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TME

SELLREMOVE

Tencent Music Entertainment Group · Communication Services · China · $13.6B · Avg Vol: $106M/d

32
StockRank
Q
60
V
48
M
14
P/E (TTM)
10.0x
ROE
11.9%
D/E
0.1x
Dividend %
19.2%
AI CONVICTION THESIS

Tencent Music is a dominant music streaming platform in China with solid metrics, but it lacks alignment with our active 18-month macro themes and faces persistent regulatory and geopolitical discount factors.

COMPANY DESCRIPTION

Tencent Music Entertainment Group is the leading online music entertainment platform in China, operating highly popular apps including QQ Music, Kugou Music, and Kuwo Music. The company operates a highly integrated ecosystem spanning music streaming, online karaoke, and live music-centric social entertainment. TME's competitive moat is secured by its massive user base, extensive licensed music library, and deep integration with the broader Tencent social media ecosystem.

FINANCIAL SUMMARY (USD)

Year2022202320242025CAGR
Revenue28.3B27.8B28.4B32.9B5.1%
EPS9.8113.4816.5528.1642.1%
Shares804.8M804.8M804.8M804.8M0.0%
Debt6.0B6.0B6.1B3.8B-13.9%
Equity48.1B55.9B67.9B80.3B18.6%
Op CF7.5B7.3B10.3B10.2B11.0%
Inv CF-1.4B-1.9B-6.8B-10.2B
Fin CF-3.4B-1.5B-3.8B-4.6B
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PRICE (1Y)-9.8%
8.188.518.859.189.51May 12Jun 3Jun 24
SMA 50SMA 200
Close
$8.18
RSI (14)
22.7
52W High
$26.00
From 52W High
0.3%

SCORE BREAKDOWN

Quality
60
ROIC
15.2%76.7
ROE
11.9%63.9
GP/Assets
2.1%4.9
Op. Margin
30.4%90.5
FCF/Assets
0.7%27.4
Piotroski
890.4
Int. Cover
50.0x84.4
D/E Ratio
0.06x75.0
Current Ratio
2.09x61.9
Value
48
P/E (TTM)
10.0x80.0
EV/EBITDA
-3.4x25.0
P/FCF
20.0x36.5
P/B
7.6x9.9
P/S
2.8x31.0
Div Yield
19.2%99.5
Momentum
14
52W High %
31%5.2
RS 6M
-61%15.9
SMA 50/200
0.60x1.3
EPS Rev 4W
-0.4%42.2
EPS Rev 12W
N/A
EPS Improve
+26%39.1
Q Growth
-51%12.1

FUNDAMENTALS

Market Cap
$13.6B
P/E (Forward)
7.9x
Gross Margin
44.4%

SECTOR PEERS

Closest peers in Communication Services, ranked by industry match, size, and score similarity. Cross-listings of TME are excluded.

TickerCompanyMkt CapStockRankSignal
TMETencent Music Entertainment Group(you)$13.6B32SELL
9626.HKBilibili Inc.$7.0B23SELL
9888.HKBaidu, Inc.$37.7B38HOLD
1024.HKKuaishou Technology$25.1B50HOLD
BZKANZHUN LIMITED - American Depo$5.8B49HOLD
1357.HKMeitu, Inc.$2.4B29SELL
600633.SSZhejiang Daily Digital Culture Group Co.,Ltd$2.1B31SELL
603888.SSXinhuanet Co., Ltd.$1.9B34SELL
ATHMAutohome Inc.$2.1B27SELL
0772.HKChina Literature Limited$2.6B17STRONG SELL

Peer medians: ROE 4.2% · P/E 18.7x · Gross margin 35.7%

Tencent Music Entertainment Group (TME) — Stock Score Summary

Tencent Music Entertainment Group (TME) has a MoatMap StockRank of 32/100 based on Quality (60/100), Value (48/100), and Momentum (14/100) factor scores. The current signal is SELL. Tencent Music is a dominant music streaming platform in China with solid metrics, but it lacks alignment with our active 18-month macro themes and faces persistent regulatory and geopolitical discount factors.

Tencent Music Entertainment Group is the leading online music entertainment platform in China, operating highly popular apps including QQ Music, Kugou Music, and Kuwo Music. The company operates a highly integrated ecosystem spanning music streaming, online karaoke, and live music-centric social entertainment. TME's competitive moat is secured by its massive user base, extensive licensed music library, and deep integration with the broader Tencent social media ecosystem.

Key Financial Metrics

Price$8.18
Market Cap$13.6B
P/E (TTM)10.01
P/E (Forward)7.92
Price/Book7.61
Return on Equity11.9%
Return on Invested Capital15.2%
Debt/Equity6.28
Gross Margin44.4%
Operating Margin30.4%
Revenue Growth7.3%
Dividend Yield19.2%
Free Cash Flow$680M

Tencent Music Entertainment Group operates in the Internet Content & Information industry, part of the Communication Services sector (China).

Frequently Asked Questions

What is Tencent Music Entertainment Group’s (TME) StockRank?
MoatMap’s StockRank for Tencent Music Entertainment Group (TME) is 32/100, with a Sell signal. It is a composite of Quality (60), Value (48), and Momentum (14) factor ranks across MoatMap’s 20,000+ stock universe.
Does Tencent Music Entertainment Group have an economic moat?
Tencent Music Entertainment Group (TME) has a Quality factor score of 60/100. The Quality factor combines ROIC, Piotroski F-Score, and leverage — the financial fingerprints of a durable competitive advantage. A Quality score above 70 typically indicates a company with the characteristics of a moated business.
Is Tencent Music Entertainment Group a buy, hold, or sell?
MoatMap’s current signal for Tencent Music Entertainment Group (TME) is Sell, based on a StockRank of 32/100. Signals are derived mechanically from the StockRank composite and should be one input among many — combine with your own thesis on management, competitive position, and valuation.
What sector is Tencent Music Entertainment Group in?
Tencent Music Entertainment Group (TME) operates in the Communication Services sector, specifically the Internet Content & Information industry (China).