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

NYSE:TME • US88034P1093

Current stock price

9.17 USD
-0.02 (-0.22%)
At close:
9.16 USD
-0.01 (-0.11%)
After Hours:

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

7

1. TME Profitability Analysis

1.1 Basic Checks

  • TME had positive earnings in the past year.
  • Each year in the past 5 years TME has been 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 2025 2B 4B 6B 8B 10B

1.2 Ratios

  • TME has a better Return On Assets (10.25%) than 89.87% of its industry peers.
  • TME has a better Return On Equity (13.18%) than 87.34% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 8.85%, TME belongs to the top of the industry, outperforming 87.34% of the companies in the same industry.
Industry RankSector Rank
ROA 10.25%
ROE 13.18%
ROIC 8.85%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
TME Yearly ROA, ROE, ROICTME Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6 8

1.3 Margins

  • TME has a Profit Margin of 33.60%. This is amongst the best in the industry. TME outperforms 97.47% of its industry peers.
  • TME's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 29.41%, TME belongs to the top of the industry, outperforming 96.20% of the companies in the same industry.
  • In the last couple of years the Operating Margin of TME has grown nicely.
  • Looking at the Gross Margin, with a value of 44.18%, TME is in line with its industry, outperforming 50.63% 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 29.41%
PM (TTM) 33.6%
GM 44.18%
OM growth 3Y37.37%
OM growth 5Y18.14%
PM growth 3Y37.33%
PM growth 5Y18.71%
GM growth 3Y12.58%
GM growth 5Y6.72%
TME Yearly Profit, Operating, Gross MarginsTME Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

5

2. TME Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TME is still creating some value.
  • There is no outstanding debt for TME. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and 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

  • An Altman-Z score of 3.92 indicates that TME is not in any danger for bankruptcy at the moment.
  • TME's Altman-Z score of 3.92 is amongst the best of the industry. TME outperforms 84.81% of its industry peers.
  • A Debt/Equity ratio of 0.05 indicates that TME is not too dependend on debt financing.
  • TME has a better Debt to Equity ratio (0.05) than 68.35% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF N/A
Altman-Z 3.92
ROIC/WACC1.09
WACC8.13%
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 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.
  • TME has a better Current ratio (1.87) than 74.68% 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.
  • The Quick ratio of TME (1.87) is better than 75.95% of its industry peers.
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

6

3. TME Growth Analysis

3.1 Past

  • TME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.34%, which is quite impressive.
  • Measured over the past years, TME shows a quite strong growth in Earnings Per Share. The EPS has been growing by 15.84% on average per year.
  • Looking at the last year, TME shows a quite strong growth in Revenue. The Revenue has grown by 15.85% in the last year.
  • TME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.45% yearly.
EPS 1Y (TTM)25.34%
EPS 3Y27.92%
EPS 5Y15.84%
EPS Q2Q%7.75%
Revenue 1Y (TTM)15.85%
Revenue growth 3Y5.1%
Revenue growth 5Y2.45%
Sales Q2Q%15.86%

3.2 Future

  • The Earnings Per Share is expected to grow by 14.06% on average over the next years. This is quite good.
  • 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

  • The EPS growth rate is stable: in the next years the growth will be about the same 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.
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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6

4. TME Valuation Analysis

4.1 Price/Earnings Ratio

  • TME is valuated reasonably with a Price/Earnings ratio of 10.30.
  • Based on the Price/Earnings ratio, TME is valued cheaper than 92.41% of the companies in the same industry.
  • The average S&P500 Price/Earnings ratio is at 25.60. TME is valued rather cheaply when compared to this.
  • Based on the Price/Forward Earnings ratio of 9.21, the valuation of TME can be described as reasonable.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of TME indicates a rather cheap valuation: TME is cheaper than 91.14% of the companies listed in the same industry.
  • TME is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.84, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 10.3
Fwd PE 9.21
TME Price Earnings VS Forward Price EarningsTME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
TME Per share dataTME EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • TME's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of TME may justify a higher PE ratio.
  • TME's earnings are expected to grow with 16.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.89
PEG (5Y)0.65
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 2.46%, TME has a reasonable but not impressive dividend return.
  • The stock price of TME dropped by -48.66% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
  • TME's Dividend Yield is rather good when compared to the industry average which is at 6.06. TME pays more dividend than 92.41% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.88, TME pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.46%

