Market Cap
US$644.7b
Last Updated
2020/06/05 04:24 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.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with acceptable track record.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
0.5%
FB
2.2%
US Interactive Media and Services
2.9%
US Market
1 Year Return
30.5%
FB
32.7%
US Interactive Media and Services
8.9%
US Market
Return vs Industry: FB underperformed the US Interactive Media and Services industry which returned 32.7% over the past year.
Return vs Market: FB exceeded the US Market which returned 8.9% over the past year.
Shareholder returns
| FB | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | 2.2% | 2.9% |
| 30 Day | 8.5% | 11.5% | 10.6% |
| 90 Day | 25.0% | 15.1% | 5.1% |
| 1 Year | 30.5%30.5% | 32.8%32.7% | 11.4%8.9% |
| 3 Year | 51.3%51.3% | 40.2%40.0% | 34.3%25.4% |
| 5 Year | 177.6%177.6% | 129.0%128.3% | 60.7%42.7% |
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
4 days ago | Simply Wall St
With EPS Growth And More, Facebook (NASDAQ:FB) Is Interesting2 weeks ago | Simply Wall St
A Rising Share Price Has Us Looking Closely At Facebook, Inc.'s (NASDAQ:FB) P/E Ratio3 weeks ago | Simply Wall St
Is Facebook, Inc.'s (NASDAQ:FB) CEO Pay Justified?Valuation
Is Facebook undervalued compared to its fair value and its price relative to the market?
3.1%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FB ($226.29) is trading below our estimate of fair value ($233.5)
Significantly Below Fair Value: FB is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: FB is poor value based on its PE Ratio (30.8x) compared to the Interactive Media and Services industry average (29x).
PE vs Market: FB is poor value based on its PE Ratio (30.8x) compared to the US market (16.4x).
Price to Earnings Growth Ratio
PEG Ratio: FB is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: FB is overvalued based on its PB Ratio (6.1x) 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 44 analysts?
19.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FB's forecast earnings growth (19.6% per year) is above the savings rate (2.2%).
Earnings vs Market: FB's earnings (19.6% per year) are forecast to grow slower than the US market (22.3% per year).
High Growth Earnings: FB's earnings are forecast to grow, but not significantly.
Revenue vs Market: FB's revenue (17.4% per year) is forecast to grow faster than the US market (8.8% per year).
High Growth Revenue: FB's revenue (17.4% 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 low in 3 years time (19%).
Next Steps
Past Performance
How has Facebook performed over the past 5 years?
32.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FB has high quality earnings.
Growing Profit Margin: FB's current net profit margins (28.6%) are lower than last year (33.1%).
Past Earnings Growth Analysis
Earnings Trend: FB's earnings have grown significantly by 32% per year over the past 5 years.
Accelerating Growth: FB's earnings growth over the past year (7.3%) is below its 5-year average (32% per year).
Earnings vs Industry: FB earnings growth over the past year (7.3%) exceeded the Interactive Media and Services industry -16.7%.
Return on Equity
High ROE: FB's Return on Equity (19.9%) is considered low.
Next Steps
Financial Health
How is Facebook's financial position?
Financial Position Analysis
Short Term Liabilities: FB's short term assets ($69.3B) exceed its short term liabilities ($15.1B).
Long Term Liabilities: FB's short term assets ($69.3B) exceed its long term liabilities ($18.0B).
Debt to Equity History and Analysis
Debt Level: FB is debt free.
Reducing Debt: FB has no debt compared to 5 years ago when its debt to equity ratio was 0.5%.
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
Next Steps
Dividend
What is Facebook's 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?
5.9yrs
Average management tenure
CEO
Mark Zuckerberg (35yo)
15.92yrs
Tenure
US$23,415,973
Compensation
Mr. Mark Elliot Zuckerberg founded Facebook, Inc. in 2004 and has been its Chief Executive Officer since July 2004 and Chairman since January 2012. Mr. Zuckerberg is responsible for setting the overall dir ...
CEO Compensation Analysis
Compensation vs Market: Mark's total compensation ($USD23.42M) is above average for companies of similar size in the US market ($USD11.52M).
