC8.84%
ROIC/WACC2.91
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)47.27%
EPS 3Y20.12%
EPS 5Y22.82%
EPS Q2Q%36.52%
EPS Next Y8.88%
EPS Next 2Y9.61%
EPS Next 3Y11.14%
EPS Next 5Y12.03%
Revenue 1Y (TTM)19.37%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%16.07%
Revenue Next Year14.4%
Revenue Next 2Y14.18%
Revenue Next 3Y13.15%
Revenue Next 5Y11.99%
EBIT growth 1Y31.06%
EBIT growth 3Y14.27%
EBIT growth 5Y19.21%
EBIT Next Year66.06%
EBIT Next 3Y31.35%
EBIT Next 5Y24.16%
FCF growth 1Y197.81%
FCF growth 3Y11.4%
FCF growth 5Y20.58%
OCF growth 1Y90.7%
OCF growth 3Y16.55%
OCF growth 5Y20.26%