Meta Platforms, Inc. (META) Stock Analysis

Analysis from 10-Q filed 2025-10-30. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 27.6%. FCF margin 22.4%. D/E 0.2x. Source: 10-Q filed 2025-10-30.

Metric	Value	Context
ROIC	27.6%	Above industry average
FCF Margin	22.4%	Strong cash generation
Debt/Equity	0.2x	Conservative leverage

ROIC 27.6% — Top 25% of sector peers. FCF margin 22.4% — Top 25%.

Explore Meta Platforms, Inc.: Earnings History | Filings | ROIC Analysis

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for META: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

---

Profitability: Meta Platforms, Inc. earns 27.6% ROIC, Top 25% in Technology

ROIC TTM 27.6%, sector median 4.9%, Top 25%. DuPont: NOPAT margin 32.6% × asset turnover 0.7x. Gross margin 81.9%. Operating margin 41.2%. Source: 10-Q filed 2025-10-30.

Metric	META	Rating	Context
Return on Invested Capital (ROIC)	27.6%	Excellent	Above sector median of 4.9%
Return on Equity (ROE)	34.4%	Excellent	Efficient use of shareholder equity
Gross Margin	81.9%	Excellent	Strong pricing power
Operating Margin	41.2%	Excellent	Efficient operations

---

Cash Flow: Meta Platforms, Inc. generates $48.3B FCF at 22.4% margin, positive NaN/8 quarters

FCF TTM $48.3B. FCF margin 22.4%, Top 25%. OCF/Net income 1.8x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-30.

Metric	META	Rating	Context
Free Cash Flow Margin	22.4%	Excellent	Excellent cash conversion
Free Cash Flow (TTM)	$48.3B	Good	Positive cash generation
OCF/Net Income	1.8x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: Meta Platforms, Inc. at 0.2x leverage

Debt/Equity 0.2x. Net cash $30.1B. Source: 10-Q filed 2025-10-30.

Metric	META	Rating	Context
Debt to Equity	0.2x	Excellent	Conservative capital structure
Net Cash Position	$30.1B	Excellent	Net cash positive

---

Valuation: Meta Platforms, Inc. trades at 20.5x earnings

P/E 20.5x. EV/Sales 6.6x. FCF yield 3.3%. Dividend yield 0.4%. Source: 10-Q filed 2025-10-30.

Metric	META	Rating	Context
P/E Ratio	20.5x	Adequate	Premium valuation
EV/Sales	6.6x	Adequate	Growth premium priced in
FCF Yield	3.3%	Adequate	Lower cash yield
Dividend Yield	0.4%	Adequate	Growth focus over income

---

Capital Allocation: Meta Platforms, Inc. returns 1.3% shareholder yield

Total shareholder yield 1.3% (div 0.4% + buyback 0.9%). Capital returned $18.8B TTM. Source: 10-Q filed 2025-10-30.

Metric	META	Rating	Context
Total Shareholder Yield	1.3%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.9%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$18.8B	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	27.6%	Top 25%	5.7x above
Free Cash Flow Margin	22.4%	Top 25%	2.6x above
Gross Margin	81.9%	Top 25%	1.6x above
Operating Margin	41.2%	Top 5%	8.5x above
Return on Equity (ROE)	34.4%	Top 25%	7.3x above
P/E Ratio	20.5x	N/A	-

---

Financial Scorecard

Metric	META	Rating	Sector Context
Return on Invested Capital (ROIC)	27.6%	Excellent	Top 25% of sector (median: 4.9%)
Free Cash Flow Margin	22.4%	Excellent	Top 25% of sector (median: 8.5%)
Gross Margin	81.9%	Excellent	Top 25% of sector (median: 51.5%)
Debt to Equity Ratio	24.1%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	20.5x	Adequate	Fair value
Free Cash Flow Yield	3.3%	Adequate	Moderate yield

---

Frequently Asked Questions

Q: What is Meta Platforms, Inc.'s Return on Invested Capital (ROIC)?

Meta Platforms, Inc. (META) has a trailing twelve-month Return on Invested Capital (ROIC) of 27.6%. Sector median 4.9%. Source: 10-Q filed 2025-10-30.

Q: What is Meta Platforms, Inc.'s Free Cash Flow Margin?

Meta Platforms, Inc. (META) has a free cash flow margin of 22.4%, generating $48.3 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-30.

Q: What is Meta Platforms, Inc.'s P/E ratio and how does it compare to peers?

Meta Platforms, Inc. (META) trades at a P/E ratio of 20.5x, which is above the sector median of N/A. EV/Sales 6.6x. FCF yield 3.3%. Source: 10-Q filed 2025-10-30.

Q: Does Meta Platforms, Inc. pay a dividend?

Meta Platforms, Inc. (META) currently pays a dividend yield of 0.4%. Total shareholder yield (dividend + buybacks) 1.3%. Source: 10-Q filed 2025-10-30.

Q: What is Meta Platforms, Inc.'s revenue and earnings growth?

Meta Platforms, Inc. (META) grew revenue by 26.2% year-over-year. EPS +7.4% YoY. Source: 10-Q filed 2025-10-30.

Q: Is Meta Platforms, Inc. buying back stock?

Meta Platforms, Inc. (META) repurchased $13.5 billion of stock over the trailing twelve months. This represents a buyback yield of 0.9%. Source: 10-Q filed 2025-10-30.

Q: How does Meta Platforms, Inc. compare to competitors in Technology?

Compared to other companies in Technology, Meta Platforms, Inc. (META) shows: ROIC 27.6%, sector median 4.9% (Top 25%). FCF margin 22.4%, sector median 8.5% (Top 25%). Gross margin 81.9%, 30.4pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with Meta Platforms, Inc.?

No quantitative warning flags fired for Meta Platforms, Inc. (META) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-30.

---

Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q1 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.