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.
No risks detected for TME from our risk checks.
Tencent Music Entertainment Group Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$7.98|
|52 Week High||US$7.03|
|52 Week Low||US$32.25|
|1 Month Change||2.05%|
|3 Month Change||-47.12%|
|1 Year Change||-49.53%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||-43.00%|
Recent News & Updates
Tencent Music: Another China Regulations Play
Tencent Music is another US-listed Chinese company which faced tough times in the recent Chinese regulatory crackdown on all things tech in the country. However, very little is expected to fundamentally change and the company is expected to maintain their leading position in the Chinese online music industry. As a result, I believe the company will return over 15% annually to investors, far outperforming the broader market expectations.
Returns On Capital Are Showing Encouraging Signs At Tencent Music Entertainment Group (NYSE:TME)
What trends should we look for it we want to identify stocks that can multiply in value over the long term? In a...
Should You Investigate Tencent Music Entertainment Group (NYSE:TME) At US$10.52?
Tencent Music Entertainment Group ( NYSE:TME ) saw significant share price movement during recent months on the NYSE...
|TME||US Entertainment||US Market|
Return vs Industry: TME underperformed the US Entertainment industry which returned 25.6% over the past year.
Return vs Market: TME underperformed the US Market which returned 30.7% over the past year.
Stable Share Price: TME is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.
Volatility Over Time: TME's weekly volatility (9%) has been stable over the past year.
About the Company
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 Music, Kuwo Music, WeSing, QQ Music, 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; and Kuwo Changting, an audio platform that offers users various audio content, including audio books, cross-talks, radio dramas, and other entertainment.
Tencent Music Entertainment Group Fundamentals Summary
|TME fundamental statistics|
Is TME overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|TME income statement (TTM)|
|Cost of Revenue||CN¥21.68b|
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
|Earnings per share (EPS)||2.45|
|Net Profit Margin||12.86%|
How did TME perform over the long term?See historical performance and comparison
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 ($8.06) is trading below our estimate of fair value ($25.88)
Significantly Below Fair Value: TME is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: TME is good value based on its PE Ratio (21.5x) compared to the US Entertainment industry average (23.8x).
PE vs Market: TME is poor value based on its PE Ratio (21.5x) compared to the US market (17.1x).
Price to Earnings Growth Ratio
PEG Ratio: TME is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: TME is good value based on its PB Ratio (1.7x) compared to the US Entertainment industry average (3.9x).
How is Tencent Music Entertainment Group forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: TME's forecast earnings growth (21.9% per year) is above the savings rate (2%).
Earnings vs Market: TME's earnings (21.9% per year) are forecast to grow faster than the US market (14.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: TME's revenue (11.9% per year) is forecast to grow faster than the US market (9.5% per year).
High Growth Revenue: TME's revenue (11.9% 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 (7%).
How has Tencent Music Entertainment Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: TME has high quality earnings.
Growing Profit Margin: TME's current net profit margins (12.9%) are lower than last year (14.4%).
Past Earnings Growth Analysis
Earnings Trend: TME's earnings have grown significantly by 37.3% per year over the past 5 years.
Accelerating Growth: TME's earnings growth over the past year (4.8%) is below its 5-year average (37.3% per year).
Earnings vs Industry: TME earnings growth over the past year (4.8%) underperformed the Entertainment industry 10.8%.
Return on Equity
High ROE: TME's Return on Equity (8%) is considered low.
How is Tencent Music Entertainment Group's financial position?
Financial Position Analysis
Short Term Liabilities: TME's short term assets (CN¥28.4B) exceed its short term liabilities (CN¥9.9B).
Long Term Liabilities: TME's short term assets (CN¥28.4B) exceed its long term liabilities (CN¥5.8B).
Debt to Equity History and Analysis
Debt Level: TME's debt to equity ratio (9.8%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if TME's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: TME's debt is well covered by operating cash flow (101.5%).
Interest Coverage: TME earns more interest than it pays, so coverage of interest payments is not a concern.
What is Tencent Music Entertainment Group 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 recent payouts.
High Dividend: Unable to evaluate TME'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 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 management tenure
Mr. Liang Zhu also known as Ross serves as Chief Executive Officer and Director at Tencent Music Entertainment Group since April 15, 2021. Mr. Zhu served as Vice President of Tencent Holdings Limited ("Ten...
Experienced Management: TME's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Experienced Board: TME's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
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 not been meaningfully diluted in the past year.
Tencent Music Entertainment Group's 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$13.507b
- Shares outstanding: 1.69b
- Website: https://www.tencentmusic.com
Number of Employees
- Tencent Music Entertainment Group
- Matsunichi Building
- 17th Floor
- Guangdong Province
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/09/16 04:55|
|End of Day Share Price||2021/09/15 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.