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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 9/10

vs
industry
vs
history
Cash to Debt 24.05
FB's Cash to Debt is ranked higher than
59% of the 362 Companies
in the Global Internet Content & Information industry.

( Industry Median: 10000.00 vs. FB: 24.05 )
FB' s 10-Year Cash to Debt Range
Min: 3.77   Max: 24.05
Current: 24.05

3.77
24.05
Equity to Asset 0.86
FB's Equity to Asset is ranked higher than
92% of the 343 Companies
in the Global Internet Content & Information industry.

( Industry Median: 0.66 vs. FB: 0.86 )
FB' s 10-Year Equity to Asset Range
Min: 0.72   Max: 0.86
Current: 0.86

0.72
0.86
Interest Coverage 50.07
FB's Interest Coverage is ranked higher than
53% of the 274 Companies
in the Global Internet Content & Information industry.

( Industry Median: 4266.18 vs. FB: 50.07 )
FB' s 10-Year Interest Coverage Range
Min: 10.55   Max: 50.07
Current: 50.07

10.55
50.07
Z-Score: 40.70
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry
vs
history
Operating margin (%) 35.62
FB's Operating margin (%) is ranked higher than
95% of the 346 Companies
in the Global Internet Content & Information industry.

( Industry Median: 6.35 vs. FB: 35.62 )
FB' s 10-Year Operating margin (%) Range
Min: 10.57   Max: 52.28
Current: 35.62

10.57
52.28
Net-margin (%) 18.94
FB's Net-margin (%) is ranked higher than
89% of the 348 Companies
in the Global Internet Content & Information industry.

( Industry Median: 5.10 vs. FB: 18.94 )
FB' s 10-Year Net-margin (%) Range
Min: 0.63   Max: 30.7
Current: 18.94

0.63
30.7
ROE (%) 9.64
FB's ROE (%) is ranked higher than
75% of the 341 Companies
in the Global Internet Content & Information industry.

( Industry Median: 6.68 vs. FB: 9.64 )
FB' s 10-Year ROE (%) Range
Min: 0.27   Max: 28.03
Current: 9.64

0.27
28.03
ROA (%) 8.33
FB's ROA (%) is ranked higher than
79% of the 349 Companies
in the Global Internet Content & Information industry.

( Industry Median: 3.96 vs. FB: 8.33 )
FB' s 10-Year ROA (%) Range
Min: 0.21   Max: 20.27
Current: 8.33

0.21
20.27
ROC (Joel Greenblatt) (%) 76.99
FB's ROC (Joel Greenblatt) (%) is ranked higher than
72% of the 345 Companies
in the Global Internet Content & Information industry.

( Industry Median: 56.06 vs. FB: 76.99 )
FB' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 16.08   Max: 137.23
Current: 76.99

16.08
137.23
» FB's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q2 2013

FB Guru Trades in Q2 2013

Steve Mandel 9,864,619 sh (New)
John Burbank 210,842 sh (New)
Ray Dalio 48,700 sh (New)
Steven Cohen 4,968,656 sh (+328.22%)
Manning & Napier Advisors, Inc 2,560,970 sh (+317.16%)
Ron Baron 160,417 sh (+72.27%)
Frank Sands 35,724,981 sh (+1.97%)
Steven Cohen 500,000 sh (unchged)
Jean-Marie Eveillard 2,300 sh (unchged)
Tom Russo Sold Out
Leon Cooperman Sold Out
Jim Simons Sold Out
Mario Gabelli 17,120 sh (-0.75%)
Pioneer Investments 1,031,009 sh (-8.94%)
RS Investment Management 230,700 sh (-16.17%)
» More
Q3 2013

