Key Factors to Evaluate Before Investing in Tencent Music Entertainment (TME)

After gains of 9.8% this afternoon, Tencent Music Entertainment shares are now trading at $14.65. Read below for the essential facts about this stock:

  • Tencent Music Entertainment has logged a 67.6% 52 week change, compared to 26.3% for the S&P 500

  • TME has an average analyst rating of buy and is 19.9% away from its mean target price of $12.22 per share

  • Its trailing earnings per share (EPS) is $0.43, which brings its trailing Price to Earnings (P/E) ratio to 34.1. The Consumer Discretionary sector's average P/E ratio is 22.96

  • The company's forward earnings per share (EPS) is $0.73 and its forward P/E ratio is 20.1

  • The company has a Price to Book (P/B) ratio of 0.41 in contrast to the Consumer Discretionary sector's average P/B ratio is 4.24

  • The current ratio is currently 2.3, which consists in its liquid assets divided by any liabilities due within in the next 12 months

  • TME has reported YOY quarterly earnings growth of 13.9% and gross profit margins of 0.4%

  • The company's free cash flow for the last fiscal year was $7.48 Billion and the average free cash flow growth rate is 13.0%

  • Tencent Music Entertainment's revenues have an average growth rate of 13.6% with operating expenses growing at 18.5%. The company's current operating margins stand at 15.7%

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.