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. 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.
1. Profitability
1.1 Basic Checks
In the past year MOMO was profitable.
MOMO had a positive operating cash flow in the past year.
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
MOMO's Return On Assets of 5.66% is fine compared to the rest of the industry. MOMO outperforms 78.57% of its industry peers.
The Return On Equity of MOMO (9.09%) is better than 81.43% of its industry peers.
MOMO has a Return On Invested Capital of 6.93%. This is in the better half of the industry: MOMO outperforms 80.00% of its industry peers.
MOMO had an Average Return On Invested Capital over the past 3 years of 9.02%. This 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
Looking at the Profit Margin, with a value of 9.84%, MOMO belongs to the top of the industry, outperforming 81.43% of the companies in the same industry.
MOMO's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 14.51%, MOMO is doing good in the industry, outperforming 78.57% of the companies in the same industry.
In the last couple of years the Operating Margin of MOMO has declined.
With a Gross Margin value of 38.96%, MOMO is not doing good in the industry: 74.29% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MOMO is creating some value.
Compared to 1 year ago, MOMO has a worse debt to assets ratio.
2.2 Solvency
MOMO has a debt to FCF ratio of 3.19. This is a good value and a sign of high solvency as MOMO would need 3.19 years to pay back of all of its debts.
The Debt to FCF ratio of MOMO (3.19) is better than 64.29% of its industry peers.
MOMO has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
MOMO's Debt to Equity ratio of 0.21 is in line compared 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/WACC0.98
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.
With a Current ratio value of 1.88, MOMO perfoms like the industry average, outperforming 48.57% of the companies in the same industry.
A Quick Ratio of 1.88 indicates that MOMO should not have too much problems paying its short term obligations.
MOMO has a Quick ratio (1.88) which is in line with 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.
The Revenue for MOMO has decreased by -11.99% 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)-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
MOMO is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.47% yearly.
Based on estimates for the next years, MOMO will show a small growth in Revenue. The Revenue will grow by 1.04% on average per year.
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
MOMO is valuated cheaply with a Price/Earnings ratio of 6.52.
Based on the Price/Earnings ratio, MOMO is valued cheaper than 91.43% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, MOMO is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 5.57, the valuation of MOMO can be described as very cheap.
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.
MOMO is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.52 | ||
| Fwd PE | 5.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MOMO is valued cheaper than 97.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MOMO is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.17 | ||
| EV/EBITDA | 0.49 |
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
MOMO has a Yearly Dividend Yield of 1.52%.
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.
Compared to the average S&P500 Dividend Yield of 2.40, MOMO is paying slightly less dividend.
| 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
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%
6.06
-0.02 (-0.33%)
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 Cap973.66M
Analysts78.67
Price Target9.13 (50.66%)
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 | 6.52 | ||
| Fwd PE | 5.57 | ||
| P/S | 0.66 | ||
| P/FCF | 5.17 | ||
| P/OCF | 4.27 | ||
| P/B | 0.61 | ||
| P/tB | 0.62 | ||
| EV/EBITDA | 0.49 |
EPS(TTM)0.93
EY15.35%
EPS(NY)1.09
Fwd EY17.96%
FCF(TTM)1.17
FCFY19.36%
OCF(TTM)1.42
OCFY23.44%
SpS9.15
BVpS9.9
TBVpS9.71
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%