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Tencent Holdings

SEHK:700
Snowflake Description

Reasonable growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
700
SEHK
HK$3,227B
Market Cap
  1. Home
  2. HK
  3. Media
Company description

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 last earnings update was 7 days ago. More info.


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700 Share Price and Events
7 Day Returns
-9.4%
SEHK:700
-7.9%
HK Interactive Media and Services
-1.6%
HK Market
1 Year Returns
-16.7%
SEHK:700
-16.5%
HK Interactive Media and Services
-16.6%
HK Market
700 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Tencent Holdings (700) -9.4% -13.4% -1.2% -16.7% 106.1% 199.2%
HK Interactive Media and Services -7.9% -12.8% -0.1% -16.5% 111.1% 201.6%
HK Market -1.6% -9.5% -5.2% -16.6% 24.8% 7.3%
1 Year Return vs Industry and Market
Price Volatility
700
Industry
5yr Volatility vs Market
Related Companies

700 Value

 Is Tencent Holdings undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Tencent Holdings to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Tencent Holdings.

SEHK:700 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 44 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.3%
Perpetual Growth Rate 10-Year HK Government Bond Rate 2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for SEHK:700
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year HK Govt Bond Rate 2%
Equity Risk Premium S&P Global 6%
Interactive Media and Services Unlevered Beta Simply Wall St/ S&P Global 1.02
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.021 (1 + (1- 25%) (6.86%))
1.05
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2% + (1.05 * 5.96%)
8.26%

Discounted Cash Flow Calculation for SEHK:700 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Tencent Holdings is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

SEHK:700 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CNY, Millions) Source Present Value
Discounted (@ 8.26%)
2019 114,474.91 Analyst x9 105,741.89
2020 132,611.79 Analyst x13 113,150.29
2021 156,588.61 Analyst x12 123,415.72
2022 179,691.58 Analyst x4 130,820.20
2023 210,237.00 Analyst x2 141,381.63
2024 233,703.06 Est @ 11.16% 145,172.72
2025 253,367.07 Est @ 8.41% 145,380.97
2026 269,812.55 Est @ 6.49% 143,006.67
2027 283,692.90 Est @ 5.14% 138,892.69
2028 295,613.69 Est @ 4.2% 133,687.94
Present value of next 10 years cash flows CN¥1,320,650.71
SEHK:700 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CN¥295,613.69 × (1 + 2%) ÷ (8.26% – 2%)
CN¥4,820,079.96
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CN¥4,820,079.96 ÷ (1 + 8.26%)10
CN¥2,179,826.49
SEHK:700 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CN¥1,320,650.71 + CN¥2,179,826.49
CN¥3,500,477.20
Equity Value per Share
(CNY)
= Total value / Shares Outstanding
= CN¥3,500,477.20 / 9,457.29
CN¥370.14
SEHK:700 Discount to Share Price
Calculation Result
Exchange Rate CNY/HKD
(Reporting currency to currency of SEHK:700)
1.137
Value per Share
(HKD)
= Value per Share in CNY x Exchange Rate (CNY/HKD)
= CN¥370.14 x 1.137
HK$420.97
Value per share (HKD) From above. HK$420.97
Current discount Discount to share price of HK$339.00
= -1 x (HK$339.00 - HK$420.97) / HK$420.97
19.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Tencent Holdings is available for.
Intrinsic value
19%
Share price is HK$339 vs Future cash flow value of HK$420.97
Current Discount Checks
For Tencent Holdings to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Tencent Holdings's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Tencent Holdings's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Tencent Holdings's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Tencent Holdings's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
SEHK:700 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CNY CN¥8.74
SEHK:700 Share Price ** SEHK (2019-05-22) in HKD HK$339
SEHK:700 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥298.06
Hong Kong Interactive Media and Services Industry PE Ratio Median Figure of 9 Publicly-Listed Interactive Media and Services Companies 15.34x
Hong Kong Market PE Ratio Median Figure of 1,478 Publicly-Listed Companies 11.06x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Tencent Holdings.

