(TME) Tencent Music Entertainment - Ratings and Ratios
Music Streaming, Online Karaoke, Live Streaming, Audiobooks, Music Videos
TME EPS (Earnings per Share)
TME Revenue
Description: TME Tencent Music Entertainment
Tencent Music Entertainment Group is a leading online music entertainment platform in China, offering a diverse range of services including music streaming, online karaoke, and live streaming. The companys platforms, such as QQ Music, Kugou Music, and Kuwo Music, provide users with personalized music experiences, while WeSing enables users to sing along with karaoke songs and share their performances. Additionally, the company offers long-form audio content, music-oriented video content, and music-centric live streaming services, creating an interactive online stage for performers and users.
The companys revenue streams are diversified across various channels, including music subscriptions, advertising services, sales of digital albums, customized artist-related merchandise, live performances, and concerts, as well as artist management services. With a strong presence in the Chinese market, Tencent Music Entertainment Group has been able to leverage its user base and content offerings to drive growth. Key performance indicators (KPIs) to watch include the number of paying users, average revenue per user (ARPU), and the growth rate of its advertising business.
To further analyze the companys performance, other relevant KPIs could include user engagement metrics, such as time spent on the platform, and the number of songs streamed. The companys ability to monetize its user base through subscription services and advertising will be crucial to its future growth. Furthermore, the competitive landscape of Chinas online music entertainment market, with players such as NetEase Cloud Music, will also be an important factor to consider. As a subsidiary of Tencent Holdings Limited, Tencent Music Entertainment Group benefits from the resources and expertise of its parent company, which can help drive its growth and expansion.
TME Stock Overview
| Market Cap in USD | 39,332m |
| Sub-Industry | Movies & Entertainment |
| IPO / Inception | 2018-12-12 |
TME Stock Ratings
| Growth Rating | 79.4% |
| Fundamental | 68.1% |
| Dividend Rating | 47.2% |
| Return 12m vs S&P 500 | 126% |
| Analyst Rating | 4.56 of 5 |
TME Dividends
| Dividend Yield 12m | 0.93% |
| Yield on Cost 5y | 1.15% |
| Annual Growth 5y | 14.62% |
| Payout Consistency | 100.0% |
| Payout Ratio | 4.2% |
TME Growth Ratios
| Growth Correlation 3m | 89.8% |
| Growth Correlation 12m | 88.8% |
| Growth Correlation 5y | 13.9% |
| CAGR 5y | 78.69% |
| CAGR/Max DD 3y | 2.05 |
| CAGR/Mean DD 3y | 6.68 |
| Sharpe Ratio 12m | 0.70 |
| Alpha | 0.01 |
| Beta | 0.974 |
| Volatility | 43.59% |
| Current Volume | 4019k |
| Average Volume 20d | 4502.1k |
| Stop Loss | 24.6 (-3.5%) |
| Signal | 0.74 |
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income (10.24b TTM) > 0 and > 6% of Revenue (6% = 1.82b TTM) |
| FCFTA 0.08 (>2.0%) and ΔFCFTA -2.62pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 47.51% (prev 64.30%; Δ -16.79pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.08 (>3.0%) and CFO 8.80b <= Net Income 10.24b (YES >=105%, WARN >=100%) |
| Net Debt (-4.96b) to EBITDA (9.16b) ratio: -0.54 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.87 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (1.55b) change vs 12m ago -1.14% (target <= -2.0% for YES) |
| Gross Margin 43.72% (prev 39.30%; Δ 4.42pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 31.82% (prev 33.24%; Δ -1.42pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 52.88 (EBITDA TTM 9.16b / Interest Expense TTM 163.0m) >= 6 (WARN >= 3) |
Altman Z'' 4.97
| (A) 0.13 = (Total Current Assets 30.88b - Total Current Liabilities 16.50b) / Total Assets 107.87b |
| (B) 0.23 = Retained Earnings (Balance) 25.04b / Total Assets 107.87b |
| (C) 0.09 = EBIT TTM 8.62b / Avg Total Assets 95.14b |
| (D) 2.60 = Book Value of Equity 55.90b / Total Liabilities 21.50b |
| Total Rating: 4.97 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 68.11
| 1. Piotroski 5.50pt = 0.50 |
| 2. FCF Yield 3.34% = 1.67 |
| 3. FCF Margin 29.08% = 7.27 |
| 4. Debt/Equity 0.07 = 2.50 |
| 5. Debt/Ebitda 0.63 = 2.20 |
| 6. ROIC - WACC -0.36% = -0.45 |
| 7. RoE 14.20% = 1.18 |
| 8. Rev. Trend 37.94% = 2.85 |
| 9. EPS Trend 8.03% = 0.40 |
What is the price of TME shares?
