Meta Platforms Inc (META, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its solid financial footing. Despite a slight daily loss of 0.46% and a three-month decline of -1.28%, the company's stock price stands at $463.52, reflecting its substantial market presence. A detailed evaluation using the GF Score indicates that Meta Platforms Inc is poised for significant growth, making it a compelling choice for investors.
What Is the GF Score?
The GF Score is a proprietary ranking system from GuruFocus, designed to predict stock performance by evaluating five key aspects: financial strength, profitability, growth, GF Value, and momentum. Scores range from 0 to 100, with higher scores indicating better potential returns. By backtesting from 2006 to 2021, stocks with higher GF Scores have generally outperformed the market. For Meta Platforms Inc, the GF Score is an impressive 93 out of 100, suggesting a strong potential for market outperformance.
- 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 $1.18 trillion and annual sales of $142.71 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 stream. Notably, more than 45% of its advertising revenue comes from the US and Canada, with over 20% sourced from Europe.
Financial Strength Breakdown
Meta Platforms Inc's financial robustness is highlighted by its Interest Coverage ratio of 102.98, significantly surpassing the benchmark of 5 set by investment guru Benjamin Graham. Additionally, its Altman Z-Score of 11.57 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.26 further confirms its prudent debt management.
Profitability and Growth Metrics
Meta Platforms Inc excels in profitability, with an Operating Margin that has seen a significant increase over the past five years. Its Piotroski F-Score and Predictability Rank further affirm its operational efficiency and consistent performance. Growth-wise, Meta Platforms Inc has outperformed 70.99% of its peers in the Interactive Media industry with a 3-Year Revenue Growth Rate of 19.9%.
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. Investors looking for similar opportunities can explore more companies with strong GF Scores using 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.