SEHK:700 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= SEHK:700 Share Price ÷ EPS (both in CNY)

= 298.06 ÷ 8.74

34.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tencent Holdings is overvalued based on earnings compared to the HK Interactive Media and Services industry average.
  • Tencent Holdings is overvalued based on earnings compared to the Hong Kong market.
Price based on expected Growth
Does Tencent Holdings's expected growth come at a high price?
Raw Data
SEHK:700 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 34.09x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 44 Analysts
19.1%per year
Asia Interactive Media and Services Industry PEG Ratio Median Figure of 7 Publicly-Listed Interactive Media and Services Companies 1.8x
Hong Kong Market PEG Ratio Median Figure of 463 Publicly-Listed Companies 0.8x

*Line of best fit is calculated by linear regression .

SEHK:700 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 34.09x ÷ 19.1%

1.79x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tencent Holdings is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Tencent Holdings's assets?
Raw Data
SEHK:700 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CNY CN¥38.49
SEHK:700 Share Price * SEHK (2019-05-22) in HKD HK$339
SEHK:700 Share Price converted to CNY reporting currency Exchange rate (HKD/ CNY) 0.879 CN¥298.06
Hong Kong Interactive Media and Services Industry PB Ratio Median Figure of 12 Publicly-Listed Interactive Media and Services Companies 1.96x
Hong Kong Market PB Ratio Median Figure of 2,157 Publicly-Listed Companies 0.97x
SEHK:700 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= SEHK:700 Share Price ÷ Book Value per Share (both in CNY)

= 298.06 ÷ 38.49

7.74x

* Primary Listing of Tencent Holdings.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tencent Holdings is overvalued based on assets compared to the HK Interactive Media and Services industry average.
X
Value checks
We assess Tencent Holdings's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Interactive Media and Services industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Interactive Media and Services industry average (and greater than 0)? (1 check)
  5. Tencent Holdings has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

700 Future Performance

 How is Tencent Holdings expected to perform in the next 1 to 3 years based on estimates from 44 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Tencent Holdings expected to grow at an attractive rate?
  • Tencent Holdings's earnings growth is expected to exceed the low risk savings rate of 2%.
Growth vs Market Checks
  • Tencent Holdings's earnings growth is expected to exceed the Hong Kong market average.
  • Tencent Holdings's revenue growth is expected to exceed the Hong Kong market average.
Annual Growth Rates Comparison
Raw Data
SEHK:700 Future Growth Rates Data Sources
Data Point Source Value (per year)
SEHK:700 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 44 Analysts 19.1%
SEHK:700 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 44 Analysts 19.9%
Hong Kong Interactive Media and Services Industry Earnings Growth Rate Market Cap Weighted Average 19.4%
Hong Kong Interactive Media and Services Industry Revenue Growth Rate Market Cap Weighted Average 19.9%
Hong Kong Market Earnings Growth Rate Market Cap Weighted Average -5.7%
Hong Kong Market Revenue Growth Rate Market Cap Weighted Average 10.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
SEHK:700 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 44 Analyst Estimates (S&P Global) See Below
All numbers in CNY Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
SEHK:700 Future Estimates Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 861,498 2
2022-12-31 752,285 172,020 3
2021-12-31 618,194 222,362 139,853 31
2020-12-31 501,465 185,161 113,776 44
2019-12-31 393,920 150,499 93,758 39
SEHK:700 Past Financials Data
Date (Data in CNY Millions) Revenue Cash Flow Net Income *
2019-03-31 324,631 114,489 82,639
2018-12-31 312,694 106,443 78,719
2018-09-30 294,190 101,816 85,287
2018-06-30 278,805 101,389 79,960
2018-03-31 261,736 100,279 80,324
2017-12-31 237,760 106,140 71,510
2017-09-30 215,232 97,546 61,242
2017-06-30 190,410 83,751 53,882
2017-03-31 169,495 75,216 46,388
2016-12-31 151,938 65,518 41,095
2016-09-30 138,515 63,709 37,730
2016-06-30 124,721 56,985 34,529

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Tencent Holdings's earnings are expected to grow by 19.1% yearly, however this is not considered high growth (20% yearly).
  • Tencent Holdings's revenue is expected to grow by 19.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
SEHK:700 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 44 Analyst Estimates (S&P Global) See Below

