Loading stock…

Tencent Music Entertainment Group (TME) Stock Verdict & Ratings | Investment Bastion

Stock Verdict·Updated 1d ago

Tencent Music Entertainment Group

TMEMarket cap $13BPrice $8.0

Country🇨🇳China

SectorTechnology

IndustryEntertainment

Runs China's dominant music streaming ecosystem, including QQ Music, Kugou, and Kuwo, reaching hundreds of millions of monthly users. Makes more money from karaoke features and virtual gifting during live audio sessions than from subscriptions alone.

In Bastion Portfolios?

52W Return-63%Global Market +16%?

01Key Ratings

How does this stock score across Bastion factors?

Growth

Historical Revenue

Rev CAGR (3y)+5%5

Revenue Forecast

Rev CAGR (1y)+12%7

Rev CAGR (3y)+8%6

Rev CAGR (5y)+7%6

Earnings Forecast

EPS Growth Y+1-14%3

EPS Growth Y+2+8%6

EPS Growth Y+3+8%6

Quality

Margins

EBIT Margin30%9

Net Income Margin26%9

Free Cash Flow Margin32%9

Debt

Net Debt/EBITDA-1.210

Efficiency

ROE11%5

ROA8%8

Earnings Stability77

GEAR+VERY STRONG90

Overall rating across all five factors

Value

Price Multiples

P/E Ratio (Forward)99

P/E Ratio (Forward 3y)89

P/BV1.19

EV Multiples

EV/EBITDA Fwd410

EV/EBIT Fwd410

Yield

Free Cash Flow Yield12.3%10

Dividend Yield2.9%7

Momentum

Short term

1 month return-1%7

3 month return-9%3

YTD return-53%1

Mid term

Price vs 52wHigh34%1

1 year return-65%1

Long term

3 year return+31%4

5 year return+9%4

Risk Shield

Price Risk

Beta1.13

Volatility49%3

Free Cash Flow

Free Cash Flow Margin32%9

Free Cash Flow Yield12.3%10

Quality

ROCE11%6

Earnings Stability77

Net Debt/EBITDA-1.210

02Growth

Is it actually growing, and how fast?

TMETencent Music Entertainment

Revenue FY25$4.7B

GROWTH RATING↗

AVERAGE55 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+5%5

Revenue, next 1Y+12%7

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-14%3

EPS growth, FY27E+8%6

EPS growth, FY28E+8%6

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

A mid-pack grower, ahead of 55% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 5%/yr over the last 3 years and is set to keep growing around 8%/yr.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

Earnings are set to grow in step with sales (EPS about 8%/yr vs revenue 8%/yr). One year dips: EPS falls 14% next year.

WEAKNESSES

None flagged.

BOTTOM LINE

Steady Grower

A middle-of-the-pack grower. The one thing to watch: the earnings path has a down year.

03Price Momentum

Is the market behind it right now?

TMETencent Music Entertainment

Total return Current−38.2%

Price return Current−39.6%

MOMENTUM RATING↗

VERY WEAK14 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-1%7

3-month return-9%3

YTD return-53%1

MID & LONG-TERM▾SCORE

% of 52-week high34%1

1-year return-65%1

3-year return+31%4

5-year return+9%4

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over the past month (-1%).

WATCH

Average long-term results. Multi-year returns are middling (+31% over three years and +8.9% over five), roughly average for the market.

WEAKNESSES

It's down 65% over the past year, now 66% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-9%) and so far this year (-53%).

BOTTOM LINE

Falling Knife

Returns rank poorly over both the short and long run, and the price is still falling. Momentum is firmly negative — catching this is a bet against the tape, not with it. Wait for a base to form. The one thing to watch: the one-year trend is weak.

04Value

Are you paying a fair price for it?

Stop guessing on Tencent Music Entertainment. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community

Loading charts…

02Growth

Is it actually growing, and how fast?

TMETencent Music Entertainment

Revenue FY25$4.7B

GROWTH RATING↗

AVERAGE55 / 100

REVENUE GROWTH▾SCORE

Revenue, last 3Y, CAGR+5%5

Revenue, next 1Y+12%7

Revenue, next 3Y, CAGR+8%6

Revenue, next 5Y, CAGR+7%6

EARNINGS FORECAST▾SCORE

EPS growth, FY26E-14%3

EPS growth, FY27E+8%6

EPS growth, FY28E+8%6

GROWTH ASSESSMENT

STRENGTHS

None flagged.

WATCH

A mid-pack grower, ahead of 55% of companies worldwide.

Revenue is set to grow 8%/yr over the next 3 years, a little ahead of the market.6/10

Revenue grew 5%/yr over the last 3 years and is set to keep growing around 8%/yr.

Over five years revenue is set to grow 7%/yr, ahead of 50% of companies worldwide.6/10

Earnings are set to grow in step with sales (EPS about 8%/yr vs revenue 8%/yr). One year dips: EPS falls 14% next year.

WEAKNESSES

None flagged.

BOTTOM LINE

Steady Grower

A middle-of-the-pack grower. The one thing to watch: the earnings path has a down year.

03Price Momentum

Is the market behind it right now?

TMETencent Music Entertainment

Total return Current−38.2%

Price return Current−39.6%

MOMENTUM RATING↗

VERY WEAK14 / 100

SHORT-TERM RETURNS▾SCORE

1-month return-1%7

3-month return-9%3

YTD return-53%1

MID & LONG-TERM▾SCORE

% of 52-week high34%1

1-year return-65%1

3-year return+31%4

5-year return+9%4

MOMENTUM ASSESSMENT

STRENGTHS

Strong recent results. The stock is outperforming over the past month (-1%).

WATCH

Average long-term results. Multi-year returns are middling (+31% over three years and +8.9% over five), roughly average for the market.

WEAKNESSES

It's down 65% over the past year, now 66% below its 52-week high. That is lagging the market.

The stock is underperforming over three months (-9%) and so far this year (-53%).

BOTTOM LINE

Falling Knife

04Value

Are you paying a fair price for it?

Stop guessing on Tencent Music Entertainment. Get the full investment case.

Premium

$20.75/month

Billed annually at $249/year $348

✓
Stock VerdictValuation and investment strategy for 4,000+ stocks. Days of hedge fund analyst research, done in 2 minutes.
✓
RadarFind your next investment idea: top-ranked stocks across all 9 Bastion strategies.
✓
Portfolio ManagerCheck if Bastion algorithms added the stock you care about to their portfolios.

Secure via Stripe

Trusted by 1,000+ investors in our community