TENCENT MUSIC ENTERTAINM-ADR (TME) Fundamental Analysis & Valuation

NYSE:TME • US88034P1093

13.35 USD
-0.61 (-4.37%)
At close: Mar 11, 2026
13.35 USD
0 (0%)
After Hours: 3/11/2026, 8:04:00 PM
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This TME fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

8

We assign a fundamental rating of 8 out of 10 to TME. TME was compared to 80 industry peers in the Entertainment industry. TME scores excellent points on both the profitability and health parts. This is a solid base for a good stock. An interesting combination arises when we look at growth and value: TME is growing strongly while it also seems undervalued. With these ratings, TME could be worth investigating further for value and growth and quality investing!.


Dividend Valuation Growth Profitability Health

9

1. TME Profitability Analysis

1.1 Basic Checks

  • In the past year TME was profitable.
  • TME had a positive operating cash flow in the past year.
  • TME had positive earnings in each of the past 5 years.
  • Each year in the past 5 years TME had a positive operating cash flow.
TME Yearly Net Income VS EBIT VS OCF VS FCFTME Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B 10B

1.2 Ratios

  • The Return On Assets of TME (9.49%) is better than 88.75% of its industry peers.
  • With an excellent Return On Equity value of 12.21%, TME belongs to the best of the industry, outperforming 86.25% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 7.85%, TME belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
  • TME had an Average Return On Invested Capital over the past 3 years of 6.52%. This is in line with the industry average of 7.34%.
  • The 3 year average ROIC (6.52%) for TME is below the current ROIC(7.85%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 9.49%
ROE 12.21%
ROIC 7.85%
ROA(3y)6.45%
ROA(5y)5.99%
ROE(3y)8.75%
ROE(5y)8.04%
ROIC(3y)6.52%
ROIC(5y)5.78%
TME Yearly ROA, ROE, ROICTME Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

1.3 Margins

  • The Profit Margin of TME (33.83%) is better than 98.75% of its industry peers.
  • TME's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 28.23%, TME belongs to the best of the industry, outperforming 96.25% of the companies in the same industry.
  • TME's Operating Margin has improved in the last couple of years.
  • TME has a Gross Margin (43.72%) which is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of TME has grown nicely.
Industry RankSector Rank
OM 28.23%
PM (TTM) 33.83%
GM 43.72%
OM growth 3Y43.83%
OM growth 5Y10.87%
PM growth 3Y34.13%
PM growth 5Y8.36%
GM growth 3Y12.05%
GM growth 5Y4.42%
TME Yearly Profit, Operating, Gross MarginsTME Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30 40

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. TME Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), TME is destroying value.
  • Compared to 1 year ago, TME has less shares outstanding
  • Compared to 5 years ago, TME has less shares outstanding
  • TME has a better debt/assets ratio than last year.
TME Yearly Shares OutstandingTME Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B
TME Yearly Total Debt VS Total AssetsTME Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B

2.2 Solvency

  • An Altman-Z score of 5.13 indicates that TME is not in any danger for bankruptcy at the moment.
  • TME's Altman-Z score of 5.13 is amongst the best of the industry. TME outperforms 86.25% of its industry peers.
  • TME has a debt to FCF ratio of 0.69. This is a very positive value and a sign of high solvency as it would only need 0.69 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 0.69, TME belongs to the best of the industry, outperforming 88.75% of the companies in the same industry.
  • A Debt/Equity ratio of 0.05 indicates that TME is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.05, TME is in the better half of the industry, outperforming 66.25% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.69
Altman-Z 5.13
ROIC/WACC0.87
WACC8.99%
TME Yearly LT Debt VS Equity VS FCFTME Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.3 Liquidity

  • TME has a Current Ratio of 1.87. This is a normal value and indicates that TME is financially healthy and should not expect problems in meeting its short term obligations.
  • The Current ratio of TME (1.87) is better than 73.75% of its industry peers.
  • A Quick Ratio of 1.87 indicates that TME should not have too much problems paying its short term obligations.
  • TME has a Quick ratio of 1.87. This is in the better half of the industry: TME outperforms 75.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.87
Quick Ratio 1.87
TME Yearly Current Assets VS Current LiabilitesTME Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. TME Growth Analysis

3.1 Past

  • TME shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.04%, which is quite impressive.
  • TME shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.88% yearly.
  • TME shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.95%.
  • TME shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.23% yearly.
EPS 1Y (TTM)36.04%
EPS 3Y25.91%
EPS 5Y10.88%
EPS Q2Q%32.76%
Revenue 1Y (TTM)13.95%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.23%
Sales Q2Q%20.64%

