META PLATFORMS INC-CLASS A (META) Stock Fundamental Analysis
USA - NASDAQ:META - US30303M1027 - Common Stock
778.78 USD
-1.47 (-0.19%)
Overall META gets a fundamental rating of 7 out of 10. We evaluated META against 69 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 growing strongly while it is still valued neutral. This is a good combination! These ratings could make META a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
META had positive earnings in the past year.
META had a positive operating cash flow in the past year.
META had positive earnings in each of the past 5 years.
In the past 5 years META always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 24.26%, META belongs to the best of the industry, outperforming 98.55% of the companies in the same industry.
With an excellent Return On Equity value of 36.66%, META belongs to the best of the industry, outperforming 98.55% of the companies in the same industry.
With an excellent Return On Invested Capital value of 26.47%, META belongs to the best of the industry, outperforming 97.10% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for META is significantly above the industry average of 12.98%.
The 3 year average ROIC (21.71%) for META is below the current ROIC(26.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.26% | ||
| ROE | 36.66% | ||
| ROIC | 26.47% |
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 has a better Profit Margin (39.99%) than 94.20% of its industry peers.
META's Profit Margin has improved in the last couple of years.
META's Operating Margin of 44.08% 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.
META has a Gross Margin of 81.95%. This is in the better half of the industry: META outperforms 79.71% of its industry peers.
META's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 44.08% | ||
| PM (TTM) | 39.99% | ||
| GM | 81.95% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so META is creating value.
META has less shares outstanding than it did 1 year ago.
The number of shares outstanding for META has been reduced compared to 5 years ago.
META has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 13.94 indicates that META is not in any danger for bankruptcy at the moment.
The Altman-Z score of META (13.94) is better than 91.30% of its industry peers.
META has a debt to FCF ratio of 0.58. This is a very positive value and a sign of high solvency as it would only need 0.58 years to pay back of all of its debts.
META's Debt to FCF ratio of 0.58 is fine compared to the rest of the industry. META outperforms 76.81% 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.
META's Debt to Equity ratio of 0.15 is in line compared to the rest of the industry. META outperforms 47.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 13.94 |
ROIC/WACC2.85
WACC9.3%
2.3 Liquidity
META has a Current Ratio of 1.97. 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 of 1.97. This is comparable to the rest of the industry: META outperforms 52.17% of its industry peers.
A Quick Ratio of 1.97 indicates that META should not have too much problems paying its short term obligations.
META's Quick ratio of 1.97 is in line compared to the rest of the industry. META outperforms 52.17% of its industry peers.
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 | 1.97 | ||
| Quick Ratio | 1.97 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 40.99% 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.
META shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.38%.
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)40.99%
EPS 3Y20.12%
EPS 5Y22.82%
EPS Q2Q%38.37%
Revenue 1Y (TTM)19.38%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%21.61%
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 13.83% yearly.
META is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.60% yearly.
EPS Next Y20.67%
EPS Next 2Y12.96%
EPS Next 3Y13.19%
EPS Next 5Y13.83%
Revenue Next Year19.74%
Revenue Next 2Y17.84%
Revenue Next 3Y16.55%
Revenue Next 5Y14.6%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 28.20 indicates a quite expensive valuation of META.
META's Price/Earnings ratio is in line with the industry average.
META is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
META is valuated quite expensively with a Price/Forward Earnings ratio of 25.52.
META's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.88. META is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.2 | ||
| Fwd PE | 25.52 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, META is valued a bit cheaper than 65.22% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of META is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.02 | ||
| EV/EBITDA | 19.96 |
4.3 Compensation for Growth
META's 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 13.19% in the coming years.
PEG (NY)1.36
PEG (5Y)1.24
EPS Next 2Y12.96%
EPS Next 3Y13.19%
5. Dividend
5.1 Amount
With a yearly dividend of 0.28%, META is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.89, META pays a better dividend. On top of this META pays more dividend than 88.41% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, META's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
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
META pays out 7.26% of its income as dividend. This is a sustainable payout ratio.
