TENCENT MUSIC ENTERTAINM-ADR (TME) Stock Fundamental Analysis

NYSE:TME • US88034P1093

14.97 USD
+0.26 (+1.77%)
At close: Feb 24, 2026
14.9 USD
-0.07 (-0.47%)
After Hours: 2/24/2026, 8:04:00 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 gets an excellent profitability rating and is at the same time showing great financial health properties. 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

9

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.
  • Each year in the past 5 years TME has been profitable.
  • Each year in the past 5 years TME 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 better Return On Assets (9.49%) than 88.75% of its industry peers.
  • TME has a better Return On Equity (12.21%) than 86.25% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 7.85%, TME belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
  • TME had an Average Return On Invested Capital over the past 3 years of 6.52%. This is in line with the industry average of 7.68%.
  • 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 98.75% of the companies in the same industry.
  • TME's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 28.23%, TME belongs to the top of the industry, outperforming 96.25% of the companies in the same industry.
  • TME's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 43.72%, TME perfoms like the industry average, outperforming 48.75% of the companies in the same 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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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

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 less shares outstanding than it did 1 year ago.
  • TME has less shares outstanding than it did 5 years ago.
  • TME has a better debt/assets ratio than last year.
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 5.34 indicates that TME is not in any danger for bankruptcy at the moment.
  • TME has a Altman-Z score of 5.34. This is amongst the best in the industry. TME outperforms 88.75% of its industry peers.
  • TME has a debt to FCF ratio of 0.69. This is a very positive value and a sign of high solvency as it would only need 0.69 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 0.69, TME belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
  • TME has a Debt/Equity ratio of 0.05. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.05, TME is in the better half of the industry, outperforming 66.25% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.69
Altman-Z 5.34
ROIC/WACC0.87
WACC9.06%
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 Current ratio of 1.87. This is in the better half of the industry: TME outperforms 73.75% 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 75.00% 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

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.
  • Measured over the past years, TME shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.88% on average per year.
  • The Revenue has grown by 13.95% in the past year. This is quite good.
  • The Revenue has been growing slightly by 2.23% on average over the past years.
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

  • TME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.72% yearly.
  • Based on estimates for the next years, TME will show a quite strong growth in Revenue. The Revenue will grow by 14.57% on average per year.
EPS Next Y24.17%
EPS Next 2Y18.28%
EPS Next 3Y16.46%
EPS Next 5Y16.72%
Revenue Next Year15.31%
Revenue Next 2Y14.21%
Revenue Next 3Y13.69%
Revenue Next 5Y14.57%

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.
  • 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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Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 17.21, the valuation of TME can be described as rather expensive.
  • Based on the Price/Earnings ratio, TME is valued cheaply inside the industry as 87.50% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of TME to the average of the S&P500 Index (26.98), we can say TME is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 15.06, TME is valued correctly.
  • Based on the Price/Forward Earnings ratio, TME is valued cheaply inside the industry as 85.00% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 28.01. TME is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 17.21
Fwd PE 15.06
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 72.50% of the companies in the same industry.
  • 88.75% of the companies in the same industry are more expensive than TME, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 18.11
EV/EBITDA 13.57
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 excellent profitability rating of TME 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)0.71
PEG (5Y)1.58
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

  • TME has a Yearly Dividend Yield of 2.02%.
  • TME's Dividend Yield is rather good when compared to the industry average which is at 7.44. TME pays more dividend than 90.00% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, TME has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.02%

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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TENCENT MUSIC ENTERTAINM-ADR

NYSE:TME (2/24/2026, 8:04:00 PM)

After market: 14.9 -0.07 (-0.47%)

14.97

+0.26 (+1.77%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-12
Earnings (Next)03-17
Inst Owners62.89%
Inst Owner Change1.88%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap23.07B
Revenue(TTM)31.72B
Net Income(TTM)10.24B
Analysts81.14
Price Target25.96 (73.41%)
Short Float %4.65%
Short Ratio2.96
Dividend
Industry RankSector Rank
Dividend Yield 2.02%
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)-0.97%
PT rev (3m)-2.85%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)1.29%
EPS NY rev (3m)4.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.82%
Valuation
Industry RankSector Rank
PE 17.21
Fwd PE 15.06
P/S 5.26
P/FCF 18.11
P/OCF 18.11
P/B 1.9
P/tB 2.64
EV/EBITDA 13.57
EPS(TTM)0.87
EY5.81%
EPS(NY)0.99
Fwd EY6.64%
FCF(TTM)0.83
FCFY5.52%
OCF(TTM)0.83
OCFY5.52%
SpS2.84
BVpS7.88
TBVpS5.67
PEG (NY)0.71
PEG (5Y)1.58
Graham Number12.42
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 5.34
F-Score5
WACC9.06%
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)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 5Y16.72%
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 5Y14.57%
EBIT growth 1Y43.69%
EBIT growth 3Y39.33%
EBIT growth 5Y13.34%
EBIT Next Year51.29%
EBIT Next 3Y23.21%
EBIT Next 5Y22.4%
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 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 9 / 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 17.21 and the Price/Book (PB) ratio is 1.9.


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.