(TME) Tencent Music Entertainment - Overview
Sector: Communication ServicesIndustry: Internet Content & Information | Exchange NYSE (USA) | Currency USD | Market Cap: 15.983m | Total Return -34.6% in 12m
Stock: Music Streaming, Karaoke, Live Streaming, Audio Content, Merchandise
Total Rating 37
Risk 86
Buy Signal -1.06
| Risk 5d forecast | |
|---|---|
| Volatility | 51.7% |
| Relative Tail Risk | -18.3% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.70 |
| Alpha | -48.85 |
| Character TTM | |
|---|---|
| Beta | 1.180 |
| Beta Downside | 1.670 |
| Drawdowns 3y | |
|---|---|
| Max DD | 64.23% |
| CAGR/Max DD | 0.07 |
EPS (Earnings per Share)
Revenue
Description: TME Tencent Music Entertainment March 05, 2026
Tencent Music Entertainment Group (TME) operates music entertainment platforms in China. The companys services include music streaming (QQ Music, Kugou Music, Kuwo Music), online karaoke (WeSing), and live streaming (Kugou Live, Kuwo Live).
TMEs offerings extend beyond music to long-form audio content like audiobooks and podcasts, and music-oriented video. The company generates revenue through music subscriptions, advertising, and the sale of artist merchandise. The digital music market in China is substantial, driven by a large internet user base and increasing digitalization of content consumption.
TME provides artist management and content licensing services, integrating various aspects of the music industry. As a subsidiary of Tencent Holdings Limited, TME benefits from a broader ecosystem. Further research on ValueRay can provide deeper insights into TMEs financial performance and market position.
Headlines to watch out for
- Increased music subscription revenue drives growth
- Live streaming and social entertainment revenue impacts profitability
- Regulatory scrutiny on content and platforms poses risk
- Competition from rival streaming services affects market share
- Advertising revenue fluctuations tied to economic conditions
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income: 10.75b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.10 > 0.02 and ΔFCF/TA -0.56 > 1.0 |
| NWC/Revenue: 55.87% < 20% (prev 63.36%; Δ -7.49% < -1%) |
| CFO/TA 0.10 > 3% & CFO 10.32b > Net Income 10.75b |
| Net Debt (-4.67b) to EBITDA (13.14b): -0.36 < 3 |
| Current Ratio: 2.22 > 1.5 & < 3 |
| Outstanding Shares: last quarter (1.55b) vs 12m ago -0.11% < -2% |
| Gross Margin: 57.00% > 18% (prev 0.42%; Δ 5.66k% > 0.5%) |
| Asset Turnover: 33.16% > 50% (prev 31.40%; Δ 1.76% > 0%) |
| Interest Coverage Ratio: 83.30 > 6 (EBITDA TTM 13.14b / Interest Expense TTM 125.5m) |
Altman Z'' 4.39
| A: 0.17 (Total Current Assets 32.48b - Total Current Liabilities 14.60b) / Total Assets 102.59b |
| B: 0.29 (Retained Earnings 29.40b / Total Assets 102.59b) |
| C: 0.11 (EBIT TTM 10.45b / Avg Total Assets 96.52b) |
| D: 1.51 (Book Value of Equity 29.40b / Total Liabilities 19.48b) |
| Altman-Z'' Score: 4.39 = AA |
Beneish M -3.11
| DSRI: 0.99 (Receivables 3.91b/3.51b, Revenue 32.01b/28.40b) |
| GMI: 0.74 (GM 57.00% / 42.34%) |
| AQI: 1.10 (AQ_t 0.67 / AQ_t-1 0.61) |
| SGI: 1.13 (Revenue 32.01b / 28.40b) |
| TATA: 0.00 (NI 10.75b - CFO 10.32b) / TA 102.59b) |
| Beneish M-Score: -3.11 (Cap -4..+1) = AA |
What is the price of TME shares?
As of March 30, 2026, the stock is trading at USD 9.43 with a total of 10,266,511 shares traded.
Over the past week, the price has changed by -5.42%, over one month by -35.41%, over three months by -46.63% and over the past year by -34.56%.
Over the past week, the price has changed by -5.42%, over one month by -35.41%, over three months by -46.63% and over the past year by -34.56%.
Is TME a buy, sell or hold?
Tencent Music Entertainment has received a consensus analysts rating of 4.56.
