TENCENT MUSIC ENTERTAINM-ADR (TME) Stock Fundamental Analysis

NYSE:TME • US88034P1093

15.85 USD
+0.7 (+4.62%)
At close: Feb 13, 2026
15.79 USD
-0.06 (-0.38%)
After Hours: 2/13/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

8

TME gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 80 industry peers in the Entertainment industry. TME gets an excellent profitability rating and is at the same time showing great financial health properties. An interesting combination arises when we look at growth and value: TME is growing strongly while it also seems undervalued. This makes TME very considerable 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.
  • TME had positive earnings in each of the past 5 years.
  • 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's Return On Assets of 9.49% is amongst the best of the industry. TME outperforms 90.00% of its industry peers.
  • With an excellent Return On Equity value of 12.21%, TME belongs to the best of the industry, outperforming 86.25% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 7.85%, TME belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for TME is in line with the industry average of 7.77%.
  • The last Return On Invested Capital (7.85%) for TME is above the 3 year average (6.52%), which is a sign of increasing profitability.
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

  • The Profit Margin of TME (33.83%) is better than 100.00% of its industry peers.
  • In the last couple of years the Profit Margin of TME has grown nicely.
  • With an excellent Operating Margin value of 28.23%, TME belongs to the best 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.
  • Looking at the Gross Margin, with a value of 43.72%, TME is in line with its industry, outperforming 50.00% 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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TME is destroying value.
  • Compared to 1 year ago, TME has less shares outstanding
  • Compared to 5 years ago, TME has less shares outstanding
  • 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

  • TME has an Altman-Z score of 5.65. This indicates that TME is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.65, TME belongs to the top of the industry, outperforming 91.25% of the companies in the same industry.
  • 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.
  • TME has a Debt to FCF ratio of 0.69. This is amongst the best in the industry. TME outperforms 87.50% of its industry peers.
  • A Debt/Equity ratio of 0.05 indicates that TME is not too dependend on debt financing.
  • The Debt to Equity ratio of TME (0.05) is better than 67.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.69
Altman-Z 5.65
ROIC/WACC0.92
WACC8.5%
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.
  • With a decent Current ratio value of 1.87, TME is doing good in the industry, outperforming 73.75% of the companies in the same industry.
  • A Quick Ratio of 1.87 indicates that TME should not have too much problems paying its short term obligations.
  • With a decent Quick ratio value of 1.87, TME is doing good in 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

More info and screens

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.
  • TME shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.95%.
  • TME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.23% yearly.
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 16.72% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 14.57% on average over the next years. This is quite good.
EPS Next Y24.17%
EPS Next 2Y18.28%
EPS Next 3Y16.46%
EPS Next 5Y16.72%
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.
  • 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

More info and screens

Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • TME is valuated rather expensively with a Price/Earnings ratio of 18.22.
  • Based on the Price/Earnings ratio, TME is valued cheaper than 85.00% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of TME to the average of the S&P500 Index (26.68), we can say TME is valued slightly cheaper.
  • With a Price/Forward Earnings ratio of 15.94, TME is valued correctly.
  • Based on the Price/Forward Earnings ratio, TME is valued cheaply inside the industry as 86.25% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, TME is valued a bit cheaper.
Industry RankSector Rank
PE 18.22
Fwd PE 15.94
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

  • 71.25% of the companies in the same industry are more expensive than TME, based on the Enterprise Value to EBITDA ratio.
  • TME's Price/Free Cash Flow ratio is rather cheap when compared to the industry. TME is cheaper than 87.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 19.17
EV/EBITDA 14.85
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.
  • A more expensive valuation may be justified as TME's earnings are expected to grow with 16.46% in the coming years.
PEG (NY)0.75
PEG (5Y)1.67
EPS Next 2Y18.28%
EPS Next 3Y16.46%

More info and screens

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

3

5. Dividend

5.1 Amount

  • TME has a Yearly Dividend Yield of 2.03%.
  • TME's Dividend Yield is rather good when compared to the industry average which is at 7.46. TME pays more dividend than 88.75% of the companies in the same industry.
  • TME's Dividend Yield is comparable with the S&P500 average which is at 1.84.
Industry RankSector Rank
Dividend Yield 2.03%

5.2 History

  • TME does not have a reliable dividend history as it only pays dividend since a couple or years.
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

More info and screens

Find the best dividend stocksShow peers with best dividend

TENCENT MUSIC ENTERTAINM-ADR

NYSE:TME (2/13/2026, 8:04:00 PM)

After market: 15.79 -0.06 (-0.38%)

15.85

+0.7 (+4.62%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-12
Earnings (Next)03-18
Inst Owners62.89%
Inst Owner Change-92.21%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap24.42B
Revenue(TTM)31.72B
Net Income(TTM)10.24B
Analysts81.14
Price Target25.96 (63.79%)
Short Float %4.57%
Short Ratio3.05
Dividend
Industry RankSector Rank
Dividend Yield 2.03%
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)-1.63%
PT rev (3m)-7%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)1.56%
EPS NY rev (3m)4.87%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.82%
Valuation
Industry RankSector Rank
PE 18.22
Fwd PE 15.94
P/S 5.57
P/FCF 19.17
P/OCF 19.17
P/B 2.01
P/tB 2.8
EV/EBITDA 14.85
EPS(TTM)0.87
EY5.49%
EPS(NY)0.99
Fwd EY6.27%
FCF(TTM)0.83
FCFY5.22%
OCF(TTM)0.83
OCFY5.22%
SpS2.84
BVpS7.88
TBVpS5.67
PEG (NY)0.75
PEG (5Y)1.67
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 5.65
F-Score5
WACC8.5%
ROIC/WACC0.92
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 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 18.22 and the Price/Book (PB) ratio is 2.01.


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.