META PLATFORMS INC-CLASS A (META)
US30303M1027 - Common Stock
We assign a fundamental rating of 7 out of 10 to META. META was compared to 72 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! This makes META very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year META was profitable.
In the past year META had a positive cash flow from operations.
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
META has a better Return On Assets (21.66%) than 95.83% of its industry peers.
With an excellent Return On Equity value of 33.76%, META belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Return On Invested Capital of META (23.67%) is better than 95.83% of its industry peers.
META had an Average Return On Invested Capital over the past 3 years of 21.73%. This is significantly above the industry average of 11.21%.
The last Return On Invested Capital (23.67%) for META is above the 3 year average (21.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.66% | ||
| ROE | 33.76% | ||
| ROIC | 23.67% |
ROA(3y)17.75%
ROA(5y)17.08%
ROE(3y)25.17%
ROE(5y)23.3%
ROIC(3y)21.73%
ROIC(5y)20.83%
1.3 Margins
META has a Profit Margin of 35.55%. This is amongst the best in the industry. META outperforms 97.22% of its industry peers.
In the last couple of years the Profit Margin of META has declined.
With an excellent Operating Margin value of 40.87%, META belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
META's Operating Margin has declined in the last couple of years.
META's Gross Margin of 81.50% is fine compared to the rest of the industry. META outperforms 75.00% of its industry peers.
META's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.87% | ||
| PM (TTM) | 35.55% | ||
| GM | 81.5% |
OM growth 3Y-0.7%
OM growth 5Y-3.56%
PM growth 3Y-5.09%
PM growth 5Y-6.05%
GM growth 3Y0.06%
GM growth 5Y-0.61%
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.
Compared to 1 year ago, META has a worse debt to assets ratio.
2.2 Solvency
META has an Altman-Z score of 11.45. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
META's Altman-Z score of 11.45 is amongst the best of the industry. META outperforms 91.67% of its industry peers.
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.
META's Debt to FCF ratio of 0.55 is fine compared to the rest of the industry. META outperforms 76.39% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that META is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.18, META is in line with its industry, outperforming 41.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 0.55 | ||
| Altman-Z | 11.45 |
ROIC/WACC2.64
WACC8.98%
2.3 Liquidity
META has a Current Ratio of 2.73. This indicates that META is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 2.73, META is doing good in the industry, outperforming 63.89% of the companies in the same industry.
A Quick Ratio of 2.73 indicates that META has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.73, META is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.73 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 87.38% over the past year.
META shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.50% yearly.
The Revenue has grown by 23.06% in the past year. This is a very strong growth!
The Revenue has been growing by 19.29% on average over the past years. This is quite good.
EPS 1Y (TTM)87.38%
EPS 3Y15.03%
EPS 5Y14.5%
EPS Q2Q%37.36%
Revenue 1Y (TTM)23.06%
Revenue growth 3Y16.21%
Revenue growth 5Y19.29%
Sales Q2Q%18.87%
3.2 Future
The Earnings Per Share is expected to grow by 16.58% on average over the next years. This is quite good.
META is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.27% yearly.
EPS Next Y54.65%
EPS Next 2Y31.6%
EPS Next 3Y25.4%
EPS Next 5Y16.58%
Revenue Next Year21.92%
Revenue Next 2Y18.25%
Revenue Next 3Y16.35%
Revenue Next 5Y12.27%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 26.52, META can be considered very expensive at the moment.
66.67% of the companies in the same industry are more expensive than META, based on the Price/Earnings ratio.
META's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.96.
With a Price/Forward Earnings ratio of 21.82, META is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as META.
META is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 21.82 |
4.2 Price Multiples
META's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. META is cheaper than 66.67% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, META is valued a bit cheaper than 65.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.21 | ||
| EV/EBITDA | 17.33 |
4.3 Compensation for Growth
META's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of META may justify a higher PE ratio.
META's earnings are expected to grow with 25.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.49
PEG (5Y)1.83
EPS Next 2Y31.6%
EPS Next 3Y25.4%
5. Dividend
5.1 Amount
META has a yearly dividend return of 0.35%, which is pretty low.
Compared to an average industry Dividend Yield of 2.70, META pays a better dividend. On top of this META pays more dividend than 88.89% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.23, META's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
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
DPN/A
EPS Next 2Y31.6%
EPS Next 3Y25.4%
META PLATFORMS INC-CLASS A
NASDAQ:META (11/21/2024, 8:00:01 PM)
Premarket: 559.66 -3.43 (-0.61%)563.09
-2.43 (-0.43%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1421.52B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.35% |
Dividend Growth(5Y)
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Surprises & Revisions
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EPS NY rev (3m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.52 | ||
| Fwd PE | 21.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.49
PEG (5Y)1.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 21.66% | ||
| ROE | 33.76% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 40.87% | ||
| PM (TTM) | 35.55% | ||
| GM | 81.5% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.73 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)87.38%
EPS 3Y15.03%
EPS 5Y
EPS Q2Q%
EPS Next Y54.65%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)23.06%
Revenue growth 3Y16.21%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y