Therefore, it is recommended to buy TME.
- StrongBuy: 20
- Buy: 10
- Hold: 2
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the TME price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 18.4 | 95.5% |
| Analysts Target Price | 18.4 | 95.5% |
TME Fundamental Data Overview March 28, 2026
P/E Trailing = 9.2136
P/E Forward = 10.1626
P/S = 0.4858
P/B = 1.285
P/EG = 0.8761
Revenue TTM = 32.01b USD
EBIT TTM = 10.45b USD
EBITDA TTM = 13.14b USD
Long Term Debt = 3.53b USD (from longTermDebt, two quarters ago)
Short Term Debt = 116.1m USD (from shortTermDebt, last quarter)
Debt = 3.82b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -4.67b USD (from netDebt column, last quarter)
Enterprise Value = -4.55b USD (15.98b + Debt 3.82b - CCE 24.35b)
Interest Coverage Ratio = 83.30 (Ebit TTM 10.45b / Interest Expense TTM 125.5m)
EV/FCF = -0.44x (Enterprise Value -4.55b / FCF TTM 10.32b)
FCF Yield = -226.9% (FCF TTM 10.32b / Enterprise Value -4.55b)
FCF Margin = 32.24% (FCF TTM 10.32b / Revenue TTM 32.01b)
Net Margin = 33.60% (Net Income TTM 10.75b / Revenue TTM 32.01b)
Gross Margin = 57.00% ((Revenue TTM 32.01b - Cost of Revenue TTM 13.76b) / Revenue TTM)
Gross Margin QoQ = none% (prev 43.51%)
Tobins Q-Ratio = -0.04 (set to none) (Enterprise Value -4.55b / Total Assets 102.59b)
Interest Expense / Debt = 2.20% (Interest Expense 84.0m / Debt 3.82b)
Taxrate = 17.99% (433.6m / 2.41b)
NOPAT = 8.57b (EBIT 10.45b * (1 - 17.99%))
Current Ratio = 2.22 (Total Current Assets 32.48b / Total Current Liabilities 14.60b)
Debt / Equity = 0.05 (Debt 3.82b / totalStockholderEquity, last quarter 80.34b)
Debt / EBITDA = -0.36 (Net Debt -4.67b / EBITDA 13.14b)
Debt / FCF = -0.45 (Net Debt -4.67b / FCF TTM 10.32b)
Total Stockholder Equity = 80.05b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.14% (Net Income 10.75b / Total Assets 102.59b)
RoE = 13.43% (Net Income TTM 10.75b / Total Stockholder Equity 80.05b)
RoCE = 12.51% (EBIT 10.45b / Capital Employed (Equity 80.05b + L.T.Debt 3.53b))
RoIC = 10.09% (NOPAT 8.57b / Invested Capital 84.94b)
WACC = 8.53% (E(15.98b)/V(19.80b) * Re(10.13%) + D(3.82b)/V(19.80b) * Rd(2.20%) * (1-Tc(0.18)))
Discount Rate = 10.13% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -0.58%
[DCF] Terminal Value 79.36% ; FCFF base≈10.03b ; Y1≈11.94b ; Y5≈18.74b
[DCF] Fair Price = 419.3 (EV 292.34b - Net Debt -4.67b = Equity 297.02b / Shares 708.4m; r=8.53% [WACC]; 5y FCF grow 20.24% → 3.0% )
EPS Correlation: 37.98 | EPS CAGR: 33.60% | SUE: 1.26 | # QB: 1
Revenue Correlation: 43.86 | Revenue CAGR: 4.17% | SUE: -0.08 | # QB: 0
EPS next Quarter (2026-06-30): EPS=1.73 | Chg7d=-0.056 | Chg30d=-0.070 | Revisions Net=-2 | Analysts=6
EPS current Year (2026-12-31): EPS=6.63 | Chg7d=-0.303 | Chg30d=-0.316 | Revisions Net=-17 | Growth EPS=+7.4% | Growth Revenue=+10.0%
EPS next Year (2027-12-31): EPS=7.34 | Chg7d=-0.812 | Chg30d=-0.769 | Revisions Net=-14 | Growth EPS=+10.7% | Growth Revenue=+10.1%
