Is Tencent Music Stock a Good Investment?
Tencent Music Investment Advice | TME |
- Examine Tencent Music's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Tencent Music's leadership team and their track record. Good management can help Tencent Music navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Movies & Entertainment space and any emerging trends that could impact Tencent Music's business and its evolving consumer preferences.
- Compare Tencent Music's performance and market position to its competitors. Analyze how Tencent Music is positioned in terms of product offerings, innovation, and market share.
- Check if Tencent Music pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Tencent Music's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Tencent Music Entertainment stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Tencent Music Entertainment is a good investment.
Sell | Buy |
Hold
Market Performance | OK | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Very Low | Details | |
Economic Sensitivity | Follows the market closely | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Tencent Music Stock
Researching Tencent Music's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 58.0% of the company shares are owned by institutional investors. The book value of Tencent Music was at this time reported as 44.14. The company has Price/Earnings To Growth (PEG) ratio of 1.33. Tencent Music Entert last dividend was issued on the 3rd of April 2025.
To determine if Tencent Music is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Tencent Music's research are outlined below:
| Tencent Music Entert had very high historical volatility over the last 90 days | |
| About 58.0% of the company shares are owned by institutional investors | |
| Latest headline from gurufocus.com: Tencent Music Entertainment Group Reports Strong Financial Growth in 2024 |
Tencent Music uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Tencent Music Entertainment. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Tencent Music's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 19th of March 2024 Upcoming Quarterly Report | View | |
| 21st of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 19th of March 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Tencent Music's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Tencent Music's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2024-11-12 | 2024-09-30 | 0.17 | 0.1409 | -0.0291 | 17 | ||
2022-08-15 | 2022-06-30 | 0.56 | 0.63 | 0.07 | 12 | ||
2019-11-11 | 2019-09-30 | 0.66 | 0.74 | 0.08 | 12 | ||
2020-11-10 | 2020-09-30 | 0.71 | 0.8 | 0.09 | 12 | ||
2023-05-16 | 2023-03-31 | 0.79 | 0.89 | 0.1 | 12 | ||
2020-03-16 | 2019-12-31 | 0.7 | 0.8 | 0.1 | 14 | ||
2021-11-08 | 2021-09-30 | 0.49 | 0.61 | 0.12 | 24 | ||
2021-05-17 | 2021-03-31 | 0.55 | 0.69 | 0.14 | 25 |
Tencent Music Target Price Consensus
Tencent target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Tencent Music's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 29 | Strong Buy |
Most Tencent analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Tencent stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Tencent Music Entert, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationTencent Music Target Price Projection
Tencent Music's current and average target prices are 14.40 and 14.43, respectively. The current price of Tencent Music is the price at which Tencent Music Entertainment is currently trading. On the other hand, Tencent Music's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Tencent Music Market Quote on 28th of March 2025
Target Price
Analyst Consensus On Tencent Music Target Price
Tencent Music Analyst Ratings
Tencent Music's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Tencent Music stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Tencent Music's financials, market performance, and future outlook by experienced professionals. Tencent Music's historical ratings below, therefore, can serve as a valuable tool for investors.Know Tencent Music's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Tencent Music is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Tencent Music Entertainment backward and forwards among themselves. Tencent Music's institutional investor refers to the entity that pools money to purchase Tencent Music's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Artisan Partners Limited Partnership | 2024-12-31 | 10 M | Fmr Inc | 2024-12-31 | 9.8 M | Norges Bank | 2024-12-31 | 8.8 M | Renaissance Technologies Corp | 2024-12-31 | 8 M | Allspring Global Investments Holdings, Llc | 2024-12-31 | 6.5 M | Nuveen Asset Management, Llc | 2024-12-31 | 5.6 M | Coronation Fund Managers Ltd | 2024-12-31 | 5.5 M | Ubs Group Ag | 2024-12-31 | 5.4 M | Capital World Investors | 2024-12-31 | 4.7 M | Schroder Investment Management Group | 2024-12-31 | 63.1 M | Blackrock Inc | 2024-12-31 | 31.8 M |
Tencent Music's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 24.29 B.Market Cap |
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Tencent Music's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.10 | 0.07 | |
| Return On Capital Employed | 0.12 | 0.12 | |
| Return On Assets | 0.07 | 0.04 | |
| Return On Equity | 0.10 | 0.05 |
Determining Tencent Music's profitability involves analyzing its financial statements and using various financial metrics to determine if Tencent Music is a good buy. For example, gross profit margin measures Tencent Music's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Tencent Music's profitability and make more informed investment decisions.
Please note, the presentation of Tencent Music's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Tencent Music's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Tencent Music's management manipulating its earnings.
Evaluate Tencent Music's management efficiency
Tencent Music Entert has Return on Asset of 0.0566 % which means that on every $100 spent on assets, it made $0.0566 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.112 %, implying that it generated $0.112 on every 100 dollars invested. Tencent Music's management efficiency ratios could be used to measure how well Tencent Music manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Capital Employed is expected to grow to 0.12, whereas Return On Tangible Assets are forecasted to decline to 0.07. At present, Tencent Music's Other Current Assets are projected to increase significantly based on the last few years of reporting. The current year's Intangibles To Total Assets is expected to grow to 0.45, whereas Net Tangible Assets are forecasted to decline to about 21.7 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 22.25 | 11.28 | |
| Tangible Book Value Per Share | 14.57 | 15.30 | |
| Enterprise Value Over EBITDA | 30.41 | 28.88 | |
| Price Book Value Ratio | 1.91 | 3.81 | |
| Enterprise Value Multiple | 14.64 | 13.91 | |
| Price Fair Value | 1.91 | 3.81 | |
| Enterprise Value | 250.4 B | 280.7 B |
Tencent Music Entert has shown resilience through effective management strategies. Our analysis examines how these strategies influence financial outcomes and investor returns which helps in understanding the stock's long-term potential.
