WBAG:NNND

Stock Analysis Report

Tencent Holdings

Executive Summary

Tencent Holdings Limited, an investment holding company, provides Internet value-added services (VAS) and online advertising services in Mainland China, Hong Kong, North America, Europe, other Asian countries, and internationally.

Rewards

Earnings are forecast to grow 16.29% per year

Earnings have grown 29.8% per year over the past 5 years

Risk Analysis

Has a high level of debt



Snowflake Analysis

Reasonable growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Tencent Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NNND has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.2%

NNND

0%

AT Interactive Media and Services

0%

AT Market


1 Year Return

28.3%

NNND

0%

AT Interactive Media and Services

0%

AT Market

Return vs Industry: NNND exceeded the Austrian Interactive Media and Services industry which returned 25% over the past year.

Return vs Market: NNND exceeded the Austrian Market which returned 5.1% over the past year.


Shareholder returns

NNNDIndustryMarket
7 Day5.2%0%0%
30 Day6.1%0%0%
90 Day29.9%0%0%
1 Year28.6%28.3%0%0%0%0%
3 Yearn/a0%0%0%0%
5 Yearn/a0%0%0%0%

Price Volatility Vs. Market

How volatile is Tencent Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Tencent Holdings undervalued compared to its fair value and its price relative to the market?

41.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NNND (€49.22) is trading above our estimate of fair value (€48.36)

Significantly Below Fair Value: NNND is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NNND is poor value based on its PE Ratio (41.1x) compared to the Interactive Media and Services industry average (35.9x).

PE vs Market: NNND is poor value based on its PE Ratio (41.1x) compared to the Austrian market (14.2x).


Price to Earnings Growth Ratio

PEG Ratio: NNND is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: NNND is overvalued based on its PB Ratio (8.8x) compared to the XE Interactive Media and Services industry average (3.5x).


Next Steps

Future Growth

How is Tencent Holdings forecast to perform in the next 1 to 3 years based on estimates from 43 analysts?

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NNND's forecast earnings growth (16.3% per year) is above the savings rate (-0.1%).

Earnings vs Market: NNND's earnings (16.3% per year) are forecast to grow faster than the Austrian market (9.9% per year).

High Growth Earnings: NNND's earnings are forecast to grow, but not significantly.

Revenue vs Market: NNND's revenue (18.4% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: NNND's revenue (18.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NNND's Return on Equity is forecast to be high in 3 years time (21.7%)


Next Steps

Past Performance

How has Tencent Holdings performed over the past 5 years?

29.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NNND has high quality earnings.

Growing Profit Margin: NNND's current net profit margins (24.1%) are lower than last year (29%).


Past Earnings Growth Analysis

Earnings Trend: NNND's earnings have grown significantly by 29.8% per year over the past 5 years.

Accelerating Growth: NNND's earnings growth over the past year (0.8%) is below its 5-year average (29.8% per year).

Earnings vs Industry: NNND earnings growth over the past year (0.8%) underperformed the Interactive Media and Services industry 11.9%.


Return on Equity

High ROE: NNND's Return on Equity (19.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tencent Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: NNND's short term assets (CN¥260.0B) exceed its short term liabilities (CN¥211.5B).

Long Term Liabilities: NNND's short term assets (CN¥260.0B) exceed its long term liabilities (CN¥203.2B).


Debt to Equity History and Analysis

Debt Level: NNND's debt to equity ratio (46.9%) is considered high.

Reducing Debt: NNND's debt to equity ratio has increased from 45.5% to 46.9% over the past 5 years.

Debt Coverage: NNND's debt is well covered by operating cash flow (61.7%).

Interest Coverage: NNND earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: NNND has a low level of unsold assets or inventory.

Debt Coverage by Assets: NNND's debt is covered by short term assets (assets are 1.3x debt).


Next Steps

Dividend

What is Tencent Holdings's current dividend yield, its reliability and sustainability?

0.23%

Current Dividend Yield


Dividend Yield vs Market

company0.2%marketbottom25%0%markettop25%0%industryaverage0%forecastin3Years0.4%

Current dividend yield vs market & industry

Notable Dividend: NNND's dividend (0.23%) isn’t notable compared to the bottom 25% of dividend payers in the Austrian market (1.58%).

High Dividend: NNND's dividend (0.23%) is low compared to the top 25% of dividend payers in the Austrian market (4.47%).


Stability and Growth of Payments

Stable Dividend: NNND is not paying a notable dividend for the Austrian market, therefore no need to check if payments are stable.

Growing Dividend: NNND is not paying a notable dividend for the Austrian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NNND is not paying a notable dividend for the Austrian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NNND's dividend in 3 years as they are not forecast to pay a notable one for the Austrian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.8yrs

Average management tenure


CEO

Pony Ma (47yo)

CN¥38,842,000

Compensation

Mr. Huateng Pony Ma, is the Co-Founder of Tencent Holdings Limited and serves as its Chairman and Chief Executive Officer. Mr. Ma serves as the Chief Executive Officer at Tencent Technology (Shenzhen) Co., ...


