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: $11.27 to $11.64
• 50-Day Range: $9.85 to $13.72
• 52-Week Range: $7.93 to $15.77
• Volume: 5.69 million shs
• Average Volume: 8.59 million shs
• Market Capitalization: $19.75 billion
• P/E Ratio: 21.31
• Dividend Yield: 1.13%
• Price Target: $13.28
• Consensus Rating: Moderate Buy

Tencent Music Entertainment Group Stock Analysis - MarketRank™

Tencent Music Entertainment Group scored higher than 80% of companies evaluated by MarketBeat, and ranked 185th out of 663 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.4 / 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 2.71, and is based on 10 buy ratings, 4 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: 4.4 / 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 21.31, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 133.80.

Price to Earnings Ratio vs. Sector

The P/E ratio of Tencent Music Entertainment Group is 21.31, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 266.87.

Price to Earnings Growth Ratio

Tencent Music Entertainment Group has a PEG Ratio of 0.85. PEG Ratios below 1 indicate that a company could be undervalued.

Price to Book Value per Share Ratio

Tencent Music Entertainment Group has a P/B Ratio of 2.44. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

2.99% 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 2.3, 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 increased by 2.42%, indicating that investor sentiment is decreasing.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Yield

Tencent Music Entertainment Group pays a meaningful dividend of 1.15%, higher than 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 24.07%. 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 16.46% 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

2.99% 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 2.3, 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 increased by 2.42%, indicating that investor sentiment is decreasing.

News and Social Media

• Score: 2.4 / 5
• News Sentiment: 1.34

News Sentiment

Tencent Music Entertainment Group has a news sentiment score of 1.34. 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 0.67 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 5 news articles for Tencent Music Entertainment Group this week, compared to 6 articles on an average week.

Search Interest

Only 6 people have searched for TME on MarketBeat in the last 30 days. This is a decrease of -14% compared to the previous 30 days.

MarketBeat Follows

Only 4 people have added Tencent Music Entertainment Group to their MarketBeat watchlist in the last 30 days. This is a decrease of -20% compared to the previous 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 $9.01 on January 1st, 2024. Since then, TME shares have increased by 27.7% and is now trading at $11.51.
View the best growth stocks for 2024 here.

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

Tencent Music Entertainment Group (NYSE:TME) released its quarterly earnings data on Tuesday, November, 14th. The company reported $0.74 EPS for the quarter, beating analysts' consensus estimates of $0.11 by $0.63. The company's quarterly revenue was down 10.8% on a year-over-year basis.

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 a price of $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?

Tencent Music Entertainment Group's top institutional shareholders include Baillie Gifford & Co. (1.25%), Cantillon Capital Management LLC (1.08%), Krane Funds Advisors LLC (0.95%) and State Street Corp (0.75%).

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.
Compare Top Brokerages Here.

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: 11/28/2024
• Fiscal Year End: 12/31/2024
• Next Earnings (Estimated): 3/18/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Computer and Technology
• Industry: Radio broadcasting stations
• Sub-Industry: Communication
• Current Symbol: NYSE:TME
• CUSIP: N/A
• CIK: 1744676
• Web: www.tencentmusic.com
• Phone: 8675586013388
• Fax: N/A
• Employees: 5,185
• Year Founded: 2016

Price Target and Rating

• Average Stock Price Target: $13.28
• High Stock Price Target: $16.00
• Low Stock Price Target: $10.40
• Potential Upside/Downside: +15.4%
• Consensus Rating: Moderate Buy
• Rating Score (0-4): 2.71
• Research Coverage: 14 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $0.54
• Trailing P/E Ratio: 21.31
• Forward P/E Ratio: 18.27
• P/E Growth: 0.85
• Net Income: $695.20 million
• Net Margins: 21.53%
• Pretax Margin: 26.74%
• Return on Equity: 10.67%
• Return on Assets: 8.14%

Debt

• Debt-to-Equity Ratio: 0.09
• Current Ratio: 2.34
• Quick Ratio: 2.34

Sales & Book Value

• Annual Sales: $27.39 billion
• Price / Sales: 0.72
• Cash Flow: $0.53 per share
• Price / Cash Flow: 21.63
• Book Value: $4.71 per share
• Price / Book: 2.44

Miscellaneous

• Outstanding Shares: 1,716,077,000
• Free Float: N/A
• Market Cap: $19.75 billion
• Optionable: Optionable
• Beta: 0.67