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 2025 2B 4B 6B 8B 10B

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TME Fundamentals: All Metrics, Ratios and Statistics

TENCENT MUSIC ENTERTAINM-ADR

NYSE:TME (4/2/2026, 8:04:00 PM)

After market: 9.16 -0.01 (-0.11%)

9.17

-0.02 (-0.22%)

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 Change0%
Market Cap14.13B
Revenue(TTM)32.90B
Net Income(TTM)11.06B
Analysts81.14
Price Target20.19 (120.17%)
Short Float %5.11%
Short Ratio1.97
Dividend
Industry RankSector Rank
Dividend Yield 2.46%
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)1
Avg EPS beat(2)-0.88%
Min EPS beat(2)-1.86%
Max EPS beat(2)0.1%
EPS beat(4)3
Avg EPS beat(4)3.18%
Min EPS beat(4)-1.86%
Max EPS beat(4)12.25%
EPS beat(8)6
Avg EPS beat(8)3.35%
EPS beat(12)9
Avg EPS beat(12)3.09%
EPS beat(16)13
Avg EPS beat(16)4.5%
Revenue beat(2)2
Avg Revenue beat(2)1.7%
Min Revenue beat(2)1.52%
Max Revenue beat(2)1.88%
Revenue beat(4)4
Avg Revenue beat(4)2.13%
Min Revenue beat(4)0.15%
Max Revenue beat(4)4.97%
Revenue beat(8)6
Avg Revenue beat(8)1.09%
Revenue beat(12)9
Avg Revenue beat(12)1.14%
Revenue beat(16)12
Avg Revenue beat(16)1.2%
PT rev (1m)-22.23%
PT rev (3m)-23.5%
EPS NQ rev (1m)-9.22%
EPS NQ rev (3m)-9.22%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)-5.75%
Revenue NQ rev (3m)-6.02%
Revenue NY rev (1m)-0.8%
Revenue NY rev (3m)-0.72%
Valuation
Industry RankSector Rank
PE 10.3
Fwd PE 9.21
P/S 2.96
P/FCF N/A
P/OCF N/A
P/B 1.16
P/tB 1.61
EV/EBITDA N/A
EPS(TTM)0.89
EY9.71%
EPS(NY)1
Fwd EY10.86%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS3.1
BVpS7.89
TBVpS5.68
PEG (NY)0.89
PEG (5Y)0.65
Graham Number12.57
Profitability
Industry RankSector Rank
ROA 10.25%
ROE 13.18%
ROCE 10.59%
ROIC 8.85%
ROICexc 11.69%
ROICexgc 17.71%
OM 29.41%
PM (TTM) 33.6%
GM 44.18%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y37.37%
OM growth 5Y18.14%
PM growth 3Y37.33%
PM growth 5Y18.71%
GM growth 3Y12.58%
GM growth 5Y6.72%
F-ScoreN/A
Asset Turnover0.31
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.87
Quick Ratio 1.87
Altman-Z 3.92
F-ScoreN/A
WACC8.13%
ROIC/WACC1.09
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
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)15.85%
Revenue growth 3Y5.1%
Revenue growth 5Y2.45%
Sales Q2Q%15.86%
Revenue Next Year12.24%
Revenue Next 2Y11.91%
Revenue Next 3Y11.83%
Revenue Next 5Y11.26%
EBIT growth 1Y31.69%
EBIT growth 3Y44.37%
EBIT growth 5Y21.03%
EBIT Next Year4.68%
EBIT Next 3Y15.37%
EBIT Next 5Y13.26%
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A

TENCENT MUSIC ENTERTAINM-ADR / TME Fundamental Analysis FAQ

What is the fundamental rating for TME stock?

ChartMill assigns a fundamental rating of 6 / 10 to TME.


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

ChartMill assigns a valuation rating of 6 / 10 to TENCENT MUSIC ENTERTAINM-ADR (TME). This can be considered as Fairly Valued.


Can you provide the profitability details for TENCENT MUSIC ENTERTAINM-ADR?

TENCENT MUSIC ENTERTAINM-ADR (TME) has a profitability rating of 7 / 10.


What is the valuation of TENCENT MUSIC ENTERTAINM-ADR based on its PE and PB ratios?

The Price/Earnings (PE) ratio for TENCENT MUSIC ENTERTAINM-ADR (TME) is 10.3 and the Price/Book (PB) ratio is 1.16.