TENCENT MUSIC ENTERTAINM-ADR (TME) Fundamental Analysis & Valuation

NYSE:TME • US88034P1093

Current stock price

10.3 USD
-1.07 (-9.41%)
At close:
10.3 USD
0 (0%)
Pre-Market:

This TME fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. TME Profitability Analysis

1.1 Basic Checks

  • In the past year TME was profitable.
  • TME had a positive operating cash flow in the past year.
  • Of the past 5 years TME 4 years were profitable.
  • Of the past 5 years TME 4 years had a positive operating cash flow.
TME Yearly Net Income VS EBIT VS OCF VS FCFTME Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

1.2 Ratios

  • TME has a Return On Assets of 9.49%. This is amongst the best in the industry. TME outperforms 88.61% of its industry peers.
  • TME's Return On Equity of 12.21% is amongst the best of the industry. TME outperforms 86.08% of its industry peers.
  • With an excellent Return On Invested Capital value of 7.85%, TME belongs to the best of the industry, outperforming 86.08% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for TME is in line with the industry average of 7.43%.
  • The 3 year average ROIC (6.52%) for TME is below the current ROIC(7.85%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 9.49%
ROE 12.21%
ROIC 7.85%
ROA(3y)6.45%
ROA(5y)5.99%
ROE(3y)8.75%
ROE(5y)8.04%
ROIC(3y)6.52%
ROIC(5y)5.78%
TME Yearly ROA, ROE, ROICTME Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

1.3 Margins

  • Looking at the Profit Margin, with a value of 33.83%, TME belongs to the top of the industry, outperforming 97.47% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TME has grown nicely.
  • The Operating Margin of TME (28.23%) is better than 94.94% of its industry peers.
  • In the last couple of years the Operating Margin of TME has grown nicely.
  • The Gross Margin of TME (43.72%) is comparable to the rest of the industry.
  • TME's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 28.23%
PM (TTM) 33.83%
GM 43.72%
OM growth 3Y43.83%
OM growth 5Y10.87%
PM growth 3Y34.13%
PM growth 5Y8.36%
GM growth 3Y12.05%
GM growth 5Y4.42%
TME Yearly Profit, Operating, Gross MarginsTME Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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7

2. TME Health Analysis

2.1 Basic Checks

  • TME has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • TME has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
TME Yearly Shares OutstandingTME Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
TME Yearly Total Debt VS Total AssetsTME Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.2 Solvency

  • TME has an Altman-Z score of 4.16. This indicates that TME is financially healthy and has little risk of bankruptcy at the moment.
  • With an excellent Altman-Z score value of 4.16, TME belongs to the best of the industry, outperforming 84.81% of the companies in the same industry.
  • The Debt to FCF ratio of TME is 0.69, which is an excellent value as it means it would take TME, only 0.69 years of fcf income to pay off all of its debts.
  • TME's Debt to FCF ratio of 0.69 is amongst the best of the industry. TME outperforms 87.34% of its industry peers.
  • TME has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
  • With a decent Debt to Equity ratio value of 0.05, TME is doing good in the industry, outperforming 65.82% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.69
Altman-Z 4.16
ROIC/WACC0.87
WACC8.98%
TME Yearly LT Debt VS Equity VS FCFTME Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.3 Liquidity

  • A Current Ratio of 1.87 indicates that TME should not have too much problems paying its short term obligations.
  • The Current ratio of TME (1.87) is better than 73.42% of its industry peers.
  • TME has a Quick Ratio of 1.87. This is a normal value and indicates that TME is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Quick ratio, with a value of 1.87, TME is in the better half of the industry, outperforming 74.68% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.87
Quick Ratio 1.87
TME Yearly Current Assets VS Current LiabilitesTME Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. TME Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 25.34% over the past year.
  • The Earnings Per Share has been growing by 15.84% on average over the past years. This is quite good.
EPS 1Y (TTM)25.34%
EPS 3Y27.92%
EPS 5Y15.84%
EPS Q2Q%7.75%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%14.14%