Compensation vs Earnings: Mark's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 15.92yrs | US$23.42m | 12.7% $81.9b | |
| Chief Financial Officer | 6yrs | US$21.33m | 0.00081% $5.2m | |
| COO & Director | 8yrs | US$27.14m | 0.046% $293.9m | |
| Chief Technology Officer | 7.25yrs | US$21.81m | 0.035% $226.6m | |
| General Counsel | 1yr | US$19.39m | 0.00013% $838.1k | |
| Chief Accounting Officer | 3.17yrs | no data | 0.00011% $709.2k | |
| Chief Information Officer | 3.58yrs | no data | no data | |
| Vice President of Investor Relations | 5.83yrs | no data | no data | |
| Head of Global Affairs & Communications | 1.67yrs | no data | no data | |
| Vice President of Corporate Development | 9.25yrs | no data | no data |
5.9yrs
Average Tenure
50yo
Average Age
Experienced Management: FB's management team is seasoned and experienced (5.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 15.92yrs | US$23.42m | 12.7% $81.9b | |
| COO & Director | 8yrs | US$27.14m | 0.046% $293.9m | |
| Independent Director | 12yrs | US$374.87k | 0.0066% $42.6m | |
| Independent Director | 15.17yrs | US$354.87k | 0.00041% $2.6m | |
| Lead Independent Director | 0.25yr | no data | 0.000010% $64.5k | |
| Independent Director | 0.25yr | no data | 0.000010% $64.5k | |
| Director | 0.25yr | no data | 0.000010% $64.5k | |
| Independent Director | 0.33yr | no data | 0.000010% $64.5k | |
| Independent Director | 1.08yrs | US$334.32k | 0.000070% $451.3k |
1.1yrs
Average Tenure
50yo
Average Age
Experienced Board: FB's board of directors are not considered experienced ( 1.1 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$644.724b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FB | NasdaqGS (Nasdaq Global Select) | Yes | Class A Common Stock | US | USD | May 2012 |
| FB2A | DB (Deutsche Boerse AG) | Yes | Class A Common Stock | DE | EUR | May 2012 |
| FB2A | XTRA (XETRA Trading Platform) | Yes | Class A Common Stock | DE | EUR | May 2012 |
| FB * | BMV (Bolsa Mexicana de Valores) | Yes | Class A Common Stock | MX | MXN | May 2012 |
| FB | SNSE (Santiago Stock Exchange) | Yes | Class A Common Stock | CL | USD | May 2012 |
| FB | BVC (Bolsa de Valores de Colombia) | Yes | Class A Common Stock | CO | COP | May 2012 |
| FB | SWX (SIX Swiss Exchange) | Yes | Class A Common Stock | CH | CHF | May 2012 |
| 0QZI | LSE (London Stock Exchange) | Yes | Class A Common Stock | GB | USD | May 2012 |
| FB | BVL (Bolsa de Valores de Lima) | Yes | Class A Common Stock | PE | USD | May 2012 |
| FB | BIT (Borsa Italiana) | Yes | Class A Common Stock | IT | EUR | May 2012 |
| FB | WBAG (Wiener Boerse AG) | Yes | Class A Common Stock | AT | EUR | May 2012 |
| US_FB__ | KAS (Kazakhstan Stock Exchange) | Yes | Class A Common Stock | KZ | KZT | May 2012 |
| FBOK34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EA REPR 1/2 COM USD0.000006 CL 'A' | BR | BRL | Mar 2014 | |
| FB | BASE (Buenos Aires Stock Exchange) | CEDEAR EA 8 REP 1 COM CL A USD0.000006 | AR | ARS | Apr 2019 |
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 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 private messages; Messenger, a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices; and WhatsApp, a messaging application that is used 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. Facebook, Inc. was founded in 2004 and is headquartered in Menlo Park, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/05 04:24 |
| End of Day Share Price | 2020/06/04 00:00 |
| Earnings | 2020/03/31 |
| Annual Earnings | 2019/12/31 |
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.