About Meta Platforms, Inc.
Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) headsets, and AI glasses in the United States, Canada, Europe, Asia-Pacific, and internationally. It operates through two segments, Family of Apps (FoA) and Reality Labs (RL). The FoA segment offers Facebook, which enables people to build community through feed, reels, stories, groups, marketplace, and other; Instagram that brings people closer through Instagram feed, stories, reels, live, and messaging; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; Meta AI, an assistant that's available across apps, as a stand-alone app, on AI glasses, and on the web; Threads, an application for text-based updates and public conversations; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact. The RL segment provides virtual and augmented reality products, including consumer hardware, software, and content that help people feel connected, as well as Meta Quest devices that enable social experiences across gaming, fitness, entertainment, and more. The segment also includes wearables such as AI glasses like Ray Ban Meta and Oakley Meta glasses; and the Meta Ray Ban Display, which combines AI glasses with an integrated lens display and the Meta Neural Band, a wrist worn device using electromyography that lets people control their AI glasses through neuromuscular signals. Meta Platforms, Inc. has a collaboration with Microsoft Corporation, NVIDIA Corporation, Advanced Micro Devices, Inc., Broadcom Inc., and OpenAI, L.L.C. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. The company was incorporated in 2004 and is headquartered in Menlo Park, California.
Meta Platforms, Inc. (META) is a Communication Services company in the Internet Content & Information industry with a market capitalisation of $1.9T. The stock trades at 27.32x trailing earnings and yields 0.29%.
- Sector
- Communication Services
- Industry
- Internet Content & Information
- Market cap
- $1.9T
- P/E ratio
- 27.32
- Forward P/E
- 20.86
- EPS (TTM)
- $26.65
- Revenue (TTM)
- $228.2B
- Free cash flow
- $21.6B
- Profit margin
- 29.8%
- Dividend yield
- 0.29%
- Beta
- 1.24
- Shares outstanding
- 2.2B
Financial health: Strong9.1/10
10 strengths, 1 concern. Weakest points: earnings growth.
- Debt to equity: 0.27 (Strong, benchmark < 0.5) — Debt of 0.27x equity is conservative against the 0.5x benchmark. It has deteriorated over the last 4 years.
- Net debt vs cash flow: 0.5y (Strong, benchmark < 4 years) — Net debt of $22.9B is 0.5x annual free cash flow — under a year of cash flow to repay.
- Current ratio: 2.60 (Strong, benchmark > 1.5) — Short-term assets cover 2.60x short-term liabilities, against Graham's 1.5x floor. It has improved over the last 4 years.
- Return on equity: 29.8% (Strong, benchmark > 15%) — Earns 29.8% on shareholder equity, comfortably past the > 15% mark.
- Gross margin: 81.8% (Strong, benchmark > 40%) — Keeps 81.8% of revenue after the direct cost of sales, comfortably past the > 40% mark.
- Net margin: 29.8% (Strong, benchmark > 10%) — Turns 29.8% of revenue into profit, comfortably past the > 10% mark.
- Free cash flow: $46.1B (Strong, benchmark positive) — Generated $46.1B of free cash flow after capital spending. It has improved over the last 4 years.
- Revenue growth: 28.0% (Strong, benchmark > 10%) — Revenue changed 28.0% year on year, comfortably past the > 10% mark.
- Earnings growth: -13.4% (Concern, benchmark > 10%) — Earnings changed -13.4% year on year, well short of the > 10% mark.
- PEG ratio: 0.98 (Strong, benchmark < 1) — At 0.98, the price looks cheap relative to expected growth — Lynch treated 1.0 as fair value.
- Payout ratio: 7.9% (Strong, benchmark < 60%) — Pays out 7.9% of earnings as dividends, leaving room to keep paying.