META PLATFORMS INC-CLASS A (META) Stock Fundamental Analysis
NASDAQ:META - Nasdaq - US30303M1027 - Common Stock - Currency: USD
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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! 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.
META had a positive operating cash flow in the past year.
META had positive earnings in each of the past 5 years.
META had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of META (22.59%) is better than 97.14% of its industry peers.
Looking at the Return On Equity, with a value of 34.14%, META belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
META has a Return On Invested Capital of 24.88%. This is amongst the best in 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 11.51%.
The 3 year average ROIC (21.71%) for META is below the current ROIC(24.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.59% | ||
| ROE | 34.14% | ||
| ROIC | 24.88% |
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 (37.91%) than 97.14% of its industry peers.
In the last couple of years the Profit Margin of META has grown nicely.
The Operating Margin of META (42.41%) is better 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.
Looking at the Gross Margin, with a value of 81.68%, META is in the better half of the industry, outperforming 74.29% 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 | 42.41% | ||
| PM (TTM) | 37.91% | ||
| GM | 81.68% |
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.
Compared to 1 year ago, META has less shares outstanding
The number of shares outstanding for META has been reduced compared to 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 10.40. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
META has a better Altman-Z score (10.40) than 91.43% of its industry peers.
META has a debt to FCF ratio of 0.53. This is a very positive value and a sign of high solvency as it would only need 0.53 years to pay back of all of its debts.
META has a better Debt to FCF ratio (0.53) than 77.14% 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 52.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.53 | ||
| Altman-Z | 10.4 |
ROIC/WACC2.81
WACC8.86%
2.3 Liquidity
A Current Ratio of 2.98 indicates that META has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.98, META is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
A Quick Ratio of 2.98 indicates that META has no problem at all paying its short term obligations.
META has a better Quick ratio (2.98) than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.98 |
3. Growth
3.1 Past
META shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 60.54%, which is quite impressive.
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 a strong growth in Revenue. In the last year, the Revenue has grown by 21.94%.
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)60.54%
EPS 3Y20.12%
EPS 5Y22.82%
EPS Q2Q%50.47%
Revenue 1Y (TTM)21.94%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%20.63%
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 12.09% on average per year.
The Revenue is expected to grow by 12.05% on average over the next years. This is quite good.
EPS Next Y8.38%
EPS Next 2Y11.46%
EPS Next 3Y13.1%
EPS Next 5Y12.09%
Revenue Next Year14.76%
Revenue Next 2Y14.05%
Revenue Next 3Y13.76%
Revenue Next 5Y12.05%
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
The Price/Earnings ratio is 20.96, which indicates a rather expensive current valuation of META.
64.29% of the companies in the same industry are more expensive than META, based on the Price/Earnings ratio.
META is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 19.34, which indicates a rather expensive current valuation of META.
The rest of the industry has a similar Price/Forward Earnings ratio as META.
META's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 19.34 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, META is valued a bit cheaper than 68.57% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, META is valued a bit cheaper than 67.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.5 | ||
| EV/EBITDA | 13.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of META may justify a higher PE ratio.
META's earnings are expected to grow with 13.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.5
PEG (5Y)0.92
EPS Next 2Y11.46%
EPS Next 3Y13.1%
5. Dividend
5.1 Amount
META has a yearly dividend return of 0.38%, which is pretty low.
Compared to an average industry Dividend Yield of 3.42, 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 0.38, META pays less dividend than the S&P500 average, which is at 2.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
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
8.13% of the earnings are spent on dividend by META. This is a low number and sustainable payout ratio.
DP8.13%
EPS Next 2Y11.46%
EPS Next 3Y13.1%
501.48
-0.83 (-0.17%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners79%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner Change8.36%
Market Cap1270.58B
Analysts83.38
Price Target763.97 (52.34%)
Short Float %1.1%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.38% |
Yearly Dividend1.99
Dividend Growth(5Y)N/A
DP8.13%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.31%
Min EPS beat(2)12.55%
Max EPS beat(2)16.07%
EPS beat(4)4
Avg EPS beat(4)10.63%
Min EPS beat(4)6.85%
Max EPS beat(4)16.07%
EPS beat(8)8
Avg EPS beat(8)9.13%
EPS beat(12)9
Avg EPS beat(12)2.8%
EPS beat(16)11
Avg EPS beat(16)4.98%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-1.26%
Max Revenue beat(2)0.85%
Revenue beat(4)1
Avg Revenue beat(4)-0.4%
Min Revenue beat(4)-1.26%
Max Revenue beat(4)0.85%
Revenue beat(8)4
Avg Revenue beat(8)0.11%
Revenue beat(12)5
Avg Revenue beat(12)-0.43%
Revenue beat(16)7
Avg Revenue beat(16)0.03%
PT rev (1m)0.06%
PT rev (3m)16.39%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)-2.58%
EPS NY rev (1m)0.33%
EPS NY rev (3m)0.38%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-1.33%
Revenue NY rev (1m)-0.5%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.96 | ||
| Fwd PE | 19.34 | ||
| P/S | 7.72 | ||
| P/FCF | 23.5 | ||
| P/OCF | 13.91 | ||
| P/B | 6.96 | ||
| P/tB | 7.89 | ||
| EV/EBITDA | 13.93 |
EPS(TTM)23.92
EY4.77%
EPS(NY)25.92
Fwd EY5.17%
FCF(TTM)21.34
FCFY4.26%
OCF(TTM)36.05
OCFY7.19%
SpS64.93
BVpS72.08
TBVpS63.57
PEG (NY)2.5
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 22.59% | ||
| ROE | 34.14% | ||
| ROCE | 28.78% | ||
| ROIC | 24.88% | ||
| ROICexc | 36.64% | ||
| ROICexgc | 42.16% | ||
| OM | 42.41% | ||
| PM (TTM) | 37.91% | ||
| GM | 81.68% | ||
| FCFM | 32.87% |
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-Score8
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.16 | ||
| Debt/FCF | 0.53 | ||
| Debt/EBITDA | 0.34 | ||
| Cap/Depr | 240.39% | ||
| Cap/Sales | 22.65% | ||
| Interest Coverage | 143.56 | ||
| Cash Conversion | 107.11% | ||
| Profit Quality | 86.71% | ||
| Current Ratio | 2.98 | ||
| Quick Ratio | 2.98 | ||
| Altman-Z | 10.4 |
F-Score8
WACC8.86%
ROIC/WACC2.81
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)60.54%
EPS 3Y20.12%
EPS 5Y22.82%
EPS Q2Q%50.47%
EPS Next Y8.38%
EPS Next 2Y11.46%
EPS Next 3Y13.1%
EPS Next 5Y12.09%
Revenue 1Y (TTM)21.94%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%20.63%
Revenue Next Year14.76%
Revenue Next 2Y14.05%
Revenue Next 3Y13.76%
Revenue Next 5Y12.05%
EBIT growth 1Y38.97%
EBIT growth 3Y14.27%
EBIT growth 5Y19.21%
EBIT Next Year68.08%
EBIT Next 3Y31.31%
EBIT Next 5Y24.07%
FCF growth 1Y23.32%
FCF growth 3Y11.4%
FCF growth 5Y20.58%
OCF growth 1Y28.43%
OCF growth 3Y16.55%
OCF growth 5Y20.26%