All data from Tencent Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:700 Future Estimates Data
Date (Data in CNY Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 14.66 18.53 10.68 25.00
2020-12-31 11.87 15.33 8.69 35.00
2019-12-31 9.67 10.78 7.25 34.00
SEHK:700 Past Financials Data
Date (Data in CNY Millions) EPS *
2019-03-31 8.74
2018-12-31 8.34
2018-09-30 9.04
2018-06-30 8.48
2018-03-31 8.53
2017-12-31 7.60
2017-09-30 6.51
2017-06-30 5.74
2017-03-31 4.94
2016-12-31 4.38
2016-09-30 4.03
2016-06-30 3.70

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Tencent Holdings is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Tencent Holdings's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Hong Kong market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Hong Kong market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Tencent Holdings has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

700 Past Performance

  How has Tencent Holdings performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Tencent Holdings's growth in the last year to its industry (Interactive Media and Services).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Tencent Holdings has delivered over 20% year on year earnings growth in the past 5 years.
  • Tencent Holdings's 1-year earnings growth is less than its 5-year average (2.9% vs 32.3%)
  • Tencent Holdings's earnings growth has not exceeded the HK Interactive Media and Services industry average in the past year (2.9% vs 2.9%).
Earnings and Revenue History
Tencent Holdings's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Tencent Holdings Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

SEHK:700 Past Revenue, Cash Flow and Net Income Data
Date (Data in CNY Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 324,631.00 82,639.00 66,330.00
2018-12-31 312,694.00 78,719.00 65,755.00
2018-09-30 294,190.00 85,287.00 63,513.00
2018-06-30 278,805.00 79,960.00 59,920.00
2018-03-31 261,736.00 80,324.00 55,533.00
2017-12-31 237,760.00 71,510.00 50,703.00
2017-09-30 215,232.00 61,242.00 47,241.00
2017-06-30 190,410.00 53,882.00 42,531.00
2017-03-31 169,495.00 46,388.00 38,365.00
2016-12-31 151,938.00 41,095.00 34,595.00
2016-09-30 138,515.00 37,730.00 31,014.00
2016-06-30 124,721.00 34,529.00 28,276.00
2016-03-31 112,459.00 31,106.00 26,224.00
2015-12-31 102,863.00 28,806.00 24,818.00
2015-09-30 93,400.00 27,502.00 23,066.00
2015-06-30 86,614.00 25,714.00 22,340.00
2015-03-31 82,931.00 24,236.00 22,154.00
2014-12-31 78,932.00 23,810.00 21,952.00
2014-09-30 74,924.00 21,861.00 20,717.00
2014-06-30 70,651.00 20,071.00 19,107.00
2014-03-31 65,289.00 17,915.00 17,316.00
2013-12-31 60,437.00 15,502.00 15,683.00
2013-09-30 55,620.34 15,054.72 14,099.80
2013-06-30 51,650.90 14,406.42 12,858.89
2013-03-31 47,794.14 13,826.49 11,695.73
2012-12-31 43,894.00 12,732.00 10,760.00
2012-09-30 39,663.11 11,805.30 9,836.89
2012-06-30 35,593.71 11,033.05 8,968.34

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Tencent Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Tencent Holdings used its assets more efficiently than the HK Interactive Media and Services industry average last year based on Return on Assets.
  • Tencent Holdings's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Tencent Holdings's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Interactive Media and Services industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Tencent Holdings has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

700 Health

 How is Tencent Holdings's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Tencent Holdings's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Tencent Holdings is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Tencent Holdings's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Tencent Holdings's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Tencent Holdings Company Filings, last reported 1 month ago.