FB Guru Trades in Q3 2013

Louis Moore Bacon 1,787,150 sh (New)
Lee Ainslie 1,875,657 sh (New)
David Swensen 51,533 sh (New)
Ken Heebner 590,000 sh (New)
Jim Simons 1,058,600 sh (New)
Andreas Halvorsen 4,434,976 sh (New)
George Soros 541,500 sh (New)
Caxton Associates 255,000 sh (New)
RS Investment Management 398,200 sh (+72.61%)
Mario Gabelli 28,840 sh (+68.46%)
Ron Baron 166,670 sh (+3.9%)
Jean-Marie Eveillard 2,300 sh (unchged)
Ray Dalio Sold Out
Pioneer Investments 1,016,761 sh (-1.38%)
Frank Sands 35,226,219 sh (-1.4%)
Steve Mandel 7,635,995 sh (-22.59%)
Manning & Napier Advisors, Inc 1,477,900 sh (-42.29%)
John Burbank 105,000 sh (-50.2%)
Steven Cohen 45,170 sh (-99.09%)
» More
Q4 2013

FB Guru Trades in Q4 2013

Julian Robertson 13,800 sh (New)
Paul Tudor Jones 11,903 sh (New)
Jeremy Grantham 109,700 sh (New)
Ray Dalio 102,000 sh (New)
Steven Cohen 2,026,307 sh (+4385.96%)
Andreas Halvorsen 18,301,402 sh (+312.66%)
Manning & Napier Advisors, Inc 1,723,982 sh (+16.65%)
Pioneer Investments 1,156,858 sh (+13.78%)
Mario Gabelli 32,140 sh (+11.44%)
RS Investment Management 428,900 sh (+7.71%)
Steven Cohen 200,000 sh (unchged)
Jean-Marie Eveillard 2,300 sh (unchged)
Ron Baron 166,670 sh (unchged)
Ken Heebner Sold Out
John Burbank Sold Out
David Swensen Sold Out
Frank Sands 33,602,762 sh (-4.61%)
Jim Simons 817,300 sh (-22.79%)
Louis Moore Bacon 1,148,877 sh (-35.71%)
Steve Mandel 3,000,441 sh (-60.71%)
Lee Ainslie 433,680 sh (-76.88%)
Caxton Associates 57,714 sh (-77.37%)
George Soros 36,300 sh (-93.3%)
» More
Q1 2014

FB Guru Trades in Q1 2014

Ken Fisher 4,222 sh (New)
Manning & Napier Advisors, Inc 562,235 sh (-67.39%)
» More
» Details

