TME
Tencent Music·NYSE
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7.12 / 10
Outperform
TME's fundamentals score 7.1/10, driven by healthy cash flow (Cash-UP factor) and 15.8% YoY revenue growth. However, Asset-MV and net-profit quality metrics lag, tempering the outlook. The company's diversified revenue and AI initiatives provide resilience, but investors should watch asset efficiency and profit sustainability. Historical back-tests show mixed one-month returns for key factors, underscoring the need for careful valuation analysis.
Analysis Checks(5/10)
Revenue-MV
Value-0.26
Score3/3
Weight39.82%
1M Return5.31%
Value-0.26
Score3/3
Weight39.82%
1M Return5.31%
Total operating revenue (YoY growth rate %)
Value15.84
Score2/3
Weight-5.06%
1M Return-0.79%
Value15.84
Score2/3
Weight-5.06%
1M Return-0.79%
Quick ratio
Value2.08
Score1/3
Weight-6.35%
1M Return-1.05%
Value2.08
Score1/3
Weight-6.35%
1M Return-1.05%
Cash-UP
Value0.65
Score3/3
Weight0.90%
1M Return0.19%
Value0.65
Score3/3
Weight0.90%
1M Return0.19%
Asset-MV
Value-0.50
Score1/3
Weight69.18%
1M Return8.03%
Value-0.50
Score1/3
Weight69.18%
1M Return8.03%
Net profit attributable to parent company shareholders / Net profit (%)
Value97.64
Score1/3
Weight-6.32%
1M Return-1.02%
Value97.64
Score1/3
Weight-6.32%
1M Return-1.02%
Net income-Revenue
Value0.80
Score3/3
Weight42.02%
1M Return5.65%
Value0.80
Score3/3
Weight42.02%
1M Return5.65%
Shareholders’ equity attributable to parent company (growth rate compared to beginning of year %)
Value21.94
Score0/3
Weight-26.14%
1M Return-4.57%
Value21.94
Score0/3
Weight-26.14%
1M Return-4.57%
Operating revenue (YoY growth rate %)
Value15.84
Score2/3
Weight-6.87%
1M Return-1.08%
Value15.84
Score2/3
Weight-6.87%
1M Return-1.08%
Cash-MV
Value-0.07
Score1/3
Weight-1.17%
1M Return-0.18%
Value-0.07
Score1/3
Weight-1.17%
1M Return-0.18%
Revenue-MV
Value-0.26
Score3/3
Weight39.82%
1M Return5.31%
Value-0.26
Score3/3
Weight39.82%
1M Return5.31%
Net profit attributable to parent company shareholders / Net profit (%)
Value97.64
Score1/3
Weight-6.32%
1M Return-1.02%
Value97.64
Score1/3
Weight-6.32%
1M Return-1.02%
Total operating revenue (YoY growth rate %)
Value15.84
Score2/3
Weight-5.06%
1M Return-0.79%
Value15.84
Score2/3
Weight-5.06%
1M Return-0.79%
Net income-Revenue
Value0.80
Score3/3
Weight42.02%
1M Return5.65%
Value0.80
Score3/3
Weight42.02%
1M Return5.65%
Quick ratio
Value2.08
Score1/3
Weight-6.35%
1M Return-1.05%
Value2.08
Score1/3
Weight-6.35%
1M Return-1.05%
Shareholders’ equity attributable to parent company (growth rate compared to beginning of year %)
Value21.94
Score0/3
Weight-26.14%
1M Return-4.57%
Value21.94
Score0/3
Weight-26.14%
1M Return-4.57%
Cash-UP
Value0.65
Score3/3
Weight0.90%
1M Return0.19%
Value0.65
Score3/3
Weight0.90%
1M Return0.19%
Operating revenue (YoY growth rate %)
Value15.84
Score2/3
Weight-6.87%
1M Return-1.08%
Value15.84
Score2/3
Weight-6.87%
1M Return-1.08%
Asset-MV
Value-0.50
Score1/3
Weight69.18%
1M Return8.03%
Value-0.50
Score1/3
Weight69.18%
1M Return8.03%
Cash-MV
Value-0.07
Score1/3
Weight-1.17%
1M Return-0.18%
Value-0.07
Score1/3
Weight-1.17%
1M Return-0.18%
Is TME undervalued or overvalued?
- TME scores 7.12/10 on fundamentals and holds a Discounted valuation at present. Backed by its 11.41% ROE, 35.47% net margin, 17.03 P/E ratio, 2.11 P/B ratio, and 72.73% earnings growth, these metrics solidify its Outperform investment rating.