[Analyst] Revisions Ratio: -0.50 (1 Up / 3 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = -0.7% (Discount Rate 10.1% - Earnings Yield 10.9%)
[Growth] Growth Spread = +10.3% (Analyst 9.5% - Implied -0.7%)
P/E Forward = 10.1626
P/S = 0.4858
P/B = 1.285
P/EG = 0.8761
Revenue TTM = 32.01b USD
EBIT TTM = 10.45b USD
EBITDA TTM = 13.14b USD
Long Term Debt = 3.53b USD (from longTermDebt, two quarters ago)
Short Term Debt = 116.1m USD (from shortTermDebt, last quarter)
Debt = 3.82b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -4.67b USD (from netDebt column, last quarter)
Enterprise Value = -4.55b USD (15.98b + Debt 3.82b - CCE 24.35b)
Interest Coverage Ratio = 83.30 (Ebit TTM 10.45b / Interest Expense TTM 125.5m)
EV/FCF = -0.44x (Enterprise Value -4.55b / FCF TTM 10.32b)
FCF Yield = -226.9% (FCF TTM 10.32b / Enterprise Value -4.55b)
FCF Margin = 32.24% (FCF TTM 10.32b / Revenue TTM 32.01b)
Net Margin = 33.60% (Net Income TTM 10.75b / Revenue TTM 32.01b)
Gross Margin = 57.00% ((Revenue TTM 32.01b - Cost of Revenue TTM 13.76b) / Revenue TTM)
Gross Margin QoQ = none% (prev 43.51%)
Tobins Q-Ratio = -0.04 (set to none) (Enterprise Value -4.55b / Total Assets 102.59b)
Interest Expense / Debt = 2.20% (Interest Expense 84.0m / Debt 3.82b)
Taxrate = 17.99% (433.6m / 2.41b)
NOPAT = 8.57b (EBIT 10.45b * (1 - 17.99%))
Current Ratio = 2.22 (Total Current Assets 32.48b / Total Current Liabilities 14.60b)
Debt / Equity = 0.05 (Debt 3.82b / totalStockholderEquity, last quarter 80.34b)
Debt / EBITDA = -0.36 (Net Debt -4.67b / EBITDA 13.14b)
Debt / FCF = -0.45 (Net Debt -4.67b / FCF TTM 10.32b)
Total Stockholder Equity = 80.05b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.14% (Net Income 10.75b / Total Assets 102.59b)
RoE = 13.43% (Net Income TTM 10.75b / Total Stockholder Equity 80.05b)
RoCE = 12.51% (EBIT 10.45b / Capital Employed (Equity 80.05b + L.T.Debt 3.53b))
RoIC = 10.09% (NOPAT 8.57b / Invested Capital 84.94b)
WACC = 8.53% (E(15.98b)/V(19.80b) * Re(10.13%) + D(3.82b)/V(19.80b) * Rd(2.20%) * (1-Tc(0.18)))
Discount Rate = 10.13% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -0.58%
[DCF] Terminal Value 79.36% ; FCFF base≈10.03b ; Y1≈11.94b ; Y5≈18.74b
[DCF] Fair Price = 419.3 (EV 292.34b - Net Debt -4.67b = Equity 297.02b / Shares 708.4m; r=8.53% [WACC]; 5y FCF grow 20.24% → 3.0% )
EPS Correlation: 37.98 | EPS CAGR: 33.60% | SUE: 1.26 | # QB: 1
Revenue Correlation: 43.86 | Revenue CAGR: 4.17% | SUE: -0.08 | # QB: 0
EPS next Quarter (2026-06-30): EPS=1.73 | Chg7d=-0.056 | Chg30d=-0.070 | Revisions Net=-2 | Analysts=6
EPS current Year (2026-12-31): EPS=6.63 | Chg7d=-0.303 | Chg30d=-0.316 | Revisions Net=-17 | Growth EPS=+7.4% | Growth Revenue=+10.0%
EPS next Year (2027-12-31): EPS=7.34 | Chg7d=-0.812 | Chg30d=-0.769 | Revisions Net=-14 | Growth EPS=+10.7% | Growth Revenue=+10.1%
[Analyst] Revisions Ratio: -0.50 (1 Up / 3 Down within 30d for Next Quarter)
[Growth] Implied Growth Rate = -0.7% (Discount Rate 10.1% - Earnings Yield 10.9%)
[Growth] Growth Spread = +10.3% (Analyst 9.5% - Implied -0.7%)