Insider Trades

Latest Guru Trades with FB

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Steve Mandel 2013-12-31 Reduce -60.71%1.03%$44.82 - $57.96 $ 61.3622%3000441
Lee Ainslie 2013-12-31 Reduce -76.88%1%$44.82 - $57.96 $ 61.3622%433680
George Soros 2013-12-31 Reduce -93.3%0.28%$44.82 - $57.96 $ 61.3622%36300
Frank Sands 2013-12-31 Reduce -4.61%0.23%$44.82 - $57.96 $ 61.3622%33602762
Julian Robertson 2013-12-31 New Buy0.23%$44.82 - $57.96 $ 61.3622%13800
John Burbank 2013-12-31 Sold Out 0.17%$44.82 - $57.96 $ 61.3622%0
Ray Dalio 2013-12-31 New Buy0.05%$44.82 - $57.96 $ 61.3622%102000
Lee Ainslie 2013-09-30 New Buy1.3%$24.37 - $51.24 $ 61.3665%1875657
George Soros 2013-09-30 New Buy0.3%$24.37 - $51.24 $ 61.3665%541500
Steve Mandel 2013-09-30 Reduce -22.59%0.27%$24.37 - $51.24 $ 61.3665%7635995
John Burbank 2013-09-30 Reduce -50.2%0.09%$24.37 - $51.24 $ 61.3665%105000
Ray Dalio 2013-09-30 Sold Out 0.01%$24.37 - $51.24 $ 61.3665%0
Mario Gabelli 2013-09-30 Add 68.46%$24.37 - $51.24 $ 61.3665%28840
Leon Cooperman 2013-06-30 Sold Out 1.5%$22.899 - $28.97 $ 61.36140%0
Steve Mandel 2013-06-30 New Buy1.2%$22.899 - $28.97 $ 61.36140%9864619
John Burbank 2013-06-30 New Buy0.17%$22.899 - $28.97 $ 61.36140%210842
Ray Dalio 2013-06-30 New Buy0.01%$22.899 - $28.97 $ 61.36140%48700
Ron Baron 2013-06-30 Add 72.27%0.01%$22.899 - $28.97 $ 61.36140%160417
Steve Mandel 2013-03-31 Sold Out 1.8%$25.131 - $32.469 $ 61.36116%0
Lee Ainslie 2013-03-31 Sold Out 0.83%$25.131 - $32.469 $ 61.36116%0
Frank Sands 2013-03-31 Add 30.74%0.75%$25.131 - $32.469 $ 61.36116%35034570
Wilbur Ross 2013-03-31 Sold Out 0.37%$25.131 - $32.469 $ 61.36116%0
Leon Cooperman 2013-03-31 Add 15.94%0.21%$25.131 - $32.469 $ 61.36116%3665300
Ron Baron 2013-03-31 Add 99.23%0.01%$25.131 - $32.469 $ 61.36116%93117
Mario Gabelli 2013-03-31 Add 83.61%$25.131 - $32.469 $ 61.36116%17250
Premium More recent guru trades are included for Premium Members only!!
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Guru Investment Theses on Facebook Inc

Baron Funds Comments on Facebook Inc. - Nov 25, 2013

Facebook Inc. (FB) is the largest social networking company in the world with in excess of one billion active monthly users. The company built a unique platform where users continue to demonstrate stickiness and high engagement. Facebook is in the early stages of monetizing its customer base and we continue to see more evidence that its messaging is starting to resonate with marketers and advertisers world-wide. We believe that the company will successfully navigate the transition to mobile and that annualized revenues per customer can continue to increase meaningfully. In addition, we see significant positive optionality from eventual monetization opportunities in search, video, publishing and Instagram.

From Ron Baron's Baron Funds third quarter 2013 commentary.


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Baron Funds Comments on Facebook - Aug 24, 2012

From Baron Funds' second quarter commentary:

We fielded more inquiries and observed more anxiety about Facebook, Inc. (FB) than about any company we can remember since Amazon.com in the early 2000's. Facebook's highly anticipated (can we say overhyped?) IPO was hardly what investors had expected, as a poorly handled roadshow, Nasdaq's execution snafus, and media's intense focus on daily (and sometimes hourly) stock price fluctuations have conspired to derail the offering.The company's transition to mobile, which has lower monetization, resulted in reduced growth expectations in the short term, which further undermined whatever investor confidence remained.

Facebook is the largest global social network in the world with almost one BILLION active users. The company has all the characteristics we look for in a business – uniqueness, strong and, in our opinion, sustainable competitive advantages, innovative management, fast growing and highly profitable revenue streams and significant positive optionality; except for one – margin of safety. Given what we believe is the early stage of the company's growth and life cycles, it is difficult to estimate Facebook's intrinsic value. After much internal debate, we decided to buy a small position for the Fund (1%), based on our belief that Facebook could one day become the most valuable company on earth.

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Bill Nygren - Facebook IPO: Hit or Miss? - Jun 08, 2012

Over the past few weeks, you haven’t been able to read a business magazine or watch financial news on TV without being exposed to commentary about the upcoming Facebook (FB) IPO. Facebook has obviously been an amazing success story and is clearly newsworthy as the largest IPO ever. This week, investors are being asked to decide whether or not Facebook is a worthy investment at a market cap of $100 billion. The debate over whether or not to invest at that price reached an absurd level this week when Apple founder Steve Wozniak said that he would buy Facebook on the IPO regardless of its price.

