Meta Platforms Inc (META, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial performance. With a current share price of $538.48 and a modest daily gain of 0.4%, coupled with a three-month increase of 7.81%, the company shows promising signs of substantial growth. A detailed analysis, supported by the GF Score, positions Meta Platforms Inc for significant future advancements.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, assessing stocks based on five key valuation aspects. This system, which has been backtested from 2006 to 2021, reveals that stocks with higher GF Scores typically yield superior 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 $1.36 trillion and annual sales of $149.78 billion, operates the world's largest online social network, engaging nearly 4 billion users monthly across its family of apps. The company's ecosystem, which includes Facebook, Instagram, Messenger, and WhatsApp, primarily generates revenue through advertising, with over 90% of total revenue derived from this stream. More than 45% of this revenue comes from the US and Canada, with over 20% from Europe.
Financial Strength Breakdown
Meta Platforms Inc's financial resilience is evident in its Financial Strength rating. The company's Interest Coverage ratio stands at an impressive 110.94, indicating a robust capacity to meet interest obligations. Furthermore, an Altman Z-Score of 13.29 suggests a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.25 underscores prudent debt management.
Profitability and Growth Metrics
Meta Platforms Inc's Profitability Rank is exemplary, supported by a consistent increase in Operating Margin over the past five years. The company's commitment to growth is further highlighted by a 19.9% 3-Year Revenue Growth Rate, outperforming 71.32% of peers in the Interactive Media industry. This growth trajectory is complemented by a significant rise in EBITDA, emphasizing Meta Platforms Inc's ongoing expansion and operational efficiency.
Conclusion
Considering Meta Platforms Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other high-scoring companies through the GF Score Screen.
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.
