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

NYSE:TME • US88034P1093

Current stock price

9.36 USD
+0.07 (+0.75%)
At close:
9.33 USD
-0.03 (-0.32%)
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

  • In the past year TME was profitable.
  • TME had positive earnings in each of the past 5 years.
  • 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

  • With an excellent Return On Assets value of 10.25%, TME belongs to the best of the industry, outperforming 92.41% of the companies in the same industry.
  • The Return On Equity of TME (13.18%) is better than 88.61% of its industry peers.
  • 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

  • TME's Profit Margin of 33.60% is amongst the best of the industry. TME outperforms 97.47% of its industry peers.
  • TME's Profit Margin has improved in the last couple of years.
  • TME's Operating Margin of 29.41% is amongst the best of the industry. TME outperforms 96.20% of its industry peers.
  • TME's Operating Margin has improved in the last couple of years.
  • The Gross Margin of TME (44.18%) is comparable to the rest of the 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

  • TME has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
  • TME has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the 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

  • TME has an Altman-Z score of 3.95. This indicates that TME is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of TME (3.95) is better than 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 3.95
ROIC/WACC1.15
WACC7.71%
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 75.95% 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.
  • TME has a Quick ratio of 1.87. This is in the better half of the industry: TME outperforms 77.22% 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

  • The Earnings Per Share has grown by an impressive 25.66% over the past year.
  • The Earnings Per Share has been growing by 15.90% 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 15.85%.
  • TME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.45% yearly.
EPS 1Y (TTM)25.66%
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

  • Based on estimates for the next years, TME will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.00% on average per year.
  • 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 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

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

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Find the best growth stocksShow best growing peers

5

4. TME Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 10.40 indicates a reasonable valuation of TME.
  • Based on the Price/Earnings ratio, TME is valued cheaply inside the industry as 92.41% of the companies are valued more expensively.
  • The average S&P500 Price/Earnings ratio is at 26.86. TME is valued rather cheaply when compared to this.
  • The Price/Forward Earnings ratio is 9.56, which indicates a very decent valuation of TME.
  • 93.67% of the companies in the same industry are more expensive than TME, based on the Price/Forward Earnings ratio.
  • TME's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.39.
Industry RankSector Rank
PE 10.4
Fwd PE 9.56
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

  • TME's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • TME has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.24
PEG (5Y)0.65
EPS Next 2Y9.37%
EPS Next 3Y9.42%

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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 2.51%. Purely for dividend investing, there may be better candidates out there.
  • The stock price of TME dropped by -46.05% 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.
  • Compared to an average industry Dividend Yield of 9.59, TME pays a better dividend. On top of this TME pays more dividend than 93.67% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, TME pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.51%

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

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TME Fundamentals: All Metrics, Ratios and Statistics

TENCENT MUSIC ENTERTAINM-ADR

NYSE:TME (4/10/2026, 8:04:00 PM)

After market: 9.33 -0.03 (-0.32%)

9.36

+0.07 (+0.75%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)03-17
Earnings (Next)05-12
Inst Owners67.52%
Inst Owner Change0%
Ins Owners0%
Ins Owner Change0%
Market Cap14.42B
Revenue(TTM)32.90B
Net Income(TTM)11.06B
Analysts77.71
Price Target19.77 (111.22%)
Short Float %5.11%
Short Ratio1.97
Dividend
Industry RankSector Rank
Dividend Yield 2.51%
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)-25.07%
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)-2.08%
Revenue NY rev (3m)-1.99%
Valuation
Industry RankSector Rank
PE 10.4
Fwd PE 9.56
P/S 2.99
P/FCF N/A
P/OCF N/A
P/B 1.17
P/tB 1.63
EV/EBITDA N/A
EPS(TTM)0.9
EY9.62%
EPS(NY)0.98
Fwd EY10.47%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS3.13
BVpS7.97
TBVpS5.74
PEG (NY)1.24
PEG (5Y)0.65
Graham Number12.71
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 3.95
F-ScoreN/A
WACC7.71%
ROIC/WACC1.15
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 10.4 and the Price/Book (PB) ratio is 1.17.