Meta Platforms Inc (META, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial position. With a current share price of $476.68, Meta Platforms Inc has experienced a slight daily decrease of 0.32%, alongside a three-month change of -1.49%. A detailed analysis, supported by the GF Score, indicates that Meta Platforms Inc is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently, reflecting their varied impacts on stock performance. Stocks with higher GF Scores typically yield higher returns. For Meta Platforms Inc, the GF Score is an impressive 93 out of 100, indicating 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 $1.21 trillion and annual sales of $142.71 billion, operates the world's largest online social network, which includes nearly 4 billion monthly active users across its family of apps. The company's ecosystem primarily consists of Facebook, Instagram, Messenger, and WhatsApp. Over 90% of Meta's revenue comes from advertising, with significant contributions from the US, Canada, and Europe.
Financial Strength Breakdown
Meta Platforms Inc's financial robustness is evident in its Interest Coverage ratio of 102.98, significantly surpassing the benchmark set by investing legend Benjamin Graham. Additionally, its Altman Z-Score of 12.12 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.26 showcases prudent debt management.
Profitability and Growth Metrics
Meta Platforms Inc stands out with a Profitability Rank of 10/10. The company's Operating Margin has shown resilience and growth over the years, further supported by a strong Piotroski F-Score and a Predictability Rank of 3.5 stars. In terms of expansion, Meta Platforms Inc's 3-Year Revenue Growth Rate of 19.9% is commendable, outperforming a significant portion of its industry peers.
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.
