META PLATFORMS INC-CLASS A (META) Stock Fundamental Analysis
USA - NASDAQ:META - US30303M1027 - Common Stock
609.46 USD
-0.43 (-0.07%)
609.82 USD
+0.36 (+0.06%)
We assign a fundamental rating of 8 out of 10 to META. META was compared to 70 industry peers in the Interactive Media & Services industry. Both the health and profitability get an excellent rating, making META a very profitable company, without any liquidiy or solvency issues. META is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make META suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
META had positive earnings in the past year.
In the past year META had a positive cash flow from operations.
Each year in the past 5 years META has been profitable.
META had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
META has a Return On Assets of 19.26%. This is amongst the best in the industry. META outperforms 90.00% of its industry peers.
META has a Return On Equity of 30.16%. This is amongst the best in the industry. META outperforms 92.86% of its industry peers.
META's Return On Invested Capital of 26.56% is amongst the best of 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 13.59%.
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
META's Profit Margin of 30.89% is amongst the best of the industry. META outperforms 90.00% of its industry peers.
META's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 43.28%, META belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
In the last couple of years the Operating Margin of META has remained more or less at the same level.
META has a Gross Margin of 82.00%. This is amongst the best in the industry. META outperforms 81.43% 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 | 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.
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.
2.2 Solvency
An Altman-Z score of 10.50 indicates that META is not in any danger for bankruptcy at the moment.
META's Altman-Z score of 10.50 is amongst the best of the industry. META outperforms 90.00% of its industry peers.
The Debt to FCF ratio of META is 0.64, which is an excellent value as it means it would take META, only 0.64 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.64, META is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
META has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.15, META is in line with its industry, outperforming 48.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 10.5 |
ROIC/WACC2.69
WACC9.88%
2.3 Liquidity
META has a Current 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 Current ratio of 1.98 is in line compared to the rest of the industry. META outperforms 55.71% of its industry peers.
A Quick Ratio of 1.98 indicates that META should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.98, META is in line with its industry, outperforming 55.71% of the companies in the same industry.
The current and quick ratio evaluation for META is rather negative, while it does have 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.
META shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.82% yearly.
Looking at the last year, META shows a very strong growth in Revenue. The Revenue has grown by 21.27%.
META shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 18.40% yearly.
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
META is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.78% yearly.
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
A Price/Earnings ratio of 21.13 indicates a rather expensive valuation of META.
Based on the Price/Earnings ratio, META is valued a bit cheaper than 62.86% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.89. META is around the same levels.
The Price/Forward Earnings ratio is 19.69, which indicates a rather expensive current valuation of META.
META's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of META to the average of the S&P500 Index (34.59), we can say META is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 19.69 |
4.2 Price Multiples
META's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. META is cheaper than 64.29% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of META indicates a somewhat cheap valuation: META is cheaper than 64.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.14 | ||
| EV/EBITDA | 14.87 |
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.
A more expensive valuation may be justified as META's earnings are expected to grow with 14.04% in the coming years.
PEG (NY)1.3
PEG (5Y)0.93
EPS Next 2Y13.76%
EPS Next 3Y14.04%
5. Dividend
5.1 Amount
With a yearly dividend of 0.34%, META is not a good candidate for dividend investing.
In the last 3 months the price of META has falen by -22.38%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 2.75, META pays a better dividend. On top of this META pays more dividend than 90.00% of the companies listed in the same industry.
With a Dividend Yield of 0.34, META pays less dividend than the S&P500 average, which is at 2.36.
| 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%
609.46
-0.43 (-0.07%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners79.76%
Inst Owner Change9.27%
Ins Owners0.04%
Ins Owner Change-1.39%
Market Cap1.53T
Revenue(TTM)189.46B
Net Income(TTM)58.53B
Analysts82.67
Price Target878.29 (44.11%)
Short Float %1.13%
Short Ratio2.18
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)1.99%
EPS NQ rev (3m)6.79%
EPS NY rev (1m)-3.17%
EPS NY rev (3m)6.45%
Revenue NQ rev (1m)1.78%
Revenue NQ rev (3m)3.96%
Revenue NY rev (1m)1.24%
Revenue NY rev (3m)5.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.13 | ||
| Fwd PE | 19.69 | ||
| P/S | 8.08 | ||
| P/FCF | 34.14 | ||
| P/OCF | 14.23 | ||
| P/B | 7.89 | ||
| P/tB | 8.85 | ||
| EV/EBITDA | 14.87 |
EPS(TTM)28.84
EY4.73%
EPS(NY)30.96
Fwd EY5.08%
FCF(TTM)17.85
FCFY2.93%
OCF(TTM)42.82
OCFY7.03%
SpS75.42
BVpS77.25
TBVpS68.83
PEG (NY)1.3
PEG (5Y)0.93
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 | 10.5 |
F-Score7
WACC9.88%
ROIC/WACC2.69
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 8 / 10 to META.
What is the valuation status of META PLATFORMS INC-CLASS A (META) stock?
ChartMill assigns a valuation rating of 5 / 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 21.13 and the Price/Book (PB) ratio is 7.89.
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%.