META PLATFORMS INC-CLASS A (META) Stock Fundamental Analysis
USA - NASDAQ:META - US30303M1027 - Common Stock
738.36 USD
+4.36 (+0.59%)
738.651 USD
+0.29 (+0.04%)
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 gets an excellent profitability rating and is at the same time showing great financial health properties. META is growing strongly while it is still valued neutral. This is a good combination! This makes META very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
META had positive earnings in the past year.
In the past year META had a positive cash flow from operations.
META had positive earnings in each of the past 5 years.
Each year in the past 5 years META had a positive operating cash flow.
1.2 Ratios
META has a Return On Assets of 24.26%. This is amongst the best in the industry. META outperforms 97.14% of its industry peers.
META has a better Return On Equity (36.66%) than 98.57% of its industry peers.
META's Return On Invested Capital of 26.47% is amongst the best of the industry. META outperforms 95.71% of its industry peers.
META had an Average Return On Invested Capital over the past 3 years of 21.71%. This is significantly above the industry average of 13.27%.
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
Looking at the Profit Margin, with a value of 39.99%, META belongs to the top of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Profit Margin of META has grown nicely.
With an excellent Operating Margin value of 44.08%, META belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
META's Operating Margin has been stable in the last couple of years.
META has a better Gross Margin (81.95%) than 80.00% 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 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), META is creating value.
META has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, META has less shares outstanding
Compared to 1 year ago, META has a worse debt to assets ratio.
2.2 Solvency
META has an Altman-Z score of 13.24. This indicates that META is financially healthy and has little risk of bankruptcy at the moment.
META has a better Altman-Z score (13.24) than 91.43% of its industry peers.
The Debt to FCF ratio of META is 0.58, which is an excellent value as it means it would take META, only 0.58 years of fcf income to pay off all of its debts.
META has a Debt to FCF ratio of 0.58. This is in the better half of the industry: META outperforms 78.57% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that META is not too dependend on debt financing.
META has a Debt to Equity ratio (0.15) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 0.58 | ||
| Altman-Z | 13.24 |
ROIC/WACC2.59
WACC10.2%
2.3 Liquidity
A Current Ratio of 1.97 indicates that META should not have too much problems paying its short term obligations.
META has a Current ratio of 1.97. This is comparable to the rest of the industry: META outperforms 54.29% 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 has a Quick ratio of 1.97. This is comparable to the rest of the industry: META outperforms 54.29% 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
META shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.99%, which is quite impressive.
Measured over the past years, META shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.82% on average per year.
Looking at the last year, META shows a quite strong growth in Revenue. The Revenue has grown by 19.38% in the last year.
The Revenue has been growing by 18.40% on average over the past years. This is quite good.
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
The Earnings Per Share is expected to grow by 13.83% on average over the next years. This is quite good.
The Revenue is expected to grow by 14.60% on average over the next years. This is quite good.
EPS Next Y20.11%
EPS Next 2Y13.11%
EPS Next 3Y13.47%
EPS Next 5Y13.83%
Revenue Next Year19.83%
Revenue Next 2Y17.95%
Revenue Next 3Y16.61%
Revenue Next 5Y14.6%
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.
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
With a Price/Earnings ratio of 26.73, META can be considered very expensive at the moment.
META's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of META to the average of the S&P500 Index (26.91), we can say META is valued inline with the index average.
A Price/Forward Earnings ratio of 24.13 indicates a rather expensive 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 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.73 | ||
| Fwd PE | 24.13 |
4.2 Price Multiples
META's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. META is cheaper than 62.86% of the companies 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 | ||
| EV/EBITDA | 18.74 |
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.
META's earnings are expected to grow with 13.47% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.33
PEG (5Y)1.17
EPS Next 2Y13.11%
EPS Next 3Y13.47%
5. Dividend
5.1 Amount
With a yearly dividend of 0.29%, META is not a good candidate for dividend investing.
META's Dividend Yield is rather good when compared to the industry average which is at 2.60. META pays more dividend than 87.14% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, META's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
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
META pays out 7.26% of its income as dividend. This is a sustainable payout ratio.
DP7.26%
EPS Next 2Y13.11%
EPS Next 3Y13.47%
738.36
+4.36 (+0.59%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners79.76%
Inst Owner Change4.68%
Ins Owners0.04%
Ins Owner Change-2.12%
Market Cap1854.86B
Revenue(TTM)178.80B
Net Income(TTM)71.51B
Analysts83.47
Price Target868.93 (17.68%)
Short Float %1.1%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.29% |
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)0.2%
PT rev (3m)19.16%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)11.68%
EPS NY rev (1m)0%
EPS NY rev (3m)9.93%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)7.43%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)4.58%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.73 | ||
| Fwd PE | 24.13 | ||
| P/S | 10.37 | ||
| P/FCF | 37 | ||
| P/OCF | 18.13 | ||
| P/B | 9.51 | ||
| P/tB | 10.63 | ||
| EV/EBITDA | 18.74 |
EPS(TTM)27.62
EY3.74%
EPS(NY)30.6
Fwd EY4.14%
FCF(TTM)19.96
FCFY2.7%
OCF(TTM)40.72
OCFY5.52%
SpS71.18
BVpS77.65
TBVpS69.43
PEG (NY)1.33
PEG (5Y)1.17
Graham Number219.67
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%
ROICexgc growth 3Y-7.04%
ROICexgc 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 | 13.24 |
F-Score6
WACC10.2%
ROIC/WACC2.59
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 Y20.11%
EPS Next 2Y13.11%
EPS Next 3Y13.47%
EPS Next 5Y13.83%
Revenue 1Y (TTM)19.38%
Revenue growth 3Y11.73%
Revenue growth 5Y18.4%
Sales Q2Q%21.61%
Revenue Next Year19.83%
Revenue Next 2Y17.95%
Revenue Next 3Y16.61%
Revenue Next 5Y14.6%
EBIT growth 1Y30.02%
EBIT growth 3Y14.27%
EBIT growth 5Y19.21%
EBIT Next Year76.64%
EBIT Next 3Y33.07%
EBIT Next 5Y27.17%
FCF growth 1Y108.61%
FCF growth 3Y11.4%
FCF growth 5Y20.58%
OCF growth 1Y84.29%
OCF growth 3Y16.55%
OCF growth 5Y20.26%
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 of META PLATFORMS INC-CLASS A (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 valuation of META PLATFORMS INC-CLASS A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for META PLATFORMS INC-CLASS A (META) is 26.73 and the Price/Book (PB) ratio is 9.51.
Is the dividend of META PLATFORMS INC-CLASS A sustainable?
The dividend rating of META PLATFORMS INC-CLASS A (META) is 3 / 10 and the dividend payout ratio is 7.26%.