658.76 USD
+11.13 (+1.72%)
657.969 USD
-0.79 (-0.12%)
We assign a fundamental rating of 7 out of 10 to META. META was compared to 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 is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make META suitable 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.
- Each year in the past 5 years META had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 19.26%, META belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- META has a Return On Equity of 30.16%. This is amongst the best in the industry. META outperforms 91.43% 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.
- Measured over the past 3 years, the Average Return On Invested Capital for META is significantly above the industry average of 13.70%.
- The 3 year average ROIC (21.71%) for META is below the current ROIC(26.56%), indicating increased profibility in the last year.
| 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
- Looking at the Profit Margin, with a value of 30.89%, META belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
- META's Profit Margin has improved in the last couple of years.
- The Operating Margin of META (43.28%) is better than 100.00% of its industry peers.
- META's Operating Margin has been stable in the last couple of years.
- The Gross Margin of META (82.00%) is better than 81.43% of its industry peers.
- 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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), META 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
- META has an Altman-Z score of 11.05. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
- The Altman-Z score of META (11.05) is better than 91.43% 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.
- The Debt to FCF ratio of META (0.64) is better than 80.00% of its industry peers.
- META has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of META (0.15) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.64 | ||
| Altman-Z | 11.05 |
ROIC/WACC3.02
WACC8.8%
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 has a Current ratio (1.98) which is in line with 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 58.57% 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
- The Earnings Per Share is expected to grow by 11.10% on average over the next years. This is quite good.
- The Revenue is expected to grow by 16.52% on average over the next years. This is quite good.
EPS Next Y4.96%
EPS Next 2Y13.28%
EPS Next 3Y13.6%
EPS Next 5Y11.1%
Revenue Next Year21.87%
Revenue Next 2Y20.04%
Revenue Next 3Y18.56%
Revenue Next 5Y16.52%
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 22.84, which indicates a rather expensive current valuation of META.
- Compared to the rest of the industry, the Price/Earnings ratio of META indicates a somewhat cheap valuation: META is cheaper than 64.29% of the companies listed in the same industry.
- META is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 21.46 indicates a rather expensive valuation of META.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of META is on the same level as its industry peers.
- META is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.84 | ||
| Fwd PE | 21.46 |
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 62.86% 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 | 37.03 | ||
| EV/EBITDA | 15.88 |
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.
- 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 13.60% in the coming years.
PEG (NY)4.6
PEG (5Y)1
EPS Next 2Y13.28%
EPS Next 3Y13.6%
5. Dividend
5.1 Amount
- META has a yearly dividend return of 0.34%, which is pretty low.
- Compared to an average industry Dividend Yield of 0.52, META pays a better dividend. On top of this META pays more dividend than 88.57% 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.34% |
5.2 History
- META does not have a reliable dividend history as it only pays dividend since a couple or years.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 8.98% of the earnings are spent on dividend by META. This is a low number and sustainable payout ratio.
DP8.98%
EPS Next 2Y13.28%
EPS Next 3Y13.6%
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 for 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 financial health of META PLATFORMS INC-CLASS A (META) stock?
The financial health rating of META PLATFORMS INC-CLASS A (META) is 8 / 10.
How sustainable is the dividend of META PLATFORMS INC-CLASS A (META) stock?
The dividend rating of META PLATFORMS INC-CLASS A (META) is 3 / 10 and the dividend payout ratio is 8.98%.