TENCENT MUSIC ENTERTAINM-ADR (TME) Stock Fundamental Analysis

NYSE:TME • US88034P1093

15.4505 USD
-1.49 (-8.79%)
Last: Feb 12, 2026, 12:27 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

8

Taking everything into account, TME scores 8 out of 10 in our fundamental rating. TME was compared to 80 industry peers in the Entertainment industry. TME has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. TME has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination! These ratings could make TME a good candidate for value and growth and quality investing.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year TME was profitable.
  • In the past year TME had a positive cash flow from operations.
  • In the past 5 years TME has always been profitable.
  • In the past 5 years TME always reported a positive cash flow from operatings.
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

  • The Return On Assets of TME (11.95%) is better than 91.25% of its industry peers.
  • The Return On Equity of TME (15.93%) is better than 86.25% of its industry peers.
  • TME has a better Return On Invested Capital (10.39%) than 88.75% of its industry peers.
  • TME had an Average Return On Invested Capital over the past 3 years of 6.52%. This is below the industry average of 8.67%.
  • The 3 year average ROIC (6.52%) for TME is below the current ROIC(10.39%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 11.95%
ROE 15.93%
ROIC 10.39%
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

  • TME has a Profit Margin of 34.08%. This is amongst the best in the industry. TME outperforms 100.00% of its industry peers.
  • In the last couple of years the Profit Margin of TME has grown nicely.
  • TME has a better Operating Margin (28.82%) than 96.25% of its industry peers.
  • TME's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 43.90%, TME is in line with its industry, outperforming 51.25% of the companies in the same industry.
  • In the last couple of years the Gross Margin of TME has grown nicely.
Industry RankSector Rank
OM 28.82%
PM (TTM) 34.08%
GM 43.9%
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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ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. Health

2.1 Basic Checks

  • TME has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • Compared to 1 year ago, TME has less shares outstanding
  • TME has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, TME has an improved debt to assets ratio.
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

  • An Altman-Z score of 6.33 indicates that TME is not in any danger for bankruptcy at the moment.
  • TME has a Altman-Z score of 6.33. This is amongst the best in the industry. TME outperforms 91.25% of its industry peers.
  • The Debt to FCF ratio of TME is 0.59, which is an excellent value as it means it would take TME, only 0.59 years of fcf income to pay off all of its debts.
  • TME's Debt to FCF ratio of 0.59 is amongst the best of the industry. TME outperforms 87.50% of its industry peers.
  • TME has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
  • The Debt to Equity ratio of TME (0.06) is better than 66.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.59
Altman-Z 6.33
ROIC/WACC1.22
WACC8.52%
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

  • TME has a Current Ratio of 2.09. This indicates that TME is financially healthy and has no problem in meeting its short term obligations.
  • TME's Current ratio of 2.09 is fine compared to the rest of the industry. TME outperforms 76.25% of its industry peers.
  • TME has a Quick Ratio of 2.09. This indicates that TME is financially healthy and has no problem in meeting its short term obligations.
  • TME has a Quick ratio of 2.09. This is in the better half of the industry: TME outperforms 76.25% of its industry peers.
Industry RankSector Rank
Current Ratio 2.09
Quick Ratio 2.09
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

7

3. Growth

3.1 Past

  • TME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.04%, which is quite impressive.
  • The Earnings Per Share has been growing by 10.88% on average over the past years. This is quite good.
  • The Revenue has grown by 13.95% in the past year. This is quite good.
  • Measured over the past years, TME shows a small growth in Revenue. The Revenue has been growing by 2.23% on average per year.
EPS 1Y (TTM)36.04%
EPS 3Y25.91%
EPS 5Y10.88%
EPS Q2Q%32.76%
Revenue 1Y (TTM)13.95%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.23%
Sales Q2Q%20.64%

3.2 Future

  • The Earnings Per Share is expected to grow by 16.91% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 14.77% on average over the next years. This is quite good.
EPS Next Y24.17%
EPS Next 2Y18.28%
EPS Next 3Y16.46%
EPS Next 5Y16.91%
Revenue Next Year15.31%
Revenue Next 2Y14.21%
Revenue Next 3Y13.69%
Revenue Next 5Y14.77%

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 accelerating.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 17.76 indicates a rather expensive valuation of TME.
  • Based on the Price/Earnings ratio, TME is valued cheaply inside the industry as 82.50% of the companies are valued more expensively.
  • TME is valuated rather cheaply when we compare the Price/Earnings ratio to 28.18, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 15.54, which indicates a correct valuation of TME.
  • Based on the Price/Forward Earnings ratio, TME is valued cheaper than 85.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.01, TME is valued a bit cheaper.
Industry RankSector Rank
PE 17.76
Fwd PE 15.54
TME Price Earnings VS Forward Price EarningsTME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • TME's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TME is cheaper than 70.00% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, TME is valued cheaply inside the industry as 86.25% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 15.94
EV/EBITDA 14.35
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.
  • TME's earnings are expected to grow with 16.46% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)1.63
EPS Next 2Y18.28%
EPS Next 3Y16.46%

