Tencent Music Entertainment Group (TME) 10-Year Financial Performance & Capital Metrics

TME • • Industrial / General

Communication ServicesInternet ServicesDigital Content & Media PlatformsMusic & Audio Platforms

AboutTencent Music Entertainment Group operates online music entertainment platforms to provide music streaming, online karaoke, and live streaming services in the People's Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover and listen to music in personalized ways; and WeSing, which enables users to have fun by singing and interacting with friends, sharing their singing performances with friends, and discovering songs that others have sung. The company also operates Kugou Music, Kuwo Music, WeSing, QQ Music, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with those interested in their performance; and Kuwo Changting, an audio platform that offers users various audio content, including audio books, cross-talks, radio dramas, and other entertainment. In addition, it sells music-related merchandise, including Kugou headsets, smart speakers, WeSing karaoke microphones, and Hi-Fi systems; and offers online music event ticketing services, as well as services to smart device and automobile makers to build and operate music services on devices and vehicles. Tencent Music Entertainment Group has a strategic partnership with China Literature. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.Show more

Revenue $28.4B +2.3%
EBITDA $9.69B +42.9%
Net Income $6.64B +35.0%
EPS (Diluted) 4.24 +36.8%
Gross Margin 42.34% +20.0%
EBITDA Margin 34.11% +39.6%
Operating Margin 30.67% +40.5%
Net Margin 23.39% +32.0%
ROE 10.47% +13.1%
ROIC 11.63% +21.9%
Debt/Equity 0.09 -17.9%
Interest Coverage 70.24 +43.8%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Strong Piotroski F-Score: 7/9
✓FCF machine: 32.5% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Healthy dividend yield of 5.8%
✓Healthy 5Y average net margin of 15.6%

✗Weaknesses

✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-

5Y2.23%

3Y-3.13%

TTM13.95%

Profit (Net Income) CAGR

10Y-

5Y10.78%

3Y29.93%

TTM80.38%

EPS CAGR

10Y-

5Y12.24%

3Y33.05%

TTM81.77%

ROCE

10Y Avg9.56%

5Y Avg10.38%

3Y Avg10.27%

Latest12.68%

Peer Comparison

Music & Audio Platforms

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
SPOTSpotify Technology S.A.	104.6B	508.04	92.37	18.31%	8.32%	18.2%	2.18%	0.36
TMETencent Music Entertainment Group	11.76B	16.60	3.92	2.34%	34.08%	12.65%	78.6%	0.09
PODCPodcastOne, Inc.	65.39M	2.43	-9.35	20.36%	-9.57%	-37.06%

Profit & Loss

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	4.36B	10.98B	18.98B	25.43B	29.15B	31.24B	28.34B	27.75B	28.4B
Revenue Growth %	-	1.52%	0.73%	0.34%	0.15%	0.07%	-0.09%	-0.02%	0.02%
Cost of Goods Sold+	3.13B	7.17B	11.71B	16.76B	19.85B	21.84B	19.57B	17.96B	16.38B
COGS % of Revenue	0.72%	0.65%	0.62%	0.66%	0.68%	0.7%	0.69%	0.65%	0.58%
Gross Profit+	1.23B	3.81B	7.28B	8.67B	9.3B	9.4B	8.77B	9.79B	12.03B
Gross Margin %	0.28%	0.35%	0.38%	0.34%	0.32%	0.3%	0.31%	0.35%	0.42%
Gross Profit Growth %	-	2.09%	0.91%	0.19%	0.07%	0.01%	-0.07%	0.12%	0.23%
Operating Expenses+	1.14B	2.4B	3.97B	4.05B	4.59B	5.6B	4.33B	3.74B	3.31B
OpEx % of Revenue	0.26%	0.22%	0.21%	0.16%	0.16%	0.18%	0.15%	0.13%	0.12%
Selling, General & Admin	1.15B	2.43B	3.97B	4.74B	5.58B	6.69B	5.56B	5.02B	4.68B
SG&A % of Revenue	0.26%	0.22%	0.21%	0.19%	0.19%	0.21%	0.2%	0.18%	0.16%
Research & Development	449M	797M	937M	1.16B	0	0	2.58B	2.52B	0
R&D % of Revenue	0.1%	0.07%	0.05%	0.05%	-	-	0.09%	0.09%	-
Other Operating Expenses	1M	6M	-1.58B	-1.85B	-984M	-1.08B	-3.81B	-3.81B	-1.36B
Operating Income+	103M	1.59B	2.04B	4.62B	4.71B	3.8B	4.44B	6.06B	8.71B
Operating Margin %	0.02%	0.15%	0.11%	0.18%	0.16%	0.12%	0.16%	0.22%	0.31%
Operating Income Growth %	-	14.47%	0.28%	1.27%	0.02%	-0.19%	0.17%	0.36%	0.44%
EBITDA+	339M	1.97B	2.41B	5.14B	5.53B	4.8B	5.6B	6.78B	9.69B
EBITDA Margin %	0.08%	0.18%	0.13%	0.2%	0.19%	0.15%	0.2%	0.24%	0.34%
EBITDA Growth %	-	4.82%	0.22%	1.14%	0.08%	-0.13%	0.17%	0.21%	0.43%
D&A (Non-Cash Add-back)	236M	379M	369M	522M	824M	1B	1.16B	720M	978M
EBIT	93M	1.6B	2.04B	4.09B	4.73B	3.75B	4.49B	5B	8.84B
Net Interest Income+	32M	93M	247M	547M	523M	410M	596M	928M	1.07B
Interest Income	32M	93M	282M	615M	622M	530M	711M	1.05B	1.2B
Interest Expense	0	0	35M	64M	97M	121M	115M	124M	124M
Other Income/Expense	20M	185M	-36M	-82M	-78M	-168M	-70M	-14M	2M
Pretax Income+	114M	1.6B	2B	4.54B	4.63B	3.63B	4.37B	6.04B	8.71B
Pretax Margin %	0.03%	0.15%	0.11%	0.18%	0.16%	0.12%	0.15%	0.22%	0.31%
Income Tax+	29M	278M	171M	563M	456M	417M	534M	825M	1.6B
Effective Tax Rate %	0.72%	0.83%	0.92%	0.88%	0.9%	0.83%	0.84%	0.81%	0.76%
Net Income+	82M	1.33B	1.83B	3.98B	4.16B	3.03B	3.68B	4.92B	6.64B
Net Margin %	0.02%	0.12%	0.1%	0.16%	0.14%	0.1%	0.13%	0.18%	0.23%
Net Income Growth %	-	15.17%	0.38%	1.17%	0.04%	-0.27%	0.21%	0.34%	0.35%
Net Income (Continuing)	85M	1.32B	1.83B	3.98B	4.18B	3.21B	3.84B	5.22B	7.11B
Discontinued Operations	0	0	0	0	0	0	0	0	0
Minority Interest	9M	7M	51M	12.63M	486M	738M	1.03B	1.29B	1.86B
EPS (Diluted)+	0.05	0.81	1.16	2.38	2.48	1.80	2.28	3.10	4.24
EPS Growth %	-	15.17%	0.43%	1.05%	0.04%	-0.27%	0.27%	0.36%	0.37%
EPS (Basic)	0.05	0.82	1.19	2.44	2.50	1.82	2.30	3.16	4.30
Diluted Shares Outstanding	1.64B	1.64B	1.58B	1.67B	1.68B	1.68B	1.62B	1.58B	1.57B
Basic Shares Outstanding	1.62B	1.62B	1.54B	1.64B	1.66B	1.66B	1.6B	1.58B	1.57B
Dividend Payout Ratio	-	-	0.01%	0.01%	-	-	-	-	0.23%

