Tencent Music Entertainment Group
NYSE:TME
Intrinsic Value
Tencent Music Entertainment Group engages in the operation of an online music entertainment platform. [ Read More ]
The intrinsic value of one TME stock under the Base Case scenario is 9.66 USD. Compared to the current market price of 11.06 USD, Tencent Music Entertainment Group is Overvalued by 13%.
Valuation Backtest
Tencent Music Entertainment Group
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Fundamental Analysis
Record Profitability and Growth Outlook
2023-Q4 Earnings Call
The company reached historic profitability with a net profit of RMB 5.2 billion and non-IFRS net profit of RMB 6.2 billion. In 2023, they foresee robust growth in the music industry, focusing on effective monetization, operational efficiency, and expansion into new areas like AIGC technology. The online music business saw a 39% year-over-year growth in revenue from subscriptions, reaching 107 million monthly subscribers. The user profile is concentrated in China's Tier 1-3 cities, predominantly aged 20-30. They are fully integrating long-form audio into their platforms, aiming to bolster its in-car market presence and dubbing 2023 the 'year of transformation' for this segment. There's an expectation of rising gross margins in Q1 2024, after a 5.3% year-over-year increase to 38.3% in Q4 due to rising subscription and advertising revenues, along with efficient content cost management.
Balance Sheet Decomposition
Tencent Music Entertainment Group
Current Assets | 29.9B |
Cash & Short-Term Investments | 23.5B |
Receivables | 2.9B |
Other Current Assets | 3.5B |
Non-Current Assets | 45.6B |
Long-Term Investments | 11.1B |
PP&E | 3.3B |
Intangibles | 21.6B |
Other Non-Current Assets | 9.6B |
Current Liabilities | 12B |
Accounts Payable | 5B |
Other Current Liabilities | 7B |
Non-Current Liabilities | 7.6B |
Long-Term Debt | 5.9B |
Other Non-Current Liabilities | 1.7B |
Earnings Waterfall
Tencent Music Entertainment Group
Revenue
|
27.8B
CNY
|
Cost of Revenue
|
-18B
CNY
|
Gross Profit
|
9.8B
CNY
|
Operating Expenses
|
-5B
CNY
|
Operating Income
|
4.8B
CNY
|
Other Expenses
|
143m
CNY
|
Net Income
|
4.9B
CNY
|
Free Cash Flow Analysis
Tencent Music Entertainment Group
What is Free Cash Flow?
TME Profitability Score
Profitability Due Diligence
Tencent Music Entertainment Group's profitability score is 54/100. The higher the profitability score, the more profitable the company is.
Score
Tencent Music Entertainment Group's profitability score is 54/100. The higher the profitability score, the more profitable the company is.
TME Solvency Score
Solvency Due Diligence
Tencent Music Entertainment Group's solvency score is 69/100. The higher the solvency score, the more solvent the company is.
Score
Tencent Music Entertainment Group's solvency score is 69/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
TME Price Targets Summary
Tencent Music Entertainment Group
According to Wall Street analysts, the average 1-year price target for TME is 10.2 USD with a low forecast of 8.08 USD and a high forecast of 13.65 USD.
Shareholder Return
TME Price
Tencent Music Entertainment Group
Average Annual Return | -2.97% |
Standard Deviation of Annual Returns | 53.12% |
Max Drawdown | -90% |
Market Capitalization | 19B USD |
Shares Outstanding | 1 716 080 000 |
Percentage of Shares Shorted | 1.83% |
TME News
Last Important Events
Tencent Music Entertainment Group
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Sentiment Analysis
Tencent Music Entertainment Group
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
Tencent Music Entertainment Group engages in the operation of an online music entertainment platform. The company is headquartered in Shenzhen, Guangdong. The company went IPO on 2018-12-12. The firm's platform comprises online music, online karaoke and music-centric live streaming services, supported by content offerings, technology and data. The firm's main platform includes QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, Kuwo Live and others.
Contact
IPO
Employees
Officers
The intrinsic value of one TME stock under the Base Case scenario is 9.66 USD.
Compared to the current market price of 11.06 USD, Tencent Music Entertainment Group is Overvalued by 13%.