DP7.26%
EPS Next 2Y12.96%
EPS Next 3Y13.19%
NASDAQ:META (9/19/2025, 10:18:09 AM)
778.78
-1.47 (-0.19%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners79.87%
Inst Owner Change0.25%
Ins Owners0.02%
Ins Owner Change-2.81%
Market Cap1956.40B
Analysts83.59
Price Target867.24 (11.36%)
Short Float %1.12%
Short Ratio2.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.28% |
Yearly Dividend1.99
Dividend Growth(5Y)N/A
DP7.26%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)18.85%
Min EPS beat(2)18.31%
Max EPS beat(2)19.39%
EPS beat(4)4
Avg EPS beat(4)16.58%
Min EPS beat(4)12.55%
Max EPS beat(4)19.39%
EPS beat(8)8
Avg EPS beat(8)13.02%
EPS beat(12)10
Avg EPS beat(12)6.15%
EPS beat(16)11
Avg EPS beat(16)4%
Revenue beat(2)2
Avg Revenue beat(2)2.09%
Min Revenue beat(2)0.22%
Max Revenue beat(2)3.97%
Revenue beat(4)3
Avg Revenue beat(4)0.95%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)3.97%
Revenue beat(8)4
Avg Revenue beat(8)0.34%
Revenue beat(12)7
Avg Revenue beat(12)0.36%
Revenue beat(16)7
Avg Revenue beat(16)-0.38%
PT rev (1m)1.73%
PT rev (3m)20.5%
EPS NQ rev (1m)0.21%
EPS NQ rev (3m)5.99%
EPS NY rev (1m)10.44%
EPS NY rev (3m)11.06%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)5.22%
Revenue NY rev (1m)4.13%
Revenue NY rev (3m)4.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.2 | ||
| Fwd PE | 25.52 | ||
| P/S | 10.94 | ||
| P/FCF | 39.02 | ||
| P/OCF | 19.12 | ||
| P/B | 10.03 | ||
| P/tB | 11.22 | ||
| EV/EBITDA | 19.96 |
EPS(TTM)27.62
EY3.55%
EPS(NY)30.52
Fwd EY3.92%
FCF(TTM)19.96
FCFY2.56%
OCF(TTM)40.72
OCFY5.23%
SpS71.18
BVpS77.65
TBVpS69.43
PEG (NY)1.36
PEG (5Y)1.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 24.26% | ||
| ROE | 36.66% | ||
| ROCE | 30.61% | ||
| ROIC | 26.47% | ||
| ROICexc | 32.39% | ||
| ROICexgc | 35.92% | ||
| OM | 44.08% | ||
| PM (TTM) | 39.99% | ||
| GM | 81.95% | ||
| FCFM | 28.04% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.58 | ||
| Debt/EBITDA | 0.3 | ||
| Cap/Depr | 311.81% | ||
| Cap/Sales | 29.17% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 107.07% | ||
| Profit Quality | 70.11% | ||
| Current Ratio | 1.97 | ||
| Quick Ratio | 1.97 | ||
| Altman-Z | 13.94 |
F-Score6
WACC9.3%
ROIC/WACC2.85
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)40.99%
EPS 3Y20.12%
EPS 5Y22.82%
EPS Q2Q%38.37%
EPS Next Y20.67%
EPS Next 2Y12.96%
EPS Next 3Y13.19%
EPS Next 5Y13.83%
Revenue 1Y (TTM)19.38%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%21.61%
Revenue Next Year19.74%
Revenue Next 2Y17.84%
Revenue Next 3Y16.55%
Revenue Next 5Y14.6%
EBIT growth 1Y30.02%
EBIT growth 3Y14.27%
EBIT growth 5Y19.21%
EBIT Next Year75.14%
EBIT Next 3Y32.64%
EBIT Next 5Y27.12%
FCF growth 1Y108.61%
FCF growth 3Y11.4%
FCF growth 5Y20.58%
OCF growth 1Y84.29%
OCF growth 3Y16.55%
OCF growth 5Y20.26%