Over the past week, the price has changed by +0.87%, over one month by -0.12%, over three months by +35.10% and over the past year by +168.78%.
Is Tencent Music Entertainment a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of TME is around 26.82 USD . This means that TME is currently overvalued and has a potential downside of 5.26%.
Is TME a buy, sell or hold?
- Strong Buy: 20
- Buy: 10
- Hold: 2
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the TME price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 28.4 | 11.3% |
| Analysts Target Price | 28.4 | 11.3% |
| ValueRay Target Price | 30.1 | 18.3% |
Last update: 2025-09-13 05:05
TME Fundamental Data Overview
CCE Cash And Equivalents = 22.20b CNY (Cash And Short Term Investments, last quarter)
P/E Trailing = 27.8478
P/E Forward = 25.5102
P/S = 1.2993
P/B = 3.3521
P/EG = 1.0276
Beta = 0.536
Revenue TTM = 30.27b CNY
EBIT TTM = 8.62b CNY
EBITDA TTM = 9.16b CNY
Long Term Debt = 3.56b CNY (from longTermDebt, last quarter)
Short Term Debt = 2.25b CNY (from shortTermDebt, last quarter)
Debt = 5.81b CNY (Calculated: Short Term 2.25b + Long Term 3.56b)
Net Debt = -4.96b CNY (from netDebt column, last quarter)
Enterprise Value = 263.62b CNY (280.01b + Debt 5.81b - CCE 22.20b)
Interest Coverage Ratio = 52.88 (Ebit TTM 8.62b / Interest Expense TTM 163.0m)
FCF Yield = 3.34% (FCF TTM 8.80b / Enterprise Value 263.62b)
FCF Margin = 29.08% (FCF TTM 8.80b / Revenue TTM 30.27b)
Net Margin = 33.83% (Net Income TTM 10.24b / Revenue TTM 30.27b)
Gross Margin = 43.72% ((Revenue TTM 30.27b - Cost of Revenue TTM 17.04b) / Revenue TTM)
Tobins Q-Ratio = 4.72 (Enterprise Value 263.62b / Book Value Of Equity 55.90b)
Interest Expense / Debt = 0.21% (Interest Expense 12.0m / Debt 5.81b)
Taxrate = 18.40% (1.60b / 8.71b)
NOPAT = 7.03b (EBIT 8.62b * (1 - 18.40%))
Current Ratio = 1.87 (Total Current Assets 30.88b / Total Current Liabilities 16.50b)
Debt / Equity = 0.07 (Debt 5.81b / last Quarter total Stockholder Equity 83.88b)
Debt / EBITDA = 0.63 (Net Debt -4.96b / EBITDA 9.16b)
Debt / FCF = 0.66 (Debt 5.81b / FCF TTM 8.80b)
Total Stockholder Equity = 72.12b (last 4 quarters mean)
RoA = 9.49% (Net Income 10.24b, Total Assets 107.87b )
RoE = 14.20% (Net Income TTM 10.24b / Total Stockholder Equity 72.12b)
RoCE = 11.39% (Ebit 8.62b / (Equity 72.12b + L.T.Debt 3.56b))
RoIC = 9.04% (NOPAT 7.03b / Invested Capital 77.80b)
WACC = 9.40% (E(280.01b)/V(285.82b) * Re(9.59%)) + (D(5.81b)/V(285.82b) * Rd(0.21%) * (1-Tc(0.18)))
Shares Correlation 3-Years: -74.81 | Cagr: -0.30%
Discount Rate = 9.59% (= CAPM, Blume Beta Adj.)
[DCF Debug] Terminal Value 75.99% ; FCFE base≈8.83b ; Y1≈10.51b ; Y5≈16.50b
Fair Price DCF = 303.0 (DCF Value 214.67b / Shares Outstanding 708.4m; 5y FCF grow 20.24% → 3.0% )
EPS Correlation: 8.03 | EPS CAGR: 23.89% | SUE: 3.78 | # QB: True
Revenue Correlation: 37.94 | Revenue CAGR: 5.09%
Additional Sources for TME Stock
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Fund Manager Positions: Dataroma | Stockcircle