Now trading at a price of $11.85, Tencent Music Entertainment has moved 2.3% so far today.
Tencent Music Entertainment returned gains of 53.3% last year, with its stock price reaching a high of $11.95 and a low of $5.7. Over the same period, the stock outperformed the S&P 500 index by 26.7%. More recently, the company's 50-day average price was $10.32. Tencent Music Entertainment Group operates online music entertainment platforms to provide music streaming, online karaoke, and live streaming services in the People's Republic of China. The Large-Cap Consumer Discretionary company is headquartered in Shenzhen, China. Tencent Music Entertainment has not offered a dividend during the last year.
Generally Positive Cash Flows but Slimmer Gross Margins to the Industry Average of 40.03%:
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $10,981 | $18,985 | $25,434 | $29,153 | $31,244 | $28,339 |
| Gross Margins | 35% | 38% | 34% | 32% | 30% | 31% |
| Net Margins | 12% | 10% | 16% | 14% | 10% | 14% |
| Net Income (M) | $1,319 | $1,832 | $3,977 | $4,176 | $3,215 | $3,839 |
| Net Interest Expense (M) | n/a | $35 | $64 | $97 | $121 | $108 |
| Free Cash Flow (M) | $2,500 | $5,632 | $6,200 | $4,885 | $5,239 | $7,481 |
| Current Ratio | 2.12 | 3.33 | 3.17 | 3.3 | 2.56 | 2.27 |
an Exceptionally Low P/B Ratio but Too Expensive:
Tencent Music Entertainment has a trailing twelve month P/E ratio of 24.6, compared to an average of 22.96 for the Consumer Discretionary sector. Based on its EPS guidance of $0.73, the company has a forward P/E ratio of 14.1. In contrast, the market is likely undervaluing Tencent Music Entertainment in terms of its equity because its P/B ratio is 0.33 while the sector average is 4.24. The company's shares are currently trading 24.8% below their Graham number.
Tencent Music Entertainment Has an Average Rating of Buy:
The 27 analysts following Tencent Music Entertainment have set target prices ranging from $7.5 to $15.0 per share, for an average of $12.01 with a buy rating. The company is trading -1.3% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Tencent Music Entertainment has an average amount of shares sold short because 2.1% of the company's shares are sold short. Institutions own 50.6% of the company's shares, and the insider ownership rate stands at 0.0%, suggesting a small amount of insider investors. The largest shareholder is Blackrock Inc., whose 5% stake in the company is worth $489,098,330.
