Company Analysis
Meta Platforms Inc
META • Media
AI Summary
Meta Platforms is a leading social media company with a strong competitive position across its Family of Apps and expanding Reality Labs segments, supported by an impressive ROE of 33.2%. The stock trades at approximately 42% below its estimated fair value, offering significant upside potential for balanced investors. Given its solid earnings power, manageable debt levels, and diversified revenue streams, Meta presents an attractive opportunity for investors seeking a combination of value and growth.
GoodStock Company Score
Score Breakdown
GoodStock Estimated Valuation
Valuation Range vs. Current Price
GoodStock Price Momentum
Momentum Indicators
Meta Platforms Inc
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GoodStockClassification
| Theme | Quality | Momentum | Value |
|---|---|---|---|
| Best in Class | + | + | + |
| Quality at a Price | + | + | - |
| Contrarian | + | - | + |
| Yesterday's News | + | - | - |
| Restructuring | - | + | + |
| Momentum Trap | - | + | - |
| Value Trap | - | - | + |
| Worst in Class | - | - | - |
Contrarian investments go against prevailing market trends. Savvy investors seek opportunities in undervalued assets with potential for a turnaround, betting on market misperceptions. Success depends on accurate analysis and the ability to identify positive catalysts others overlook.
Earnings History
Last beatActual EPS compared with analyst estimates.
| Fiscal Quarter | Actual | Estimate | Surprise |
|---|---|---|---|
|
Q1 2026
Mar 31, 2026
|
$7.31 | $6.92 | +5.6% |
|
Q4 2025
Dec 31, 2025
|
$8.88 | $8.40 | +5.7% |
|
Q3 2025
Sep 30, 2025
|
$7.25 | $6.82 | +6.2% |
|
Q2 2025
Jun 30, 2025
|
$7.14 | $6.04 | +18.3% |
|
Q1 2025
Mar 31, 2025
|
$6.43 | $5.39 | +19.4% |
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Financial Ratios
AI Financial Ratios Summary
The company's strong EPS of 27.52 and a solid P/E ratio of 20.28 suggest that it is currently valued favorably relative to its earnings, indicating market confidence. Its impressive ROE of 33.22% reflects efficient utilization of equity, while a low debt-to-equity ratio of 0.28 and a high interest coverage ratio of 168.41 demonstrate robust financial stability and prudent leverage management. The quick ratio of 2.44 indicates ample liquidity to meet short-term obligations, and with a substantial market capitalization of approximately 1.43 billion, these metrics collectively position the company well for sustainable growth; however, continued profitability and efficient operational leverage are essential for the stock to reach its full potential.
- $27.5
- 20.28
- 33.22%
- 0.28%
- 168.41
- $2.58 M
- 2.44%
- $1430 B
Operational Ratios
AI Operational Ratios Summary
The company's high operating margin of 41.21% and gross margin of 81.94% indicate strong operational efficiency and effective cost management, which are favorable for profitability. Additionally, a healthy net profit margin of 32.84%, coupled with a robust return on assets of 20.76%, suggests the company is effectively converting revenue into profits and efficiently utilizing its assets, signaling solid growth potential. The consistent free cash flow growth of 14.3% annually and significant CAPEX increase highlight ongoing investments in future expansion, further supporting long-term profitability and growth prospects.
- 41.21%
- 81.94%
- 32.84%
- 20.76%
- $2.11
- 0.37%
- 14.3%
- 35.75%
Valuation Ratios
AI Valuation Ratios Summary
The company's EBITD per share of 42.58 indicates strong operational profitability, while the negative 52-week price-to-SAP ratio (-42.63) suggests the stock may be significantly undervalued relative to its projected earnings. Although the PEG ratio of 2.71 implies the stock might be somewhat overvalued based on growth expectations, the substantial book value and cash per share (85.87 and 32.25 respectively) highlight solid underlying financial health. These metrics collectively suggest potential investment opportunities, especially if the market has overlooked the company's intrinsic value, though further analysis is recommended.
- $796
- $520
- $42.6
- -42.63%
- 2.71
- $29.7
- $85.9
- 32.3