At Oakmark, that is a statement, applied to any investment, which makes no sense to us. No matter how attractive a business is, there is always a price above which it becomes an unattractive investment. Is the Facebook IPO above that price? I will answer that with the one comment I have yet to hear the experts say – we have no idea. That’s the beauty of this business – we can admit that, most of the time, most companies sell at prices that make us lack conviction about their investment merits, and we don’t need to invest where we don’t have conviction. As Warren Buffett has said, investing is like being the batter in a baseball game where there are no called strikes. You can simply wait for the pitches you believe you have the best chance of hitting.

Facebook doesn’t make much money today for a company with a $100 billion market cap. But what the company earns five years from now is likely to be wildly different from what it earns today. Perhaps future earnings will make this week’s IPO look like a bargain; perhaps it will make the buyers look foolish. Other than our general bias that IPOs, on average, don’t perform as well as the stock market, we don’t have an opinion, so we aren’t swinging.

Unlike Facebook, our most important positions tend not to be front-page news. How often have you recently seen analysts debating the merits of owning Capital One, Comcast, Discovery Communications, Liberty Interactive or TE Connectivity (the five largest holdings in Oakmark Select)? Probably never. Also unlike Facebook, these companies sell at modest multiples of current earnings, have business models that appear reasonably predictable, and are allocating excess capital to share repurchases. As value investors, we are used to investing in companies when there is relatively little media interest in them, and we have learned the rewards that come from following a disciplined investment approach.

We wish the owners and new investors in Facebook well. But we at Oakmark are watching with our bat on our shoulder.



As of 3/31/12, Capital One Financial Corp. represented 5.0%, Comcast Cl A 5.1%, Discovery Communications, Inc., Class C 8.4%, Liberty Interactive Cl A 5.9%, TE Connectivity 6.0% of the Oakmark Select Fund's total net assets. Portfolio holdings are subject to change without notice and are not intended as recommendations of individual stocks.

Because The Oakmark Select and Oakmark Global Select Funds are non-diversified, the performance of each holding will have a greater impact on the Funds' total return, and may make the Funds' returns more volatile than a more diversified fund.

The discussion of investments and investment strategy (including current investment themes, the portfolio managers’ research and investment process, and portfolio characteristics) represents the investments and views of the portfolio managers and Harris Associates L.P. at the time of this report, and are subject to change without notice.


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Top Ranked Articles about Facebook Inc

Weekly CFO Sells Highlight: Google Inc., Facebook Inc., Gilead Sciences Inc., Palo Alto Networks Inc.
According to GuruFocus Insider Data, the recent CFO sales were: Google Inc., Facebook Inc., Gilead Sciences Inc. and Palo Alto Networks Inc. Read more...
Weekly Insider Sells Highlight: FEYE, FB, CMCSA, AMBA
According to GuruFocus Insider Data, the largest insider sells during the past week were: FireEye Inc., Facebook Inc., Comcast Corp. and Ambarella Inc. Read more...
Weekly CFO Sells Highlight: Tableau Software Inc., Facebook Inc., Blackstone Group LP, Pandora Media Inc.
According to GuruFocus Insider Data, the recent CFO sales were: Tableau Software Inc., Facebook Inc., Blackstone Group LP and Pandora Media Inc. Read more...
Weekly CFO Sells Highlight: Facebook Inc., Google Inc., Verisk Analytics Inc., Gilead Sciences Inc.
According to GuruFocus Insider Data, the recent CFO sales were: Facebook Inc., Google Inc., Verisk Analytics Inc. and Gilead Sciences Inc. Read more...
High-Dollar Insider Sells - Zuckerberg Sells 41M Facebook Shares
Yesterday insider executives made large sells at Facebook Inc. (FB), United Therapeutics Corporation (UTHR) and Hillenbrand Inc. (HI), all companies held by billionaires. Here are the company updates and trade highlights. Read more...
Weekly CFO Sells Highlight: Jarden Corporation, Facebook Inc, Nu Skin Enterprises Inc, TE Connectivity Ltd.
According to GuruFocus Insider Data, the recent CFO and other executive sales were: Jarden Corporation, Facebook Inc., Nu Skin Enterprises Inc., TE Connectivity Ltd. Read more...
Baron Funds Comments on Facebook Inc.
Facebook Inc. (FB) is the largest social networking company in the world with in excess of one billion active monthly users. The company built a unique platform where users continue to demonstrate stickiness and high engagement. Facebook is in the early stages of monetizing its customer base and we continue to see more evidence that its messaging is starting to resonate with marketers and advertisers world-wide. We believe that the company will successfully navigate the transition to mobile and that annualized revenues per customer can continue to increase meaningfully. In addition, we see significant positive optionality from eventual monetization opportunities in search, video, publishing and Instagram. Read more...
Steven Cohen Slashes Facebook, Amazon, Others in Prolific Selling
Guru Steven Cohen is averaging a return of 21.15% over 12 months. The third quarter portfolio of SAC Capital Advisors, led by Steven Cohen, shows 1,749 stocks and a total value of $18.4 billion. The quarter-over-quarter turnover is 37%. Steven Cohen recently bought 465 new stocks, according to the GuruFocus update of Nov. 15, 2013. His third quarter selling was prolific as well. Read more...
Twitter Looks to Learn from Facebook’s IPO Mistakes
Looking to learn from its social media competitor’s IPO mistakes last year, Twitter announced via a tweet that it would be listing the company on the New York Stock Exchange. Twitter announced that it engaged in an IPO estimated to net around $1.5 billion. In its tweet the company announced that it had filed its S-1 to the SEC for its planned initial public offering. The company is definitely attempting to avoid the glitches and ultimate flopping of Facebook (FB)'s IPO last year. Read more...
Weekly CFO Sells Highlight: FB, HAR, SAAS, DSW, LYV
According to GuruFocus Insider Data, the largest CFO sells during the past week were: Facebook Inc., Harman International Industries Inc., inContact Inc., DSW Inc. and Live Nation Entertainment Inc. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 103.90
FB's P/E(ttm) is ranked lower than
65% of the 238 Companies
in the Global Internet Content & Information industry.

( Industry Median: 31.10 vs. FB: 103.90 )
FB' s 10-Year P/E(ttm) Range
Min: 73.41   Max: 7930
Current: 103.9

73.41
7930
P/B 10.10
FB's P/B is ranked lower than
69% of the 333 Companies
in the Global Internet Content & Information industry.

( Industry Median: 3.35 vs. FB: 10.10 )
FB' s 10-Year P/B Range
Min: 2.9   Max: 11.1
Current: 10.1

2.9
11.1
P/S 19.70
FB's P/S is ranked lower than
86% of the 362 Companies
in the Global Internet Content & Information industry.

( Industry Median: 2.64 vs. FB: 19.70 )
FB' s 10-Year P/S Range
Min: 6.69   Max: 22.44
Current: 19.7

6.69
22.44
PFCF 54.30
FB's PFCF is ranked lower than
62% of the 195 Companies
in the Global Internet Content & Information industry.

( Industry Median: 30.17 vs. FB: 54.30 )
FB' s 10-Year PFCF Range
Min: 30.25   Max: 352.44
Current: 54.3

30.25
352.44
EV-to-EBIT 50.00
FB's EV-to-EBIT is ranked lower than
64% of the 270 Companies
in the Global Internet Content & Information industry.

( Industry Median: 22.29 vs. FB: 50.00 )
FB' s 10-Year EV-to-EBIT Range
Min: 27.4   Max: 164.1
Current: 50

27.4
164.1

Valuation & Return

vs
industry
vs
history
Price/Net Cash 17.20
FB's Price/Net Cash is ranked higher than
51% of the 149 Companies
in the Global Internet Content & Information industry.

