NasdaqGS:MOMO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

High growth potential with proven 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


Market Performance


7 Day Return

-0.6%

NasdaqGS:MOMO

1.2%

US Interactive Media and Services

2.1%

US Market


1 Year Return

-25.0%

NasdaqGS:MOMO

-2.8%

US Interactive Media and Services

-0.04%

US Market

MOMO underperformed the Interactive Media and Services industry which returned -1.9% over the past year.

MOMO underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

MOMOIndustryMarket
7 Day-0.6%1.2%2.1%
30 Day-7.8%-2.9%-3.2%
90 Day26.4%3.0%2.8%
1 Year-23.9%-25.0%-2.7%-2.8%2.2%-0.04%
3 Year54.5%52.3%46.4%46.3%41.5%32.3%
5 Yearn/a83.6%83.4%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Momo's share price is below the future cash flow value, and at a moderate discount (> 20%).

Momo's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Momo is good value based on earnings compared to the US Interactive Media and Services industry average.

Momo is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Momo is poor value based on expected growth next year.


Price Based on Value of Assets

Momo is overvalued based on assets compared to the US Interactive Media and Services industry average.


Next Steps

Future Growth

How is Momo expected to perform in the next 1 to 3 years based on estimates from 22 analysts?

20.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Momo's revenue is expected to grow by 13.6% yearly, however this is not considered high growth (20% yearly).

Momo's earnings are expected to grow significantly at over 20% yearly.

Momo's revenue growth is expected to exceed the United States of America market average.

Momo's earnings growth is expected to exceed the United States of America market average.

Momo's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Momo is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


Next Steps

Past Performance

How has Momo performed over the past 5 years?

65.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Momo has delivered over 20% year on year earnings growth in the past 5 years.

Momo's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Momo's 1-year earnings growth is negative, it can't be compared to the US Interactive Media and Services industry average.


Return on Equity

Momo has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Momo used its assets more efficiently than the US Interactive Media and Services industry average last year based on Return on Assets.


Return on Capital Employed

Momo has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Momo's financial position?


Financial Position Analysis

Momo is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Momo's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Momo's level of debt (45.4%) compared to net worth is high (greater than 40%).

Unable to establish if Momo's debt level has increased without past 5-year debt data.

Debt is well covered by operating cash flow (77.2%, greater than 20% of total debt).

Momo earns more interest than it pays, coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.7x debt.


Next Steps

Dividend

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

0.11%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Momo's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Momo's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Momo has not reported any payouts.

Unable to verify if Momo's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Momo has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Momo's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

Yan Tang (40yo)

8.1yrs

Tenure

0

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 ...


CEO Compensation Analysis

Yan's remuneration is lower than average for companies of similar size in United States of America.

Insufficient data for Yan to compare compensation growth.


Management Age and Tenure

3.6yrs

Average Tenure

36yo

Average Age

The tenure for the Momo management team is about average.


Board Age and Tenure

4.7yrs

Average Tenure

44yo

Average Age

The tenure for the Momo board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Jonathan Zhang (56yo)

    Chief Financial Officer

    • Tenure: 5.3yrs
  • Yan Tang (40yo)

    Chairman & CEO

    • Tenure: 8.1yrs
  • Xiaoliang Lei (36yo)

    Co-Founder & President of Game Operations

    • Tenure: 0.0yrs
  • Li Wang (36yo)

    COO, President & Director

    • Tenure: 1.7yrs
  • Chunlai Wang (32yo)

    Chief Technology Officer

    • Tenure: 2.0yrs
  • Cathy Peng

    Head of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Benson Tam (56yo)

    Independent Director

    • Tenure: 4.7yrs
  • David Zhang (46yo)

    Director

    • Tenure: 7.3yrs
  • Dave Qi (55yo)

    Independent Director

    • Tenure: 4.7yrs
  • Yong Li (44yo)

    Co-Founder & Independent Director

    • Tenure: 7.3yrs
  • Eddie Wu (44yo)

    Independent Director

    • Tenure: 0.7yrs
  • Yan Tang (40yo)

    Chairman & CEO

    • Tenure: 8.1yrs
  • Li Wang (36yo)

    COO, President & Director

    • Tenure: 1.7yrs

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$6.820b
  • Shares outstanding: 207.35m
  • 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 CL A ORDUSUSDDec 2014
1MOADB (Deutsche Boerse AG)YesADR EACH REPR 2 CL A ORDDEEURDec 2014
0K2PLSE (London Stock Exchange)YesADR EACH REPR 2 CL A ORDGBUSDDec 2014
MOMO NBMV (Bolsa Mexicana de Valores)YesADR EACH REPR 2 CL A ORDMXMXNDec 2014
MOMOWBAG (Wiener Boerse AG)YesADR EACH REPR 2 CL A ORDATEURDec 2014

Biography

Momo Inc. operates a mobile-based social and entertainment platform in the People’s Republic of China. The company operates Momo platform that includes its Momo mobile application and various related featu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 00:33
End of Day Share Price2019/08/22 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.