Meta Platforms, Inc. (META) Stock Analysis

Analysis from 10-Q filed 2025-10-30. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 24.1%. FCF margin 18.0%. D/E 0.3x. Source: 10-Q filed 2025-10-30.

Metric	Value	Context
ROIC	24.1%	Above industry average
FCF Margin	18.0%	Strong cash generation
Debt/Equity	0.3x	Conservative leverage

ROIC 24.1% — Top 10% of sector peers. FCF margin 18.0% — Top 50%.

Explore Meta Platforms, Inc.: Earnings History | Filings

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.

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Profitability: Meta Platforms, Inc. earns 24.1% ROIC, Top 10% in Technology

ROIC TTM 24.1%, sector median 3.6%, Top 10%. DuPont: NOPAT margin 29.6% × asset turnover 0.6x. Gross margin 81.7%. Operating margin 38.1%. Source: 10-Q filed 2025-10-30.

Metric	META	Rating	Context
Return on Invested Capital (ROIC)	24.1%	Excellent	Above sector median of 3.6%
Return on Equity (ROE)	30.8%	Excellent	Efficient use of shareholder equity
Gross Margin	81.7%	Excellent	Strong pricing power
Operating Margin	38.1%	Excellent	Efficient operations

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Cash Flow: Meta Platforms, Inc. generates $41.0B FCF at 18.0% margin, positive NaN/8 quarters

FCF TTM $41.0B. FCF margin 18.0%, Top 50%. OCF/Net income 1.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-30.

Metric	META	Rating	Context
Free Cash Flow Margin	18.0%	Good	Excellent cash conversion
Free Cash Flow (TTM)	$41.0B	Good	Positive cash generation
OCF/Net Income	1.9x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Meta Platforms, Inc. at 0.3x leverage

Debt/Equity 0.3x. Net cash $6.6B. Source: 10-Q filed 2025-10-30.

Metric	META	Rating	Context
Debt to Equity	0.3x	Good	Conservative capital structure
Net Cash Position	$6.6B	Excellent	Net cash positive

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Valuation: Meta Platforms, Inc. trades at 20.9x earnings

P/E 20.9x. EV/Sales 7.2x. FCF yield 2.9%. Dividend yield 0.4%. Source: 10-Q filed 2025-10-30.

Metric	META	Rating	Context
P/E Ratio	20.9x	Adequate	Premium valuation
EV/Sales	7.2x	Adequate	Growth premium priced in
FCF Yield	2.9%	Adequate	Lower cash yield
Dividend Yield	0.4%	Adequate	Growth focus over income

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Capital Allocation: Meta Platforms, Inc. returns 0.6% shareholder yield

Total shareholder yield 0.6% (div 0.4% + buyback 0.2%). Capital returned $8.7B TTM. Source: 10-Q filed 2025-10-30.

Metric	META	Rating	Context
Total Shareholder Yield	0.6%	Adequate	Dividend + buyback yield combined
Buyback Yield	0.2%	Adequate	Minimal buyback activity
Total Capital Returned (TTM)	$8.7B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	24.1%	Top 10%	6.7x above
Free Cash Flow Margin	18.0%	Top 50%	2.2x above
Gross Margin	81.7%	Top 25%	1.6x above
Operating Margin	38.1%	Top 5%	8.5x above
Return on Equity (ROE)	30.8%	Top 25%	6.1x above
P/E Ratio	20.9x	N/A	-

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Financial Scorecard

Metric	META	Rating	Sector Context
Return on Invested Capital (ROIC)	24.1%	Excellent	Top 10% of sector (median: 3.6%)
Free Cash Flow Margin	18.0%	Good	Top 50% of sector (median: 8.3%)
Gross Margin	81.7%	Excellent	Top 25% of sector (median: 51.0%)
Debt to Equity Ratio	32.0%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	20.9x	Adequate	Fair value
Free Cash Flow Yield	2.9%	Warning	Growth-focused valuation

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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 24.1%. Sector median 3.6%. 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 18.0%, generating $41.0 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 20.9x, which is above the sector median of N/A. EV/Sales 7.2x. FCF yield 2.9%. 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) 0.6%. 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 27.7% year-over-year. EPS -3.8% YoY. Source: 10-Q filed 2025-10-30.

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

Meta Platforms, Inc. (META) repurchased $3.3 billion of stock over the trailing twelve months. This represents a buyback yield of 0.2%. 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 24.1%, sector median 3.6% (Top 10%). FCF margin 18.0%, sector median 8.3% (Top 50%). Gross margin 81.7%, 30.8pp 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.?

Quantitative warning flags for Meta Platforms, Inc. (META): 1) ROIC declining -6.7% over 8 quarters. Source: 10-Q filed 2025-10-30.

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Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q2 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.