SEHK:700 Past Debt and Equity Data
Date (Data in CNY Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 398,303.00 194,757.00 176,198.00
2018-12-31 356,207.00 179,289.00 166,934.00
2018-09-30 342,762.00 173,700.00 144,351.00
2018-06-30 320,742.00 169,477.00 134,081.00
2018-03-31 301,055.00 157,059.00 142,381.00
2017-12-31 277,093.00 131,905.00 142,421.00
2017-09-30 244,905.00 131,935.00 144,714.00
2017-06-30 226,398.00 116,592.00 131,775.00
2017-03-31 205,687.00 114,284.00 135,492.00
2016-12-31 186,247.00 109,497.00 122,222.00
2016-09-30 173,949.00 91,968.00 94,922.00
2016-06-30 144,121.00 84,977.00 99,980.00
2016-03-31 129,109.00 71,930.00 90,326.00
2015-12-31 122,100.00 65,917.00 80,769.00
2015-09-30 111,003.00 54,125.00 71,690.00
2015-06-30 100,224.00 48,019.00 65,600.00
2015-03-31 90,670.00 48,532.00 69,730.00
2014-12-31 82,124.00 36,073.00 53,511.00
2014-09-30 75,394.00 34,297.00 50,649.00
2014-06-30 70,475.00 35,012.00 50,778.00
2014-03-31 65,006.00 18,267.00 44,097.00
2013-12-31 58,463.00 15,053.00 39,851.00
2013-09-30 53,686.82 15,223.37 36,003.80
2013-06-30 47,451.78 10,237.06 30,712.55
2013-03-31 45,582.24 10,383.51 30,493.19
2012-12-31 42,148.00 10,700.00 27,189.00
2012-09-30 38,292.63 12,822.52 27,723.17
2012-06-30 34,714.37 8,309.90 27,617.18
  • Tencent Holdings's level of debt (48.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (28.4% vs 48.9% today).
  • Debt is well covered by operating cash flow (58.8%, greater than 20% of total debt).
  • Tencent Holdings earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Tencent Holdings's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Tencent Holdings has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

700 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.29%
Current annual income from Tencent Holdings dividends. Estimated to be 0.42% next year.
If you bought HK$2,000 of Tencent Holdings shares you are expected to receive HK$6 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Tencent Holdings's pays a lower dividend yield than the bottom 25% of dividend payers in Hong Kong (2.08%).
  • Tencent Holdings's dividend is below the markets top 25% of dividend payers in Hong Kong (5.8%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
SEHK:700 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 44 Analyst Estimates (S&P Global) See Below
Global Interactive Media and Services Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 0.4%
Hong Kong Market Average Dividend Yield Market Cap Weighted Average of 968 Stocks 3.7%
Hong Kong Minimum Threshold Dividend Yield 10th Percentile 1.2%
Hong Kong Bottom 25% Dividend Yield 25th Percentile 2.1%
Hong Kong Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

SEHK:700 Future Dividends Estimate Data
Date (Data in CN¥) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31 1.91 1.00
2021-12-31 1.56 24.00
2020-12-31 1.23 31.00
2019-12-31 1.02 29.00
SEHK:700 Past Annualized Dividends Data
Date (Data in CN¥) Dividend per share (annual) Avg. Yield (%)
2019-03-21 0.853 0.267
2018-03-21 0.703 0.255
2017-04-10 0.489 0.182
2017-03-22 0.540 0.270
2016-03-30 0.391 0.249
2016-03-17 0.392 0.298
2015-04-15 0.288 0.246
2015-03-30 0.288 0.232
2015-03-18 0.287 0.253
2014-03-31 0.189 0.200
2013-03-28 0.156 0.263
2013-03-20 0.160 0.401
2012-03-14 0.120 0.307
2011-03-16 0.089 0.298
2010-03-17 0.067 0.245

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Tencent Holdings is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are stable.
  • Tencent Holdings is not paying a notable dividend for Hong Kong, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Tencent Holdings's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Tencent Holdings's dividends as it is not paying a notable one for Hong Kong.
Future Payout to shareholders
  • No need to calculate the sustainability of Tencent Holdings's dividends in 3 years as they are not expected to pay a notable one for Hong Kong.
X
Income/ dividend checks
We assess Tencent Holdings's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Tencent Holdings afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Tencent Holdings has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

700 Management

 What is the CEO of Tencent Holdings's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Huateng Pony Ma
COMPENSATION CN¥41,312,000
AGE 46
CEO Bio

