NasdaqGS:YY

Stock Analysis Report

Executive Summary

YY Inc., through its subsidiaries, engages in the live streaming business in the People’s Republic of China.

Snowflake

Fundamentals

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.9%

YY

4.0%

US Interactive Media and Services

3.4%

US Market


1 Year Return

-3.9%

YY

8.5%

US Interactive Media and Services

5.4%

US Market

Return vs Industry: YY underperformed the US Interactive Media and Services industry which returned 8.5% over the past year.

Return vs Market: YY underperformed the US Market which returned 5.4% over the past year.


Shareholder returns

YYIndustryMarket
7 Day3.9%4.0%3.4%
30 Day-5.6%-0.5%-1.0%
90 Day-11.8%1.1%-0.4%
1 Year-3.9%-3.9%8.6%8.5%7.7%5.4%
3 Year8.6%8.6%44.3%44.3%46.2%36.8%
5 Year-22.9%-22.9%96.7%96.6%65.6%47.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: YY ($58.2) is trading below our estimate of fair value ($230.98)

Significantly Undervalued: YY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: YY is good value based on its PE Ratio (6.4x) compared to the Interactive Media and Services industry average (30.4x).

PE vs Market: YY is good value based on its PE Ratio (6.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: YY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: YY is good value based on its PB Ratio (1x) compared to the US Interactive Media and Services industry average (3.2x).


Next Steps

Future Growth

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

-0.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: YY's earnings are forecast to decline over the next 3 years (-0.8% per year).

Earnings vs Market: YY's earnings are forecast to decline over the next 3 years (-0.8% per year).

High Growth Earnings: YY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: YY's revenue (19.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: YY's revenue (19.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: YY's Return on Equity is forecast to be low in 3 years time (14.4%).


Next Steps

Past Performance

How has YY performed over the past 5 years?

29.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: YY's earnings have grown significantly by 29.3% per year over the past 5 years.

Accelerating Growth: YY's earnings growth over the past year (165.2%) exceeds its 5-year average (29.3% per year).

Earnings vs Industry: YY earnings growth over the past year (165.2%) exceeded the Interactive Media and Services industry 12.3%.


Return on Equity

High ROE: YY's Return on Equity (12.4%) is considered low.


Return on Assets

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


Return on Capital Employed

ROCE Improving: YY's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is YY's financial position?


Financial Position Analysis

Short Term Liabilities: YY's short term assets (CN¥27.2B) exceeds its short term liabilities (CN¥6.3B)

Long Term Liabilities: YY's short term assets (27.2B) exceeds its long term liabilities (5.8B)


Debt to Equity History and Analysis

Debt Level: YY's debt to equity ratio (13.4%) is considered satisfactory

Reducing Debt: YY's debt to equity ratio has reduced from 104% to 13.4% over the past 5 years.

Debt Coverage: YY's debt is well covered by operating cash flow (92.7%).

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


Balance Sheet

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

Debt Coverage by Assets: YY's debt is covered by short term assets (assets are 5.417990x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage0.4%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate YY'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 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

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

2.4yrs

Average management tenure


CEO

David Li (46yo)

2.4yrs

Tenure

0

Mr. Xueling Li, also known as David, is a Co-Founder of YY Inc. and has been its Chief Executive Officer since April 2019 and served as its Acting Chief Executive Officer since May 16, 2017 until April 201 ...


Management Age and Tenure

2.4yrs

Average Tenure

42.5yo

Average Age

Experienced Management: YY's management team is considered experienced (2.4 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

53yo

Average Age

Experienced Board: YY's board of directors are considered experienced (6.4 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

  • Matthew Zhao

    IR Director

    • Tenure: 0yrs
  • David Li (46yo)

    Co-Founder

    • Tenure: 2.4yrs
  • Rongjie Dong (44yo)

    Chief Executive Officer of HUYA Inc.

    • Tenure: 0yrs
  • Zhou Chen (43yo)

    Strategic Advisor

    • Tenure: 2.4yrs
  • Bing Jin (42yo)

    Chief Financial Officer

    • Tenure: 2.4yrs
  • Ting Li (35yo)

    Chief Operating Officer

    • Tenure: 3.8yrs
  • Jeff Lu (38yo)

    Chief Technology Officer

    • Tenure: 1.3yrs

Board Members

  • Peter Andrew Schloss (59yo)

    Independent Director

    • Tenure: 6.9yrs
  • David Tang (64yo)

    Independent Director

    • Tenure: 6.4yrs
  • Richard Liu (48yo)

    Independent Director

    • Tenure: 11.3yrs
  • David Li (46yo)

    Co-Founder

    • Tenure: 2.4yrs
  • Richard Ji (53yo)

    Independent Director

    • Tenure: 6.4yrs

Company Information

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


Key Information

  • Name: YY Inc.
  • Ticker: YY
  • Exchange: NasdaqGS
  • Founded: 2005
  • Industry: Interactive Media and Services
  • Sector: Media
  • Market Cap: US$4.706b
  • Shares outstanding: 80.85m
  • Website: https://www.yy.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
YYNasdaqGS (Nasdaq Global Select)YesADS EA REPR 20 ORD CL'A'USUSDNov 2012
0YYADB (Deutsche Boerse AG)YesADS EA REPR 20 ORD CL'A'DEEURNov 2012
YYSWX (SIX Swiss Exchange)YesADS EA REPR 20 ORD CL'A'CHCHFNov 2012
YY NBMV (Bolsa Mexicana de Valores)YesADS EA REPR 20 ORD CL'A'MXMXNNov 2012
0VVYLSE (London Stock Exchange)YesADS EA REPR 20 ORD CL'A'GBUSDNov 2012
YYAWBAG (Wiener Boerse AG)YesADS EA REPR 20 ORD CL'A'ATEURNov 2012

Biography

YY Inc., through its subsidiaries, engages in the live streaming business in the People’s Republic of China. The company operates YY Live platform, an online music and entertainment live streaming service; ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:27
End of Day Share Price2019/10/15 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.