HELLO GROUP INC -SPN ADR (MOMO) Stock Fundamental Analysis
NASDAQ:MOMO - Nasdaq - US4234031049 - ADR - Currency: USD
Overall MOMO gets a fundamental rating of 5 out of 10. We evaluated MOMO against 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 has a bad growth rate and is valued cheaply. These ratings could make MOMO a good candidate for value investing.
1. Profitability
1.1 Basic Checks
MOMO had positive earnings in the past year.
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 (8.33%) than 85.71% of its industry peers.
MOMO's Return On Equity of 12.37% is amongst the best of the industry. MOMO outperforms 85.71% of its industry peers.
MOMO has a better Return On Invested Capital (7.12%) than 80.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MOMO is below the industry average of 12.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 12.37% | ||
| ROIC | 7.12% |
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
Looking at the Profit Margin, with a value of 13.24%, MOMO belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
In the last couple of years the Profit Margin of MOMO has declined.
MOMO's Operating Margin of 13.04% is fine compared to the rest of the industry. MOMO outperforms 77.14% of its industry peers.
In the last couple of years the Operating Margin of MOMO has declined.
The Gross Margin of MOMO (38.11%) is worse than 75.71% of its industry peers.
In the last couple of years the Gross Margin of MOMO has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.04% | ||
| PM (TTM) | 13.24% | ||
| GM | 38.11% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MOMO is still creating some value.
Compared to 1 year ago, MOMO has less shares outstanding
MOMO has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MOMO is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of MOMO is 2.18, which is a good value as it means it would take MOMO, 2.18 years of fcf income to pay off all of its debts.
MOMO's Debt to FCF ratio of 2.18 is fine compared to the rest of the industry. MOMO outperforms 71.43% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that MOMO is not too dependend on debt financing.
The Debt to Equity ratio of MOMO (0.06) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | N/A |
ROIC/WACC1.23
WACC5.81%
2.3 Liquidity
A Current Ratio of 2.06 indicates that MOMO has no problem at all paying its short term obligations.
With a Current ratio value of 2.06, MOMO perfoms like the industry average, outperforming 47.14% of the companies in the same industry.
A Quick Ratio of 2.06 indicates that MOMO has no problem at all paying its short term obligations.
MOMO's Quick ratio of 2.06 is in line compared to the rest of the industry. MOMO outperforms 47.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
MOMO shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -4.60%.
The earnings per share for MOMO have been decreasing by -19.75% on average. This is quite bad
The Revenue for MOMO has decreased by -10.39% in the past year. This is quite bad
MOMO shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -9.09% yearly.
EPS 1Y (TTM)-4.6%
EPS 3Y-10.84%
EPS 5Y-19.75%
EPS Q2Q%654.84%
Revenue 1Y (TTM)-10.39%
Revenue growth 3Y-10.18%
Revenue growth 5Y-9.09%
Sales Q2Q%-1.55%
3.2 Future
The Earnings Per Share is expected to grow by 9.95% on average over the next years. This is quite good.
The Revenue is expected to grow by 2.90% on average over the next years.
EPS Next Y20.87%
EPS Next 2Y12.27%
EPS Next 3Y9.95%
EPS Next 5YN/A
Revenue Next Year-0.09%
Revenue Next 2Y2.02%
Revenue Next 3Y2.9%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 7.36 indicates a rather cheap valuation of MOMO.
MOMO's Price/Earnings ratio is rather cheap when compared to the industry. MOMO is cheaper than 90.00% of the companies in the same industry.
MOMO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.50.
MOMO is valuated cheaply with a Price/Forward Earnings ratio of 7.58.
Based on the Price/Forward Earnings ratio, MOMO is valued cheaper than 92.86% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, MOMO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.36 | ||
| Fwd PE | 7.58 |
4.2 Price Multiples
94.29% of the companies in the same industry are more expensive than MOMO, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MOMO is valued cheaper than 87.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.48 | ||
| EV/EBITDA | 3.76 |
4.3 Compensation for Growth
MOMO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.35
PEG (5Y)N/A
EPS Next 2Y12.27%
EPS Next 3Y9.95%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.01%, MOMO has a reasonable but not impressive dividend return.
