HELLO GROUP INC -SPN ADR (MOMO) Stock Fundamental Analysis
NASDAQ:MOMO - Nasdaq - US4234031049 - ADR - Currency: USD
Taking everything into account, MOMO scores 5 out of 10 in our fundamental rating. MOMO was compared to 70 industry peers in the Interactive Media & Services industry. MOMO has an average financial health and profitability rating. MOMO has a bad growth rate and is valued cheaply.
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.
MOMO had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MOMO has a better Return On Assets (5.66%) than 78.57% of its industry peers.
MOMO's Return On Equity of 9.09% is amongst the best of the industry. MOMO outperforms 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.
The Average Return On Invested Capital over the past 3 years 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.
In the last couple of years the Profit Margin of MOMO has declined.
MOMO has a Operating Margin of 14.51%. This is in the better half of the industry: MOMO outperforms 78.57% of its industry peers.
MOMO's Operating Margin has declined in the last couple of years.
MOMO's Gross Margin of 38.96% is on the low side compared to the rest of the industry. MOMO is outperformed by 74.29% of its industry peers.
In the last couple of years the Gross Margin of MOMO has declined.
| 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
MOMO has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The debt/assets ratio for MOMO is higher compared to a year ago.
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.
Looking at the Debt to FCF ratio, with a value of 3.19, MOMO is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
MOMO has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.21, MOMO perfoms like the industry average, outperforming 47.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 3.19 | ||
| Altman-Z | N/A |
ROIC/WACC0.98
WACC7.07%
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.
Looking at the Quick ratio, with a value of 1.88, MOMO is in line with its industry, outperforming 48.57% of the companies in the same industry.
| 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.
Looking at the last year, MOMO shows a very negative growth in Revenue. The Revenue has decreased by -11.99% in the last year.
Measured over the past years, MOMO shows a decrease in Revenue. The Revenue has been decreasing by -9.09% on average per year.
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.
The Revenue is expected to grow by 1.04% on average over the next years.
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.
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
The Price/Earnings ratio is 6.44, which 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.
MOMO is valuated cheaply when we compare the Price/Earnings ratio to 26.17, which is the current average of the S&P500 Index.
MOMO is valuated cheaply with a Price/Forward Earnings ratio of 5.51.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MOMO indicates a rather cheap valuation: MOMO is cheaper than 92.86% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, MOMO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.44 | ||
| Fwd PE | 5.51 |
4.2 Price Multiples
97.14% of the companies in the same industry are more expensive than MOMO, based on the Enterprise Value to EBITDA ratio.
MOMO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MOMO is cheaper than 94.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.11 | ||
| EV/EBITDA | 0.43 |
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)0.38
PEG (5Y)N/A
EPS Next 2Y11.16%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.52%, MOMO has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.15, MOMO pays a better dividend. On top of this MOMO pays more dividend than 92.86% of the companies listed 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.
MOMO has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years2
5.3 Sustainability
MOMO pays out 68.90% of its income as dividend. This is not a sustainable payout ratio.
DP68.9%
EPS Next 2Y11.16%
EPS Next 3Y9.47%
5.99
-0.07 (-1.16%)
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 Cap962.41M
Analysts78.67
Price Target9.13 (52.42%)
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 | 6.44 | ||
| Fwd PE | 5.51 | ||
| P/S | 0.66 | ||
| P/FCF | 5.11 | ||
| P/OCF | 4.22 | ||
| P/B | 0.61 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 0.43 |
EPS(TTM)0.93
EY15.53%
EPS(NY)1.09
Fwd EY18.16%
FCF(TTM)1.17
FCFY19.57%
OCF(TTM)1.42
OCFY23.69%
SpS9.14
BVpS9.89
TBVpS9.7
PEG (NY)0.38
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
WACC7.07%
ROIC/WACC0.98
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%