Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Meta Platforms, Inc.

META · Nasdaq · Technology

Fundamental quality

EXCELLENT

91

out of 100

Meta Platforms, Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 29%) with wide margins (net margin 32.8%) and a business that keeps growing (19.1% a year). On fundamental quality it scores 91 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Meta owns Facebook, Instagram and WhatsApp. Almost all its money comes from advertising targeted at its billions of users. It invests heavily in AI and the 'metaverse' (Reality Labs).

What will shape its future

  • The effectiveness of its advertising, which depends on targeting users despite privacy restrictions.
  • The payoff from its huge spending on AI and Reality Labs, currently deeply loss-making.
  • Competition for attention (TikTok) and regulation on privacy and minors.

Breakdown by area

I.Growth
84

EPS growth: 21.1% · Revenue growth: 19.1%

II.Profitability
94

Net margin: 32.8% · ROE: 29% · ROIC: 25.1%

III.Financial health
95

Net debt/EBITDA: 0.32x · FCF: 22.4%

Source: SEC EDGAR · TTM through 31/03/2026

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 87%
ROEbeats 68%
Growthbeats 65%
Cash generationbeats 49%
Less debtbeats 59%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Meta Platforms, Inc. strengths

  • Excellent free-cash-flow generation (FCF margin of 22.4%): profit turns into real cash.
  • Exceptional net margin (32.8%), high even for its sector: the business is clearly profitable.
  • Outstanding return on equity (ROE of 29%): it puts shareholder capital to good use.
  • Revenue growing (19.1% annualized).

Meta Platforms, Inc. risks and weaknesses

  • Its net debt has grown over the period.
  • Shrinking margins: net margin has fallen from 34% to 30% in recent years.

Meta Platforms, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
202085,96529,14623,584-17,576
2021117,92939,37038,993-16,601
2022116,60923,20019,289-4,758
2023134,90239,09844,068-23,477
2024164,50162,36054,072-15,063
2025200,96660,45846,10922,871

Between 2020 and 2025, revenue went from $85,965M to $200,966M (+134%) and net income went from $29,146M to $60,458M (+107%). Meanwhile, its margins have narrowed (from 34% to 30%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+33.1%
  • Net income+60.9%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$2.1

per share, yearly

8.8% of earnings

Payout

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Meta Platforms, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Meta Platforms, Inc. a good company to invest in?

In terms of business quality, Meta Platforms, Inc. scores 91 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Meta Platforms, Inc. a profitable company?

Very. Meta Platforms, Inc. shows a net margin of 32.8% and an ROE of 29%, typical of a highly profitable business.

Does Meta Platforms, Inc. have a lot of debt?

Not particularly. Its net debt is 0.32 times its EBITDA, a low level.

Is Meta Platforms, Inc. growing?

Its revenue has grown 19.1% annualized in recent years and its earnings per share 21.1%.

Does Meta Platforms, Inc. generate cash?

Yes. It converts about 22.4% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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