TENCENT MUSIC ENTERTAINM-ADR (TME) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:TME • US88034P1093

16.88 USD
+0.61 (+3.75%)
At close: Feb 10, 2026
16.88 USD
0 (0%)
After Hours: 2/10/2026, 4:50:03 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

8

Overall TME gets a fundamental rating of 8 out of 10. We evaluated TME against 80 industry peers in the Entertainment industry. Both the health and profitability get an excellent rating, making TME a very profitable company, without any liquidiy or solvency issues. 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

8

1. Profitability

1.1 Basic Checks

  • In the past year TME was profitable.
  • In the past year TME had a positive cash flow from operations.
  • TME had positive earnings in each of the past 5 years.
  • In the past 5 years TME always reported a positive cash flow from operatings.
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

  • TME has a better Return On Assets (11.95%) than 91.25% of its industry peers.
  • TME has a better Return On Equity (15.93%) than 86.25% of its industry peers.
  • TME has a better Return On Invested Capital (10.39%) than 87.50% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for TME is below the industry average of 8.74%.
  • The last Return On Invested Capital (10.39%) for TME is above the 3 year average (6.52%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 11.95%
ROE 15.93%
ROIC 10.39%
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

  • TME has a better Profit Margin (34.08%) than 100.00% of its industry peers.
  • TME's Profit Margin has improved in the last couple of years.
  • TME has a Operating Margin of 28.82%. This is amongst the best in the industry. TME outperforms 96.25% of its industry peers.
  • TME's Operating Margin has improved in the last couple of years.
  • With a Gross Margin value of 43.90%, TME perfoms like the industry average, outperforming 51.25% of the companies in the same industry.
  • In the last couple of years the Gross Margin of TME has grown nicely.
Industry RankSector Rank
OM 28.82%
PM (TTM) 34.08%
GM 43.9%
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

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

9

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so TME is still creating some value.
  • The number of shares outstanding for TME has been reduced compared to 1 year ago.
  • TME has less shares outstanding than it did 5 years ago.
  • The debt/assets ratio for TME has been reduced compared to a year ago.
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

  • TME has an Altman-Z score of 6.15. This indicates that TME is financially healthy and has little risk of bankruptcy at the moment.
  • TME has a better Altman-Z score (6.15) than 90.00% of its industry peers.
  • TME has a debt to FCF ratio of 0.59. This is a very positive value and a sign of high solvency as it would only need 0.59 years to pay back of all of its debts.
  • With an excellent Debt to FCF ratio value of 0.59, TME belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
  • TME has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.06, TME is in the better half of the industry, outperforming 66.25% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.59
Altman-Z 6.15
ROIC/WACC1.22
WACC8.53%
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

  • A Current Ratio of 2.09 indicates that TME has no problem at all paying its short term obligations.
  • With a decent Current ratio value of 2.09, TME is doing good in the industry, outperforming 76.25% of the companies in the same industry.
  • A Quick Ratio of 2.09 indicates that TME has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 2.09, TME is in the better half of the industry, outperforming 76.25% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.09
Quick Ratio 2.09
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

More info and screens

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

7

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 36.04% over the past year.
  • The Earnings Per Share has been growing by 10.88% on average over the past years. This is quite good.
  • The Revenue has grown by 13.95% in the past year. This is quite good.
  • The Revenue has been growing slightly by 2.23% on average over the past years.
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

  • TME is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.91% yearly.
  • The Revenue is expected to grow by 14.77% on average over the next years. This is quite good.
EPS Next Y24.17%
EPS Next 2Y18.28%
EPS Next 3Y16.46%
EPS Next 5Y16.91%
Revenue Next Year15.31%
Revenue Next 2Y14.21%
Revenue Next 3Y13.69%
Revenue Next 5Y14.77%

3.3 Evolution

  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
  • 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

More info and screens

Find the best growth stocksShow best growing peers

7

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 19.40 indicates a rather expensive valuation of TME.
  • Based on the Price/Earnings ratio, TME is valued cheaper than 82.50% of the companies in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 28.06, TME is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 17.01 indicates a rather expensive valuation of TME.
  • Based on the Price/Forward Earnings ratio, TME is valued cheaper than 85.00% of the companies in the same industry.
  • When comparing the Price/Forward Earnings ratio of TME to the average of the S&P500 Index (27.86), we can say TME is valued slightly cheaper.
Industry RankSector Rank
PE 19.4
Fwd PE 17.01
TME Price Earnings VS Forward Price EarningsTME Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • TME's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. TME is cheaper than 71.25% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, TME is valued cheaper than 87.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.45
EV/EBITDA 13.67
TME Per share dataTME EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

