HELLO GROUP INC -SPN ADR (MOMO) Stock Fundamental Analysis
USA - NASDAQ:MOMO - US4234031049 - ADR
7.46 USD
+0.09 (+1.22%)
7.47 USD
+0.01 (+0.13%)
We assign a fundamental rating of 5 out of 10 to MOMO. MOMO was compared to 69 industry peers in the Interactive Media & Services industry. MOMO has only an average score on both its financial health and profitability. MOMO is valued quite cheap, but it does not seem to be growing. This makes MOMO very considerable for value investing!
1. Profitability
1.1 Basic Checks
MOMO had positive earnings in the past year.
MOMO had a positive operating cash flow in the past year.
MOMO had positive earnings in 4 of the past 5 years.
Each year in the past 5 years MOMO had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.17%, MOMO is doing good in the industry, outperforming 73.91% of the companies in the same industry.
MOMO's Return On Equity of 7.77% is fine compared to the rest of the industry. MOMO outperforms 71.01% of its industry peers.
The Return On Invested Capital of MOMO (7.11%) is better than 82.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MOMO is below the industry average of 12.98%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 7.77% | ||
| ROIC | 7.11% |
ROA(3y)9.03%
ROA(5y)4.01%
ROE(3y)13.2%
ROE(5y)5.21%
ROIC(3y)9.02%
ROIC(5y)8.68%
1.3 Margins
MOMO has a Profit Margin of 8.17%. This is in the better half of the industry: MOMO outperforms 73.91% of its industry peers.
MOMO's Profit Margin has declined in the last couple of years.
MOMO has a better Operating Margin (12.92%) than 75.36% of its industry peers.
In the last couple of years the Operating Margin of MOMO has declined.
Looking at the Gross Margin, with a value of 37.57%, MOMO is doing worse than 73.91% of the companies in the same industry.
MOMO's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.92% | ||
| PM (TTM) | 8.17% | ||
| GM | 37.57% |
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
MOMO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
MOMO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MOMO has less shares outstanding
The debt/assets ratio for MOMO is higher compared to a year ago.
2.2 Solvency
MOMO has a debt to FCF ratio of 2.26. This is a good value and a sign of high solvency as MOMO would need 2.26 years to pay back of all of its debts.
MOMO's Debt to FCF ratio of 2.26 is fine compared to the rest of the industry. MOMO outperforms 72.46% of its industry peers.
MOMO has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.06, MOMO is in line with its industry, outperforming 56.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 2.26 | ||
| Altman-Z | N/A |
ROIC/WACC1.33
WACC5.36%
2.3 Liquidity
MOMO has a Current Ratio of 2.29. This indicates that MOMO is financially healthy and has no problem in meeting its short term obligations.
MOMO has a Current ratio of 2.29. This is comparable to the rest of the industry: MOMO outperforms 55.07% of its industry peers.
MOMO has a Quick Ratio of 2.29. This indicates that MOMO is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.29, MOMO is in line with its industry, outperforming 56.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.29 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 8.00% over the past year.
Measured over the past years, MOMO shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -19.75% on average per year.
MOMO shows a decrease in Revenue. In the last year, the revenue decreased by -7.48%.
The Revenue has been decreasing by -9.09% on average over the past years.
EPS 1Y (TTM)8%
EPS 3Y-10.84%
EPS 5Y-19.75%
EPS Q2Q%13.87%
Revenue 1Y (TTM)-7.48%
Revenue growth 3Y-10.18%
Revenue growth 5Y-9.09%
Sales Q2Q%-2.64%
3.2 Future
Based on estimates for the next years, MOMO will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.31% on average per year.
Based on estimates for the next years, MOMO will show a small growth in Revenue. The Revenue will grow by 1.96% on average per year.
EPS Next Y4.26%
EPS Next 2Y10.28%
EPS Next 3Y9.31%
EPS Next 5YN/A
Revenue Next Year-0.84%
Revenue Next 2Y1.3%
Revenue Next 3Y1.96%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
MOMO is valuated cheaply with a Price/Earnings ratio of 5.87.
88.41% of the companies in the same industry are more expensive than MOMO, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.67. MOMO is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.54 indicates a rather cheap valuation of MOMO.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MOMO indicates a rather cheap valuation: MOMO is cheaper than 92.75% of the companies listed in the same industry.
MOMO's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.87 | ||
| Fwd PE | 6.54 |
4.2 Price Multiples
MOMO's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MOMO is cheaper than 98.55% of the companies in the same industry.
88.41% 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 | 7.38 | ||
| EV/EBITDA | 1.95 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.38
PEG (5Y)N/A
EPS Next 2Y10.28%
EPS Next 3Y9.31%
5. Dividend
5.1 Amount
MOMO has a Yearly Dividend Yield of 1.18%. Purely for dividend investing, there may be better candidates out there.