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., Ltd. He is a Venture Partner of ePlanet Capital. Mr. Hauteng is one of the core founders that started the Tencent Group in 1999. He served as the President of Tencent Holdings Limited. Mr Ma has overall responsibilities for strategic planning and positioning and management of the Group. Prior to his current employment, Mr. Ma was in charge of research and development for Internet paging system development at China Motion Telecom Development Limited, a supplier of telecommunications services and products in China. He has more than 24 years of experience in the telecommunications and Internet industries. Mr. Ma is a deputy to the 13th National People’s Congress.He serves as a Director of Ohio River Investment Limited, Tencent Holdings Limited. He is a director of Advance Data Services Limited. Mr. Ma holds a Bachelor of Science (Computer Applications) obtained from Shenzhen University in 1993.

CEO Compensation
  • Huateng Pony's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Huateng Pony's remuneration is higher than average for companies of similar size in Hong Kong.
Management Team Tenure

Average tenure and age of the Tencent Holdings management team in years:

7
Average Tenure
46
Average Age
  • The average tenure for the Tencent Holdings management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Huateng Pony Ma

TITLE
Co-Founder
COMPENSATION
CN¥41M
AGE
46

Martin Lau

TITLE
President & Executive Director
COMPENSATION
CN¥316M
AGE
45
TENURE
13.3 yrs

Jason Zeng

TITLE
Co-Founder & Advisor Emeritus
AGE
48

Daniel Xu

TITLE
Co-Founder & Chief Information Officer
AGE
47

Tony Zhang

TITLE
Co-Founder & Advisor Emeritus
COMPENSATION
CN¥16M
AGE
46
TENURE
4.7 yrs

Charles Chen

TITLE
Co-Founder & Advisor Emeritus
AGE
47
TENURE
6.2 yrs

John Lo

TITLE
CFO & Senior VP
AGE
49
TENURE
7 yrs

Mark Ren

TITLE
Chief Operating Officer
AGE
42
TENURE
7 yrs

LS Lu

TITLE
Senior EVP and President of Technology & Engineering Group
AGE
43
TENURE
7 yrs

Jane Yip

TITLE
Assistant General Manager of Investor Relations & Global Communications
Board of Directors Tenure

Average tenure and age of the Tencent Holdings board of directors in years:

15.1
Average Tenure
62
Average Age
  • The average tenure for the Tencent Holdings board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Martin Lau

TITLE
President & Executive Director
COMPENSATION
CN¥316M
AGE
45
TENURE
12.2 yrs

Ian Charles Stone

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥5M
AGE
67
TENURE
15.1 yrs

Huateng Pony Ma

TITLE
Co-Founder
COMPENSATION
CN¥41M
AGE
46

Charles St. Leger Searle

TITLE
Non-Executive Director
AGE
54
TENURE
17.9 yrs

Silas Yang

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥3M
AGE
63
TENURE
2.8 yrs

Iain Ferguson Bruce

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥5M
AGE
77
TENURE
15.1 yrs

Dong Li

TITLE
Independent Non-Executive Director
COMPENSATION
CN¥3M
AGE
61
TENURE
15.1 yrs