CEO Compensation Analysis

Compensation vs Market: Pony's total compensation ($USD5.56M) is above average for companies of similar size in the Austrian market ($USD3.59M).

Compensation vs Earnings: Pony's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Huateng Pony Ma
Co-Founder0yrsCN¥38.84m7.58% CN¥35.5b
Chi Ping Lau
President & Executive Director12.9yrsCN¥313.47m0.33% CN¥1.6b
Liqing Zeng
Co-Founder & Advisor Emeritus0yrsno datano data
Chenye Xu
Co-Founder & Chief Information Officer0yrsno datano data
Zhidong Zhang
Co-Founder & Advisor Emeritus5.4yrsCN¥16.14mno data
Yidan Chen
Co-Founder & Advisor Emeritus6.9yrsno datano data
Shek Hon Lo
CFO & Senior VP7.8yrsno datano data
Yuxin Ren
Chief Operating Officer7.8yrsno datano data
Shan Lu
Senior EVP and President of Technology & Engineering Group7.8yrsno datano data
Jane Yip
Assistant General Manager of Investor Relations & Global Communications0yrsno datano data

7.8yrs

Average Tenure

47yo

Average Age

Experienced Management: NNND's management team is seasoned and experienced (7.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Huateng Pony Ma
Co-Founder0yrsCN¥38.84m7.58% CN¥35.5b
Chi Ping Lau
President & Executive Director12.9yrsCN¥313.47m0.33% CN¥1.6b
Jacobus Bekker
Non-Executive Director7.3yrsno datano data
Dong Li
Independent Non-Executive Director15.8yrsCN¥2.83m0.00043% CN¥2.0m
Iain Ferguson Bruce
Independent Non-Executive Director15.8yrsCN¥4.86m0.0033% CN¥15.6m
Ian Charles Stone
Independent Non-Executive Director15.8yrsCN¥5.23m0.0034% CN¥15.9m
Siu Shun Yang
Independent Non-Executive Director3.6yrsCN¥3.20m0.00017% CN¥795.6k
Charles St. Leger Searle
Non-Executive Director18.7yrsno datano data
Yang Ke
Independent Non Executive Director0.5yrsno datano data

14.4yrs

Average Tenure

63yo

Average Age

Experienced Board: NNND's board of directors are seasoned and experienced ( 14.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NNND insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Tencent Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Tencent Holdings Limited
  • Ticker: NNND
  • Exchange: WBAG
  • Founded: 1998
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: HK$3.941t
  • Listing Market Cap: HK$468.016b
  • Shares outstanding: 9.50b
  • Website: https://www.tencent.com

Number of Employees


Location

  • Tencent Holdings Limited
  • Tencent Binhai Towers
  • No. 33 Haitian 2nd Road
  • Shenzhen
  • Guangdong Province
  • 518054
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
TCTZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 2004
700SEHK (The Stock Exchange of Hong Kong Ltd.)YesOrdinary SharesHKHKDJun 2004
NNNDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2004
700SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2004
700SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)YesOrdinary SharesHKHKDJun 2004
0Z4SLSE (London Stock Exchange)YesOrdinary SharesGBHKDJun 2004
NNNDWBAG (Wiener Boerse AG)YesOrdinary SharesATEURJun 2004
TENCH NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJun 2004
TCEH.YOTCPK (Pink Sheets LLC)ADR EACH REP 1 ORD UNSPONUSUSDOct 2008
NNN1DB (Deutsche Boerse AG)ADR EACH REP 1 ORD UNSPONDEEUROct 2008
TCEHY NBMV (Bolsa Mexicana de Valores)ADR EACH REP 1 ORD UNSPONMXMXNOct 2008
0LEALSE (London Stock Exchange)ADR EACH REP 1 ORD UNSPONGBUSDOct 2008
NNN1WBAG (Wiener Boerse AG)ADR EACH REP 1 ORD UNSPONATEUROct 2008

Biography

Tencent Holdings Limited, an investment holding company, provides Internet value-added services (VAS) and online advertising services in Mainland China, Hong Kong, North America, Europe, other Asian countries, and internationally. The company operates through VAS, Online Advertising, and Others segments. It offers online games and social networks across various online platforms; online advertising services, such as media, social, and display-based advertising services; and FinTech, cloud, television series and film production, and other services for individual and corporate users. The company also develops software; develops and operates online games; and provides information technology, information system integration, asset management, online literature, and online music entertainment services. Tencent Holdings Limited has a strategic partnership with Roblox Corporation; and a collaboration agreement with The Pokémon Company. The company was founded in 1998 and is headquartered in Shenzhen, the People’s Republic of China. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:06
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.