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

NYSE:TME • US88034P1093

Current stock price

9.58 USD
-0.04 (-0.42%)
At close:
9.5971 USD
+0.02 (+0.18%)
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 92.41% of its industry peers.
  • With an excellent Return On Equity value of 13.18%, TME belongs to the best of the industry, outperforming 88.61% of the companies in the same industry.
  • TME has a Return On Invested Capital of 8.85%. This is amongst the best in the industry. TME outperforms 87.34% of its industry peers.
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

  • With an excellent Profit Margin value of 33.60%, TME belongs to the best of the industry, outperforming 97.47% of the companies in the same industry.
  • In the last couple of years the Profit Margin of TME has grown nicely.
  • TME has a better Operating Margin (29.41%) than 96.20% of its industry peers.
  • In the last couple of years the Operating Margin of TME has grown nicely.
  • With a Gross Margin value of 44.18%, TME perfoms like the industry average, outperforming 50.63% of the companies in the same industry.
  • TME's Gross Margin has improved in the last couple of years.
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 4.01 indicates that TME is not in any danger for bankruptcy at the moment.
  • TME has a Altman-Z score of 4.01. This is amongst the best in the industry. TME outperforms 86.08% of its industry peers.
  • A Debt/Equity ratio of 0.05 indicates that TME is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.05, TME is in the better half of the industry, outperforming 68.35% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF N/A
Altman-Z 4.01
ROIC/WACC1.14
WACC7.74%
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 75.95% of the companies in the same industry.
  • 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.
  • With a decent Quick ratio value of 1.87, TME is doing good in the industry, outperforming 77.22% 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

6

3. TME Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 25.66% over the past year.
  • TME shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 15.90% yearly.
  • TME shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.85%.
  • The Revenue has been growing slightly by 2.45% on average over the past years.
EPS 1Y (TTM)25.66%
EPS 3Y28.03%
EPS 5Y15.9%
EPS Q2Q%8.84%
Revenue 1Y (TTM)15.85%
Revenue growth 3Y5.1%
Revenue growth 5Y2.45%
Sales Q2Q%15.86%

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 14.00% yearly.
  • Based on estimates for the next years, TME will show a quite strong growth in Revenue. The Revenue will grow by 11.26% on average per year.
EPS Next Y8.41%
EPS Next 2Y9.37%
EPS Next 3Y9.42%
EPS Next 5Y14%
Revenue Next Year10.8%
Revenue Next 2Y10.49%
Revenue Next 3Y10.23%
Revenue Next 5Y11.26%

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 stable.
  • 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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5

4. TME Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 10.53, the valuation of TME can be described as very reasonable.
  • Based on the Price/Earnings ratio, TME is valued cheaper than 92.41% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of TME to the average of the S&P500 Index (27.79), we can say TME is valued rather cheaply.
  • Based on the Price/Forward Earnings ratio of 9.76, 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 93.67% of the companies listed in the same industry.
  • TME's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 38.88.
Industry RankSector Rank
PE 10.53
Fwd PE 9.76
TME Price Earnings VS Forward Price EarningsTME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

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

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • The decent profitability rating of TME may justify a higher PE ratio.
PEG (NY)1.25
PEG (5Y)0.66
EPS Next 2Y9.37%
EPS Next 3Y9.42%

More info and screens

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

3

5. TME Dividend Analysis

5.1 Amount

  • TME has a Yearly Dividend Yield of 2.30%.
  • In the last 3 months the price of TME has falen by -42.98%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • TME's Dividend Yield is rather good when compared to the industry average which is at 9.16. TME pays more dividend than 93.67% of the companies in the same industry.
  • TME's Dividend Yield is a higher than the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 2.3%

5.2 History

  • TME has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
TME Yearly Dividends per shareTME Yearly Dividends per shareYearly Dividends per share 2024 2025 2026 0.05 0.1 0.15 0.2

5.3 Sustainability

DPN/A
EPS Next 2Y9.37%
EPS Next 3Y9.42%
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

More info and screens

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TME Fundamentals: All Metrics, Ratios and Statistics

TENCENT MUSIC ENTERTAINM-ADR

NYSE:TME (4/22/2026, 8:04:00 PM)

After market: 9.5971 +0.02 (+0.18%)

9.58

-0.04 (-0.42%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)03-17
Earnings (Next)05-12
Inst Owners67.52%
Inst Owner Change0.05%
Ins Owners0%
Ins Owner Change0%
Market Cap14.76B
Revenue(TTM)32.90B
Net Income(TTM)11.06B
Analysts77.71
Price Target19.77 (106.37%)
Short Float %4.72%
Short Ratio1.72
Dividend
Industry RankSector Rank
Dividend Yield 2.3%
Yearly Dividend0.14
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years2
Div Non Decr Years2
Ex-Date04-02
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.38%
Min EPS beat(2)-0.87%
Max EPS beat(2)0.1%
EPS beat(4)3
Avg EPS beat(4)3.43%
Min EPS beat(4)-0.87%
Max EPS beat(4)12.25%
EPS beat(8)6
Avg EPS beat(8)3.48%
EPS beat(12)9
Avg EPS beat(12)3.18%
EPS beat(16)13
Avg EPS beat(16)4.57%
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)-23.83%
PT rev (3m)-24.57%
EPS NQ rev (1m)-9.22%
EPS NQ rev (3m)-9.22%
EPS NY rev (1m)-2.63%
EPS NY rev (3m)-2.71%
Revenue NQ rev (1m)-5.75%
Revenue NQ rev (3m)-6.02%
Revenue NY rev (1m)-1.28%
Revenue NY rev (3m)-2.09%
Valuation
Industry RankSector Rank
PE 10.53
Fwd PE 9.76
P/S 3.06
P/FCF N/A
P/OCF N/A
P/B 1.2
P/tB 1.67
EV/EBITDA N/A
EPS(TTM)0.91
EY9.5%
EPS(NY)0.98
Fwd EY10.24%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS3.13
BVpS7.99
TBVpS5.75
PEG (NY)1.25
PEG (5Y)0.66
Graham Number12.7875 (33.48%)
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 4.01
F-ScoreN/A
WACC7.74%
ROIC/WACC1.14
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)25.66%
EPS 3Y28.03%
EPS 5Y15.9%
EPS Q2Q%8.84%
EPS Next Y8.41%
EPS Next 2Y9.37%
EPS Next 3Y9.42%
EPS Next 5Y14%
Revenue 1Y (TTM)15.85%
Revenue growth 3Y5.1%
Revenue growth 5Y2.45%
Sales Q2Q%15.86%
Revenue Next Year10.8%
Revenue Next 2Y10.49%
Revenue Next 3Y10.23%
Revenue Next 5Y11.26%
EBIT growth 1Y31.69%
EBIT growth 3Y44.37%
EBIT growth 5Y21.03%
EBIT Next Year-1.25%
EBIT Next 3Y6.54%
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 5 / 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 10.53 and the Price/Book (PB) ratio is 1.2.