Koos Bekker

TITLE
Non-Executive Director
AGE
65
TENURE
6.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (HK$) Value (HK$)
03. May 19 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 30. Apr 19 30. Apr 19 121,455 HK$387.31 HK$47,040,324
03. May 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 30. Apr 19 30. Apr 19 -3,272,815 HK$387.31 HK$-1,267,582,866
03. May 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 30. Apr 19 30. Apr 19 104,600 HK$387.31 HK$40,512,271
03. May 19 Sell Highbridge Capital Management, LLC Company 30. Apr 19 30. Apr 19 -3,206,508 HK$387.31 HK$-1,241,901,727
03. May 19 Sell J.P. Morgan Asset Management, Inc. Company 30. Apr 19 30. Apr 19 -159,798 HK$387.31 HK$-61,890,821
03. May 19 Buy J.P. Morgan Asset Management, Inc. Company 30. Apr 19 30. Apr 19 50 HK$387.31 HK$19,365
03. May 19 Buy J.P. Morgan Asset Management, Inc. Company 29. Apr 19 29. Apr 19 4,798,619 HK$389.78 HK$1,870,421,552
30. Apr 19 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 25. Apr 19 25. Apr 19 -186,436 HK$386.55 HK$-72,066,407
30. Apr 19 Sell JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 25. Apr 19 25. Apr 19 -229,556 HK$386.55 HK$-88,734,344
30. Apr 19 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 25. Apr 19 25. Apr 19 340,822 HK$386.55 HK$131,743,960
30. Apr 19 Sell J.P. Morgan Asset Management, Inc. Company 25. Apr 19 25. Apr 19 -29,000 HK$386.55 HK$-11,209,883
30. Apr 19 Buy J.P. Morgan Asset Management, Inc. Company 25. Apr 19 25. Apr 19 100,310 HK$386.55 HK$38,774,600
29. Apr 19 Buy J.P. Morgan Asset Management, Inc. Company 24. Apr 19 24. Apr 19 1,458,724 HK$391.61 HK$571,245,799
04. Apr 19 Sell J.P. Morgan Asset Management, Inc. Company 01. Apr 19 01. Apr 19 -7,165,711 HK$366.20 HK$-2,624,081,917
19. Mar 19 Buy J.P. Morgan Asset Management, Inc. Company 14. Mar 19 14. Mar 19 567,948 HK$358.06 HK$203,361,448
23. Jan 19 Sell Ian Charles Stone Individual 18. Jan 19 18. Jan 19 -55,000 HK$335.05 HK$-18,427,876
27. Nov 18 Sell Iain Ferguson Bruce Individual 22. Nov 18 22. Nov 18 -20,500 HK$292.40 HK$-5,994,200
27. Nov 18 Sell Iain Ferguson Bruce Individual 26. Nov 18 26. Nov 18 -10,000 HK$295.85 HK$-2,958,500
14. Sep 18 Sell JPMorgan Chase & Co, Brokerage and Securities Investments Company 11. Sep 18 11. Sep 18 -47,054,396 HK$310.27 HK$-14,599,374,534
14. Sep 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 11. Sep 18 11. Sep 18 3,622,156 HK$310.27 HK$1,123,831,492
14. Sep 18 Buy JPMorgan Chase & Co, Private Banking and Investment Banking Investments Company 11. Sep 18 11. Sep 18 17,057 HK$310.27 HK$5,292,205
14. Sep 18 Buy Highbridge Capital Management, LLC Company 11. Sep 18 11. Sep 18 5,100 HK$310.27 HK$1,582,356
14. Sep 18 Buy J.P. Morgan Asset Management, Inc. Company 11. Sep 18 11. Sep 18 20,009 HK$310.27 HK$6,208,110
13. Sep 18 Buy JPMorgan Chase & Co, Brokerage and Securities Investments Company 10. Sep 18 10. Sep 18 38,281,877 HK$314.87 HK$12,053,676,861
X
Management checks
We assess Tencent Holdings's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Tencent Holdings has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

700 News

Simply Wall St News

How To Gain With Tencent Holdings Limited (HKG:700)

This is the best time to buy stocks like Tencent Holdings Limited at a discount. … Check out our latest analysis for Tencent Holdings 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. … This consistent market outperformance illustrates a robust track record of delivering strong returns over a number of years, increasing my conviction in Tencent Holdings as an investment over the long run.

Simply Wall St -

Did You Miss Tencent Holdings's (HKG:700) Impressive 275% Share Price Gain?

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, Tencent Holdings managed to grow its earnings per share at 38% a year.

Simply Wall St -

Do Insiders Own Lots Of Shares In Tencent Holdings Limited (HKG:700)?

The big shareholder groups in Tencent Holdings Limited (HKG:700) have power over the company. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Check out our latest analysis for Tencent Holdings

Simply Wall St -

Is Now The Time To Put Tencent Holdings (HKG:700) On Your Watchlist?

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Tencent Holdings (HKG:700). … I like to see top-line growth as an indication that growth is sustainable, and I look for a high earnings before interest and taxation (EBIT) margin to point to a competitive moat (though some companies with low margins also have moats). … While Tencent Holdings did well to grow revenue over the last year, EBIT margins were dampened at the same time.

