This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Facebook Inc
FB : NASDAQ : Technology
$102.01 | %
Today's Range: 101.09 - 104.24
Avg. Daily Volume: 32,782,300
02/12/16 - 4:00 PM ET

Financial Analysis


FACEBOOK INC's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. FACEBOOK INC is extremely liquid. Currently, the Quick Ratio is 10.91 which clearly shows the ability to cover any short-term cash needs. FB managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 22.50% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q4 FY15 Q4 FY14
Net Sales ($mil)5841.03851.0
EBITDA ($mil)3103.01565.0
EBIT ($mil)2560.01132.0
Net Income ($mil)1561.0701.0


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)18434.011199.0
Total Assets ($mil)49407.040184.0
Total Debt ($mil)315.0233.0
Equity ($mil)44218.036096.0


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin95.1994.31
EBITDA Margin53.1240.63
Operating Margin43.8329.39
Sales Turnover0.360.31
Return on Assets7.467.31
Return on Equity8.348.14
Debt Q4 FY15 Q4 FY14
Current Ratio11.259.6
Debt/Capital0.010.01
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)2845.02797.0
Div / share0.00.0
EPS0.540.25
Book value / share15.5412.91
Institutional Own % n/a n/a
Avg Daily Volume2.9843722E73.050759E7

Valuation


BUY. FACEBOOK INC's P/E ratio indicates a significant premium compared to an average of 40.44 for the Internet Software & Services industry and a significant premium compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 7.11 indicates a significant premium versus the S&P 500 average of 2.51 and a significant premium versus the industry average of 4.93. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, FACEBOOK INC proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
FB 86.32 Peers 40.44   FB 36.56 Peers 23.82

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

FB is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

FB is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
FB 27.28 Peers 16.99   FB 0.59 Peers 0.25

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

FB is trading at a significant premium to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

FB trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
FB 7.11 Peers 4.93   FB 16.36 Peers 4.46

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

FB is trading at a significant premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

FB is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FB 17.53 Peers 8.55   FB 43.81 Peers 25.63

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

FB is trading at a significant premium to its industry.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

FB has a sales growth rate that significantly exceeds its peers.

 

 

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free

Latest Stock Upgrades/Downgrades


Top Rated Stocks Top Rated Funds Top Rated ETFs