HELLO GROUP INC -SPN ADR (MOMO) Stock Fundamental Analysis
NASDAQ:MOMO - Nasdaq - US4234031049 - ADR - Currency: USD
Taking everything into account, MOMO scores 5 out of 10 in our fundamental rating. MOMO was compared to 70 industry peers in the Interactive Media & Services industry. MOMO has only an average score on both its financial health and profitability. MOMO is cheap, but on the other hand it scores bad on growth. These ratings would make MOMO suitable for value investing!
1. Profitability
1.1 Basic Checks
MOMO had positive earnings in the past year.
MOMO had a positive operating cash flow in the past year.
MOMO had positive earnings in 4 of the past 5 years.
MOMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MOMO has a better Return On Assets (8.33%) than 85.71% of its industry peers.
With an excellent Return On Equity value of 12.37%, MOMO belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
The Return On Invested Capital of MOMO (7.12%) is better than 80.00% of its industry peers.
MOMO had an Average Return On Invested Capital over the past 3 years of 9.02%. This is below the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 12.37% | ||
| ROIC | 7.12% |
ROA(3y)9.03%
ROA(5y)4.01%
ROE(3y)13.2%
ROE(5y)5.21%
ROIC(3y)9.02%
ROIC(5y)8.68%
1.3 Margins
Looking at the Profit Margin, with a value of 13.24%, MOMO belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
In the last couple of years the Profit Margin of MOMO has declined.
With a decent Operating Margin value of 13.04%, MOMO is doing good in the industry, outperforming 77.14% of the companies in the same industry.
In the last couple of years the Operating Margin of MOMO has declined.
With a Gross Margin value of 38.11%, MOMO is not doing good in the industry: 75.71% of the companies in the same industry are doing better.
MOMO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.04% | ||
| PM (TTM) | 13.24% | ||
| GM | 38.11% |
OM growth 3Y1.76%
OM growth 5Y-7.03%
PM growth 3YN/A
PM growth 5Y-10.83%
GM growth 3Y-2.84%
GM growth 5Y-4.9%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MOMO is still creating some value.
Compared to 1 year ago, MOMO has less shares outstanding
MOMO has less shares outstanding than it did 5 years ago.
MOMO has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of MOMO is 2.18, which is a good value as it means it would take MOMO, 2.18 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.18, MOMO is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
MOMO has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
MOMO has a Debt to Equity ratio (0.06) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | N/A |
ROIC/WACC1.31
WACC5.42%
2.3 Liquidity
MOMO has a Current Ratio of 2.06. This indicates that MOMO is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MOMO (2.06) is comparable to the rest of the industry.
A Quick Ratio of 2.06 indicates that MOMO has no problem at all paying its short term obligations.
The Quick ratio of MOMO (2.06) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
The earnings per share for MOMO have decreased by -4.60% in the last year.
MOMO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.75% yearly.
MOMO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -10.39%.
The Revenue has been decreasing by -9.09% on average over the past years.
EPS 1Y (TTM)-4.6%
EPS 3Y-10.84%
EPS 5Y-19.75%
EPS Q2Q%654.84%
Revenue 1Y (TTM)-10.39%
Revenue growth 3Y-10.18%
Revenue growth 5Y-9.09%
Sales Q2Q%-1.55%
3.2 Future
Based on estimates for the next years, MOMO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.34% on average per year.
The Revenue is expected to grow by 3.11% on average over the next years.
EPS Next Y15.5%
EPS Next 2Y10.74%
EPS Next 3Y9.34%
EPS Next 5YN/A
Revenue Next Year-0.54%
Revenue Next 2Y1.83%
Revenue Next 3Y3.11%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.94, which indicates a rather cheap valuation of MOMO.
Compared to the rest of the industry, the Price/Earnings ratio of MOMO indicates a rather cheap valuation: MOMO is cheaper than 90.00% of the companies listed in the same industry.
MOMO is valuated cheaply when we compare the Price/Earnings ratio to 27.45, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 7.39, which indicates a rather cheap valuation of MOMO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MOMO indicates a rather cheap valuation: MOMO is cheaper than 92.86% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. MOMO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.94 | ||
| Fwd PE | 7.39 |
4.2 Price Multiples
94.29% of the companies in the same industry are more expensive than MOMO, based on the Enterprise Value to EBITDA ratio.
91.43% of the companies in the same industry are more expensive than MOMO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.05 | ||
| EV/EBITDA | 3.33 |
4.3 Compensation for Growth
MOMO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.45
PEG (5Y)N/A
EPS Next 2Y10.74%
EPS Next 3Y9.34%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.05%, MOMO has a reasonable but not impressive dividend return.
MOMO's Dividend Yield is rather good when compared to the industry average which is at 3.05. MOMO pays more dividend than 92.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.42, MOMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
5.2 History
The dividend of MOMO decreases each year by -0.77%.
MOMO has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-0.77%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MOMO pays out 51.42% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP51.42%
EPS Next 2Y10.74%
EPS Next 3Y9.34%
8.47
+0.08 (+0.95%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners77.26%
Inst Owner Change-4.23%
Ins OwnersN/A
Ins Owner Change0%
Market Cap1.36B
Analysts78.67
Price Target9.62 (13.58%)
Short Float %5.24%
Short Ratio2.58
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.05% |
Yearly Dividend0.61
Dividend Growth(5Y)-0.77%
DP51.42%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.24%
Min EPS beat(2)-27.48%
Max EPS beat(2)53.97%
EPS beat(4)3
Avg EPS beat(4)21.39%
Min EPS beat(4)-27.48%
Max EPS beat(4)53.97%
EPS beat(8)6
Avg EPS beat(8)5.69%
EPS beat(12)10
Avg EPS beat(12)11.45%
EPS beat(16)13
Avg EPS beat(16)11.15%
Revenue beat(2)1
Avg Revenue beat(2)0.52%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)1.77%
Revenue beat(4)2
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)1.77%
Revenue beat(8)6
Avg Revenue beat(8)0.64%
Revenue beat(12)8
Avg Revenue beat(12)0.6%
Revenue beat(16)9
Avg Revenue beat(16)0.32%
PT rev (1m)5.34%
PT rev (3m)12.59%
EPS NQ rev (1m)8.36%
EPS NQ rev (3m)33.56%
EPS NY rev (1m)-1.23%
EPS NY rev (3m)-6.36%
Revenue NQ rev (1m)3.47%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.98%
Revenue NY rev (3m)5.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.94 | ||
| Fwd PE | 7.39 | ||
| P/S | 0.93 | ||
| P/FCF | 8.05 | ||
| P/OCF | 6.59 | ||
| P/B | 0.87 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 3.33 |
EPS(TTM)1.22
EY14.4%
EPS(NY)1.15
Fwd EY13.53%
FCF(TTM)1.05
FCFY12.42%
OCF(TTM)1.29
OCFY15.18%
SpS9.15
BVpS9.79
TBVpS9.41
PEG (NY)0.45
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 12.37% | ||
| ROCE | 11.6% | ||
| ROIC | 7.12% | ||
| ROICexc | 13.98% | ||
| ROICexgc | 15.02% | ||
| OM | 13.04% | ||
| PM (TTM) | 13.24% | ||
| GM | 38.11% | ||
| FCFM | 11.5% |
ROA(3y)9.03%
ROA(5y)4.01%
ROE(3y)13.2%
ROE(5y)5.21%
ROIC(3y)9.02%
ROIC(5y)8.68%
ROICexc(3y)85.28%
ROICexc(5y)58.18%
ROICexgc(3y)89.03%
ROICexgc(5y)63.66%
ROCE(3y)14.59%
ROCE(5y)13.77%
ROICexcg growth 3Y-11.93%
ROICexcg growth 5YN/A
ROICexc growth 3Y-12.62%
ROICexc growth 5Y-23.6%
OM growth 3Y1.76%
OM growth 5Y-7.03%
PM growth 3YN/A
PM growth 5Y-10.83%
GM growth 3Y-2.84%
GM growth 5Y-4.9%
F-Score5
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 2.18 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 434.19% | ||
| Cap/Sales | 2.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.19% | ||
| Profit Quality | 86.88% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | N/A |
F-Score5
WACC5.42%
ROIC/WACC1.31
Cap/Depr(3y)427.28%
Cap/Depr(5y)270.34%
Cap/Sales(3y)2.71%
Cap/Sales(5y)1.92%
Profit Quality(3y)98.14%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-4.6%
EPS 3Y-10.84%
EPS 5Y-19.75%
EPS Q2Q%654.84%
EPS Next Y15.5%
EPS Next 2Y10.74%
EPS Next 3Y9.34%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.39%
Revenue growth 3Y-10.18%
Revenue growth 5Y-9.09%
Sales Q2Q%-1.55%
Revenue Next Year-0.54%
Revenue Next 2Y1.83%
Revenue Next 3Y3.11%
Revenue Next 5YN/A
EBIT growth 1Y-41.1%
EBIT growth 3Y-8.59%
EBIT growth 5Y-15.49%
EBIT Next Year-16.91%
EBIT Next 3Y-1.65%
EBIT Next 5YN/A
FCF growth 1Y-22.7%
FCF growth 3Y-2.56%
FCF growth 5Y-23.77%
OCF growth 1Y-9.48%
OCF growth 3Y1.7%
OCF growth 5Y-21.35%