Simply Wall St -

Is Tencent Holdings Limited's (HKG:700) 22% ROE Better Than Average?

Tencent Holdings has a ROE of 22%, based on the last twelve months. … That means that for every HK$1 worth of shareholders' equity, it generated HK$0.22 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Did Tencent Holdings Limited's (HKG:700) CEO Take Home Last Year?

The CEO of Tencent Holdings Limited (HKG:700) is Huateng Pony Ma. … At the time of writing our data says that Tencent Holdings Limited has a market cap of HK$3.6t, and is paying total annual CEO compensation of CN¥46m. … We took a group of companies with market capitalizations over CN¥54b, and calculated the median CEO total compensation to be CN¥3.4m

Simply Wall St -

What Should We Expect From Tencent Holdings Limited's (HKG:700) Earnings In The Years Ahead?

Tencent Holdings Limited's (HKG:700) most recent earnings update in December 2018a … showed

Simply Wall St -

Has Tencent Holdings Limited (HKG:700) Improved Earnings Growth In Recent Times?

Today I will take you through a basic sense check to gain perspective on how Tencent Holdings is doing by evaluating its latest earnings with its longer term trend as well as its industry peers' performance over the same period. … Did 700 beat its long-term earnings growth trend and its industry. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 34%, indicating the rate at which 700 is growing has slowed down

Simply Wall St -

Tencent Holdings Limited (HKG:700): Time For A Financial Health Check

There are a number of reasons that attract investors towards large-cap companies such as Tencent Holdings Limited (HKG:700), with a market cap of HK$3.4t. … Let’s take a look at Tencent Holdings’s leverage and assess its financial strength to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … View our latest analysis for Tencent Holdings

Simply Wall St -

What Are Analysts Saying About The Future Of Tencent Holdings Limited's (HKG:700)?

In September 2018, Tencent Holdings Limited (HKG:700) announced its earnings update. … as a 6.5% rise in profits is expected in the upcoming year, … the higher past 5-year average growth rate of 35%

Simply Wall St -

700 Company Info

Description

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. The company was founded in 1998 and is headquartered in Shenzhen, the People’s Republic of China.

Details
Name: Tencent Holdings Limited
700
Exchange: SEHK
Founded: 1998
HK$3,226,825,695,909
9,457,285,158
Website: http://www.tencent.com
Address: Tencent Holdings Limited
Tencent Binhai Towers,
No. 33 Haitian 2nd Road,
Shenzhen,
Guangdong Province, 518054,
China
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
SEHK 700 Ordinary Shares The Stock Exchange of Hong Kong Ltd. HK HKD 16. Jun 2004
OTCPK TCTZ.F Ordinary Shares Pink Sheets LLC US USD 16. Jun 2004
DB NNND Ordinary Shares Deutsche Boerse AG DE EUR 16. Jun 2004
LSE 0Z4S Ordinary Shares London Stock Exchange GB HKD 16. Jun 2004
SHSC 700 Ordinary Shares Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect HK HKD 16. Jun 2004
SZSC 700 Ordinary Shares The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect HK HKD 16. Jun 2004
WBAG NNND Ordinary Shares Wiener Boerse AG AT EUR 16. Jun 2004
OTCPK TCEH.Y UNSP ADR EACH REP 1 ORD Pink Sheets LLC US USD 22. Oct 2008
DB NNN1 UNSP ADR EACH REP 1 ORD Deutsche Boerse AG DE EUR 22. Oct 2008
LSE 0LEA UNSP ADR EACH REP 1 ORD London Stock Exchange GB USD 22. Oct 2008
WBAG NNN1 UNSP ADR EACH REP 1 ORD Wiener Boerse AG AT EUR 22. Oct 2008
BMV TCEHY N UNSP ADR EACH REP 1 ORD Bolsa Mexicana de Valores MX MXN 22. Oct 2008
Number of employees
Current staff
Staff numbers
54,623
Tencent Holdings employees.
Industry
Interactive Media and Services
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/05/22 12:43
End of day share price update: 2019/05/22 00:00
Last estimates confirmation: 2019/05/22
Last earnings filing: 2019/05/15
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.