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 and good value.


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

-2.2%

MOMO

0.8%

US Interactive Media and Services

0.4%

US Market


1 Year Return

8.6%

MOMO

11.4%

US Interactive Media and Services

6.9%

US Market

Return vs Industry: MOMO underperformed the US Interactive Media and Services industry which returned 11.4% over the past year.

Return vs Market: MOMO exceeded the US Market which returned 6.9% over the past year.


Shareholder returns

MOMOIndustryMarket
7 Day-2.2%0.8%0.4%
30 Day-6.3%-2.0%-1.2%
90 Day-4.3%1.5%-0.4%
1 Year10.2%8.6%11.4%11.4%9.3%6.9%
3 Year37.1%35.1%42.2%42.1%45.8%36.4%
5 Yearn/a91.1%91.0%62.9%45.1%

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?

42.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MOMO ($33.07) is trading below our estimate of fair value ($57.53)

Significantly Undervalued: 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 (21.4x) compared to the Interactive Media and Services industry average (29x).

PE vs Market: MOMO is poor value based on its PE Ratio (21.4x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: MOMO is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: MOMO is overvalued based on its PB Ratio (4.3x) compared to the US Interactive Media and Services industry average (3.2x).


Next Steps

Future Growth

How is Momo forecast to perform in the next 1 to 3 years based on estimates from 22 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 (25.9% per year) is above the savings rate (2.7%).

Earnings vs Market: MOMO's earnings (25.9% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: MOMO's revenue (14.1% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: MOMO's revenue (14.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: MOMO's Return on Equity is forecast to be high in 3 years time (22.2%)


Next Steps

Past Performance

How has Momo performed over the past 5 years?

60.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MOMO has become profitable over the past 5 years, growing earnings by 60.8% per year.

Accelerating Growth: MOMO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MOMO had negative earnings growth (-18.8%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (12.3%).


Return on Equity

High ROE: MOMO's Return on Equity (19.6%) is considered low.


Return on Assets

ROA vs Industry: MOMO has a higher Return on Assets than the Interactive Media and Services industry average last year.


Return on Capital Employed

ROCE Improving: MOMO has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Momo's financial position?


Financial Position Analysis

Short Term Liabilities: MOMO's short term assets (CN¥13.4B) exceeds its short term liabilities (CN¥2.2B)

Long Term Liabilities: MOMO's short term assets (13.4B) exceeds its long term liabilities (6.1B)


Debt to Equity History and Analysis

Debt Level: MOMO's debt to equity ratio (42.7%) is considered high

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 (84.2%).

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


Balance Sheet

Inventory Level: MOMO has a low level of unsold assets or inventory.

Debt Coverage by Assets: MOMO's debt is covered by short term assets (assets are 2.745880x debt).


Next Steps

Dividend

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

0.11%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.4%forecastin3Years0.1%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate MOMO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate MOMO's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if MOMO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MOMO's dividend payments have been increasing.


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: No need to calculate the sustainability of MOMO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Yan Tang (40yo)

8.3yrs

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 ...


Management Age and Tenure

3.8yrs

Average Tenure

36yo

Average Age

Experienced Management: MOMO's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

44yo

Average Age

Experienced Board: MOMO's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Jonathan Zhang (56yo)

    Chief Financial Officer

    • Tenure: 5.4yrs
  • Yan Tang (40yo)

    Chairman & CEO

    • Tenure: 8.3yrs
  • Xiaoliang Lei (36yo)

    Co-Founder & President of Game Operations

    • Tenure: 0yrs
  • Li Wang (36yo)

    COO, President & Director

    • Tenure: 1.8yrs
  • Chunlai Wang (32yo)

    Chief Technology Officer

    • Tenure: 2.2yrs
  • Cathy Peng

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Benson Tam (56yo)

    Independent Director

    • Tenure: 4.8yrs
  • David Zhang (46yo)

    Director

    • Tenure: 7.5yrs
  • Dave Qi (55yo)

    Independent Director

    • Tenure: 4.8yrs
  • Yong Li (44yo)

    Co-Founder & Independent Director

    • Tenure: 7.5yrs
  • Eddie Wu (44yo)

    Independent Director

    • Tenure: 0.8yrs
  • Yan Tang (40yo)

    Chairman & CEO

    • Tenure: 8.3yrs
  • Li Wang (36yo)

    COO, President & Director

    • Tenure: 1.8yrs

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$6.866b
  • Shares outstanding: 207.63m
  • 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)YesADRUSUSDDec 2014
1MOADB (Deutsche Boerse AG)YesADRDEEURDec 2014
0K2PLSE (London Stock Exchange)YesADRGBUSDDec 2014
MOMO NBMV (Bolsa Mexicana de Valores)YesADRMXMXNDec 2014
MOMOWBAG (Wiener Boerse AG)YesADRATEURDec 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 Analysis2019/10/20 00:30
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.