Back to all stocks

META

9/9 Score

Meta Platforms, Inc.

Analysis Date: February 21, 2026

Meta Platforms, Inc. engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. It operates in two segments, Family of Apps and Reality Labs. The Family of Apps segment offers Facebook, which enables people to share, discuss, discover, and connect with interests; Instagram, a community for sharing photos, videos, and private messages, as well as feed, stories, reels, video, live, and shops; Messenger, a messaging application for people to connect with friends, family, communities, and businesses across platforms and devices through text, audio, and video calls; and WhatsApp, a messaging application that is used by people and businesses to communicate and transact privately. The Reality Labs segment provides augmented and virtual reality related products comprising consumer hardware, software, and content that help people feel connected, anytime, and anywhere. The company was formerly known as Facebook, Inc. and changed its name to Meta Platforms, Inc. in October 2021. Meta Platforms, Inc. was incorporated in 2004 and is headquartered in Menlo Park, California.

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 30.6%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 18.0%

  • Cash Machine

    FCF / Assets > 5%

    Value: 12.6%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 3.7%

  • Share Buybacks

    Share Count is Dropping

    Value: -0.5%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 82.0%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Technology

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 0.39x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 134.6%

Analysis Summary

This is a rather impressive score for META. The strong returns on invested capital, coupled with a robust moat and consistent growth, suggest a business with considerable staying power. While the "cash machine" metric is a touch low, the overall picture points to a company that’s generating ample free cash flow and effectively returning value to shareholders.

Latest Posts

Everyone Owns META — But Does It Pass Buffett's Test?

February 20, 2026

Meta Platforms earns a perfect 9/9 Buffettology score — driven by an 82% gross margin, 30.6% ROE, and 134.6% five-year earnings growth. Here's whether the AI supercycle thesis holds up under Buffett's lens.

Want More Analysis?

Get detailed scores for thousands of stocks and discover your next investment with the Vetted app.

Download Vetted