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.
  • 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)0.8
PEG (5Y)1.78
EPS Next 2Y18.28%
EPS Next 3Y16.46%

More info and screens

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

3

5. Dividend

5.1 Amount

  • TME has a Yearly Dividend Yield of 1.93%.
  • TME's Dividend Yield is rather good when compared to the industry average which is at 7.58. TME pays more dividend than 88.75% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, TME has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 1.93%

5.2 History

  • TME does not have a reliable dividend history as it only pays dividend since a couple or years.
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

More info and screens

Find the best dividend stocksShow peers with best dividend

TENCENT MUSIC ENTERTAINM-ADR

NYSE:TME (2/10/2026, 4:50:03 PM)

After market: 16.88 0 (0%)

16.88

+0.61 (+3.75%)

Chartmill FA Rating
GICS IndustryGroupMedia & Entertainment
GICS IndustryEntertainment
Earnings (Last)11-12
Earnings (Next)03-16
Inst Owners62.89%
Inst Owner Change-2.68%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap26.01B
Revenue(TTM)31.72B
Net Income(TTM)10.81B
Analysts80.57
Price Target25.96 (53.79%)
Short Float %4.57%
Short Ratio3.05
Dividend
Industry RankSector Rank
Dividend Yield 1.93%
Yearly Dividend0.13
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)6.17%
Min EPS beat(2)0.1%
Max EPS beat(2)12.25%
EPS beat(4)4
Avg EPS beat(4)6.78%
Min EPS beat(4)0.1%
Max EPS beat(4)12.53%
EPS beat(8)7
Avg EPS beat(8)3.77%
EPS beat(12)10
Avg EPS beat(12)3.33%
EPS beat(16)13
Avg EPS beat(16)4.55%
Revenue beat(2)2
Avg Revenue beat(2)3.43%
Min Revenue beat(2)1.88%
Max Revenue beat(2)4.97%
Revenue beat(4)4
Avg Revenue beat(4)2.05%
Min Revenue beat(4)0.15%
Max Revenue beat(4)4.97%
Revenue beat(8)6
Avg Revenue beat(8)1.12%
Revenue beat(12)9
Avg Revenue beat(12)1.03%
Revenue beat(16)11
Avg Revenue beat(16)1.05%
PT rev (1m)-1.63%
PT rev (3m)-7%
EPS NQ rev (1m)-0.62%
EPS NQ rev (3m)-0.94%
EPS NY rev (1m)1.56%
EPS NY rev (3m)4.87%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.69%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.82%
Valuation
Industry RankSector Rank
PE 19.4
Fwd PE 17.01
P/S 5.68
P/FCF 17.45
P/OCF 17.45
P/B 2.65
P/tB 3.9
EV/EBITDA 13.67
EPS(TTM)0.87
EY5.15%
EPS(NY)0.99
Fwd EY5.88%
FCF(TTM)0.97
FCFY5.73%
OCF(TTM)0.97
OCFY5.73%
SpS2.97
BVpS6.36
TBVpS4.33
PEG (NY)0.8
PEG (5Y)1.78
Graham Number11.16
Profitability
Industry RankSector Rank
ROA 11.95%
ROE 15.93%
ROCE 12.37%
ROIC 10.39%
ROICexc 16.44%
ROICexgc 30.72%
OM 28.82%
PM (TTM) 34.08%
GM 43.9%
FCFM 32.54%
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 Turnover0.35
Health
Industry RankSector Rank
Debt/Equity 0.06
Debt/FCF 0.59
Debt/EBITDA 0.37
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 250
Cash Conversion 101.98%
Profit Quality 95.47%
Current Ratio 2.09
Quick Ratio 2.09
Altman-Z 6.15
F-Score5
WACC8.53%
ROIC/WACC1.22
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 5Y16.91%
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 5Y14.77%
EBIT growth 1Y37.58%
EBIT growth 3Y39.33%
EBIT growth 5Y13.34%
EBIT Next Year51.29%
EBIT Next 3Y23.21%
EBIT Next 5Y22.61%
FCF growth 1Y31.4%
FCF growth 3Y55.02%
FCF growth 5Y9.34%
OCF growth 1Y31.4%
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 7 / 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 8 / 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 19.4 and the Price/Book (PB) ratio is 2.65.


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.