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Company Analysis

Tencent Music Entertainment Gro TME

A comprehensive view of key metrics, scores, and financial health for Tencent Music Entertainment Gro

Overview of Tencent Music Entertainment Group

TME NYQ
Communication Services Internet Content & Information Framework: Software & SaaS Large Cap
Tencent Music Entertainment Group (TME), is a Large Cap company, in the Internet Content & Information industry, last closed at $8.48, about 5.3% undervalued vs fair value, -63.1% 1Y return, placing in the top 25% of its sector.
Metrics P/E 17.2× Rev Growth 15.9% ROE 14.9% Gross Margin 44.2% Div Yield 1.04%
USD 8.48
-0.35%
(Delayed)
• Vol 90d: 37.4%
52-Week Range
Market Cap
$14.00B
Enterprise Value
$13.34B
Overall Score
View breakdown
Overall
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Fair
Valuation
Fair
Growth
Fair
Profitability
Good
Health
Fair
Efficiency
Fair
Valuation
Fair
Completeness: 100%
Confidence: 96%
Updated: Oct 24
Top Beats

Quick Facts

Website https://www.tencentmusic.com
HQ Shenzhen
Employees 5,353
Fiscal year Dec 31

Next Events

Earnings Nov 17 Call: Nov 17

Fair Value Snapshot

Bear Base Bull
$8
$9
$10
Current: $8.48 +5% vs base

Engine Room Money Flow™

Large Cap

Software & SaaS - Where revenue goes and how value is created

Flow Steps
Total Revenue
CNY 32.9B
15.8%%
Gross Profit
CNY 14.5B
20.9%%
Operating Income (GAAP)
CNY 13.4B
53.4%%
Operating Cash Flow
CNY 10.2B
-0.4%%
Money Flow Bridge
Flow Direction: Money moves from left to right
Components: Breakdown shows composition of each stage
Industry-Specific: Software & SaaS

Quality & Reliability Indicators

Gross Margin
44.2%

Gross Profit / Revenue — context only; ad platforms typically 60–80%, marketplaces and streaming lower by design

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Owner's Pocket - Capital Allocation

Total Returned to Shareholders

Combined dividends, buybacks, and debt reduction

CNY 2.4B
26.2% of FCF

Where It Leaks

Cash Flow Health healthy
Strong cash conversion with minimal leakage across profit-to-cash-to-value chain.
0
Active Leaks
0/0
Improving
0
High Impact
0
Critical
Moat Analysis Software & SaaS Specialized

Competitive Advantage Assessment

Evaluating Tencent Music Entertainment Gro's durable competitive advantages across 6 defense dimensions

Overall Moat Strength
73
/100
Moderate
Scores based on quantitative metrics and qualitative factors
Full moat analysis

Key strengths

  • Revenue Converts Cleanly to Cash Cash conversion is strong (score 0.89), showing scalable economics.
  • Asset-Light Returns Return profile is strong (score 0.83), supporting a capital-efficient model.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
59
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Signals, strengths and risks for Pricing Power

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Signals, strengths and risks for Recurring Revenue Stickiness

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Signals, strengths and risks for Innovation Engine

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Signals, strengths and risks for Cash Scalability

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Signals, strengths and risks for Capital Efficiency

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Signals, strengths and risks for Balance Sheet Resilience

Trade-Off Ledger™

Where management spends the performance budget - Growth, Profitability, or Safety

Software SaaS vs Industry Peers 100% Coverage
Trade-Off Triangle Visualization A ternary plot showing TME's balance between Growth (29.4%), Profitability (35.4%), and Safety (35.2%). Growth 29% Safety 35% Profitability 35%

Click axes to expand details. Marker shows current allocation.

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Growth

60th percentile vs peers
60
Key Signals
Rev Growth YoY 15.8% 64p Def Rev Growth 12.1% 58p TSR 56.1% 83p Revenue CAGR 3Y 5.1% 41p EPS Growth YoY 67.6% 67p
Strengths
  • Rule of 40 in top 20% of peers (43.3%, 80th percentile)
  • FCF Margin in top 20% of peers (27.5%, 88th percentile)
  • Cash Flow to Debt Ratio in top 20% of peers (1.95, 82th percentile)
  • Interest Coverage Ratio in top 20% of peers (109.83, 93th percentile)
  • Superior capital returns - 2 return metrics above peer median
Risks

No significant risks identified for this axis.

Profitability

72th percentile vs peers
73
Key Signals
Strengths
Risks
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Safety

72th percentile vs peers
72
Key Signals
Strengths
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Two Futures

Scenario-based fair value ranges for Tencent Music Entertainment Gro.

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Unable to Compute Fair Value

This company cannot be valued using standard models.

What this means: The Scenario Theatre requires financial data (revenue, cash flow, shares outstanding) to calculate fair value estimates. This data may be unavailable for:

  • Recently listed companies (IPOs, SPACs)
  • Shell companies or holding companies
  • Companies that haven't filed recent financials
  • Foreign companies with limited data coverage
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Bear
-
- - -
- upside
-
Base
$8.93
- - -
+5.3% vs current
Snapshot base estimate
Bull
-
- - -
- upside
-
Fair Value Range Current: $-
$- $- $-
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