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Picture
Picture
META Cashflow positive again

Current 149 Target 202 + 36%

2/2/2023
1 minute read


  • Last 12 months sales growth -4%
  • Last 12 months cash flow + 6% of market cap
  • Last 12 months Capital (debt & equity) paid (raised) + 5% of market cap
  • Latest cash minus liabilities -12% of market cap

Sales grew 16%
Last 5 quarters quarterly sales growth, quarterly sales
16% -17% 3% -4% 16%
33,671 ; 27,908 ; 28,822 ; 27,714 ; 32,165 million dollars
  • Sales grew 16% in the fourth quarter to 32,165 million dollars.
  • This brings the quarterly average to 0% growth.
  • We predict average growth of 2% in this next 12 months to bring sales to 34,042 million dollars in the fourth quarter 2023.

Margin up profit up
Last 5 quarters cash profit margin, net profit
46% 41% 41% 33% 39%
10,285 ; 7,465 ; 6,687 ; 4,395 ; 4,652 million dollars
  • The cash profit margin went from 33% to 39% net profit from 4,395 to 4,652 million dollars in the fourth quarter.
  • The average margin is at 38% now.
  • We use a 39% cash profit margin to predict a 7,917 million dollars net profit in the fourth quarter 2023.

Cashflow positive again
Last 5 quarters operating, investment cashflow
18,104 ; 14,076 ; 12,197 ; 9,691 ; 14,511 million dollars
5,829 ; -4,779 ; -6,959 ; -9,701 ; -7,531 million dollars
  • Free cashflow went from -10 to 6,980 million dollars in the fourth quarter with -7,531 million dollars investment cashflow.
  • Average quarterly Cashflow is at 5,376 million dollars now.
  • We assume -7,243 million dollars investment spending which with higher sales gives 5,518 million dollars average Cashflow in the next 12 months.

Net cash down
Last 5 quarters cash, liabilities
16,601 ; 14,886 ; 12,681 ; 14,308 ; 14,681 million dollars
41,108 ; 40,990 ; 44,012 ; 54,800 ; 60,014 million dollars
  • Cash increased 14,308 to 14,681 million dollars in the fourth quarter.
  • Liabilities increased 54,800 to 60,014 million dollars so net cash was down -40,492 to -45,333 million dollars .
  • With our forecast cashflow & a -20,614 million dollars equity payout -1,459 million dollars liabilities net cash will be -43,874 million dollars in 12 months time.
​
Capital paid
Last 5 quarters capital (raised) paid from liabilities, equity
0 ; -20 ; 109 ; -9,675 ; -460 million dollars
21,742 ; 9,506 ; 6,235 ; 6,365 ; 7,519 million dollars
  • META paid 7,059 million dollars in the fourth quarter -460 million dollars liabilities 7,519 million dollars equity, will pay 22,073 million dollars this next 12 months.
  • At the current market cap of 390,629 million dollars based on our forecasts it’s at 2.02 X assets with a 8 years payback & a 5% yield forecast.
  • Our cashflow forecast is 22,073 million dollars which means a 18 X valuation. A 24 X valuation gives a 36% higher target price 202 dollars.
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