3.2 Future

  • Based on estimates for the next years, TME will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.06% on average per year.
  • TME is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.26% yearly.
EPS Next Y11.63%
EPS Next 2Y12.26%
EPS Next 3Y16.08%
EPS Next 5Y14.06%
Revenue Next Year12.24%
Revenue Next 2Y11.91%
Revenue Next 3Y11.83%
Revenue Next 5Y11.26%

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.
TME Yearly Revenue VS EstimatesTME Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 20B 40B 60B
TME Yearly EPS VS EstimatesTME Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 5 10 15

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9

4. TME Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 11.57 indicates a reasonable valuation of TME.
  • Compared to the rest of the industry, the Price/Earnings ratio of TME indicates a rather cheap valuation: TME is cheaper than 92.41% of the companies listed in the same industry.
  • TME's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.79.
  • The Price/Forward Earnings ratio is 10.33, which indicates a very decent valuation of TME.
  • Based on the Price/Forward Earnings ratio, TME is valued cheaper than 91.14% of the companies in the same industry.
  • TME's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.80.
Industry RankSector Rank
PE 11.57
Fwd PE 10.33
TME Price Earnings VS Forward Price EarningsTME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, TME is valued cheaper than 83.54% of the companies in the same industry.
  • TME's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TME is cheaper than 92.41% of the companies in the same industry.
Industry RankSector Rank
P/FCF 12.42
EV/EBITDA 8.61
TME Per share dataTME EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • TME has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as TME's earnings are expected to grow with 16.08% in the coming years.
PEG (NY)1
PEG (5Y)0.73
EPS Next 2Y12.26%
EPS Next 3Y16.08%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. TME Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.70%, TME has a reasonable but not impressive dividend return.
  • In the last 3 months the price of TME has falen by -42.10%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 7.46, TME pays a better dividend. On top of this TME pays more dividend than 94.94% of the companies listed in the same industry.
  • TME's Dividend Yield is a higher than the S&P500 average which is at 1.91.
Industry RankSector Rank
Dividend Yield 2.7%

5.2 History

  • TME is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
TME Yearly Dividends per shareTME Yearly Dividends per shareYearly Dividends per share 2024 2025 0.05 0.1 0.15

5.3 Sustainability

DPN/A
EPS Next 2Y12.26%
EPS Next 3Y16.08%
TME Yearly Income VS Free CF VS DividendTME Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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TME Fundamentals: All Metrics, Ratios and Statistics

TENCENT MUSIC ENTERTAINM-ADR

NYSE:TME (3/18/2026, 8:04:00 PM)

Premarket: 10.3 0 (0%)

