1-Star Price
INVESTOR
5-Star Price
INVESTOR
Economic Moat
INVESTOR
Capital Allocation
INVESTOR
Narrow-moat Tencent Music's first-quarter results slightly exceeded Refinitiv consensus expectations, and management is optimistic about margin expansion for the rest of 2023. Overall, we maintain our USD 12.50 fair value estimate, and we continue to view shares as undervalued. We think investors underestimate the size of Tencent Music's long-term subscriber base and overlook margin expansion opportunities as revenue grows.
TME is the largest online music service provider in China. It was founded in 2016 with the business combination of QQ Music (founded in 2005), Kuwo Music (founded in 2005) and Kugou Music (founded in 2004) streaming platforms. Tencent is the largest shareholder of TME with over 50% shares and over 90% voting rights held. TME also provides social entertainment services, including music live audio/video broadcasts and online concert services through the three platforms mentioned above, and online karaoke through an independent platform WeSing.
Morningstar analysts hand-select direct competitors or comparable companies to provide context on the strength and durability of TME’s competitive advantage.
Tencent Music Entertainment Group ADR
XNYS: TME
| Sirius XM Holdings Inc
XNAS: SIRI
| Spotify Technology SA
XNYS: SPOT
| Cloud Music Inc
XHKG: 09899
| |
Price
| 7.78 | 3.81 | 150.48 | 82.25 |
Currency
| USD | USD | USD | HKD |
Change
| +$0.15 (1.97%) | −$0.07 (1.80%) | +$1.01 (0.68%) | +$1.50 (1.86%) |
Market Cap
| 13.35 Bil | 14.74 Bil | 29.11 Bil | 17.43 Bil |
Industry
| Internet Content & Information | Entertainment | Internet Content & Information | Internet Content & Information |
Sector
|
Communication Services
|
Communication Services
|
Communication Services
|
Communication Services
|
* Trading data in this section is delayed by at least 15 minutes.
No. TME does not currently have a forward dividend yield.
Dividend yield allows investors, particularly those interested in dividend-paying stocks,
to compare the relationship between a stock’s price and how it rewards stockholders through dividends.
The formula for calculating dividend yield is to divide the annual dividend paid per share by the stock price.
Learn more about dividend yield.
TME’s market cap is 13.35 Bil.
Market capitalization is calculated by taking a company’s share price and multiplying it by the total number of shares.
It’s often used to measure a company’s size. In the Morningstar Style Box, large-cap names account for the
largest 70% of U.S. stocks, mid-cap names account for the largest 70–90%, and small-cap names are the remaining 10% of companies.
Learn more about market capitalization.
TME’s stock style is Large Core.
Style is an investment factor that has a meaningful impact on investment risk and returns.
Style is calculated by combining value and growth scores, which are first individually calculated.
High-growth stocks tend to represent the technology, healthcare, and communications sectors. They rarely distribute dividends to shareholders, opting for reinvestment in their businesses. More value-oriented stocks tend to represent financial services, utilities, and energy stocks. These are established companies that reliably pay dividends.
Learn more about style.
TME’s price/sales is 2.97.
Price/sales represents the amount an investor is willing to pay for a dollar generated from
a particular company’s sales or revenues.
TME’s price/forward earnings is 20.36.
Forward P/E gives some indication of how cheap or expensive a stock is compared with consensus earnings estimates.
The lower the Forward P/E, the cheaper the stock.
TME’s price/book is 1.79.
Price/book ratio can tell investors approximately how much they’re paying for a company’s assets,
based on historical, rather than current, valuations. Historical valuations generally do not reflect
a company’s current market value. Value investors frequently look for companies that have low price/book ratios.
See TME’s valuation ratios compared to the Market Index.
TME’s beta can be found in Trading Information at the top of this page.
A stock’s beta measures how closely tied its price movements have been to the performance of the overall market.
Compare TME’s historical performance against its industry peers and the overall market.
