Quality Investor

Meta Platforms, Inc.

Rank #153Op. Leverage

META · Nasdaq · Communication Services

Meta Platforms, Inc. (META) — Rank #153 by gross profitability (GP/assets 0.37) · ROE 23.1% · Piotroski F-Score 5 / 9.

As-of 2026-09-28 · CIK 0001326801 · all metrics point-in-time as of the filing date.

About

Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) headsets, and AI glasses in the United States, Canada, Europe, Asia-Pacific, and internationally.

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It operates through two segments, Family of Apps (FoA) and Reality Labs (RL). The FoA segment offers Facebook, which enables people to build community through feed, reels, stories, groups, marketplace, and other; Instagram that brings people closer through Instagram feed, stories, reels, live, and messaging; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; Meta AI, an assistant that's available across apps, as a stand-alone app, on AI glasses, and on the web; Threads, an application for text-based updates and public conversations; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact. The RL segment provides virtual and augmented reality products, including consumer hardware, software, and content that help people feel connected, as well as Meta Quest devices that enable social experiences across gaming, fitness, entertainment, and more. The segment also includes wearables such as AI glasses like Ray Ban Meta and Oakley Meta glasses; and the Meta Ray Ban Display, which combines AI glasses with an integrated lens display and the Meta Neural Band, a wrist worn device using electromyography that lets people control their AI glasses through neuromuscular signals. Meta Platforms, Inc. has a collaboration with Microsoft Corporation, NVIDIA Corporation, Advanced Micro Devices, Inc., Broadcom Inc., and OpenAI, L.L.C. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021.

The company was incorporated in 2004 and is headquartered in Menlo Park, California.

Industry
Internet Content & Information
Sector
Communication Services
State
DE
Filer Category
Large accelerated filer
Fiscal Year End
December 31
Website
meta.com

Company Snapshot

P/E and reverse DCF are the primary valuation lenses at this stage.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

75,472

Industry

Internet Content & Information

Exchange

Nasdaq

Signal Flags

3 green1 red
Revenue growth acceleratingGrowth rate increasing year over year
Deferred revenue growingRevenue and deferred revenue both growing — retention signal
Sequential beat (rev + EPS)Both revenue and EPS exceeded prior quarter — 2-quarter streak
Operating margin decliningOperating margin lower than prior year

Quality Profile

Profitability

1/1 pass
GP / assets
0.37
Return on equity
23.1%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.72
Current ratio
2.23×
Net cash
$6.60B

Cash Flow

2/3 pass
Positive FCF
PASS
Cash-backed earnings
WARN
Accruals healthy
PASS
SBC / revenue
10.2%

Growth

2/2 pass
Revenue growth
22.2%
Piotroski F-Score
5 / 9
Share dilution
-1.5%

Terry Smith quality gate

Passes 3/5 Terry Smith thresholds

1 of 5 threshold not computable from filed data.

Operating margin expansion and free cash flow are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.37

Primary signal (Novy-Marx).

7th of 15 SIC 7370 peers

Return on equity

23.1%

Gross margin

82.0%

4th of 15 SIC 7370 peers

Revenue growth (YoY)

22.2%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

19.9%

Revenue CAGR (5Y)

18.5%

Earnings CAGR (3Y)

37.6%

FCF CAGR (3Y)

34.3%

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.72

11th of 14 SIC 7370 peers (best = lowest)

Current ratio

2.23×

12th of 15 SIC 7370 peers

Quick ratio

1.99×

Net cash

$6.60B

Cash & equivalents minus total debt.

Recession resistance

Revenue through recessions

Worst single-year YoY revenue decline, 16 years of history

Strong
2008-2009 (GFC)
N/AN/A
2020 (COVID)
21.6%Grew through it
Worst year on record(any fiscal year, not recession-limited)
-1.1%Mild decline

Cash-flow health

Free cash flow

$46.11B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

-0.24

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

WARN

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

10.2%

Stock-based comp intensity.

Dividend safety

Composite score

3.2 / 5

Good
Payout ratio
8.8%5/5 Strong
FCF coverage
8.66×5/5 Strong
Dividend growth streak
1 yr1/5 Weak
Balance-sheet health
D/E 0.72 · IC N/A2/5 Fair

Piotroski F-Score

F-Score

5 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20202025
Hypergrowth
Capital Return
Op. Leverage