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.
Reasonable growth potential with adequate balance sheet.
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 has not had significant price volatility in the past 3 months.
7 Day Return
HK Interactive Media and Services
1 Year Return
HK Interactive Media and Services
Return vs Industry: 700 matched the Hong Kong Interactive Media and Services industry which returned 15.8% over the past year.
Return vs Market: 700 exceeded the Hong Kong Market which returned -7.6% over the past year.
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
6 days ago | Simply Wall StIs Tencent Holdings Limited (HKG:700) Investing Effectively In Its Business?
2 weeks ago | Simply Wall StIs Now An Opportune Moment To Examine Tencent Holdings Limited (HKG:700)?
1 month ago | Simply Wall StHave Tencent Holdings Limited (HKG:700) Insiders Been Selling Their Stock?
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$401) is trading above our estimate of fair value (HK$374.31)
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 (39.8x) compared to the Interactive Media and Services industry average (10.6x).
PE vs Market: 700 is poor value based on its PE Ratio (39.8x) compared to the Hong Kong market (10.1x).
Price to Earnings Growth Ratio
PEG Ratio: 700 is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: 700 is overvalued based on its PB Ratio (8.5x) compared to the HK Interactive Media and Services industry average (1.7x).
How is Tencent Holdings forecast to perform in the next 1 to 3 years based on estimates from 42 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 700's forecast earnings growth (16.3% per year) is above the savings rate (1.6%).
Earnings vs Market: 700's earnings (16.3% per year) are forecast to grow faster than the Hong Kong market (11.8% per year).
High Growth Earnings: 700's earnings are forecast to grow, but not significantly.
Revenue vs Market: 700's revenue (18.3% per year) is forecast to grow faster than the Hong Kong market (9.6% per year).
High Growth Revenue: 700's revenue (18.3% 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 high in 3 years time (21.7%)
How has Tencent Holdings performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 700 has high quality earnings.
Growing Profit Margin: 700's current net profit margins (24.1%) are lower than last year (29%).
Past Earnings Growth Analysis
Earnings Trend: 700's earnings have grown significantly by 29.8% per year over the past 5 years.
Accelerating Growth: 700's earnings growth over the past year (0.8%) is below its 5-year average (29.8% per year).
Earnings vs Industry: 700 earnings growth over the past year (0.8%) underperformed the Interactive Media and Services industry 0.8%.
Return on Equity
High ROE: 700's Return on Equity (19.8%) is considered low.
Return on Assets
Return on Capital Employed
How is Tencent Holdings's financial position?
Financial Position Analysis
Short Term Liabilities: 700's short term assets (CN¥260.0B) exceed its short term liabilities (CN¥211.5B).
Long Term Liabilities: 700's short term assets (CN¥260.0B) exceed its long term liabilities (CN¥203.2B).
Debt to Equity History and Analysis
Debt Level: 700's debt to equity ratio (46.9%) is considered high.
Reducing Debt: 700's debt to equity ratio has increased from 45.5% to 46.9% over the past 5 years.
Debt Coverage: 700's debt is well covered by operating cash flow (61.7%).
Interest Coverage: 700 earns more interest than it pays, so coverage of interest payments is not a concern.
Inventory Level: 700 has a low level of unsold assets or inventory.
Debt Coverage by Assets: 700's debt is covered by short term assets (assets are 1.3x debt).
What is Tencent Holdings's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: 700's dividend (0.24%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.29%).
High Dividend: 700's dividend (0.24%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.34%).
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 (47yo)
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 ($USD5.53M) is above average for companies of similar size in the Hong Kong market ($USD1.05M).
Compensation vs Earnings: Pony's compensation has been consistent with company performance over the past year.
|President & Executive Director||12.9yrs||CN¥313.47m||0.33% CN¥12.6b|
|Co-Founder & Advisor Emeritus||0yrs||no data||no data|
|Co-Founder & Chief Information Officer||0yrs||no data||no data|
|Co-Founder & Advisor Emeritus||5.4yrs||CN¥16.14m||no data|
|Co-Founder & Advisor Emeritus||6.9yrs||no data||no data|
|CFO & Senior VP||7.8yrs||no data||no data|
|Chief Operating Officer||7.8yrs||no data||no data|
|Senior EVP and President of Technology & Engineering Group||7.8yrs||no data||no data|
|Assistant General Manager of Investor Relations & Global Communications||0yrs||no data||no data|
Experienced Management: 700's management team is seasoned and experienced (7.8 years average tenure).
|President & Executive Director||12.9yrs||CN¥313.47m||0.33% CN¥12.6b|
|Non-Executive Director||7.3yrs||no data||no data|
|Independent Non-Executive Director||15.8yrs||CN¥2.83m||0.00043% CN¥16.4m|
|Independent Non-Executive Director||15.8yrs||CN¥4.86m||0.0033% CN¥127.2m|
|Independent Non-Executive Director||15.8yrs||CN¥5.23m||0.0034% CN¥129.5m|
|Independent Non-Executive Director||3.6yrs||CN¥3.20m||0.00017% CN¥6.5m|
|Non-Executive Director||18.7yrs||no data||no data|
|Independent Non Executive Director||0.5yrs||no data||no data|
Experienced Board: 700's board of directors are seasoned and experienced ( 14.4 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$3.808t
- Shares outstanding: 9.50b
- Website: https://www.tencent.com
Number of Employees
- Tencent Holdings Limited
- Tencent Binhai Towers
- No. 33 Haitian 2nd Road
- Guangdong Province
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|TCTZ.F||OTCPK (Pink Sheets LLC)||Yes||Ordinary Shares||US||USD||Jun 2004|
|700||SEHK (The Stock Exchange of Hong Kong Ltd.)||Yes||Ordinary Shares||HK||HKD||Jun 2004|
|NNND||DB (Deutsche Boerse AG)||Yes||Ordinary Shares||DE||EUR||Jun 2004|
|700||SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)||Yes||Ordinary Shares||HK||HKD||Jun 2004|
|700||SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)||Yes||Ordinary Shares||HK||HKD||Jun 2004|
|0Z4S||LSE (London Stock Exchange)||Yes||Ordinary Shares||GB||HKD||Jun 2004|
|NNND||WBAG (Wiener Boerse AG)||Yes||Ordinary Shares||AT||EUR||Jun 2004|
|TENCH N||BMV (Bolsa Mexicana de Valores)||Yes||Ordinary Shares||MX||MXN||Jun 2004|
|TCEH.Y||OTCPK (Pink Sheets LLC)||UNSP ADR EACH REP 1 ORD||US||USD||Oct 2008|
|NNN1||DB (Deutsche Boerse AG)||UNSP ADR EACH REP 1 ORD||DE||EUR||Oct 2008|
|TCEHY N||BMV (Bolsa Mexicana de Valores)||UNSP ADR EACH REP 1 ORD||MX||MXN||Oct 2008|
|0LEA||LSE (London Stock Exchange)||UNSP ADR EACH REP 1 ORD||GB||USD||Oct 2008|
|NNN1||WBAG (Wiener Boerse AG)||UNSP ADR EACH REP 1 ORD||AT||EUR||Oct 2008|
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
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/24 13:01|
|End of Day Share Price||2020/02/24 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.