10.3

-1.07 (-9.41%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)03-17
Earnings (Next)05-12
Inst Owners67.37%
Inst Owner Change5.59%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap15.87B
Revenue(TTM)N/A
Net Income(TTM)10.24B
Analysts81.14
Price Target25.96 (152.04%)
Short Float %5.26%
Short Ratio3.05
Dividend
Industry RankSector Rank
Dividend Yield 2.7%
Yearly Dividend0.14
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.25%
Min EPS beat(2)2.25%
Max EPS beat(2)12.25%
EPS beat(4)3
Avg EPS beat(4)5.56%
Min EPS beat(4)-4.78%
Max EPS beat(4)12.53%
EPS beat(8)7
Avg EPS beat(8)3.76%
EPS beat(12)10
Avg EPS beat(12)5.02%
EPS beat(16)13
Avg EPS beat(16)6.05%
Revenue beat(2)2
Avg Revenue beat(2)2.56%
Min Revenue beat(2)0.15%
Max Revenue beat(2)4.97%
Revenue beat(4)3
Avg Revenue beat(4)1.24%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)4.97%
Revenue beat(8)6
Avg Revenue beat(8)1.28%
Revenue beat(12)9
Avg Revenue beat(12)1.13%
Revenue beat(16)10
Avg Revenue beat(16)0.84%
PT rev (1m)0%
PT rev (3m)-1.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
Industry RankSector Rank
PE 11.57
Fwd PE 10.33
P/S 3.61
P/FCF 12.42
P/OCF 12.42
P/B 1.3
P/tB 1.81
EV/EBITDA 8.61
EPS(TTM)0.89
EY8.64%
EPS(NY)1
Fwd EY9.68%
FCF(TTM)0.83
FCFY8.05%
OCF(TTM)0.83
OCFY8.05%
SpS2.85
BVpS7.9
TBVpS5.69
PEG (NY)1
PEG (5Y)0.73
Graham Number12.58
Profitability
Industry RankSector Rank
ROA 9.49%
ROE 12.21%
ROCE 9.35%
ROIC 7.85%
ROICexc 10.37%
ROICexgc 15.71%
OM 28.23%
PM (TTM) 33.83%
GM 43.72%
FCFM 29.08%
ROA(3y)6.45%
ROA(5y)5.99%
ROE(3y)8.75%
ROE(5y)8.04%
ROIC(3y)6.52%
ROIC(5y)5.78%
ROICexc(3y)9.52%
ROICexc(5y)8.88%
ROICexgc(3y)19.59%
ROICexgc(5y)19.68%
ROCE(3y)7.76%
ROCE(5y)6.88%
ROICexgc growth 3Y16.02%
ROICexgc growth 5Y-26.04%
ROICexc growth 3Y28.21%
ROICexc growth 5Y-2.74%
OM growth 3Y43.83%
OM growth 5Y10.87%
PM growth 3Y34.13%
PM growth 5Y8.36%
GM growth 3Y12.05%
GM growth 5Y4.42%
F-Score5
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.69
Debt/EBITDA 0.4
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 92.44%
Profit Quality 85.96%
Current Ratio 1.87
Quick Ratio 1.87
Altman-Z 4.16
F-Score5
WACC8.98%
ROIC/WACC0.87
Cap/Depr(3y)104.08%
Cap/Depr(5y)129.71%
Cap/Sales(3y)3.85%
Cap/Sales(5y)4.42%
Profit Quality(3y)146.47%
Profit Quality(5y)125.36%
High Growth Momentum
Growth
EPS 1Y (TTM)25.34%
EPS 3Y27.92%
EPS 5Y15.84%
EPS Q2Q%7.75%
EPS Next Y11.63%
EPS Next 2Y12.26%
EPS Next 3Y16.08%
EPS Next 5Y14.06%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%14.14%
Revenue Next Year12.24%
Revenue Next 2Y11.91%
Revenue Next 3Y11.83%
Revenue Next 5Y11.26%
EBIT growth 1Y43.69%
EBIT growth 3Y39.33%
EBIT growth 5Y13.34%
EBIT Next Year51.29%
EBIT Next 3Y23.21%
EBIT Next 5Y22.33%
FCF growth 1Y14.83%
FCF growth 3Y55.02%
FCF growth 5Y9.34%
OCF growth 1Y14.83%
OCF growth 3Y25.17%
OCF growth 5Y10.63%

TENCENT MUSIC ENTERTAINM-ADR / TME Fundamental Analysis FAQ

What is the fundamental rating for TME stock?

ChartMill assigns a fundamental rating of 7 / 10 to TME.


What is the valuation status of TENCENT MUSIC ENTERTAINM-ADR (TME) stock?

ChartMill assigns a valuation rating of 9 / 10 to TENCENT MUSIC ENTERTAINM-ADR (TME). This can be considered as Undervalued.


How profitable is TENCENT MUSIC ENTERTAINM-ADR (TME) stock?

TENCENT MUSIC ENTERTAINM-ADR (TME) has a profitability rating of 8 / 10.


What are the PE and PB ratios of TENCENT MUSIC ENTERTAINM-ADR (TME) stock?

The Price/Earnings (PE) ratio for TENCENT MUSIC ENTERTAINM-ADR (TME) is 11.57 and the Price/Book (PB) ratio is 1.3.


What is the expected EPS growth for TENCENT MUSIC ENTERTAINM-ADR (TME) stock?

The Earnings per Share (EPS) of TENCENT MUSIC ENTERTAINM-ADR (TME) is expected to grow by 11.63% in the next year.