TENCENT MUSIC ENTERTAINM-ADR (TME) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:TME • US88034P1093

16.18 USD
-0.16 (-0.98%)
Last: Feb 9, 2026, 11:19 AM
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. TME is evaluated to be cheap and growing strongly. This does not happen too often! This makes TME very considerable for value and growth and quality investing!


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • TME had positive earnings in the past year.
  • In the past year TME had a positive cash flow from operations.
  • In the past 5 years TME has always 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 Return On Assets of 11.95%. This is amongst the best in the industry. TME outperforms 91.25% of its industry peers.
  • TME's Return On Equity of 15.93% is amongst the best of the industry. TME outperforms 86.25% of its industry peers.
  • The Return On Invested Capital of TME (10.39%) is better than 87.50% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for TME is below the industry average of 8.74%.
  • 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

  • The Profit Margin of TME (34.08%) is better than 100.00% of its industry peers.
  • In the last couple of years the Profit Margin of TME has grown nicely.
  • TME has a Operating Margin of 28.82%. This is amongst the best in the industry. TME outperforms 96.25% of its industry peers.
  • In the last couple of years the Operating Margin of TME has grown nicely.
  • With a Gross Margin value of 43.90%, TME perfoms like the industry average, outperforming 51.25% of the companies in the same industry.
  • TME's Gross Margin has improved in the last couple of years.
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

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TME is still creating some value.
  • TME has less shares outstanding than it did 1 year ago.
  • The number of shares outstanding for TME has been reduced compared to 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 6.18 indicates that TME is not in any danger for bankruptcy at the moment.
  • TME has a Altman-Z score of 6.18. This is amongst the best in the industry. TME outperforms 91.25% of its industry peers.
  • TME has a debt to FCF ratio of 0.59. This is a very positive value and a sign of high solvency as it would only need 0.59 years to pay back of 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.
  • A Debt/Equity ratio of 0.06 indicates that TME is not too dependend on debt financing.
  • TME has a better Debt to Equity ratio (0.06) than 66.25% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.59
Altman-Z 6.18
ROIC/WACC1.22
WACC8.53%
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 2.09 indicates that TME has no problem at all paying its short term obligations.
  • TME has a better Current ratio (2.09) than 76.25% of its industry peers.
  • A Quick Ratio of 2.09 indicates that TME has no problem at all paying its short term obligations.
  • TME has a better Quick ratio (2.09) than 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.
  • 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.
  • TME shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.95%.
  • 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.
  • TME is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.77% yearly.
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.
  • 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 18.60, the valuation of TME can be described as rather expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of TME indicates a rather cheap valuation: TME is cheaper than 82.50% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 27.93, TME is valued a bit cheaper.
  • With a Price/Forward Earnings ratio of 16.34, TME is valued correctly.
  • TME's Price/Forward Earnings ratio is rather cheap when compared to the industry. TME is cheaper than 85.00% of the companies in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 27.77, TME is valued a bit cheaper.
Industry RankSector Rank
PE 18.6
Fwd PE 16.34
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 87.50% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.76
EV/EBITDA 13.79
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.
  • 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)0.77
PEG (5Y)1.71
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 1.93%.
  • The stock price of TME dropped by -23.21% 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 7.58. 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 1.81.
Industry RankSector Rank
Dividend Yield 1.93%

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

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Find the best dividend stocksShow peers with best dividend

TENCENT MUSIC ENTERTAINM-ADR

NYSE:TME (2/9/2026, 11:19:04 AM)

16.18

-0.16 (-0.98%)

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 Cap24.93B
Revenue(TTM)31.72B
Net Income(TTM)10.81B
Analysts80.57
Price Target25.96 (60.44%)
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 18.6
Fwd PE 16.34
P/S 5.45
P/FCF 16.76
P/OCF 16.76
P/B 2.55
P/tB 3.75
EV/EBITDA 13.79
EPS(TTM)0.87
EY5.38%
EPS(NY)0.99
Fwd EY6.12%
FCF(TTM)0.97
FCFY5.97%
OCF(TTM)0.97
OCFY5.97%
SpS2.97
BVpS6.35
TBVpS4.32
PEG (NY)0.77
PEG (5Y)1.71
Graham Number11.15
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 6.18
F-Score5
WACC8.53%
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 18.6 and the Price/Book (PB) ratio is 2.55.


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.