Meta Platforms (META) Stock Analysis
This is a peer-relative look at Meta Platforms (META): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Media & Entertainment peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | META |
|---|---|
| Name | Meta Platforms Inc. Class A Common Stock |
| Country/Region | United States |
| GICS Sector | Communication Services |
| GICS Industry Group | Media & Entertainment |
| GICS Industry | Interactive Media & Services |
| GICS Sub-Industry | Interactive Media & Services |
| Market Capitalization | 1,571.23 billion USD |
| Currency | USD |
| Exchange | Nasdaq |
| Listing Date | May 18, 2012 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: META | Industry group median |
|---|---|---|
| Total Return (1Y) | -17.35% | 1.43% |
| Total Return (3Y, Annualized) | 28.04% | 8.03% |
| Total Return (5Y, Annualized) | 10.58% | -8.01% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: META | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 38.88% | 45.28% |
| Beta (5Y) | 1.22 | 0.98 |
| Max Drawdown (5Y) | -76.74% | -74.13% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: META | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | -0.55 | -0.06 |
| Sortino Ratio (1Y) | -0.77 | -0.09 |
Profitability
ROE (TTM)
Meta Platforms (META) posts ROE of 29.85%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
META
Media & Entertainment industry group
29.85%
Group distribution
- Max
- 45.82%
- META
- 29.85%
- Q3
- 16.13%
- Median
- 6.69%
- Q1
- -4.15%
- Min
- -26.31%
Largest peers
- NFLX
- 49.54%
- GOOGL
- 48.68%
- GOOG
- 48.68%
- SPOT
- 44.48%
- META
- 29.85%
- CMCSA
- 11.49%
- DIS
- 8.01%
Net Margin (TTM)
Meta Platforms (META) keeps 29.84% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
META
Media & Entertainment industry group
29.84%
Group distribution
- META
- 29.84%
- Max
- 29.84%
- Q3
- 9.84%
- Median
- 4.33%
- Q1
- -3.96%
- Min
- -17.61%
Largest peers
- GOOGL
- 54.77%
- GOOG
- 54.77%
- META
- 29.84%
- NFLX
- 28.22%
- SPOT
- 18.43%
- CMCSA
- 8.97%
- DIS
- 8.70%
Operating Margin (TTM)
Meta Platforms (META) turns 34.83% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.
META
Media & Entertainment industry group
34.83%
Group distribution
- Max
- 40.16%
- META
- 34.83%
- Q3
- 18.59%
- Median
- 10.43%
- Q1
- 0.85%
- Min
- -19.55%
Largest peers
- META
- 34.83%
- GOOGL
- 34.03%
- GOOG
- 34.03%
- NFLX
- 33.38%
- DIS
- 19.30%
- CMCSA
- 17.23%
- SPOT
- 13.71%
Profitability Metrics
| Metric | Current stock: META | Industry group median |
|---|---|---|
| ROE (TTM) | 29.85% | 6.69% |
| ROA (TTM) | 14.59% | 2.74% |
| Net Margin (TTM) | 29.84% | 4.33% |
| Operating Margin (TTM) | 34.83% | 10.43% |
| Gross Margin (TTM) | 81.75% | 53.60% |
Growth
Revenue Growth
Meta Platforms (META) grew revenue 22.17%, in the upper peer quartile. The top line is expanding faster than at most industry peers, which points to share gains or stronger pricing.
EPS Growth
Meta Platforms (META) grew earnings per share -1.55%, roughly around the peer group's normal range. Bottom-line momentum looks broadly typical for the industry.
