Tencent Music Entertainment Group (TME) Stock Price, News & Analysis

Company Overview

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. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with a diverse audience base; and Lazy Audio, an audio platform. In addition, it sells music-related merchandise; and artist-related merchandise, such as branded apparel, posters and art prints, and accessories and integrated and technology-driven music solutions that help IoT device manufacturers build and operate their branded music services on their IoT devices, as well as offers advertising services across its online karaoke platform and online music apps. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.

Key Stats

• Today's Range: $20.06 to $20.72
• 50-Day Range: $16.83 to $22.37
• 52-Week Range: $9.41 to $22.50
• Volume: 4.72 million shs
• Average Volume: 5.84 million shs
• Market Capitalization: $35.23 billion
• P/E Ratio: 24.44
• Dividend Yield: 0.83%
• Price Target: $16.60
• Consensus Rating: Moderate Buy

Tencent Music Entertainment Group Stock Analysis - MarketRank™

Tencent Music Entertainment Group scored higher than 50% of companies evaluated by MarketBeat, and ranked 201st out of 280 stocks in the consumer discretionary sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 1.5 / 5
• Analyst Rating: Moderate Buy

Consensus Rating

Tencent Music Entertainment Group has received a consensus rating of Moderate Buy. The company's average rating score is 2.91, and is based on 8 buy ratings, 2 hold ratings, and no sell ratings.

Amount of Analyst Coverage

Tencent Music Entertainment Group has only been the subject of 3 research reports in the past 90 days.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 25.40%

Earnings Growth

Earnings for Tencent Music Entertainment Group are expected to grow by 25.40% in the coming year, from $0.63 to $0.79 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Tencent Music Entertainment Group is 24.44, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 28.12.

Price to Earnings Ratio vs. Sector

The P/E ratio of Tencent Music Entertainment Group is 24.44, which means that it is trading at a more expensive P/E ratio than the Consumer Discretionary sector average P/E ratio of about 19.15.

Price to Book Value per Share Ratio

Tencent Music Entertainment Group has a P/B Ratio of 3.63. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 4.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

3.93% of the float of Tencent Music Entertainment Group has been sold short.

Short Interest Ratio / Days to Cover

Tencent Music Entertainment Group has a short interest ratio ("days to cover") of 3.3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Tencent Music Entertainment Group has recently decreased by 0.88%, indicating that investor sentiment is improving.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

Tencent Music Entertainment Group has a dividend yield of 0.85%, which is in the bottom 25% of all stocks that pay dividends.

Dividend Growth

Tencent Music Entertainment Group does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Tencent Music Entertainment Group is 20.24%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Tencent Music Entertainment Group will have a dividend payout ratio of 21.52% next year. This indicates that Tencent Music Entertainment Group will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

3.93% of the float of Tencent Music Entertainment Group has been sold short.

Short Interest Ratio / Days to Cover

Tencent Music Entertainment Group has a short interest ratio ("days to cover") of 3.3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Tencent Music Entertainment Group has recently decreased by 0.88%, indicating that investor sentiment is improving.

News and Social Media

• Score: 3.2 / 5
• News Sentiment: 1.69

News Sentiment

Tencent Music Entertainment Group has a news sentiment score of 1.69. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.61 average news sentiment score of Consumer Discretionary companies.

News Coverage This Week

MarketBeat has tracked 8 news articles for Tencent Music Entertainment Group this week, compared to 8 articles on an average week.

Search Interest

7 people have searched for TME on MarketBeat in the last 30 days.

Company Ownership

• Score: 0.0 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Tencent Music Entertainment Group insiders have not sold or bought any company stock.

Percentage Held by Institutions

Only 24.32% of the stock of Tencent Music Entertainment Group is held by institutions.

TME Stock Analysis - Frequently Asked Questions

How have TME shares performed this year?

Tencent Music Entertainment Group's stock was trading at $11.35 at the beginning of the year. Since then, TME shares have increased by 80.9% and is now trading at $20.53.

How were Tencent Music Entertainment Group's earnings last quarter?

Tencent Music Entertainment Group Sponsored ADR (NYSE:TME) announced its earnings results on Tuesday, November, 14th. The company reported $0.74 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.63. The business's revenue was down 10.8% on a year-over-year basis.
Read the conference call transcript.

When did Tencent Music Entertainment Group IPO?

Tencent Music Entertainment Group (TME) raised $1.1 billion in an IPO on Wednesday, December 12th 2018. The company issued 82,000,000 shares at $13.00-$15.00 per share. Morgan Stanley, Goldman Sachs (Asia), J.P. Morgan, Deutsche Bank Securities and BofA Merrill Lynch acted as the underwriters for the IPO and Credit Suisse, CICC, Allen & Company, BOCI, China Renaissance. HSBC, KeyBanc Capital Markets and Stifel were co-managers.

Who are Tencent Music Entertainment Group's major shareholders?

Top institutional shareholders of Tencent Music Entertainment Group include Cantillon Capital Management LLC (1.09%), Allspring Global Investments Holdings LLC (0.28%), Public Employees Retirement System of Ohio (0.13%) and Robeco Institutional Asset Management B.V. (0.11%).

How do I buy shares of Tencent Music Entertainment Group?

Shares of TME stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Tencent Music Entertainment Group own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Tencent Music Entertainment Group investors own include Zomedica (ZOM), NVIDIA (NVDA), Meta Platforms (META), Alibaba Group (BABA), Advanced Micro Devices (AMD), NIO (NIO) and PayPal (PYPL).

Company Calendar

• Last Earnings: 11/14/2023
• Today: 8/02/2025
• Next Earnings (Estimated): 8/12/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Consumer Discretionary
• Industry: MEDIA CONGLOM
• Sub-Industry: Communication
• Current Symbol: NYSE:TME
• CIK: 1744676
• Web: www.tencentmusic.com
• Phone: 8675586013388
• Fax: N/A
• Employees: 5,353
• Year Founded: 2016

Price Target and Rating

• Average Price Target for Tencent Music Entertainment Group: $16.60
• High Price Target: $26.20
• Low Price Target: $13.00
• Potential Upside/Downside: -19.1%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.91
• Research Coverage: 11 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.84
• Trailing P/E Ratio: 30.66
• Forward P/E Ratio: 32.59
• P/E Growth: N/A
• Net Income: $924.18 million
• Net Margins: 32.73%
• Pretax Margin: 30.67%
• Return on Equity: 10.95%
• Return on Assets: 8.40%

Debt

• Debt-to-Equity Ratio: 0.05
• Current Ratio: 1.83
• Quick Ratio: 1.83

Sales & Book Value

• Annual Sales: $3.89 billion
• Price / Sales: 9.05
• Cash Flow: $0.65 per share
• Price / Cash Flow: 31.77
• Book Value: $5.65 per share
• Price / Book: 3.63

Miscellaneous

• Outstanding Shares: 1,716,080,000
• Free Float: N/A
• Market Cap: $35.23 billion
• Optionable: Optionable
• Beta: 0.50