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

3

5. Dividend

5.1 Amount

  • With a Yearly Dividend Yield of 1.93%, TME has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 7.58, TME pays a better dividend. On top of this TME pays more dividend than 88.75% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, TME has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.93%

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 2Y18.28%
EPS Next 3Y16.46%
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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Find the best dividend stocksShow peers with best dividend

TENCENT MUSIC ENTERTAINM-ADR

NYSE:TME (2/12/2026, 12:27:56 PM)

15.4505

-1.49 (-8.79%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-12
Earnings (Next)03-16
Inst Owners62.89%
Inst Owner Change-2.68%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap23.81B
Revenue(TTM)31.72B
Net Income(TTM)10.81B
Analysts80.57
Price Target25.96 (68.02%)
Short Float %4.57%
Short Ratio3.05
Dividend
Industry RankSector Rank
Dividend Yield 1.93%
Yearly Dividend0.13
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)6.17%
Min EPS beat(2)0.1%
Max EPS beat(2)12.25%
EPS beat(4)4
Avg EPS beat(4)6.78%
Min EPS beat(4)0.1%
Max EPS beat(4)12.53%
EPS beat(8)7
Avg EPS beat(8)3.77%
EPS beat(12)10
Avg EPS beat(12)3.33%
EPS beat(16)13
Avg EPS beat(16)4.55%
Revenue beat(2)2
Avg Revenue beat(2)3.43%
Min Revenue beat(2)1.88%
Max Revenue beat(2)4.97%
Revenue beat(4)4
Avg Revenue beat(4)2.05%
Min Revenue beat(4)0.15%
Max Revenue beat(4)4.97%
Revenue beat(8)6
Avg Revenue beat(8)1.12%
Revenue beat(12)9
Avg Revenue beat(12)1.03%
Revenue beat(16)11
Avg Revenue beat(16)1.05%
PT rev (1m)-1.63%
PT rev (3m)-7%
EPS NQ rev (1m)-0.62%
EPS NQ rev (3m)-0.94%
EPS NY rev (1m)1.56%
EPS NY rev (3m)4.87%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.82%
Valuation
Industry RankSector Rank
PE 17.76
Fwd PE 15.54
P/S 5.19
P/FCF 15.94
P/OCF 15.94
P/B 2.42
P/tB 3.56
EV/EBITDA 14.35
EPS(TTM)0.87
EY5.63%
EPS(NY)0.99
Fwd EY6.43%
FCF(TTM)0.97
FCFY6.27%
OCF(TTM)0.97
OCFY6.27%
SpS2.98
BVpS6.37
TBVpS4.34
PEG (NY)0.73
PEG (5Y)1.63
Graham Number11.17
Profitability
Industry RankSector Rank
ROA 11.95%
ROE 15.93%
ROCE 12.37%
ROIC 10.39%
ROICexc 16.44%
ROICexgc 30.72%
OM 28.82%
PM (TTM) 34.08%
GM 43.9%
FCFM 32.54%
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 Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.59
Debt/EBITDA 0.37
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 101.98%
Profit Quality 95.47%
Current Ratio 2.09
Quick Ratio 2.09
Altman-Z 6.33
F-Score5
WACC8.52%
ROIC/WACC1.22
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)36.04%
EPS 3Y25.91%
EPS 5Y10.88%
EPS Q2Q%32.76%
EPS Next Y24.17%
EPS Next 2Y18.28%
EPS Next 3Y16.46%
EPS Next 5Y16.91%
Revenue 1Y (TTM)13.95%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.23%
Sales Q2Q%20.64%
Revenue Next Year15.31%
Revenue Next 2Y14.21%
Revenue Next 3Y13.69%
Revenue Next 5Y14.77%
EBIT growth 1Y37.58%
EBIT growth 3Y39.33%
EBIT growth 5Y13.34%
EBIT Next Year51.29%
EBIT Next 3Y23.21%
EBIT Next 5Y22.61%
FCF growth 1Y31.4%
FCF growth 3Y55.02%
FCF growth 5Y9.34%
OCF growth 1Y31.4%
OCF growth 3Y25.17%
OCF growth 5Y10.63%

TENCENT MUSIC ENTERTAINM-ADR / TME FAQ

What is the fundamental rating for TME stock?

ChartMill assigns a fundamental rating of 8 / 10 to TME.


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

ChartMill assigns a valuation rating of 7 / 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 17.76 and the Price/Book (PB) ratio is 2.42.


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 24.17% in the next year.