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MOMO

Hello Group NasdaqGS:MOMO Stock Report

Last Price

US$5.37

Market Cap

US$1.1b

7D

6.5%

1Y

-65.7%

Updated

28 Jun, 2022

Data

Company Financials +
MOMO fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance0/6
Financial Health5/6
Dividends3/6

MOMO Stock Overview

Hello Group Inc. provides mobile-based social and entertainment services in the People’s Republic of China.

Hello Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Hello Group
Historical stock prices
Current Share PriceUS$5.37
52 Week HighUS$15.73
52 Week LowUS$4.14
Beta1.27
1 Month Change-2.72%
3 Month Change-13.94%
1 Year Change-65.69%
3 Year Change-85.40%
5 Year Change-85.46%
Change since IPO-68.45%

Recent News & Updates

Jun 14
Hello Group (NASDAQ:MOMO) Has A Pretty Healthy Balance Sheet

Hello Group (NASDAQ:MOMO) Has A Pretty Healthy Balance Sheet

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

MOMOUS Interactive Media and ServicesUS Market
7D6.5%0.9%1.7%
1Y-65.7%-46.9%-20.4%

Return vs Industry: MOMO underperformed the US Interactive Media and Services industry which returned -45.8% over the past year.

Return vs Market: MOMO underperformed the US Market which returned -18.8% over the past year.

Price Volatility

Is MOMO's price volatile compared to industry and market?
MOMO volatility
MOMO Average Weekly Movement13.0%
Interactive Media and Services Industry Average Movement11.1%
Market Average Movement8.0%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: MOMO is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 13% a week.

Volatility Over Time: MOMO's weekly volatility (13%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
20112,051Li Wanghttps://ir.hellogroup.com

Hello Group Inc. provides mobile-based social and entertainment services in the People’s Republic of China. It operates Momo platform that includes its Momo mobile application, as well as various related properties, features, functionalities, tools, and services. The company’s Momo mobile application connects people and facilitates interactions based on location and interests; and various recreational activities, including live talent shows, short videos, and social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke, and user participated reality shows.

Hello Group Fundamentals Summary

How do Hello Group's earnings and revenue compare to its market cap?
MOMO fundamental statistics
Market CapCN¥7.14b
Earnings (TTM)-CN¥3.09b
Revenue (TTM)CN¥14.25b

0.5x

P/S Ratio

-2.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MOMO income statement (TTM)
RevenueCN¥14.25b
Cost of RevenueCN¥8.27b
Gross ProfitCN¥5.99b
Other ExpensesCN¥9.07b
Earnings-CN¥3.09b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-15.56
Gross Margin42.00%
Net Profit Margin-21.65%
Debt/Equity Ratio43.4%

How did MOMO perform over the long term?

See historical performance and comparison

Dividends

11.7%

Current Dividend Yield

n/a

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MOMO undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MOMO?

Other financial metrics that can be useful for relative valuation.

MOMO key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.3x
Enterprise Value/EBITDA1.8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does MOMO's PS Ratio compare to its peers?

MOMO PS Ratio vs Peers
The above table shows the PS ratio for MOMO vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average3.1x
SST System1
0.9x13.2%US$893.0m
VMEO Vimeo
2.7x13.9%US$1.1b
ZH Zhihu
2.5x32.2%US$1.2b
KIND Nextdoor Holdings
6.1x22.5%US$1.3b
MOMO Hello Group
0.5x4.8%US$1.1b

Price-To-Sales vs Peers: MOMO is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (3.1x).


Price to Earnings Ratio vs Industry

How does MOMO's PE Ratio compare vs other companies in the US Interactive Media and Services Industry?

Price-To-Sales vs Industry: MOMO is good value based on its Price-To-Sales Ratio (0.5x) compared to the US Interactive Media and Services industry average (1.9x)


Price to Sales Ratio vs Fair Ratio

What is MOMO's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MOMO PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ratio1.4x

Price-To-Sales vs Fair Ratio: MOMO is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (1.4x).


Share Price vs Fair Value

What is the Fair Price of MOMO when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MOMO ($5.37) is trading below our estimate of fair value ($16.83)

Significantly Below Fair Value: MOMO is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MOMO's PEG Ratio to determine if it is good value.


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Future Growth

How is Hello Group forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


35.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MOMO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: MOMO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MOMO is expected to become profitable in the next 3 years.

Revenue vs Market: MOMO's revenue (4.8% per year) is forecast to grow slower than the US market (8.3% per year).

High Growth Revenue: MOMO's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MOMO's Return on Equity is forecast to be low in 3 years time (11.4%).


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Past Performance

How has Hello Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-19.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MOMO is currently unprofitable.

Growing Profit Margin: MOMO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MOMO is unprofitable, and losses have increased over the past 5 years at a rate of 19.8% per year.

Accelerating Growth: Unable to compare MOMO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MOMO is unprofitable, making it difficult to compare its past year earnings growth to the Interactive Media and Services industry (-37.6%).


Return on Equity

High ROE: MOMO has a negative Return on Equity (-30.42%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Hello Group's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MOMO's short term assets (CN¥8.9B) exceed its short term liabilities (CN¥3.0B).

Long Term Liabilities: MOMO's short term assets (CN¥8.9B) exceed its long term liabilities (CN¥4.8B).


Debt to Equity History and Analysis

Debt Level: MOMO has more cash than its total debt.

Reducing Debt: Insufficient data to determine if MOMO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MOMO's debt is well covered by operating cash flow (24.9%).

Interest Coverage: MOMO earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


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Dividend

What is Hello Group current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


11.66%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MOMO's dividend (11.66%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: MOMO's dividend (11.66%) is in the top 25% of dividend payers in the US market (4.25%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MOMO has been paying a dividend for less than 10 years.

Growing Dividend: MOMO has only been paying a dividend for 2 years, and since then payments have fallen.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (82.5%), MOMO's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

4.8yrs

Average management tenure


CEO

Li Wang (38 yo)

1.58yrs

Tenure

Mr. Li Wang serves as Chief Executive Officer at Hello Group Inc. since November 2020 and served as its Chief Operating Officer since June 2014 until October 2020. He had been President at Hello Group Inc....


Leadership Team

Experienced Management: MOMO's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: MOMO's board of directors are considered experienced (7.5 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Hello Group Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Hello Group Inc.
  • Ticker: MOMO
  • Exchange: NasdaqGS
  • Founded: 2011
  • Industry: Interactive Media and Services
  • Sector: Media
  • Implied Market Cap: US$1.065b
  • Shares outstanding: 198.36m
  • Website: https://ir.hellogroup.com

Number of Employees


Location

  • Hello Group Inc.
  • Tower 2, Wangjing SOHO
  • 20th Floor, Block B
  • Beijing
  • 100102
  • China

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/28 00:00
End of Day Share Price2022/06/28 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.