NasdaqGS:FB

Stock Analysis Report

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Market Cap

US$939.3b

Last Updated

2021/06/14 00:54 UTC

Data Sources

Company Financials +

Executive Summary

Facebook, Inc. develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices worldwide. More Details


Snowflake Analysis

Outstanding track record with flawless balance sheet.


Similar Companies

Share Price & News

How has Facebook's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FB's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

0.3%

FB

1.2%

US Interactive Media and Services

0.8%

US Market


1 Year Return

44.9%

FB

62.3%

US Interactive Media and Services

44.4%

US Market

Return vs Industry: FB underperformed the US Interactive Media and Services industry which returned 62.3% over the past year.

Return vs Market: FB matched the US Market which returned 44.3% over the past year.


Shareholder returns

FBIndustryMarket
7 Day0.3%1.2%0.8%
30 Day4.8%6.1%3.0%
90 Day21.0%13.0%4.4%
1 Year44.9%44.9%62.4%62.3%46.7%44.4%
3 Year69.1%69.1%79.7%79.4%60.3%50.4%
5 Year193.1%193.1%199.1%198.6%128.3%102.8%

Long-Term Price Volatility Vs. Market

How volatile is Facebook's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Facebook undervalued compared to its fair value and its price relative to the market?

22.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FB ($331.26) is trading below our estimate of fair value ($426.9)

Significantly Below Fair Value: FB is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FB is good value based on its PE Ratio (28x) compared to the US Interactive Media and Services industry average (32.4x).

PE vs Market: FB is poor value based on its PE Ratio (28x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: FB is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: FB is overvalued based on its PB Ratio (7x) compared to the US Interactive Media and Services industry average (3.5x).


Future Growth

How is Facebook forecast to perform in the next 1 to 3 years based on estimates from 47 analysts?

15.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FB's forecast earnings growth (15.1% per year) is above the savings rate (2%).

Earnings vs Market: FB's earnings (15.1% per year) are forecast to grow slower than the US market (15.5% per year).

High Growth Earnings: FB's earnings are forecast to grow, but not significantly.

Revenue vs Market: FB's revenue (15.2% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: FB's revenue (15.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FB's Return on Equity is forecast to be high in 3 years time (21.4%)


Past Performance

How has Facebook performed over the past 5 years?

24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FB has high quality earnings.

Growing Profit Margin: FB's current net profit margins (35.7%) are higher than last year (28.6%).


Past Earnings Growth Analysis

Earnings Trend: FB's earnings have grown significantly by 24.4% per year over the past 5 years.

Accelerating Growth: FB's earnings growth over the past year (61%) exceeds its 5-year average (24.4% per year).

Earnings vs Industry: FB earnings growth over the past year (61%) exceeded the Interactive Media and Services industry 9.9%.


Return on Equity

High ROE: FB's Return on Equity (25.2%) is considered high.


Financial Health

How is Facebook's financial position?


Financial Position Analysis

Short Term Liabilities: FB's short term assets ($77.3B) exceed its short term liabilities ($12.7B).

Long Term Liabilities: FB's short term assets ($77.3B) exceed its long term liabilities ($17.1B).


Debt to Equity History and Analysis

Debt Level: FB is debt free.

Reducing Debt: FB had no debt 5 years ago.

Debt Coverage: FB has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FB has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

What is Facebook current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate FB's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate FB's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FB's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FB's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average management tenure


CEO

Mark Zuckerberg (36 yo)

16.92yrs

Tenure

US$25,288,265

Compensation

Mr. Mark Elliot Zuckerberg founded Facebook, Inc. in 2004 and its Chief Executive Officer since July 2004 and Chairman since January 2012. Mr. Zuckerberg is responsible for setting the overall direction an...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD25.29M) is above average for companies of similar size in the US market ($USD11.17M).

Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: FB's management team is seasoned and experienced (5.7 years average tenure).


Board Members

Experienced Board: FB's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Facebook, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Facebook, Inc.
  • Ticker: FB
  • Exchange: NasdaqGS
  • Founded: 2004
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$939.276b
  • Shares outstanding: 2.84b
  • Website: https://investor.fb.com

Number of Employees


Location

  • Facebook, Inc.
  • 1601 Willow Road
  • Menlo Park
  • California
  • 94025
  • United States

Listings


Biography

Facebook, Inc. develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices worldwide. The com...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/14 00:54
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.