MOMO's Dividend Yield is rather good when compared to the industry average which is at 4.33. MOMO pays more dividend than 92.75% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, MOMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
5.2 History
The dividend of MOMO decreases each year by -0.77%.
MOMO has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)-0.77%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
40.55% of the earnings are spent on dividend by MOMO. This is a bit on the high side, but may be sustainable.
DP40.55%
EPS Next 2Y10.28%
EPS Next 3Y9.31%
7.46
+0.09 (+1.22%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners56.17%
Inst Owner Change-2.97%
Ins OwnersN/A
Ins Owner Change0%
Market Cap1.20B
Analysts81.33
Price Target9.97 (33.65%)
Short Float %4.26%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.18% |
Yearly Dividend0.59
Dividend Growth(5Y)-0.77%
DP40.55%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)39.94%
Min EPS beat(2)25.92%
Max EPS beat(2)53.97%
EPS beat(4)3
Avg EPS beat(4)23.73%
Min EPS beat(4)-27.48%
Max EPS beat(4)53.97%
EPS beat(8)6
Avg EPS beat(8)6.45%
EPS beat(12)10
Avg EPS beat(12)11.24%
EPS beat(16)13
Avg EPS beat(16)11.9%
Revenue beat(2)1
Avg Revenue beat(2)0.08%
Min Revenue beat(2)-1.6%
Max Revenue beat(2)1.77%
Revenue beat(4)2
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-1.6%
Max Revenue beat(4)1.77%
Revenue beat(8)5
Avg Revenue beat(8)0.29%
Revenue beat(12)8
Avg Revenue beat(12)0.49%
Revenue beat(16)9
Avg Revenue beat(16)0.27%
PT rev (1m)3.11%
PT rev (3m)3.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.85%
EPS NY rev (1m)-15.36%
EPS NY rev (3m)-9.74%
Revenue NQ rev (1m)-0.92%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)-0.46%
Revenue NY rev (3m)-0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.87 | ||
| Fwd PE | 6.54 | ||
| P/S | 0.82 | ||
| P/FCF | 7.38 | ||
| P/OCF | 6.82 | ||
| P/B | 0.78 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | 1.95 |
EPS(TTM)1.27
EY17.02%
EPS(NY)1.14
Fwd EY15.28%
FCF(TTM)1.01
FCFY13.55%
OCF(TTM)1.09
OCFY14.67%
SpS9.11
BVpS9.59
TBVpS9.21
PEG (NY)1.38
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.17% | ||
| ROE | 7.77% | ||
| ROCE | 11.57% | ||
| ROIC | 7.11% | ||
| ROICexc | 14.58% | ||
| ROICexgc | 15.72% | ||
| OM | 12.92% | ||
| PM (TTM) | 8.17% | ||
| GM | 37.57% | ||
| FCFM | 11.09% |
ROA(3y)9.03%
ROA(5y)4.01%
ROE(3y)13.2%
ROE(5y)5.21%
ROIC(3y)9.02%
ROIC(5y)8.68%
ROICexc(3y)85.28%
ROICexc(5y)58.18%
ROICexgc(3y)89.03%
ROICexgc(5y)63.66%
ROCE(3y)14.59%
ROCE(5y)13.77%
ROICexcg growth 3Y-11.93%
ROICexcg growth 5YN/A
ROICexc growth 3Y-12.62%
ROICexc growth 5Y-23.6%
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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 2.26 | ||
| Debt/EBITDA | 0.48 | ||
| Cap/Depr | 145.51% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.62% | ||
| Profit Quality | 135.69% | ||
| Current Ratio | 2.29 | ||
| Quick Ratio | 2.29 | ||
| Altman-Z | N/A |
F-Score5
WACC5.36%
ROIC/WACC1.33
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)8%
EPS 3Y-10.84%
EPS 5Y-19.75%
EPS Q2Q%13.87%
EPS Next Y4.26%
EPS Next 2Y10.28%
EPS Next 3Y9.31%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.48%
Revenue growth 3Y-10.18%
Revenue growth 5Y-9.09%
Sales Q2Q%-2.64%
Revenue Next Year-0.84%
Revenue Next 2Y1.3%
Revenue Next 3Y1.96%
Revenue Next 5YN/A
EBIT growth 1Y-35.97%
EBIT growth 3Y-8.59%
EBIT growth 5Y-15.49%
EBIT Next Year-22.43%
EBIT Next 3Y-3.81%
EBIT Next 5YN/A
FCF growth 1Y-47.39%
FCF growth 3Y-2.56%
FCF growth 5Y-23.77%
OCF growth 1Y-44.52%
OCF growth 3Y1.7%
OCF growth 5Y-21.35%