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Tencent Holdings

Market Cap

HK$6.0t

Last Updated

2021/04/16 10:22 UTC

Data Sources

Company Financials +

Executive Summary

Tencent Holdings Limited, an investment holding company, provides value-added services (VAS) and Online advertising services in Mainland China and internationally. More Details


Snowflake Analysis

Flawless balance sheet with solid track record.


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: 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.


Market Performance


7 Day Return

1.9%

700

1.9%

HK Interactive Media and Services

0.7%

HK Market


1 Year Return

54.3%

700

54.3%

HK Interactive Media and Services

28.0%

HK Market

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.


Shareholder returns

700IndustryMarket
7 Day1.9%1.9%0.7%
30 Day1.2%1.2%-1.2%
90 Day-2.0%-1.8%1.8%
1 Year54.7%54.3%54.7%54.3%33.4%28.0%
3 Year59.1%57.9%57.5%56.3%8.1%-3.9%
5 Year293.3%288.2%290.1%284.8%56.5%28.9%

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

Valuation

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

31.5x

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).


Future Growth

How is Tencent Holdings forecast to perform in the next 1 to 3 years based on estimates from 48 analysts?

10.7%

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%).


Past Performance

How has Tencent Holdings performed over the past 5 years?

26.7%

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.


Financial Health

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.


Balance Sheet


Dividend

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

0.25%

Current Dividend Yield


Upcoming Dividend Payment

TodayApr 17 2021Ex Dividend DateMay 24 2021Dividend Pay DateJun 07 202114 days from Ex DividendBuy in the next 37 days to receive the upcoming dividend

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.


Next Steps

Management

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

8.9yrs

Average management tenure


CEO

Pony Ma (48 yo)

no data

Tenure

CN¥46,625,000

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 ($USD7.15M) is above average for companies of similar size in the Hong Kong market ($USD1.06M).

Compensation vs Earnings: Pony's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: 700's management team is seasoned and experienced (8.9 years average tenure).


Board Members

Experienced Board: 700's board of directors are seasoned and experienced ( 15.5 years average tenure).


Ownership

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

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: 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


Location

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

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 10:22
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.