NasdaqGS:MOMO

Stock Analysis Report

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Executive Summary

Momo Inc. operates a mobile-based social and entertainment platform in the People’s Republic of China. More Details


Snowflake Analysis

Very undervalued with solid track record.


Similar Companies

Share Price & News

How has Momo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MOMO's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.8%

MOMO

-3.8%

US Interactive Media and Services

-4.1%

US Market


1 Year Return

-55.3%

MOMO

31.0%

US Interactive Media and Services

12.0%

US Market

Return vs Industry: MOMO underperformed the US Interactive Media and Services industry which returned 31% over the past year.

Return vs Market: MOMO underperformed the US Market which returned 12% over the past year.


Shareholder returns

MOMOIndustryMarket
7 Day1.8%-3.8%-4.1%
30 Day12.5%5.5%-0.2%
90 Day-16.2%6.9%2.8%
1 Year-53.7%-55.3%31.1%31.0%14.6%12.0%
3 Year-45.4%-48.1%42.5%42.4%35.8%26.8%
5 Year14.7%9.1%105.1%104.6%75.2%55.6%

Price Volatility Vs. Market

How volatile is Momo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

36.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MOMO ($15.48) is trading below our estimate of fair value ($24.57)

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


Price To Earnings Ratio

PE vs Industry: MOMO is good value based on its PE Ratio (7.4x) compared to the US Interactive Media and Services industry average (32.5x).

PE vs Market: MOMO is good value based on its PE Ratio (7.4x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: MOMO is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: MOMO is good value based on its PB Ratio (1.6x) compared to the US Interactive Media and Services industry average (2.6x).


Next Steps

Future Growth

How is Momo forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

25.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MOMO's forecast earnings growth (25.8% per year) is above the savings rate (2.2%).

Earnings vs Market: MOMO's earnings (25.8% per year) are forecast to grow faster than the US market (22% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MOMO's revenue (12.5% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: MOMO's revenue (12.5% 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 (19.1%).


Next Steps

Past Performance

How has Momo performed over the past 5 years?

40.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MOMO has high quality earnings.

Growing Profit Margin: MOMO's current net profit margins (17.7%) are higher than last year (14.7%).


Past Earnings Growth Analysis

Earnings Trend: MOMO has become profitable over the past 5 years, growing earnings by 40.8% per year.

Accelerating Growth: MOMO's earnings growth over the past year (30%) is below its 5-year average (40.8% per year).

Earnings vs Industry: MOMO earnings growth over the past year (30%) exceeded the Interactive Media and Services industry -6.3%.


Return on Equity

High ROE: MOMO's Return on Equity (21.1%) is considered high.


Next Steps

Financial Health

How is Momo's financial position?


Financial Position Analysis

Short Term Liabilities: MOMO's short term assets (CN¥13.1B) exceed its short term liabilities (CN¥2.4B).

Long Term Liabilities: MOMO's short term assets (CN¥13.1B) exceed its long term liabilities (CN¥6.2B).


Debt to Equity History and Analysis

Debt Level: MOMO's debt to equity ratio (36.2%) is considered satisfactory.

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 (83.4%).

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


Balance Sheet


Next Steps

Dividend

What is Momo current dividend yield, its reliability and sustainability?

4.86%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MOMO's dividend (4.86%) is higher than the bottom 25% of dividend payers in the US market (1.69%).

High Dividend: MOMO's dividend (4.86%) is in the top 25% of dividend payers in the US market (4.78%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether MOMO's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if MOMO's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: MOMO is not forecast to pay a dividend in 3 years.


Next Steps

Management

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

4.8yrs

Average management tenure


CEO

Yan Tang (41 yo)

9.25yrs

Tenure

Mr. Yan Tang is a Co-Founder of Momo Inc. (a/k/a, Momo Technologies, Inc) and has been Chief Executive Officer since July 2011. Mr. Tang has been the Chairman of Momo Inc. since November 2014 and its Direc ...


Leadership Team

NamePositionTenureCompensationOwnership
Yan Tang
Chairman & CEO9.25yrsno data19.22%
CN¥ 622.0m
Li Wang
COO, President & Director2.83yrsno datano data
Xiaoliang Lei
Co-Founder & Chief Strategy Officerno datano data1.94%
CN¥ 62.6m
Xiaosong Zhang
Chief Financial Officer6.42yrsno datano data
Chunlai Wang
Chief Technology Officer3.17yrsno datano data
Cathy Peng
Head of Investor Relationsno datano datano data

4.8yrs

Average Tenure

37yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Yan Tang
Chairman & CEO9.25yrsno data19.22%
CN¥ 622.0m
Li Wang
COO, President & Director2.83yrsno datano data
Bing Chung Tam
Independent Director5.83yrsno datano data
Ying Zhang
Director8.5yrsno datano data
Daqing Qi
Independent Director5.83yrsno datano data
Yong Li
Co-Founder & Independent Director8.5yrsno data2.5%
CN¥ 80.9m
Yongming Wu
Independent Director1.83yrsno datano data

5.8yrs

Average Tenure

45yo

Average Age

Experienced Board: MOMO's board of directors are considered experienced (5.8 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

Momo Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Momo Inc.
  • Ticker: MOMO
  • Exchange: NasdaqGS
  • Founded: 2011
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$3.236b
  • Shares outstanding: 209.06m
  • Website: https://www.immomo.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MOMONasdaqGS (Nasdaq Global Select)YesADR EACH REPR 2 A SHS (CDI)USUSDDec 2014
1MOADB (Deutsche Boerse AG)YesADR EACH REPR 2 A SHS (CDI)DEEURDec 2014
0K2PLSE (London Stock Exchange)YesADR EACH REPR 2 A SHS (CDI)GBUSDDec 2014
MOMO NBMV (Bolsa Mexicana de Valores)YesADR EACH REPR 2 A SHS (CDI)MXMXNDec 2014
MOMOWBAG (Wiener Boerse AG)YesADR EACH REPR 2 A SHS (CDI)ATEURDec 2014

Biography

Momo Inc. operates a mobile-based social and entertainment platform in the People’s Republic of China. It operates Momo platform that includes its Momo mobile application, as well as various related proper ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 04:42
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.