Tencent Holdings Limited, an investment holding company, provides value-added services (VAS) and Online advertising services in Mainland China and internationally. More Details
Flawless balance sheet with solid track record.
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: 700 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: 700's weekly volatility (7%) has been stable over the past year.
7 Day Return
HK Interactive Media and Services
1 Year Return
HK Interactive Media and Services
Return vs Industry: 700 exceeded the Hong Kong Interactive Media and Services industry which returned 52.4% over the past year.
Return vs Market: 700 exceeded the Hong Kong Market which returned 28.5% over the past year.
Long-Term 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
5 days ago | Simply Wall StCapital Allocation Trends At Tencent Holdings (HKG:700) Aren't Ideal
2 weeks ago | Simply Wall StWith EPS Growth And More, Tencent Holdings (HKG:700) Is Interesting
1 month ago | Simply Wall StTencent Holdings (HKG:700) Has A Rock Solid Balance Sheet
Is Tencent Holdings undervalued compared to its fair value and its price relative to the market?
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: 700 (HK$632) is trading above our estimate of fair value (HK$528.57)
Significantly Below Fair Value: 700 is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: 700 is poor value based on its PE Ratio (31.5x) compared to the HK Interactive Media and Services industry average (18.3x).
PE vs Market: 700 is poor value based on its PE Ratio (31.5x) compared to the Hong Kong market (11.7x).
Price to Earnings Growth Ratio
PEG Ratio: 700 is poor value based on its PEG Ratio (2.9x)
Price to Book Ratio
PB vs Industry: 700 is overvalued based on its PB Ratio (7.2x) compared to the HK Interactive Media and Services industry average (1.4x).
How is Tencent Holdings forecast to perform in the next 1 to 3 years based on estimates from 48 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 700's forecast earnings growth (10.7% per year) is above the savings rate (1.5%).
Earnings vs Market: 700's earnings (10.7% per year) are forecast to grow slower than the Hong Kong market (18.4% per year).
High Growth Earnings: 700's earnings are forecast to grow, but not significantly.
Revenue vs Market: 700's revenue (15.3% per year) is forecast to grow faster than the Hong Kong market (13.3% per year).
High Growth Revenue: 700's revenue (15.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 700's Return on Equity is forecast to be low in 3 years time (19.1%).
How has Tencent Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 700 has a large one-off gain of CN¥50.1B impacting its December 31 2020 financial results.
Growing Profit Margin: 700's current net profit margins (33.2%) are higher than last year (24.7%).
Past Earnings Growth Analysis
Earnings Trend: 700's earnings have grown significantly by 26.7% per year over the past 5 years.
Accelerating Growth: 700's earnings growth over the past year (71.3%) exceeds its 5-year average (26.7% per year).
Earnings vs Industry: 700 earnings growth over the past year (71.3%) exceeded the Interactive Media and Services industry -18.3%.
Return on Equity
High ROE: 700's Return on Equity (20.6%) is considered high.
How is Tencent Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: 700's short term assets (CN¥317.6B) exceed its short term liabilities (CN¥269.1B).
Long Term Liabilities: 700's short term assets (CN¥317.6B) exceed its long term liabilities (CN¥286.3B).
Debt to Equity History and Analysis
Debt Level: 700's debt to equity ratio (32.2%) is considered satisfactory.
Reducing Debt: 700's debt to equity ratio has reduced from 54% to 32.2% over the past 5 years.
Debt Coverage: 700's debt is well covered by operating cash flow (77.5%).
Interest Coverage: 700 earns more interest than it pays, so coverage of interest payments is not a concern.
What is Tencent Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: 700's dividend (0.25%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (1.96%).
High Dividend: 700's dividend (0.25%) is low compared to the top 25% of dividend payers in the Hong Kong market (5.97%).
Stability and Growth of Payments
Stable Dividend: 700 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are stable.
Growing Dividend: 700 is not paying a notable dividend for the Hong Kong market, therefore no need to check if payments are increasing.
Current Payout to Shareholders
Dividend Coverage: 700 is not paying a notable dividend for the Hong Kong market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of 700's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Pony Ma (48 yo)
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 ($USD7.15M) is above average for companies of similar size in the Hong Kong market ($USD1.06M).
Compensation vs Earnings: Pony's compensation has increased by more than 20% in the past year.
Experienced Management: 700's management team is seasoned and experienced (8.9 years average tenure).
Experienced Board: 700's board of directors are seasoned and experienced ( 15.5 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 700 insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Tencent Holdings Limited's company bio, employee growth, exchange listings and data sources
- Name: Tencent Holdings Limited
- Ticker: 700
- Exchange: SEHK
- Founded: 1998
- Industry: Interactive Media and Services
- Sector: Media
- Market Cap: HK$5.998t
- Shares outstanding: 9.52b
- Website: https://www.tencent.com
Number of Employees
- Tencent Holdings Limited
- Tencent Binhai Towers
- No. 33 Haitian 2nd Road
- Guangdong Province
Tencent Holdings Limited, an investment holding company, provides value-added services (VAS) and Online advertising services in Mainland China and internationally. The company operates through VAS, Online ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/16 10:22|
|End of Day Share Price||2021/04/16 00:00|
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.