3.2 Future

  • Based on estimates for the next years, TME will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.65% on average per year.
  • TME is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.51% yearly.
EPS Next Y24.17%
EPS Next 2Y18.28%
EPS Next 3Y16.46%
EPS Next 5Y16.65%
Revenue Next Year15.31%
Revenue Next 2Y14.21%
Revenue Next 3Y13.69%
Revenue Next 5Y14.51%

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.
TME Yearly Revenue VS EstimatesTME Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 20B 40B 60B
TME Yearly EPS VS EstimatesTME Yearly EPS VS EstimatesYearly EPS VS Estimates 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 5 10 15

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Find the best growth stocksShow best growing peers

8

4. TME Valuation Analysis

4.1 Price/Earnings Ratio

  • TME is valuated correctly with a Price/Earnings ratio of 15.17.
  • Based on the Price/Earnings ratio, TME is valued cheaper than 90.00% of the companies in the same industry.
  • When comparing the Price/Earnings ratio of TME to the average of the S&P500 Index (26.15), we can say TME is valued slightly cheaper.
  • Based on the Price/Forward Earnings ratio of 13.36, the valuation of TME can be described as correct.
  • TME's Price/Forward Earnings ratio is rather cheap when compared to the industry. TME is cheaper than 86.25% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of TME to the average of the S&P500 Index (24.27), we can say TME is valued slightly cheaper.
Industry RankSector Rank
PE 15.17
Fwd PE 13.36
TME Price Earnings VS Forward Price EarningsTME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of TME indicates a somewhat cheap valuation: TME is cheaper than 76.25% of the companies listed in the same industry.
  • 90.00% of the companies in the same industry are more expensive than TME, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 16.07
EV/EBITDA 12.66
TME Per share dataTME EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • TME's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • TME has an outstanding profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as TME's earnings are expected to grow with 16.46% in the coming years.
PEG (NY)0.63
PEG (5Y)1.39
EPS Next 2Y18.28%
EPS Next 3Y16.46%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. TME Dividend Analysis

5.1 Amount

  • TME has a Yearly Dividend Yield of 2.28%. Purely for dividend investing, there may be better candidates out there.
  • In the last 3 months the price of TME has falen by -26.73%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
  • Compared to an average industry Dividend Yield of 7.42, TME pays a better dividend. On top of this TME pays more dividend than 91.25% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, TME pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.28%

5.2 History

  • TME is new to the dividend game and has less than 3 years of track record.
Dividend Growth(5Y)N/A
Div Incr Years1
Div Non Decr Years1
TME Yearly Dividends per shareTME Yearly Dividends per shareYearly Dividends per share 2024 2025 0.05 0.1 0.15

5.3 Sustainability

DPN/A
EPS Next 2Y18.28%
EPS Next 3Y16.46%
TME Yearly Income VS Free CF VS DividendTME Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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Find the best dividend stocksShow peers with best dividend

TME Fundamentals: All Metrics, Ratios and Statistics

TENCENT MUSIC ENTERTAINM-ADR

NYSE:TME (3/11/2026, 8:04:00 PM)

After market: 13.35 0 (0%)

