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700

Tencent HoldingsSEHK:700 Stock Report

Market Cap

HK$4.4t

7D

-0.3%

1Y

-8.6%

Updated

24 Sep, 2021

Data

Company Financials +
700 fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance5/6
Financial Health6/6
Dividends0/6

700 Overview

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

Tencent Holdings Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Tencent Holdings
Historical stock prices
Current Share PriceHK$460.20
52 Week HighHK$412.20
52 Week LowHK$775.50
Beta0.52
1 Month Change-3.03%
3 Month Change-23.11%
1 Year Change-8.60%
3 Year Change42.39%
5 Year Change116.06%
Change since IPO55,345.78%

Recent News & Updates

Sep 16
We Think Tencent Holdings (HKG:700) Can Manage Its Debt With Ease

We Think Tencent Holdings (HKG:700) Can Manage Its Debt With Ease

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Aug 04
Calculating The Intrinsic Value Of Tencent Holdings Limited (HKG:700)

Calculating The Intrinsic Value Of Tencent Holdings Limited (HKG:700)

How far off is Tencent Holdings Limited ( HKG:700 ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

700HK Interactive Media and ServicesHK Market
7D-0.3%2.0%-0.9%
1Y-8.6%-8.3%10.1%

Return vs Industry: 700 matched the Hong Kong Interactive Media and Services industry which returned -8.3% over the past year.

Return vs Market: 700 underperformed the Hong Kong Market which returned 10.1% over the past year.

Price Volatility

Is 700's price volatile compared to industry and market?
700 volatility
700 Beta0.52
Industry Beta0.52
Market Beta1

Stable Share Price: 700 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 700's weekly volatility (8%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
199894,182Pony Mahttps://www.tencent.com

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 Advertising, FinTech and Business Services, and Others segments. It offers online games and social network services; FinTech and cloud services, and online advertising services, such as media, social, and others advertisement services.

Tencent Holdings Fundamentals Summary

How do Tencent Holdings's earnings and revenue compare to its market cap?
700 fundamental statistics
Market CapCN¥3.66t
Earnings (TTM)CN¥188.20b
Revenue (TTM)CN¥532.68b

19.3x

P/E Ratio

6.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
700 income statement (TTM)
RevenueCN¥532.68b
Cost of RevenueCN¥291.68b
Gross ProfitCN¥241.00b
ExpensesCN¥52.80b
EarningsCN¥188.20b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 10, 2021

Earnings per share (EPS)19.76
Gross Margin45.24%
Net Profit Margin35.33%
Debt/Equity Ratio29.9%

How did 700 perform over the long term?

See historical performance and comparison

Dividends

0.3%

Current Dividend Yield

7%

Payout Ratio

Valuation

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

15.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 700 (HK$460.2) is trading below our estimate of fair value (HK$546.16)

Significantly Below Fair Value: 700 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 700 is poor value based on its PE Ratio (19.3x) compared to the Hong Kong Interactive Media and Services industry average (10.5x).

PE vs Market: 700 is poor value based on its PE Ratio (19.3x) compared to the Hong Kong market (9.8x).


Price to Earnings Growth Ratio

PEG Ratio: 700 is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: 700 is overvalued based on its PB Ratio (4.3x) compared to the HK Interactive Media and Services industry average (1.1x).


Future Growth

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

11.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 700's forecast earnings growth (11.4% per year) is above the savings rate (1.5%).

Earnings vs Market: 700's earnings (11.4% per year) are forecast to grow slower than the Hong Kong market (17.1% per year).

High Growth Earnings: 700's earnings are forecast to grow, but not significantly.

Revenue vs Market: 700's revenue (15% per year) is forecast to grow faster than the Hong Kong market (12.3% per year).

High Growth Revenue: 700's revenue (15% 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 (16%).


Past Performance

How has Tencent Holdings performed over the past 5 years?

28.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 700 has a large one-off gain of CN¥76.7B impacting its June 30 2021 financial results.

Growing Profit Margin: 700's current net profit margins (35.3%) are higher than last year (24.4%).


Past Earnings Growth Analysis

Earnings Trend: 700's earnings have grown significantly by 28.4% per year over the past 5 years.

Accelerating Growth: 700's earnings growth over the past year (81%) exceeds its 5-year average (28.4% per year).

Earnings vs Industry: 700 earnings growth over the past year (81%) exceeded the Interactive Media and Services industry 7.3%.


Return on Equity

High ROE: 700's Return on Equity (20.5%) is considered high.


Financial Health

How is Tencent Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: 700's short term assets (CN¥331.3B) exceed its short term liabilities (CN¥277.6B).

Long Term Liabilities: 700's short term assets (CN¥331.3B) exceed its long term liabilities (CN¥313.2B).


Debt to Equity History and Analysis

Debt Level: 700's debt to equity ratio (29.9%) is considered satisfactory.

Reducing Debt: 700's debt to equity ratio has reduced from 58.9% to 29.9% over the past 5 years.

Debt Coverage: 700's debt is well covered by operating cash flow (64.4%).

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?

0.34%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 700's dividend (0.34%) isn’t notable compared to the bottom 25% of dividend payers in the Hong Kong market (2.25%).

High Dividend: 700's dividend (0.34%) is low compared to the top 25% of dividend payers in the Hong Kong market (6.77%).


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?

9.3yrs

Average management tenure


CEO

Pony Ma (49 yo)

no data

Tenure

CN¥58,738,000

Compensation

Mr. Huateng Pony Ma, also known as Pony, 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 Techno...


CEO Compensation Analysis

Compensation vs Market: Pony's total compensation ($USD9.09M) is above average for companies of similar size in the Hong Kong market ($USD1.02M).

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 (9.3 years average tenure).


Board Members

Experienced Board: 700's board of directors are seasoned and experienced ( 14.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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$4.412t
  • Shares outstanding: 9.53b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/24 10:05
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
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.