Thursday, October 2, 2014

* Facebook (FB) - There is No Other Mega Cap Like it; Astonishing Visualizations

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FB is trading $77.38, up 1.1% with IV30™ up 2.5%. The Symbol Summary is included below.

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Facebook is a remarkable company, or at the very least, a remarkable stock.  The growth figures are absolutely off the chart (practically) for a firm this large (in market cap).  I'm no there to argue bull or bear (or anything in between), I simply want to show you how unbelievable this firm looks through the lens of visual data.  If you don't have this at your finger tips... why not?  Free trial is available up top.  Get the tool the pros have access to... I do.

So this is the picture of all pictures... the one that paints a billion words, not just a thousand.  I have included the mega caps ($100B and larger) in North America excluding the bio-techs.  On the x-axis we have revenue growth (1-year), and on the y-axis we have earnings growth (1-year).  Quite simply, there is FB... and everybody else.

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Now let's turn to some company specific measures before making one last giant comparison.

Total Revenue (TTM)
FB revenue has grown from under $4B to now over $10B (trailing-twelve-months).  While we see firms more than doubling revenue over the same frame, we're usually looking at hundreds of millions... This is insane growth for a firm with numbers this large.

Gross Margin %
When a firm has exploding revenue, I like to keep an eye on the consistency of gross margins.  For FB, the immensely high gross margin % of over 80% has been steady as revenue has grown... In fact, gross margin % has grown.

Net Income (TTM)
This is the mark Zuckerberg chart.  When FB went pubic people were "undecided" on whole regarding this "kid's" ability to lead a multi-billion dollar public firm.  Earnings dropped as did the stock (though not as abruptly) at the start... The overall sentiment surrounding Zuckerberg had changed from "undecided" to decidedly negative... Then the last two-year s happened.  FB grew earnings from basically $0 to now just under $2.5B (trailing-twelve-months)....

Now Zuckerberg sentiment has swung to decidedly... genius?

Gross Margin % Comp to Peers
It's interesting to compare FB gross margin % to some peers... There are some crazy outliers, like YELP and Zillow, bit for the most part, for a firm this enormous, gross margin % is simply remarkable.

Revenue Growth vs. Earnings Growth 
When we plot earnings growth (one-year) on the y-axis and revenue growth on the x-axis for a group of peers in the Internet Software & Services industry, we can see that FB has the largest earnings growth, and the third largest revenue growth.  keep in mind, this is a $200B market cap firm... it has "no business growing as fast as small caps."

That's it... If you want to do this analysis yourself on any company in the world... send us an e-mail through this page:
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