Meta Platforms Inc (META, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance and promising growth prospects. With a current share price of $492.41, Meta Platforms Inc has enjoyed a daily gain of 3.51% and a three-month increase of 5.65%. A detailed analysis, supported by the GF Score, positions Meta Platforms Inc for significant future growth.
What Is the GF Score?
The GF Score is a proprietary ranking system developed by GuruFocus, assessing stocks based on five key valuation aspects from 2006 to 2021. Stocks with higher GF Scores typically yield better long-term returns. The GF Score ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Meta Platforms Inc boasts a GF Score of 93, reflecting its strong potential for market leadership.
- Financial strength rank: 9/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 6/10
Understanding Meta Platforms Inc's Business
Meta Platforms Inc, with a market cap of $1.25 trillion and annual sales of $149.78 billion, operates the world's largest online social network, which includes Facebook, Instagram, Messenger, and WhatsApp. These platforms collectively boast nearly 4 billion monthly active users. The company primarily earns through advertising, with over 90% of its revenue derived from this source. The U.S. and Canada contribute over 45% to the revenue, followed by Europe at 20%.
Financial Strength Breakdown
Meta Platforms Inc's financial robustness is evident through its Financial Strength rating. An Interest Coverage ratio of 110.94 and an Altman Z-Score of 12.35 highlight its ability to manage financial obligations and stave off distress. The strategic Debt-to-Revenue ratio of 0.25 further underscores its prudent financial management.
Profitability and Growth Metrics
Meta Platforms Inc's Profitability Rank is impressive, with an Operating Margin increase from 33.93% in 2019 to 34.66% in 2023. The company's growth is also robust, with a 3-Year Revenue Growth Rate of 19.9%, outperforming 70.91% of peers in the Interactive Media industry.
Conclusion
Considering Meta Platforms Inc's strong financial strength, profitability, and growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. For investors seeking similar opportunities, the GF Score Screen offers a valuable tool for identifying high-potential stocks.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