Growth Metrics
| Metric | Current stock: META | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 22.17% | 4.82% |
| Revenue Growth (3Y CAGR) | 19.89% | 4.72% |
| EPS Growth (YoY) | -1.55% | -1.55% |
| EPS Growth (3Y CAGR) | 39.84% | 22.64% |
Financial Strength
Current Ratio (MRQ)
Meta Platforms (META) has current ratio of 2.23, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
META
Media & Entertainment industry group
2.23
Group distribution
- Max
- 4.50
- Q3
- 2.38
- META
- 2.23
- Median
- 1.41
- Q1
- 0.87
- Min
- 0.23
Largest peers
- GOOGL
- 2.72
- GOOG
- 2.72
- META
- 2.23
- SPOT
- 2.11
- NFLX
- 1.14
- CMCSA
- 0.80
- DIS
- 0.71
Debt / Equity (MRQ)
Meta Platforms (META) has debt-to-equity ratio of 0.43, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
META
Media & Entertainment industry group
0.43
Group distribution
- Max
- 3.84
- Q3
- 1.70
- Median
- 0.55
- META
- 0.43
- Q1
- 0.17
- Min
- 0.00
Largest peers
- CMCSA
- 1.00
- NFLX
- 0.55
- META
- 0.43
- DIS
- 0.39
- GOOGL
- 0.19
- GOOG
- 0.19
- SPOT
- 0.06
Financial Strength Metrics
| Metric | Current stock: META | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 2.23 | 1.41 |
| Debt / Equity (MRQ) | 0.43 | 0.55 |
| Net Debt / EBITDA | 0.20 | 1.75 |
Dividends
Dividend Yield (TTM)
Meta Platforms (META) has dividend yield of 0.34%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
META
Media & Entertainment industry group
0.34%
Group distribution
- Max
- 1.40%
- Q3
- 0.58%
- META
- 0.34%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- CMCSA
- 4.95%
- DIS
- 1.40%
- META
- 0.34%
- GOOG
- 0.25%
- GOOGL
- 0.25%
- NFLX
- 0.00%
- SPOT
- 0.00%
Dividend Payout Ratio (TTM)
Meta Platforms (META) has payout ratio of 7.91%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.
META
Media & Entertainment industry group
7.91%
Group distribution
- Max
- 43.37%
- Q3
- 19.42%
- META
- 7.91%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- CMCSA
- 42.31%
- DIS
- 30.93%
- META
- 7.91%
- GOOGL
- 4.26%
- GOOG
- 4.26%
- NFLX
- 0.00%
- SPOT
- 0.00%
Dividend Metrics
| Metric | Current stock: META | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 0.34% | 0.00% |
| Dividend Payout Ratio (TTM) | 7.91% | 0.00% |
Valuation
P/E Ratio (TTM)
Meta Platforms (META) trades at P/E ratio of 23.26, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
META
Media & Entertainment industry group
23.26
Group distribution
- Max
- 70.74
- Q3
- 37.84
- META
- 23.26
- Median
- 18.97
- Q1
- 10.76
- Min
- 1.78
Largest peers
- SPOT
- 29.42
- NFLX
- 24.61
- META
- 23.26
- DIS
- 21.71
- GOOGL
- 16.97
- GOOG
- 16.83
- CMCSA
- 8.49
P/S Ratio (TTM)
Meta Platforms (META) trades at 6.88 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
META
Media & Entertainment industry group
6.88
Group distribution
- META
- 6.88
- Max
- 6.88
- Q3
- 3.57
- Median
- 1.43
- Q1
- 0.53
- Min
- 0.00
Largest peers
- GOOGL
- 9.28
- GOOG
- 9.20
- META
- 6.88
- NFLX
- 6.74
- SPOT
- 6.16
- DIS
- 1.84
- CMCSA
- 0.75
P/B Ratio (MRQ)
Meta Platforms (META) trades at 6.02 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.
META
Media & Entertainment industry group
6.02
Group distribution
- Max
- 10.81
- META
- 6.02
- Q3
- 4.77
- Median
- 1.92
- Q1
- 0.74
- Min
- -4.11
Largest peers
- SPOT
- 11.39
- NFLX
- 10.81
- GOOGL
- 6.65
- GOOG
- 6.59
- META
- 6.02
- DIS
- 1.66
- CMCSA
- 1.05
Valuation Metrics
| Metric | Current stock: META | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 23.26 | 18.97 |
| P/S Ratio (TTM) | 6.88 | 1.43 |
| P/B Ratio (MRQ) | 6.02 | 1.92 |
| Free Cash Flow Yield (TTM) | 1.37% | 7.16% |