Seek Returns

Meta Platforms (META) Stock Analysis

Here is a fundamental analysis of Meta Platforms (META), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.

Performance

Cumulative Growth

META
GSPC
Loading price history…
Meta Platforms (META) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…
Trailing total returns for Meta Platforms (META) and S&P 500 (GSPC). Returns over one year are annualized.

Performance at a Glance

Meta Platforms (META) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: METAIndustry group median
1-Year Return-17.97%-4.70%

Risk

Drawdown

META
GSPC
Loading price history…
Meta Platforms (META) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk at a Glance

Meta Platforms (META) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: METAIndustry group median
1-Year Volatility35.59%46.11%
Beta1.250.96

Company Profile

Company profile fields for Meta Platforms (META)
Profile ItemMETA
NameMeta Platforms Inc Class A
Country/RegionUnited States
GICS SectorCommunication Services
GICS Industry GroupMedia & Entertainment
GICS IndustryInteractive Media & Services
GICS Sub-IndustryInteractive Media & Services
Market Capitalization1,439.24 billion USD
CurrencyUSD
ExchangeNasdaq
Listing DateMay 18, 2012
Security TypeCommon Stock

Valuation

Price-to-Earnings Ratio (TTM)

Meta Platforms (META) trades at P/E ratio of 20.62, 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

20.62

Group distribution
Max
71.35
Q3
37.05
Median
21.91
META
20.62
Q1
11.66
Min
1.74
Largest peers
SPOT
32.46
GOOGL
27.48
GOOG
27.32
NFLX
25.92
META
20.62
DIS
16.01
CMCSA
4.80
Loading chart…
Where Meta Platforms (META) stands on P/E ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Sales Ratio (TTM)

Meta Platforms (META) trades at 6.70 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

6.70

Group distribution
Max
8.58
META
6.70
Q3
3.91
Median
1.48
Q1
0.55
Min
0.00
Largest peers
GOOGL
10.38
GOOG
10.34
NFLX
7.21
META
6.70
SPOT
5.65
DIS
1.79
CMCSA
0.70
Loading chart…
Where Meta Platforms (META) stands on P/S ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Price-to-Book Ratio (MRQ)

Meta Platforms (META) trades at 5.91 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

5.91

Group distribution
Max
11.21
META
5.91
Q3
5.56
Median
1.93
Q1
0.82
Min
-2.89
Largest peers
NFLX
10.87
SPOT
10.10
GOOGL
9.10
GOOG
9.06
META
5.91
DIS
1.61
CMCSA
0.99
Loading chart…
Where Meta Platforms (META) stands on P/B ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Valuation at a Glance

Meta Platforms (META) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: METAIndustry group median
Price-to-Earnings Ratio (TTM)20.6221.91
Price-to-Sales Ratio (TTM)6.701.48
Price-to-Book Ratio (MRQ)5.911.93
Free Cash Flow Yield1.78%7.41%

Profitability

Return on Equity (TTM)

Meta Platforms (META) posts ROE of 32.93%, 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

32.93%

Group distribution
Max
46.65%
META
32.93%
Q3
16.35%
Median
6.52%
Q1
-4.21%
Min
-29.59%
Largest peers
NFLX
48.50%
GOOGL
38.89%
GOOG
38.89%
SPOT
37.99%
META
32.93%
CMCSA
20.92%
DIS
11.01%
Loading chart…
Where Meta Platforms (META) stands on ROE within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Net Profit Margin (TTM)

Meta Platforms (META) keeps 32.84% of revenue as net profit on net margin, above the industry benchmark range. That is unusually strong bottom-line conversion, though tax effects, asset sales, or other one-off gains should be checked before treating it as durable.

META

Media & Entertainment industry group

32.84%

Group distribution
META
32.84%
Max
30.77%
Q3
10.51%
Median
3.81%
Q1
-3.12%
Min
-20.69%
Largest peers
GOOGL
37.92%
GOOG
37.92%
META
32.84%
NFLX
28.52%
SPOT
15.45%
CMCSA
15.00%
DIS
11.54%
Loading chart…
Where Meta Platforms (META) stands on net margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Operating Profit Margin (TTM)

Meta Platforms (META) turns 40.62% 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

40.62%

Group distribution
Max
41.37%
META
40.62%
Q3
16.41%
Median
8.47%
Q1
-3.09%
Min
-26.23%
Largest peers
META
40.62%
GOOGL
36.12%
GOOG
36.12%
NFLX
32.30%
SPOT
15.77%
DIS
15.51%
CMCSA
13.15%
Loading chart…
Where Meta Platforms (META) stands on operating margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Profitability at a Glance

Meta Platforms (META) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: METAIndustry group median
Return on Equity (TTM)32.93%6.52%
Return on Assets (TTM)16.40%3.34%
Net Profit Margin (TTM)32.84%3.81%
Operating Profit Margin (TTM)40.62%8.47%
Gross Profit Margin (TTM)81.94%52.29%

Financial Strength

Current Ratio (MRQ)

Meta Platforms (META) has current ratio of 2.35, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.

META

Media & Entertainment industry group

2.35

Group distribution
Max
4.23
META
2.35
Q3
2.26
Median
1.36
Q1
0.89
Min
0.31
Largest peers
META
2.35
SPOT
2.06
GOOGL
1.92
GOOG
1.92
NFLX
1.41
CMCSA
0.87
DIS
0.68
Loading chart…
Where Meta Platforms (META) stands on current ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Debt-to-Equity Ratio (MRQ)

Meta Platforms (META) has debt-to-equity ratio of 0.36, 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

0.36

Group distribution
Max
2.46
Q3
1.30
Median
0.54
META
0.36
Q1
0.17
Min
0.00
Largest peers
CMCSA
1.07
NFLX
0.54
DIS
0.41
META
0.36
GOOGL
0.20
GOOG
0.20
SPOT
0.06
Loading chart…
Where Meta Platforms (META) stands on debt-to-equity ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength at a Glance

Meta Platforms (META) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: METAIndustry group median
Current Ratio (MRQ)2.351.36
Debt-to-Equity Ratio (MRQ)0.360.54
Net Debt / EBITDA0.051.34

Dividends

Dividend Yield (TTM)

Meta Platforms (META) has dividend yield of 0.37%, 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

0.37%

Group distribution
Max
2.67%
Q3
1.17%
META
0.37%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CMCSA
5.39%
DIS
1.50%
META
0.37%
GOOG
0.25%
GOOGL
0.24%
NFLX
0.00%
SPOT
0.00%
Loading chart…
Where Meta Platforms (META) stands on dividend yield within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Meta Platforms (META) has payout ratio of 7.64%, 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

7.64%

Group distribution
Max
57.34%
Q3
24.40%
META
7.64%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
CMCSA
25.88%
DIS
20.00%
META
7.64%
GOOGL
6.41%
GOOG
6.41%
NFLX
0.00%
SPOT
0.00%
Loading chart…
Where Meta Platforms (META) stands on payout ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividends at a Glance

Meta Platforms (META) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: METAIndustry group median
Dividend Yield (TTM)0.37%0.00%
Dividend Payout Ratio (TTM)7.64%0.00%