Tencent Music Entertainment Group operates online music entertainment platforms that provides music streaming, online karaoke, and live streaming services in the People’s Republic of China.
Flawless balance sheet with reasonable growth potential.
Share Price & News
How has Tencent Music Entertainment Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: TME has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: TME underperformed the US Entertainment industry which returned 21.7% over the past year.
Return vs Market: TME underperformed the US Market which returned 20.3% over the past year.
Price Volatility Vs. Market
How volatile is Tencent Music Entertainment Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 weeks ago | Simply Wall StSome Tencent Music Entertainment Group (NYSE:TME) Shareholders Are Down 13%
1 month ago | Simply Wall StShould Tencent Music Entertainment Group (NYSE:TME) Focus On Improving This Fundamental Metric?
2 months ago | Simply Wall StIs There An Opportunity With Tencent Music Entertainment Group's (NYSE:TME) 43% Undervaluation?
Is Tencent Music Entertainment Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: TME ($12.73) is trading below our estimate of fair value ($22.47)
Significantly Below Fair Value: TME is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TME is poor value based on its PE Ratio (69.7x) compared to the Entertainment industry average (25x).
PE vs Market: TME is poor value based on its PE Ratio (69.7x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: TME is poor value based on its PEG Ratio (2.6x)
Price to Book Ratio
PB vs Industry: TME is overvalued based on its PB Ratio (3.5x) compared to the US Entertainment industry average (2.5x).
How is Tencent Music Entertainment Group forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TME's forecast earnings growth (26.5% per year) is above the savings rate (1.7%).
Earnings vs Market: TME's earnings (26.5% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TME's revenue (19.5% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: TME's revenue (19.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: TME's Return on Equity is forecast to be low in 3 years time (12.8%).
How has Tencent Music Entertainment Group performed over the past 5 years?
Last years earnings growth
Earnings and Revenue History
Quality Earnings: TME has a large one-off loss of CN¥1.6B impacting its September 30 2019 financial results.
Growing Profit Margin: TME's current net profit margins (8.8%) are lower than last year (18.9%).
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if TME's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: TME's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: TME had negative earnings growth (-36.4%) over the past year, making it difficult to compare to the Entertainment industry average (-8.9%).
Return on Equity
High ROE: TME's Return on Equity (5%) is considered low.
Return on Assets
Return on Capital Employed
How is Tencent Music Entertainment Group's financial position?
Financial Position Analysis
Short Term Liabilities: TME's short term assets (CN¥25.3B) exceed its short term liabilities (CN¥7.6B).
Long Term Liabilities: TME's short term assets (CN¥25.3B) exceed its long term liabilities (CN¥674.0M).
Debt to Equity History and Analysis
Debt Level: TME is debt free.
Reducing Debt: TME has not had any debt for past 5 years.
Debt Coverage: TME has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: TME has no debt, therefore coverage of interest payments is not a concern.
Inventory Level: TME has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if TME's debt is covered by short term assets.
What is Tencent Music Entertainment Group's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate TME's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate TME's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if TME's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if TME'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 TME's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
Cussion Pang (45yo)
Mr. Pang Cussion serves as the Chief Executive Officer of Tencent Music Entertainment Group and has been its Director since May 2014. Prior to joining us, Mr. Pang served as a corporate vice president of T ...
|CEO & Director||0yrs||no data||no data|
|President||5.8yrs||no data||3.99% CN¥830.0m|
|Director||3.6yrs||no data||no data|
|Director||1.2yrs||no data||no data|
|Independent Director||1.2yrs||no data||no data|
|Director||3.6yrs||no data||no data|
|Independent Director||5.8yrs||no data||no data|
|Independent Director||3.6yrs||no data||no data|
|Chairman of the Board||0yrs||no data||no data|
Experienced Board: TME's board of directors are considered experienced (3.6 years average tenure).
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.
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.9%.
Tencent Music Entertainment Group's company bio, employee growth, exchange listings and data sources
- Name: Tencent Music Entertainment Group
- Ticker: TME
- Exchange: NYSE
- Founded: 2012
- Industry: Movies and Entertainment
- Sector: Media
- Market Cap: US$20.815b
- Shares outstanding: 1.64b
- Website: https://www.tencentmusic.com
Number of Employees
- Tencent Music Entertainment Group
- Matsunichi Building
- 17th Floor
- Guangdong Province
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|TME||NYSE (New York Stock Exchange)||Yes||SPON ADS||US||USD||Dec 2018|
Tencent Music Entertainment Group operates online music entertainment platforms that provides music streaming, online karaoke, and live streaming services in the People’s Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover and listen to music in personalized ways; and WeSing, which enables users to have fun by singing and interacting with friends, sharing their singing performances with friends, and discovering songs that others have sung. The company also operates Kugou Live and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with those interested in their performance. In addition, it sells music-related merchandise, including Kugou M1 headsets, smart speakers, WeSing karaoke microphones, and Hi-Fi systems; and offers online music event ticketing services, as well as services to smart device and automobile makers to build and operate music services on devices and vehicles. The company was formerly known as China Music Corporation. The company was incorporated in 2012 and is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/20 03:11|
|End of Day Share Price||2020/02/19 00:00|
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.