HELLO GROUP INC -SPN ADR (MOMO) Stock Fundamental Analysis
NASDAQ:MOMO - Nasdaq - US4234031049 - ADR - Currency: USD
We assign a fundamental rating of 5 out of 10 to MOMO. MOMO was compared to 70 industry peers in the Interactive Media & Services industry. Both the profitability and the financial health of MOMO get a neutral evaluation. Nothing too spectacular is happening here. MOMO is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MOMO was profitable.
In the past year MOMO had a positive cash flow from operations.
Of the past 5 years MOMO 4 years were profitable.
In the past 5 years MOMO always reported a positive cash flow from operatings.
1.2 Ratios
MOMO has a better Return On Assets (5.66%) than 78.57% of its industry peers.
The Return On Equity of MOMO (9.09%) is better than 81.43% of its industry peers.
With a decent Return On Invested Capital value of 6.93%, MOMO is doing good in the industry, outperforming 80.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MOMO is below the industry average of 11.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 9.09% | ||
| ROIC | 6.93% |
ROA(3y)9.03%
ROA(5y)4.01%
ROE(3y)13.15%
ROE(5y)5.18%
ROIC(3y)9.02%
ROIC(5y)8.67%
1.3 Margins
MOMO has a better Profit Margin (9.84%) than 81.43% of its industry peers.
MOMO's Profit Margin has declined in the last couple of years.
MOMO has a better Operating Margin (14.51%) than 78.57% of its industry peers.
MOMO's Operating Margin has declined in the last couple of years.
MOMO has a Gross Margin of 38.96%. This is in the lower half of the industry: MOMO underperforms 74.29% of its industry peers.
MOMO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.51% | ||
| PM (TTM) | 9.84% | ||
| GM | 38.96% |
OM growth 3Y1.76%
OM growth 5Y-7.03%
PM growth 3YN/A
PM growth 5Y-10.83%
GM growth 3Y-2.84%
GM growth 5Y-4.9%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MOMO is creating some value.
MOMO has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of MOMO is 3.19, which is a good value as it means it would take MOMO, 3.19 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MOMO (3.19) is better than 64.29% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that MOMO is not too dependend on debt financing.
MOMO has a Debt to Equity ratio of 0.21. This is comparable to the rest of the industry: MOMO outperforms 47.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | N/A |
ROIC/WACC0.97
WACC7.12%
2.3 Liquidity
MOMO has a Current Ratio of 1.88. This is a normal value and indicates that MOMO is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MOMO (1.88) is comparable to the rest of the industry.
MOMO has a Quick Ratio of 1.88. This is a normal value and indicates that MOMO is financially healthy and should not expect problems in meeting its short term obligations.
MOMO has a Quick ratio of 1.88. This is comparable to the rest of the industry: MOMO outperforms 48.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
The earnings per share for MOMO have decreased strongly by -40.21% in the last year.
MOMO shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -19.75% yearly.
MOMO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -11.99%.
MOMO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.09% yearly.
EPS 1Y (TTM)-40.21%
EPS 3Y-10.84%
EPS 5Y-19.75%
EPS Q2Q%-50.76%
Revenue 1Y (TTM)-11.99%
Revenue growth 3Y-10.18%
Revenue growth 5Y-9.09%
Sales Q2Q%-12.2%
3.2 Future
The Earnings Per Share is expected to grow by 9.47% on average over the next years. This is quite good.
MOMO is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.04% yearly.
EPS Next Y16.94%
EPS Next 2Y11.16%
EPS Next 3Y9.47%
EPS Next 5YN/A
Revenue Next Year-3.42%
Revenue Next 2Y-0.46%
Revenue Next 3Y1.04%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 6.59 indicates a rather cheap valuation of MOMO.
Based on the Price/Earnings ratio, MOMO is valued cheaply inside the industry as 91.43% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.19, MOMO is valued rather cheaply.
With a Price/Forward Earnings ratio of 5.63, the valuation of MOMO can be described as very cheap.
Based on the Price/Forward Earnings ratio, MOMO is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.13. MOMO is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 5.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MOMO is valued cheaply inside the industry as 97.14% of the companies are valued more expensively.
92.86% of the companies in the same industry are more expensive than MOMO, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.23 | ||
| EV/EBITDA | 0.53 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.39
PEG (5Y)N/A
EPS Next 2Y11.16%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
MOMO has a Yearly Dividend Yield of 1.52%.
MOMO's Dividend Yield is rather good when compared to the industry average which is at 3.06. MOMO pays more dividend than 92.86% of the companies in the same industry.
MOMO's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
5.2 History
MOMO has been paying a dividend for over 5 years, so it has already some track record.