( Industry Median: 14.60 vs. FB: 17.20 )
FB' s 10-Year Price/Net Cash Range
Min: 10.05   Max: 14.89
Current: 17.2

10.05
14.89
Price/Net Current Asset Value 15.60
FB's Price/Net Current Asset Value is ranked lower than
51% of the 185 Companies
in the Global Internet Content & Information industry.

( Industry Median: 12.00 vs. FB: 15.60 )
FB' s 10-Year Price/Net Current Asset Value Range
Min: 8.81   Max: 13.56
Current: 15.6

8.81
13.56
Price/Tangible Book 11.30
FB's Price/Tangible Book is ranked lower than
66% of the 293 Companies
in the Global Internet Content & Information industry.

( Industry Median: 5.23 vs. FB: 11.30 )
FB' s 10-Year Price/Tangible Book Range
Min: 6.09   Max: 9.78
Current: 11.3

6.09
9.78
Price/Median PS Value 1.70
FB's Price/Median PS Value is ranked lower than
60% of the 325 Companies
in the Global Internet Content & Information industry.

( Industry Median: 1.10 vs. FB: 1.70 )
FB' s 10-Year Price/Median PS Value Range
Min: 0.93   Max: 1.45
Current: 1.7

0.93
1.45
Price/Graham Number 7.20
FB's Price/Graham Number is ranked lower than
69% of the 209 Companies
in the Global Internet Content & Information industry.

( Industry Median: 2.90 vs. FB: 7.20 )
FB' s 10-Year Price/Graham Number Range
Min: 6.24   Max: 17.99
Current: 7.2

6.24
17.99
Earnings Yield (Greenblatt) 2.00
FB's Earnings Yield (Greenblatt) is ranked lower than
59% of the 280 Companies
in the Global Internet Content & Information industry.

( Industry Median: 4.20 vs. FB: 2.00 )
FB' s 10-Year Earnings Yield (Greenblatt) Range
Min: 0.6   Max: 3.7
Current: 2

0.6
3.7

Business Description

Industry: Online Media » Internet Content & Information
Compare: » details
Traded in other countries:FB2A.Germany
Facebook Inc., a Delaware corporation was incorporated in Delaware in July 2004. The Company is a social networking website which builds products that creates utility for users, developers, and advertisers. The Company enables people who use Facebook to stay connected with their friends and family, to discover what is going on in the world around them, and to share and express what matters to them to the people they care about. It enables developers to use the Facebook Platform to build applications and websites that integrate with Facebook to reach its global network of users and to build products that are more personalized and social. It enables marketers to engage with more than one billion monthly active users (MAUs) on Facebook or subsets of its users based on information they have chosen to share with it such as their age, location, gender, or interests. It offers marketers a unique combination of reach, relevance, social context, and engagement to enhance the value of their ads. The Company makes investments in product and feature development, data management and personalization technologies, large-scale systems and scalable infrastructure, mobile technologies, and advertising technologies. The Company works directly with advertisers, through traditional advertising agencies and with an ecosystem of agencies that have a specialized focus on Facebook advertising. It has a global sales force that attracts and retains marketers and provides support to them throughout the stages of the advertising campaign cycle from pre-purchase decision making to real-time optimizations to post-campaign analytics. It currently operates more than 30 sales offices around the globe. The Company faces competition from several companies which include Google, Microsoft, and Twitter, which offer a variety of Internet products, services, content, and online advertising offerings, as well as from mobile companies and smaller Internet companies that offer products and services that may compete with specific Facebook features. The Company is subject to a variety of laws and regulations in the United States and abroad that involve matters central to its business, including user privacy, rights of publicity, data protection, content, intellectual property, distribution, electronic contracts and other communications, competition, protection of minors, consumer protection, taxation, and online payment services.

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Berkshire
ReplyBerkshire - 3 weeks ago
This one is crazy overbought

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