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 71 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. This makes MOMO very considerable for value investing!
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.
Each year in the past 5 years MOMO had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.33%, MOMO belongs to the best of the industry, outperforming 85.92% of the companies in the same industry.
MOMO's Return On Equity of 12.37% is amongst the best of the industry. MOMO outperforms 85.92% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.12%, MOMO belongs to the top of the industry, outperforming 80.28% 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 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
MOMO has a better Profit Margin (13.24%) than 81.69% of its industry peers.
MOMO's Profit Margin has declined in the last couple of years.
The Operating Margin of MOMO (13.04%) is better than 77.46% 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 38.11%, MOMO is doing worse than 74.65% of the companies in the same industry.
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.
MOMO has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MOMO has less shares outstanding
Compared to 1 year ago, MOMO has a worse debt to assets ratio.
2.2 Solvency
MOMO has a debt to FCF ratio of 2.18. This is a good value and a sign of high solvency as MOMO would need 2.18 years to pay back of all of its debts.
MOMO has a better Debt to FCF ratio (2.18) than 71.83% 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.
MOMO has a Debt to Equity ratio (0.06) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 2.18 | ||
| Altman-Z | N/A |
ROIC/WACC1.32
WACC5.41%
2.3 Liquidity
A Current Ratio of 2.06 indicates that MOMO has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.06, MOMO is in line with its industry, outperforming 47.89% of the companies in the same industry.
MOMO has a Quick Ratio of 2.06. This indicates that MOMO is financially healthy and has no problem in meeting its short term obligations.
MOMO has a Quick ratio (2.06) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.06 | ||
| Quick Ratio | 2.06 |
3. Growth
3.1 Past
The earnings per share for MOMO have decreased by -4.60% in the last 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.
The Revenue for MOMO has decreased by -10.39% in the past year. This is quite bad
The Revenue has been decreasing by -9.09% on average over the past years.
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
MOMO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.34% yearly.
Based on estimates for the next years, MOMO will show a small growth in Revenue. The Revenue will grow by 3.11% on average per year.
EPS Next Y15.5%
EPS Next 2Y10.74%
EPS Next 3Y9.34%
EPS Next 5YN/A
Revenue Next Year-0.54%
Revenue Next 2Y1.83%
Revenue Next 3Y3.11%
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
Based on the Price/Earnings ratio of 6.84, the valuation of MOMO can be described as very cheap.
90.14% of the companies in the same industry are more expensive than MOMO, based on the Price/Earnings ratio.
MOMO's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.35.
The Price/Forward Earnings ratio is 7.24, which indicates a rather cheap valuation of MOMO.
Based on the Price/Forward Earnings ratio, MOMO is valued cheaply inside the industry as 88.73% of the companies are valued more expensively.
MOMO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.84 | ||
| Fwd PE | 7.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MOMO is valued cheaply inside the industry as 94.37% of the companies are valued more expensively.
MOMO's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MOMO is cheaper than 88.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.89 | ||
| EV/EBITDA | 3.2 |
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.
MOMO has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.44
PEG (5Y)N/A
EPS Next 2Y10.74%
EPS Next 3Y9.34%
5. Dividend
5.1 Amount
MOMO has a Yearly Dividend Yield of 1.09%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.88, MOMO pays a better dividend. On top of this MOMO pays more dividend than 92.96% of the companies listed in the same industry.
With a Dividend Yield of 1.09, MOMO pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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
MOMO pays out 51.42% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP51.42%
EPS Next 2Y10.74%
EPS Next 3Y9.34%
8.28
-0.31 (-3.61%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryInteractive Media & Services
Earnings (Last)
Earnings (Next)
Inst Owners77.26%
Inst Owner Change-4.23%
Ins OwnersN/A
Ins Owner Change0%
Market Cap1.33B
Analysts78.67
Price Target9.62 (16.18%)
Short Float %4.85%
Short Ratio2.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.09% |
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)12.59%
EPS NQ rev (1m)8.36%
EPS NQ rev (3m)33.56%
EPS NY rev (1m)-1.23%
EPS NY rev (3m)-6.36%
Revenue NQ rev (1m)3.47%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.98%
Revenue NY rev (3m)5.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.84 | ||
| Fwd PE | 7.24 | ||
| P/S | 0.91 | ||
| P/FCF | 7.89 | ||
| P/OCF | 6.45 | ||
| P/B | 0.85 | ||
| P/tB | 0.88 | ||
| EV/EBITDA | 3.2 |
EPS(TTM)1.21
EY14.61%
EPS(NY)1.14
Fwd EY13.81%
FCF(TTM)1.05
FCFY12.68%
OCF(TTM)1.28
OCFY15.5%
SpS9.13
BVpS9.77
TBVpS9.39
PEG (NY)0.44
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
WACC5.41%
ROIC/WACC1.32
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 Y15.5%
EPS Next 2Y10.74%
EPS Next 3Y9.34%
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-0.54%
Revenue Next 2Y1.83%
Revenue Next 3Y3.11%
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%