MOMO's Dividend Yield is rather good when compared to the industry average which is at 2.91. MOMO pays more dividend than 92.86% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, MOMO's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
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
51.42% of the earnings are spent on dividend by MOMO. This is a bit on the high side, but may be sustainable.
DP51.42%
EPS Next 2Y12.27%
EPS Next 3Y9.95%
8.9
-0.08 (-0.89%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners77.26%
Inst Owner Change-0.01%
Ins OwnersN/A
Ins Owner Change0%
Market Cap1.43B
Analysts81.33
Price Target9.62 (8.09%)
Short Float %5.48%
Short Ratio2.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.01% |
Yearly Dividend0.61
Dividend Growth(5Y)-0.77%
DP51.42%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)13.24%
Min EPS beat(2)-27.48%
Max EPS beat(2)53.97%
EPS beat(4)3
Avg EPS beat(4)21.39%
Min EPS beat(4)-27.48%
Max EPS beat(4)53.97%
EPS beat(8)6
Avg EPS beat(8)5.69%
EPS beat(12)10
Avg EPS beat(12)11.45%
EPS beat(16)13
Avg EPS beat(16)11.15%
Revenue beat(2)1
Avg Revenue beat(2)0.52%
Min Revenue beat(2)-0.73%
Max Revenue beat(2)1.77%
Revenue beat(4)2
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)1.77%
Revenue beat(8)6
Avg Revenue beat(8)0.64%
Revenue beat(12)8
Avg Revenue beat(12)0.6%
Revenue beat(16)9
Avg Revenue beat(16)0.32%
PT rev (1m)5.34%
PT rev (3m)5.34%
EPS NQ rev (1m)9.71%
EPS NQ rev (3m)18.87%
EPS NY rev (1m)3.36%
EPS NY rev (3m)4.1%
Revenue NQ rev (1m)0.41%
Revenue NQ rev (3m)3.9%
Revenue NY rev (1m)3.45%
Revenue NY rev (3m)3.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.36 | ||
| Fwd PE | 7.58 | ||
| P/S | 0.98 | ||
| P/FCF | 8.48 | ||
| P/OCF | 6.94 | ||
| P/B | 0.91 | ||
| P/tB | 0.95 | ||
| EV/EBITDA | 3.76 |
EPS(TTM)1.21
EY13.6%
EPS(NY)1.17
Fwd EY13.19%
FCF(TTM)1.05
FCFY11.79%
OCF(TTM)1.28
OCFY14.41%
SpS9.12
BVpS9.76
TBVpS9.38
PEG (NY)0.35
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.33% | ||
| ROE | 12.37% | ||
| ROCE | 11.6% | ||
| ROIC | 7.12% | ||
| ROICexc | 13.98% | ||
| ROICexgc | 15.02% | ||
| OM | 13.04% | ||
| PM (TTM) | 13.24% | ||
| GM | 38.11% | ||
| FCFM | 11.5% |
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 | 2.18 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 434.19% | ||
| Cap/Sales | 2.56% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 103.19% | ||
| Profit Quality | 86.88% | ||
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 | ||
| Altman-Z | N/A |
F-Score5
WACC5.81%
ROIC/WACC1.23
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)-4.6%
EPS 3Y-10.84%
EPS 5Y-19.75%
EPS Q2Q%654.84%
EPS Next Y20.87%
EPS Next 2Y12.27%
EPS Next 3Y9.95%
EPS Next 5YN/A
Revenue 1Y (TTM)-10.39%
Revenue growth 3Y-10.18%
Revenue growth 5Y-9.09%
Sales Q2Q%-1.55%
Revenue Next Year-0.09%
Revenue Next 2Y2.02%
Revenue Next 3Y2.9%
Revenue Next 5YN/A
EBIT growth 1Y-41.1%
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-22.7%
FCF growth 3Y-2.56%
FCF growth 5Y-23.77%
OCF growth 1Y-9.48%
OCF growth 3Y1.7%
OCF growth 5Y-21.35%