Basic technical analysis of Tencent Stock
As of the 28th of March, Tencent Music has the Coefficient Of Variation of 990.73, risk adjusted performance of 0.0918, and Semi Deviation of 2.61. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of Tencent Music Entert, as well as the relationship between them. Please validate Tencent Music Entert variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if Tencent Music is priced more or less accurately, providing market reflects its prevalent price of 14.4 per share. Given that Tencent Music Entert has jensen alpha of 0.3761, we advise you to double-check Tencent Music Entertainment's current market performance to make sure the company can sustain itself at a future point.Tencent Music's Outstanding Corporate Bonds
Tencent Music issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Tencent Music Entert uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Tencent bonds can be classified according to their maturity, which is the date when Tencent Music Entertainment has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Dana 575 percent Corp BondUS235822AB96 | View | |
| Pactiv 8375 percent Corp BondUS880394AE11 | View | |
| Pactiv 795 percent Corp BondUS880394AB71 | View | |
| THC 5125 01 NOV 27 Corp BondUS88033GDB32 | View | |
| THC 6125 01 OCT 28 Corp BondUS88033GDK31 | View | |
| THC 425 01 JUN 29 Corp BondUS88033GDM96 | View | |
| THC 4625 15 JUN 28 Corp BondUS88033GDH02 | View | |
| THC 625 01 FEB 27 Corp BondUS88033GDS66 | View |
Understand Tencent Music's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Tencent Music's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0918 | |||
| Market Risk Adjusted Performance | 0.5973 | |||
| Mean Deviation | 2.46 | |||
| Semi Deviation | 2.61 | |||
| Downside Deviation | 2.98 | |||
| Coefficient Of Variation | 990.73 | |||
| Standard Deviation | 3.67 | |||
| Variance | 13.45 | |||
| Information Ratio | 0.1052 | |||
| Jensen Alpha | 0.3761 | |||
| Total Risk Alpha | 0.4739 | |||
| Sortino Ratio | 0.1293 | |||
| Treynor Ratio | 0.5873 | |||
| Maximum Drawdown | 21.82 | |||
| Value At Risk | (4.28) | |||
| Potential Upside | 6.56 | |||
| Downside Variance | 8.91 | |||
| Semi Variance | 6.8 | |||
| Expected Short fall | (2.80) | |||
| Skewness | 1.35 | |||
| Kurtosis | 5.25 |
| Risk Adjusted Performance | 0.0918 | |||
| Market Risk Adjusted Performance | 0.5973 | |||
| Mean Deviation | 2.46 | |||
| Semi Deviation | 2.61 | |||
| Downside Deviation | 2.98 | |||
| Coefficient Of Variation | 990.73 | |||
| Standard Deviation | 3.67 | |||
| Variance | 13.45 | |||
| Information Ratio | 0.1052 | |||
| Jensen Alpha | 0.3761 | |||
| Total Risk Alpha | 0.4739 | |||
| Sortino Ratio | 0.1293 | |||
| Treynor Ratio | 0.5873 | |||
| Maximum Drawdown | 21.82 | |||
| Value At Risk | (4.28) | |||
| Potential Upside | 6.56 | |||
| Downside Variance | 8.91 | |||
| Semi Variance | 6.8 | |||
| Expected Short fall | (2.80) | |||
| Skewness | 1.35 | |||
| Kurtosis | 5.25 |
Consider Tencent Music's intraday indicators
Tencent Music intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Tencent Music stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Tencent Music Corporate Filings
6K | 18th of March 2025 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
| 12th of July 2024 Other Reports | ViewVerify |
Tencent Stock media impact
Far too much social signal, news, headlines, and media speculation about Tencent Music that are available to investors today. That information is available publicly through Tencent media outlets and privately through word of mouth or via Tencent internal channels. However, regardless of the origin, that massive amount of Tencent data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Tencent Music news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Tencent Music relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Tencent Music's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Tencent Music alpha.
Tencent Music Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Tencent Music can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Tencent Music Entert Historical Investor Sentiment
Investor biases related to Tencent Music's public news can be used to forecast risks associated with an investment in Tencent. The trend in average sentiment can be used to explain how an investor holding Tencent can time the market purely based on public headlines and social activities around Tencent Music Entertainment. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Tencent Music's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Tencent Music and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Tencent Music news discussions. The higher the estimate score, the more favorable the investor's outlook on Tencent Music.
Tencent Music Maximum Pain Price Across May 16th 2025 Option Contracts
Tencent Music's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Tencent Music close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Tencent Music's options.
Tencent Music Corporate Management
| Tao Tong | Chairman of the Board | Profile | |
| Lixue Shi | Group Vice President - Kuwo | Profile | |
| TakWai Wong | Independent Director | Profile | |
| Cheuk Yip | Chief Strategy Officer, Head of Ultimate Music | Profile | |
| Liang Tang | Independent Director | Profile |
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Tencent Music Entertainment. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in population. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Is Movies & Entertainment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Tencent Music. If investors know Tencent will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Tencent Music listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.53 | Dividend Share 1.314 | Earnings Share 0.6 | Revenue Per Share | Quarterly Revenue Growth 0.082 |
The market value of Tencent Music Entert is measured differently than its book value, which is the value of Tencent that is recorded on the company's balance sheet. Investors also form their own opinion of Tencent Music's value that differs from its market value or its book value, called intrinsic value, which is Tencent Music's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Tencent Music's market value can be influenced by many factors that don't directly affect Tencent Music's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Tencent Music's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Tencent Music is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Tencent Music's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.