Meta Platforms, Inc. (FB) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Pinterest, Inc.

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Spotify Technology SA

Meta Platforms, Inc.

Gartner, Inc.

VeriSign, Inc.

CoStar Group, Inc.

Match Group, Inc.

Why is Meta Platforms, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 29.03%

Healthy long term growth as Net Sales has grown by an annual rate of 18.93%
Company has a low Debt to Equity ratio (avg) at times

The company has declared negative results in Mar'2025 after 6 consecutive positive quarters

INTEREST(HY) At USD 481 MM has Grown at 88.63%
DEBT-EQUITY RATIO (HY) Highest at 1.19 %

With ROE of 36.08%, it has a fair valuation with a 9.48 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 12.58%, its profits have risen by 34.9% ; the PEG ratio of the company is 0.7

High Institutional Holdings at 78.28%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Consistent Returns over the last 3 years

Along with generating 12.58% returns in the last 1 year, the stock has outperformed S&P 500 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Meta Platforms, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Meta Platforms, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Meta Platforms, Inc.

7.8%

0.69

38.56%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

18.93%

EBIT Growth (5y)

23.08%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.21

Sales to Capital Employed (avg)

0.80

Tax Ratio

10.99%

Dividend Payout Ratio

8.38%

Pledged Shares

Institutional Holding

78.28%

ROCE (avg)

48.93%

ROE (avg)

29.03%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

9.48

EV to EBIT

23.41

EV to EBITDA

19.20

EV to Capital Employed

11.78

EV to Sales

10.06

PEG Ratio

0.74

Dividend Yield

1.78%

ROCE (Latest)

50.34%

ROE (Latest)

36.08%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bearish

Mildly Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 102,299 MM

ROCE(HY)

Highest at 40.65%

DIVIDEND PAYOUT RATIO(Y)

Highest at 14.72%

RAW MATERIAL COST(Y)

Fallen by -1.03% (YoY

DEBTORS TURNOVER RATIO(HY)

Highest at 11.51 times

DIVIDEND PER SHARE(HY)

Highest at USD 11.51

-7What is not working for the Company

INTEREST(HY)

At USD 481 MM has Grown at 88.63%

DEBT-EQUITY RATIO (HY)

Highest at 1.19 %

Here's what is working for Meta Platforms, Inc.

Operating Cash Flow

Highest at USD 102,299 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Debtors Turnover Ratio

Highest at 11.51 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Dividend per share

Highest at USD 11.51

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 14.72%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -1.03% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Meta Platforms, Inc.

Interest

At USD 481 MM has Grown at 88.63%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Debt-Equity Ratio

Highest at 1.19 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio