HELLO GROUP INC -SPN ADR (MOMO) Stock Fundamental Analysis
NASDAQ:MOMO - Nasdaq - US4234031049 - ADR - Currency: USD
We assign a fundamental rating of 5 out of 10 to MOMO. MOMO was compared to 71 industry peers in the Interactive Media & Services industry. Both the profitability and the financial health of MOMO get a neutral evaluation. Nothing too spectacular is happening here. MOMO is cheap, but on the other hand it scores bad on growth. These ratings could make MOMO a good candidate for value investing.
1. Profitability
1.1 Basic Checks
MOMO had positive earnings in the past year.
In the past year MOMO had a positive cash flow from operations.
Of the past 5 years MOMO 4 years were profitable.
MOMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MOMO has a better Return On Assets (7.19%) than 83.33% of its industry peers.
With an excellent Return On Equity value of 11.54%, MOMO belongs to the best of the industry, outperforming 87.88% of the companies in the same industry.
MOMO has a Return On Invested Capital of 9.88%. This is amongst the best in the industry. MOMO outperforms 84.85% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MOMO is in line with the industry average of 12.55%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 11.54% | ||
| ROIC | 9.88% |
ROA(3y)1.78%
ROA(5y)5.52%
ROE(3y)0.82%
ROE(5y)7.76%
ROIC(3y)10.86%
ROIC(5y)10.99%
1.3 Margins
MOMO's Profit Margin of 11.94% is amongst the best of the industry. MOMO outperforms 80.30% of its industry peers.
MOMO's Profit Margin has declined in the last couple of years.
MOMO has a Operating Margin of 17.37%. This is amongst the best in the industry. MOMO outperforms 84.85% of its industry peers.
MOMO's Operating Margin has declined in the last couple of years.
MOMO has a Gross Margin of 40.59%. This is in the lower half of the industry: MOMO underperforms 71.21% of its industry peers.
In the last couple of years the Gross Margin of MOMO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.37% | ||
| PM (TTM) | 11.94% | ||
| GM | 40.59% |
OM growth 3Y4.45%
OM growth 5Y-4.64%
PM growth 3Y5.23%
PM growth 5Y-4.93%
GM growth 3Y-4.02%
GM growth 5Y-2.24%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MOMO is creating some value.
Compared to 1 year ago, MOMO has about the same amount of shares outstanding.
MOMO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MOMO has been reduced compared to a year ago.
2.2 Solvency
MOMO has a debt to FCF ratio of 4.11. This is a neutral value as MOMO would need 4.11 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 4.11, MOMO is doing good in the industry, outperforming 63.64% of the companies in the same industry.
A Debt/Equity ratio of 0.21 indicates that MOMO is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.21, MOMO perfoms like the industry average, outperforming 46.97% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 4.11 | ||
| Altman-Z | N/A |
ROIC/WACC1.35
WACC7.31%
2.3 Liquidity
MOMO has a Current Ratio of 1.83. This is a normal value and indicates that MOMO is financially healthy and should not expect problems in meeting its short term obligations.
MOMO has a Current ratio (1.83) which is comparable to the rest of the industry.
MOMO has a Quick Ratio of 1.83. This is a normal value and indicates that MOMO is financially healthy and should not expect problems in meeting its short term obligations.
MOMO's Quick ratio of 1.83 is in line compared to the rest of the industry. MOMO outperforms 46.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 |
3. Growth
3.1 Past
MOMO shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.07%.
Measured over the past years, MOMO shows a decrease in Earnings Per Share. The EPS has been decreasing by -7.22% on average per year.
Looking at the last year, MOMO shows a very negative growth in Revenue. The Revenue has decreased by -10.50% in the last year.
The Revenue has been decreasing by -2.19% on average over the past years.
EPS 1Y (TTM)-27.07%
EPS 3Y-5.09%
EPS 5Y-7.22%
EPS Q2Q%-11.48%
Revenue 1Y (TTM)-10.5%
Revenue growth 3Y-7.21%
Revenue growth 5Y-2.19%
Sales Q2Q%-12.1%
3.2 Future
Based on estimates for the next years, MOMO will show a decrease in Earnings Per Share. The EPS will decrease by -8.48% on average per year.
The Revenue is expected to decrease by -4.81% on average over the next years.
EPS Next Y-32.71%
EPS Next 2Y-14.13%
EPS Next 3Y-8.48%
EPS Next 5YN/A
Revenue Next Year-11.87%
Revenue Next 2Y-8.71%
Revenue Next 3Y-4.81%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.34 indicates a rather cheap valuation of MOMO.
MOMO's Price/Earnings ratio is rather cheap when compared to the industry. MOMO is cheaper than 92.42% of the companies in the same industry.
MOMO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.62.
MOMO is valuated cheaply with a Price/Forward Earnings ratio of 7.17.
Based on the Price/Forward Earnings ratio, MOMO is valued cheaper than 90.91% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, MOMO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 7.17 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MOMO indicates a rather cheap valuation: MOMO is cheaper than 98.48% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MOMO is valued cheaper than 86.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.68 | ||
| EV/EBITDA | 1.61 |
4.3 Compensation for Growth
MOMO has a very decent profitability rating, which may justify a higher PE ratio.
MOMO's earnings are expected to decrease with -8.48% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-14.13%
EPS Next 3Y-8.48%
5. Dividend
5.1 Amount
MOMO has a Yearly Dividend Yield of 1.94%. Purely for dividend investing, there may be better candidates out there.
MOMO's Dividend Yield is rather good when compared to the industry average which is at 2.79. MOMO pays more dividend than 93.94% of the companies in the same industry.
MOMO's Dividend Yield is comparable with the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
5.2 History
MOMO has been paying a dividend for over 5 years, so it has already some track record.
MOMO has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
MOMO pays out 56.49% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP56.49%
EPS Next 2Y-14.13%
EPS Next 3Y-8.48%
8.15
+0.08 (+0.99%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners73.18%
Inst Owner Change-81.12%
Ins OwnersN/A
Ins Owner Change0%
Market Cap1.40B
Analysts72.94
Price Target8.23 (0.98%)
Short Float %5.97%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.94% |
Yearly Dividend2.54
Dividend Growth(5Y)N/A
DP56.49%
Div Incr Years1
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)29.53%
Min EPS beat(2)16.55%
Max EPS beat(2)42.51%
EPS beat(4)3
Avg EPS beat(4)-5.25%
Min EPS beat(4)-85.5%
Max EPS beat(4)42.51%
EPS beat(8)7
Avg EPS beat(8)7.9%
EPS beat(12)10
Avg EPS beat(12)9.27%
EPS beat(16)14
Avg EPS beat(16)13%
Revenue beat(2)1
Avg Revenue beat(2)-0.19%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)0.78%
Revenue beat(4)3
Avg Revenue beat(4)0.49%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)1.32%
Revenue beat(8)6
Avg Revenue beat(8)0.66%
Revenue beat(12)7
Avg Revenue beat(12)0.38%
Revenue beat(16)10
Avg Revenue beat(16)0.34%
PT rev (1m)0%
PT rev (3m)5.22%
EPS NQ rev (1m)-4.22%
EPS NQ rev (3m)-20.56%
EPS NY rev (1m)2.92%
EPS NY rev (3m)4.25%
Revenue NQ rev (1m)-0.3%
Revenue NQ rev (3m)-4.01%
Revenue NY rev (1m)-0.33%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.34 | ||
| Fwd PE | 7.17 | ||
| P/S | 0.93 | ||
| P/FCF | 9.68 | ||
| P/OCF | 6.24 | ||
| P/B | 0.9 | ||
| P/tB | 0.9 | ||
| EV/EBITDA | 1.61 |
EPS(TTM)1.11
EY13.62%
EPS(NY)1.14
Fwd EY13.95%
FCF(TTM)0.84
FCFY10.33%
OCF(TTM)1.31
OCFY16.04%
SpS8.75
BVpS9.05
TBVpS9.04
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.19% | ||
| ROE | 11.54% | ||
| ROCE | 15.95% | ||
| ROIC | 9.88% | ||
| ROICexc | 17.35% | ||
| ROICexgc | 17.38% | ||
| OM | 17.37% | ||
| PM (TTM) | 11.94% | ||
| GM | 40.59% | ||
| FCFM | 9.62% |
ROA(3y)1.78%
ROA(5y)5.52%
ROE(3y)0.82%
ROE(5y)7.76%
ROIC(3y)10.86%
ROIC(5y)10.99%
ROICexc(3y)99.81%
ROICexc(5y)74.41%
ROICexgc(3y)104%
ROICexgc(5y)N/A
ROCE(3y)14.61%
ROCE(5y)14.79%
ROICexcg growth 3Y-14.29%
ROICexcg growth 5YN/A
ROICexc growth 3Y7.09%
ROICexc growth 5Y-13.48%
OM growth 3Y4.45%
OM growth 5Y-4.64%
PM growth 3Y5.23%
PM growth 5Y-4.93%
GM growth 3Y-4.02%
GM growth 5Y-2.24%
F-Score5
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 4.11 | ||
| Debt/EBITDA | 1.21 | ||
| Cap/Depr | 944.33% | ||
| Cap/Sales | 5.31% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.3% | ||
| Profit Quality | 80.59% | ||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.83 | ||
| Altman-Z | N/A |
F-Score5
WACC7.31%
ROIC/WACC1.35
Cap/Depr(3y)277.22%
Cap/Depr(5y)183.58%
Cap/Sales(3y)2.03%
Cap/Sales(5y)1.6%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.07%
EPS 3Y-5.09%
EPS 5Y-7.22%
EPS Q2Q%-11.48%
EPS Next Y-32.71%
EPS Next 2Y-14.13%
EPS Next 3Y-8.48%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.5%
Revenue growth 3Y-7.21%
Revenue growth 5Y-2.19%
Sales Q2Q%-12.1%
Revenue Next Year-11.87%
Revenue Next 2Y-8.71%
Revenue Next 3Y-4.81%
Revenue Next 5YN/A
EBIT growth 1Y-10.14%
EBIT growth 3Y-3.08%
EBIT growth 5Y-6.73%
EBIT Next Year-19.9%
EBIT Next 3Y-12.39%
EBIT Next 5YN/A
FCF growth 1Y-16.81%
FCF growth 3Y-16.83%
FCF growth 5Y-11.23%
OCF growth 1Y20.58%
OCF growth 3Y-9.59%
OCF growth 5Y-7.31%