NasdaqGS:FB

Stock Analysis Report

Executive Summary

Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide.

Rewards

Trading at 30.4% below its fair value

Earnings are forecast to grow 19.11% per year

Risk Analysis

No risks detected for FB from our risk checks.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

FB

2.5%

US Interactive Media and Services

1.2%

US Market


1 Year Return

50.5%

FB

37.1%

US Interactive Media and Services

24.2%

US Market

Return vs Industry: FB exceeded the US Interactive Media and Services industry which returned 33.3% over the past year.

Return vs Market: FB exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

FBIndustryMarket
7 Day1.4%2.5%1.2%
30 Day7.7%9.0%3.5%
90 Day19.3%18.3%11.7%
1 Year50.5%50.5%37.2%37.1%26.9%24.2%
3 Year71.7%71.7%62.7%62.5%53.0%43.2%
5 Year193.1%193.1%144.5%143.8%75.3%56.0%

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?

29.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FB ($219.06) is trading below our estimate of fair value ($314.66)

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


Price To Earnings Ratio

PE vs Industry: FB is poor value based on its PE Ratio (34.8x) compared to the Interactive Media and Services industry average (30.4x).

PE vs Market: FB is poor value based on its PE Ratio (34.8x) compared to the US market (18.9x).


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 (6.7x) compared to the US Interactive Media and Services industry average (2.7x).


Next Steps

Future Growth

How is Facebook forecast to perform in the next 1 to 3 years based on estimates from 48 analysts?

19.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FB's forecast earnings growth (19.1% per year) is above the savings rate (1.7%).

Earnings vs Market: FB's earnings (19.1% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: FB's revenue (15.9% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: FB's revenue (15.9% 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 (21.5%)


Next Steps

Past Performance

How has Facebook performed over the past 5 years?

38.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FB has high quality earnings.

Growing Profit Margin: FB's current net profit margins (27.1%) are lower than last year (37.6%).


Past Earnings Growth Analysis

Earnings Trend: FB's earnings have grown significantly by 38% per year over the past 5 years.

Accelerating Growth: FB's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FB had negative earnings growth (-7.6%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (15.9%).


Return on Equity

High ROE: FB's Return on Equity (19.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Facebook's financial position?


Financial Position Analysis

Short Term Liabilities: FB's short term assets ($62.1B) exceed its short term liabilities ($13.3B).

Long Term Liabilities: FB's short term assets ($62.1B) 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

Inventory Level: FB has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if FB's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.4%forecastin3Years0%

Current dividend yield vs market & industry

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

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

What is the CEO of Facebook's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average management tenure


CEO

Mark Zuckerberg (35yo)

15.5yrs

Tenure

US$22,554,543

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD22.55M) is above average for companies of similar size in the US market ($USD10.76M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

5.5yrs

Average Tenure

50yo

Average Age

Experienced Management: FB's management team is seasoned and experienced (5.5 years average tenure).


Board Age and Tenure

7.6yrs

Average Tenure

50yo

Average Age

Experienced Board: FB's board of directors are considered experienced (7.6 years average tenure).


Insider Trading

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


Ownership Breakdown

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


Management Team

  • Deborah Crawford

    Vice President of Investor Relations

    • Tenure: 5.4yrs
  • Mark Zuckerberg (35yo)

    Founder

    • Tenure: 15.5yrs
    • Compensation: US$22.55m
  • Mike Schroepfer (44yo)

    Chief Technology Officer

    • Tenure: 6.8yrs
    • Compensation: US$19.76m
  • Sheryl Sandberg (50yo)

    COO & Director

    • Tenure: 7.6yrs
    • Compensation: US$23.73m
  • Jennifer Newstead

    General Counsel

    • Tenure: 0.8yrs
  • Dave Wehner (50yo)

    Chief Financial Officer

    • Tenure: 5.6yrs
    • Compensation: US$19.69m
  • Atish Banerjea (53yo)

    Chief Information Officer

    • Tenure: 3.2yrs
  • Susan Jannifer Taylor (50yo)

    Chief Accounting Officer

    • Tenure: 2.8yrs
  • Amin Zoufonoun

    Vice President of Corporate Development

    • Tenure: 8.8yrs
  • Nick Clegg (52yo)

    Head of Global Affairs & Communications

    • Tenure: 1.3yrs

Board Members

  • Marc Andreessen (48yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$391.19k
  • Peter Thiel (52yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$371.19k
  • Ken Chenault (67yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$462.83k
  • Jeff Zients (52yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$362.22k
  • Mark Zuckerberg (35yo)

    Founder

    • Tenure: 15.5yrs
    • Compensation: US$22.55m
  • Sheryl Sandberg (50yo)

    COO & Director

    • Tenure: 7.6yrs
    • Compensation: US$23.73m
  • Peggy Alford (48yo)

    Independent Director

    • Tenure: 0.7yrs

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$633.487b
  • Shares outstanding: 2.85b
  • Website: https://investor.fb.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FBNasdaqGS (Nasdaq Global Select)YesClass A Common StockUSUSDMay 2012
US_FB__KAS (Kazakhstan Stock Exchange)YesClass A Common StockKZKZTMay 2012
FB2AXTRA (XETRA Trading Platform)YesClass A Common StockDEEURMay 2012
FB *BMV (Bolsa Mexicana de Valores)YesClass A Common StockMXMXNMay 2012
FBSNSE (Santiago Stock Exchange)YesClass A Common StockCLUSDMay 2012
FBBVC (Bolsa de Valores de Colombia)YesClass A Common StockCOCOPMay 2012
FBSWX (SIX Swiss Exchange)YesClass A Common StockCHCHFMay 2012
FB2ADB (Deutsche Boerse AG)YesClass A Common StockDEEURMay 2012
0QZILSE (London Stock Exchange)YesClass A Common StockGBUSDMay 2012
FBBVL (Bolsa de Valores de Lima)YesClass A Common StockPEUSDMay 2012
FBBIT (Borsa Italiana)YesClass A Common StockITEURMay 2012
FBWBAG (Wiener Boerse AG)YesClass A Common StockATEURMay 2012
FBOK34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REPR 1/2 COM USD0.000006 CL 'A'BRBRLMar 2014
FBBASE (Buenos Aires Stock Exchange)CEDEAR EA 8 REP 1 COM CL A USD0.000006ARARSApr 2019

Biography

Facebook, Inc. provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. The company’s products include Facebook that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, a community for sharing photos, videos, and messages; Messenger, a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices; and WhatsApp, a messaging application for use by people and businesses to communicate in a private way. It also provides Oculus, a hardware, software, and developer ecosystem, which allows people to come together and connect with each other through its Oculus virtual reality products. As of December 31, 2018, it had approximately 1.52 billion daily active users. The company was founded in 2004 and is headquartered in Menlo Park, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/21 00:41
End of Day Share Price2020/01/17 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.