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META PLATFORMS INC-CLASS A (META) Stock Fundamental Analysis

NASDAQ:META - Nasdaq - US30303M1027 - Common Stock - Currency: USD

668.2  +9.96 (+1.51%)

Premarket: 672.26 +4.06 (+0.61%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to META. META was compared to 71 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 overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make META a good candidate for growth and quality investing.


Dividend Valuation Growth Profitability Health

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9

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.
META had a positive operating cash flow in each of the past 5 years.
META Yearly Net Income VS EBIT VS OCF VS FCFMETA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

1.2 Ratios

META has a better Return On Assets (22.59%) than 96.97% of its industry peers.
With an excellent Return On Equity value of 34.14%, META belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
With an excellent Return On Invested Capital value of 24.88%, META belongs to the best of the industry, outperforming 93.94% 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 11.08%.
The 3 year average ROIC (21.71%) for META is below the current ROIC(24.88%), indicating increased profibility in the last year.
Industry RankSector 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%
META Yearly ROA, ROE, ROICMETA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

With an excellent Profit Margin value of 37.91%, META belongs to the best of the industry, outperforming 96.97% of the companies in the same industry.
META's Profit Margin has improved in the last couple of years.
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.
META has a Gross Margin of 81.68%. This is in the better half of the industry: META outperforms 74.24% 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 RankSector 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%
META Yearly Profit, Operating, Gross MarginsMETA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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8

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.
The number of shares outstanding for META has been reduced compared to 1 year ago.
META has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, META has a worse debt to assets ratio.
META Yearly Shares OutstandingMETA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B
META Yearly Total Debt VS Total AssetsMETA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B 200B 250B

2.2 Solvency

META has an Altman-Z score of 13.11. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
META has a better Altman-Z score (13.11) than 92.42% 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.
With a decent Debt to FCF ratio value of 0.53, META is doing good in the industry, outperforming 74.24% of the companies in the same industry.
META has a Debt/Equity ratio of 0.16. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.16, META is in line with its industry, outperforming 48.48% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.16
Debt/FCF 0.53
Altman-Z 13.11
ROIC/WACC2.82
WACC8.83%
META Yearly LT Debt VS Equity VS FCFMETA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

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 68.18% 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.
With a decent Quick ratio value of 2.98, META is doing good in the industry, outperforming 69.70% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.98
Quick Ratio 2.98
META Yearly Current Assets VS Current LiabilitesMETA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

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8

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 60.54% 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 21.94%.
Measured over the past years, META shows a quite strong growth in Revenue. The Revenue has been growing by 18.40% on average per year.
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 10.72% on average per year.
Based on estimates for the next years, META will show a quite strong growth in Revenue. The Revenue will grow by 11.49% on average per year.
EPS Next Y8.02%
EPS Next 2Y10.92%
EPS Next 3Y12.63%
EPS Next 5Y10.72%
Revenue Next Year15.33%
Revenue Next 2Y14.47%
Revenue Next 3Y13.61%
Revenue Next 5Y11.49%

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.
META Yearly Revenue VS EstimatesMETA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 100B 200B 300B
META Yearly EPS VS EstimatesMETA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10 20 30 40

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 27.93, which means the current valuation is very expensive for META.
META's Price/Earnings ratio is a bit cheaper when compared to the industry. META is cheaper than 60.61% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.98, META is valued at the same level.
The Price/Forward Earnings ratio is 25.86, which means the current valuation is very expensive for 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's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.66.
Industry RankSector Rank
PE 27.93
Fwd PE 25.86
META Price Earnings VS Forward Price EarningsMETA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, META is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
META's Price/Free Cash Flow ratio is in line with the industry average.
Industry RankSector Rank
P/FCF 31.31
EV/EBITDA 18.88
META Per share dataMETA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 20 40 60

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 12.63% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.48
PEG (5Y)1.22
EPS Next 2Y10.92%
EPS Next 3Y12.63%

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3

5. Dividend

5.1 Amount

META has a yearly dividend return of 0.32%, which is pretty low.
META's Dividend Yield is rather good when compared to the industry average which is at 3.06. META pays more dividend than 87.88% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, META's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.32%

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
META Yearly Dividends per shareMETA Yearly Dividends per shareYearly Dividends per share 2024 2025 0.5 1 1.5

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 2Y10.92%
EPS Next 3Y12.63%
META Yearly Income VS Free CF VS DividendMETA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B
META Dividend Payout.META Dividend Payout, showing the Payout Ratio.META Dividend Payout.PayoutRetained Earnings

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META PLATFORMS INC-CLASS A

NASDAQ:META (2/28/2025, 8:01:30 PM)

Premarket: 672.26 +4.06 (+0.61%)

668.2

+9.96 (+1.51%)

Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)01-29 2025-01-29/amc
Earnings (Next)04-22 2025-04-22/amc
Inst Owners79%
Inst Owner Change-43.8%
Ins Owners0.03%
Ins Owner Change7.71%
Market Cap1692.99B
Analysts82.82
Price Target759.15 (13.61%)
Short Float %1.22%
Short Ratio1.86
Dividend
Industry RankSector Rank
Dividend Yield 0.32%
Yearly Dividend1.99
Dividend Growth(5Y)N/A
DP8.13%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-14 2025-03-14 (0.525)
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)12.03%
PT rev (3m)16.22%
EPS NQ rev (1m)-2.26%
EPS NQ rev (3m)-2.69%
EPS NY rev (1m)-0.28%
EPS NY rev (3m)0.25%
Revenue NQ rev (1m)-0.52%
Revenue NQ rev (3m)-1.18%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)0.81%
Valuation
Industry RankSector Rank
PE 27.93
Fwd PE 25.86
P/S 10.29
P/FCF 31.31
P/OCF 18.54
P/B 9.27
P/tB 10.51
EV/EBITDA 18.88
EPS(TTM)23.92
EY3.58%
EPS(NY)25.84
Fwd EY3.87%
FCF(TTM)21.34
FCFY3.19%
OCF(TTM)36.05
OCFY5.39%
SpS64.93
BVpS72.08
TBVpS63.57
PEG (NY)3.48
PEG (5Y)1.22
Profitability
Industry RankSector 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 RankSector 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 13.11
F-Score8
WACC8.83%
ROIC/WACC2.82
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 Y8.02%
EPS Next 2Y10.92%
EPS Next 3Y12.63%
EPS Next 5Y10.72%
Revenue 1Y (TTM)21.94%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%20.63%
Revenue Next Year15.33%
Revenue Next 2Y14.47%
Revenue Next 3Y13.61%
Revenue Next 5Y11.49%
EBIT growth 1Y38.97%
EBIT growth 3Y14.27%
EBIT growth 5Y19.21%
EBIT Next Year67.69%
EBIT Next 3Y30.84%
EBIT Next 5Y22.68%
FCF growth 1Y23.32%
FCF growth 3Y11.4%
FCF growth 5Y20.58%
OCF growth 1Y28.43%
OCF growth 3Y16.55%
OCF growth 5Y20.26%