13.35

-0.61 (-4.37%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-12
Earnings (Next)03-17
Inst Owners67.37%
Inst Owner Change5.59%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap20.57B
Revenue(TTM)31.72B
Net Income(TTM)10.24B
Analysts81.14
Price Target25.96 (94.46%)
Short Float %4.88%
Short Ratio2.93
Dividend
Industry RankSector Rank
Dividend Yield 2.28%
Yearly Dividend0.14
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.25%
Min EPS beat(2)2.25%
Max EPS beat(2)12.25%
EPS beat(4)3
Avg EPS beat(4)5.56%
Min EPS beat(4)-4.78%
Max EPS beat(4)12.53%
EPS beat(8)7
Avg EPS beat(8)3.76%
EPS beat(12)10
Avg EPS beat(12)5.02%
EPS beat(16)13
Avg EPS beat(16)6.05%
Revenue beat(2)2
Avg Revenue beat(2)2.56%
Min Revenue beat(2)0.15%
Max Revenue beat(2)4.97%
Revenue beat(4)3
Avg Revenue beat(4)1.24%
Min Revenue beat(4)-1.38%
Max Revenue beat(4)4.97%
Revenue beat(8)6
Avg Revenue beat(8)1.28%
Revenue beat(12)9
Avg Revenue beat(12)1.13%
Revenue beat(16)10
Avg Revenue beat(16)0.84%
PT rev (1m)0%
PT rev (3m)-1.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)1.72%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.05%
Valuation
Industry RankSector Rank
PE 15.17
Fwd PE 13.36
P/S 4.67
P/FCF 16.07
P/OCF 16.07
P/B 1.69
P/tB 2.34
EV/EBITDA 12.66
EPS(TTM)0.88
EY6.59%
EPS(NY)1
Fwd EY7.48%
FCF(TTM)0.83
FCFY6.22%
OCF(TTM)0.83
OCFY6.22%
SpS2.86
BVpS7.92
TBVpS5.7
PEG (NY)0.63
PEG (5Y)1.39
Graham Number12.52
Profitability
Industry RankSector Rank
ROA 9.49%
ROE 12.21%
ROCE 9.35%
ROIC 7.85%
ROICexc 10.37%
ROICexgc 15.71%
OM 28.23%
PM (TTM) 33.83%
GM 43.72%
FCFM 29.08%
ROA(3y)6.45%
ROA(5y)5.99%
ROE(3y)8.75%
ROE(5y)8.04%
ROIC(3y)6.52%
ROIC(5y)5.78%
ROICexc(3y)9.52%
ROICexc(5y)8.88%
ROICexgc(3y)19.59%
ROICexgc(5y)19.68%
ROCE(3y)7.76%
ROCE(5y)6.88%
ROICexgc growth 3Y16.02%
ROICexgc growth 5Y-26.04%
ROICexc growth 3Y28.21%
ROICexc growth 5Y-2.74%
OM growth 3Y43.83%
OM growth 5Y10.87%
PM growth 3Y34.13%
PM growth 5Y8.36%
GM growth 3Y12.05%
GM growth 5Y4.42%
F-Score5
Asset Turnover0.28
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.69
Debt/EBITDA 0.4
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 92.44%
Profit Quality 85.96%
Current Ratio 1.87
Quick Ratio 1.87
Altman-Z 5.13
F-Score5
WACC8.99%
ROIC/WACC0.87
Cap/Depr(3y)104.08%
Cap/Depr(5y)129.71%
Cap/Sales(3y)3.85%
Cap/Sales(5y)4.42%
Profit Quality(3y)146.47%
Profit Quality(5y)125.36%
High Growth Momentum
Growth
EPS 1Y (TTM)36.04%
EPS 3Y25.91%
EPS 5Y10.88%
EPS Q2Q%32.76%
EPS Next Y24.17%
EPS Next 2Y18.28%
EPS Next 3Y16.46%
EPS Next 5Y16.65%
Revenue 1Y (TTM)13.95%
Revenue growth 3Y-3.13%
Revenue growth 5Y2.23%
Sales Q2Q%20.64%
Revenue Next Year15.31%
Revenue Next 2Y14.21%
Revenue Next 3Y13.69%
Revenue Next 5Y14.51%
EBIT growth 1Y43.69%
EBIT growth 3Y39.33%
EBIT growth 5Y13.34%
EBIT Next Year51.29%
EBIT Next 3Y23.21%
EBIT Next 5Y22.33%
FCF growth 1Y14.83%
FCF growth 3Y55.02%
FCF growth 5Y9.34%
OCF growth 1Y14.83%
OCF growth 3Y25.17%
OCF growth 5Y10.63%

TENCENT MUSIC ENTERTAINM-ADR / TME FAQ

What is the fundamental rating for TME stock?

ChartMill assigns a fundamental rating of 8 / 10 to TME.


What is the valuation status of TENCENT MUSIC ENTERTAINM-ADR (TME) stock?

ChartMill assigns a valuation rating of 8 / 10 to TENCENT MUSIC ENTERTAINM-ADR (TME). This can be considered as Undervalued.


How profitable is TENCENT MUSIC ENTERTAINM-ADR (TME) stock?

TENCENT MUSIC ENTERTAINM-ADR (TME) has a profitability rating of 9 / 10.


What are the PE and PB ratios of TENCENT MUSIC ENTERTAINM-ADR (TME) stock?

The Price/Earnings (PE) ratio for TENCENT MUSIC ENTERTAINM-ADR (TME) is 15.17 and the Price/Book (PB) ratio is 1.69.


What is the expected EPS growth for TENCENT MUSIC ENTERTAINM-ADR (TME) stock?

The Earnings per Share (EPS) of TENCENT MUSIC ENTERTAINM-ADR (TME) is expected to grow by 24.17% in the next year.