NasdaqGS:YY

Stock Analysis Report

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Executive Summary

JOYY Inc., through its subsidiaries, operates a social media platform in the People’s Republic of China and internationally.


Snowflake Analysis

Flawless balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.4%

YY

1.9%

US Interactive Media and Services

1.3%

US Market


1 Year Return

41.2%

YY

30.1%

US Interactive Media and Services

14.9%

US Market

Return vs Industry: YY exceeded the US Interactive Media and Services industry which returned 25.3% over the past year.

Return vs Market: YY exceeded the US Market which returned 12.5% over the past year.


Shareholder returns

YYIndustryMarket
7 Day5.4%1.9%1.3%
30 Day-10.0%4.6%4.7%
90 Day52.5%16.6%17.1%
1 Year41.2%41.2%30.2%30.1%17.3%14.9%
3 Year4.2%4.2%43.2%43.1%38.9%29.9%
5 Year30.4%30.4%118.9%118.4%71.3%52.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: YY ($79.82) is trading below our estimate of fair value ($87.02)

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


Price To Earnings Ratio

PE vs Industry: YY is poor value based on its PE Ratio (69x) compared to the US Interactive Media and Services industry average (33.3x).

PE vs Market: YY is poor value based on its PE Ratio (69x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: YY is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: YY is good value based on its PB Ratio (1.3x) compared to the US Interactive Media and Services industry average (2.2x).


Next Steps

Future Growth

How is JOYY forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

34.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YY's forecast earnings growth (34.6% per year) is above the savings rate (2.2%).

Earnings vs Market: YY's earnings (34.6% per year) are forecast to grow faster than the US market (22.2% per year).

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

Revenue vs Market: YY's revenue (9.4% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: YY's revenue (9.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: YY's Return on Equity is forecast to be low in 3 years time (9.4%).


Next Steps

Past Performance

How has JOYY performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: YY has a large one-off gain of CN¥482.8M impacting its March 31 2020 financial results.

Growing Profit Margin: YY's current net profit margins (2.3%) are lower than last year (24.8%).


Past Earnings Growth Analysis

Earnings Trend: YY's earnings have grown significantly by 22.8% per year over the past 5 years.

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

Earnings vs Industry: YY had negative earnings growth (-85%) over the past year, making it difficult to compare to the Interactive Media and Services industry average (-39.3%).


Return on Equity

High ROE: YY's Return on Equity (2.5%) is considered low.


Next Steps

Financial Health

How is JOYY's financial position?


Financial Position Analysis

Short Term Liabilities: YY's short term assets (CN¥28.5B) exceed its short term liabilities (CN¥6.9B).

Long Term Liabilities: YY's short term assets (CN¥28.5B) exceed its long term liabilities (CN¥6.4B).


Debt to Equity History and Analysis

Debt Level: YY's debt to equity ratio (14.1%) is considered satisfactory.

Reducing Debt: YY's debt to equity ratio has reduced from 106% to 14.1% over the past 5 years.

Debt Coverage: YY's debt is well covered by operating cash flow (82.4%).

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


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if YY'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 YY's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

David Li (47 yo)

3.25yrs

Tenure

Mr. Xueling Li, also known as David, is a Co-Founder of JOYY Inc. (formerly known as YY Inc.) and has been its Chief Executive Officer since April 2019 and served as its Acting Chief Executive Officer sinc ...


Leadership Team

NamePositionTenureCompensationOwnership
Xueling Li
Co-Founder3.25yrsno data23.47%
CN¥ 1.5b
Bing Jin
Chief Financial Officer3.25yrsno datano data
Ting Li
Chief Operating Officer4.58yrsno datano data
Pengjun Lu
Chief Technology Officer2.17yrsno datano data
Matthew Zhao
IR Directorno datano datano data
Rongjie Dong
Chief Executive Officer of HUYA Inc.no datano datano data
Zhou Chen
Strategic Advisor3.25yrsno datano data

3.3yrs

Average Tenure

43yo

Average Age

Experienced Management: YY's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Xueling Li
Co-Founder3.25yrsno data23.47%
CN¥ 1.5b
Peter Andrew Schloss
Independent Director7.75yrsno datano data
Yuen Kwan Tang
Independent Director7.25yrsno datano data
Qin Liu
Independent Director12.17yrsno datano data
Weidong Ji
Independent Director7.25yrsno datano data

7.3yrs

Average Tenure

54yo

Average Age

Experienced Board: YY's board of directors are considered experienced (7.3 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 been diluted in the past year, with total shares outstanding growing by 2.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: JOYY Inc.
  • Ticker: YY
  • Exchange: NasdaqGS
  • Founded: 2005
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$6.427b
  • Shares outstanding: 80.52m
  • Website: https://www.huanju.cn

Number of Employees


Location

  • JOYY Inc.
  • Building B-1
  • North Block of Wanda Plaza
  • Guangzhou
  • Guangdong Province
  • 511442
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YYNasdaqGS (Nasdaq Global Select)YesSPON ADS EACH REP 20 ORD SHS CL AUSUSDNov 2012
0YYADB (Deutsche Boerse AG)YesSPON ADS EACH REP 20 ORD SHS CL ADEEURNov 2012
YYSWX (SIX Swiss Exchange)YesSPON ADS EACH REP 20 ORD SHS CL ACHCHFNov 2012
YY NBMV (Bolsa Mexicana de Valores)YesSPON ADS EACH REP 20 ORD SHS CL AMXMXNNov 2012
0VVYLSE (London Stock Exchange)YesSPON ADS EACH REP 20 ORD SHS CL AGBUSDNov 2012

Biography

JOYY Inc., through its subsidiaries, operates a social media platform in the People’s Republic of China and internationally. The company operates live streaming platforms, including YY Live, an interactive ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/03 00:36
End of Day Share Price2020/07/31 00:00
Earnings2020/03/31
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.