The dividend of MOMO decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
68.90% of the earnings are spent on dividend by MOMO. This is not a sustainable payout ratio.
DP68.9%
EPS Next 2Y11.16%
EPS Next 3Y9.47%
6.13
+0.14 (+2.34%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners73.18%
Inst Owner Change-3.31%
Ins OwnersN/A
Ins Owner Change0%
Market Cap984.90M
Analysts78.67
Price Target9.13 (48.94%)
Short Float %6.23%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
Yearly Dividend0.78
Dividend Growth(5Y)N/A
DP68.9%
Div Incr Years1
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)7.51%
Min EPS beat(2)-27.48%
Max EPS beat(2)42.51%
EPS beat(4)2
Avg EPS beat(4)-13.48%
Min EPS beat(4)-85.5%
Max EPS beat(4)42.51%
EPS beat(8)6
Avg EPS beat(8)1.56%
EPS beat(12)10
Avg EPS beat(12)8.53%
EPS beat(16)13
Avg EPS beat(16)9.15%
Revenue beat(2)1
Avg Revenue beat(2)0.02%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)0.78%
Revenue beat(4)2
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)1.32%
Revenue beat(8)6
Avg Revenue beat(8)0.75%
Revenue beat(12)7
Avg Revenue beat(12)0.35%
Revenue beat(16)9
Avg Revenue beat(16)0.22%
PT rev (1m)0%
PT rev (3m)11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-13.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.59 | ||
| Fwd PE | 5.63 | ||
| P/S | 0.67 | ||
| P/FCF | 5.23 | ||
| P/OCF | 4.32 | ||
| P/B | 0.62 | ||
| P/tB | 0.63 | ||
| EV/EBITDA | 0.53 |
EPS(TTM)0.93
EY15.17%
EPS(NY)1.09
Fwd EY17.75%
FCF(TTM)1.17
FCFY19.13%
OCF(TTM)1.42
OCFY23.16%
SpS9.15
BVpS9.9
TBVpS9.71
PEG (NY)0.39
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.66% | ||
| ROE | 9.09% | ||
| ROCE | 12.79% | ||
| ROIC | 6.93% | ||
| ROICexc | 12.11% | ||
| ROICexgc | 12.45% | ||
| OM | 14.51% | ||
| PM (TTM) | 9.84% | ||
| GM | 38.96% | ||
| FCFM | 12.82% |
ROA(3y)9.03%
ROA(5y)4.01%
ROE(3y)13.15%
ROE(5y)5.18%
ROIC(3y)9.02%
ROIC(5y)8.67%
ROICexc(3y)85.27%
ROICexc(5y)58.17%
ROICexgc(3y)89.02%
ROICexgc(5y)63.65%
ROCE(3y)14.59%
ROCE(5y)13.77%
ROICexcg growth 3Y-12%
ROICexcg growth 5YN/A
ROICexc growth 3Y-12.69%
ROICexc growth 5Y-23.64%
OM growth 3Y1.76%
OM growth 5Y-7.03%
PM growth 3YN/A
PM growth 5Y-10.83%
GM growth 3Y-2.84%
GM growth 5Y-4.9%
F-Score5
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.19 | ||
| Debt/EBITDA | 1.5 | ||
| Cap/Depr | 486.17% | ||
| Cap/Sales | 2.7% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.05% | ||
| Profit Quality | 130.29% | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z | N/A |
F-Score5
WACC7.12%
ROIC/WACC0.97
Cap/Depr(3y)427.28%
Cap/Depr(5y)270.34%
Cap/Sales(3y)2.71%
Cap/Sales(5y)1.92%
Profit Quality(3y)98.14%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-40.21%
EPS 3Y-10.84%
EPS 5Y-19.75%
EPS Q2Q%-50.76%
EPS Next Y16.94%
EPS Next 2Y11.16%
EPS Next 3Y9.47%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.99%
Revenue growth 3Y-10.18%
Revenue growth 5Y-9.09%
Sales Q2Q%-12.2%
Revenue Next Year-3.42%
Revenue Next 2Y-0.46%
Revenue Next 3Y1.04%
Revenue Next 5YN/A
EBIT growth 1Y-33.5%
EBIT growth 3Y-8.59%
EBIT growth 5Y-15.49%
EBIT Next Year-16.91%
EBIT Next 3Y-1.65%
EBIT Next 5YN/A
FCF growth 1Y-20.37%
FCF growth 3Y-2.56%
FCF growth 5Y-23.77%
OCF growth 1Y-27.98%
OCF growth 3Y1.7%
OCF growth 5Y-21.35%