Balance Sheet

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	5B	7.47B	20.78B	3.89B	31.69B	26.79B	26.56B	29.94B	34.54B
Cash & Short-Term Investments	3.33B	5.17B	17.44B	3.23B	26.02B	20.43B	20.88B	23.54B	27.21B
Cash Only	3.07B	5.17B	17.36B	2.21B	11.13B	6.59B	9.55B	13.57B	13.16B
Short-Term Investments	261M	0	81M	1.01B	14.89B	13.84B	11.33B	9.97B	14.04B
Accounts Receivable	809M	1.3B	1.48B	344.69M	2.99B	3.8B	2.92B	2.92B	3.51B
Days Sales Outstanding	67.71	43.28	28.51	4.95	37.41	44.36	37.65	38.38	45.08
Inventory	14M	30M	35M	3.73M	18M	24M	14M	8M	23M
Days Inventory Outstanding	1.63	1.53	1.09	0.08	0.33	0.4	0.26	0.16	0.51
Other Current Assets	35M	39M	55M	62.16M	53M	56M	87M	267M	1.38B
Total Non-Current Assets+	18.54B	22.53B	23.83B	3.68B	36.59B	40.46B	40.45B	45.6B	55.9B
Property, Plant & Equipment	108M	127M	168M	46.94M	487M	526M	721M	857M	1.1B
Fixed Asset Turnover	40.38x	86.46x	113.01x	541.79x	59.86x	59.40x	39.31x	32.38x	25.87x
Goodwill	15.76B	16.26B	17.09B	2.46B	17.49B	19.12B	19.49B	19.54B	19.65B
Intangible Assets	2.01B	1.72B	1.76B	232.86M	2.02B	4.32B	4.85B	4.47B	4.41B
Long-Term Investments	302M	4.12B	3.78B	813.56M	15.33B	15.4B	14.33B	19.84B	29.89B
Other Non-Current Assets	272M	204M	901M	117.15M	956M	743M	709M	540M	425M
Total Assets+	23.54B	30B	44.6B	7.56B	68.27B	67.25B	67.01B	75.54B	90.44B
Asset Turnover	0.19x	0.37x	0.43x	3.36x	0.43x	0.46x	0.42x	0.37x	0.31x
Asset Growth %	-	0.27%	0.49%	-0.83%	8.03%	-0.01%	-0%	0.13%	0.2%
Total Current Liabilities+	2.52B	3.53B	6.24B	1.23B	9.6B	10.45B	11.72B	12.01B	16.55B
Accounts Payable	998M	1.04B	1.83B	367.37M	3.56B	4.33B	5B	5.01B	6.88B
Days Payables Outstanding	116.42	53.19	57.05	8	65.55	72.35	93.24	101.75	153.32
Short-Term Debt	0	0	0	9.91M	0	0	0	0	2.15B
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	0	1.05B	0	527.73M	0	-12M	0	0	0
Current Ratio	1.98x	2.12x	3.33x	3.16x	3.30x	2.56x	2.27x	2.49x	2.09x
Quick Ratio	1.98x	2.11x	3.33x	3.16x	3.30x	2.56x	2.27x	2.49x	2.09x
Cash Conversion Cycle	-47.07	-8.39	-27.45	-2.97	-27.81	-27.59	-55.33	-63.21	-107.73
Total Non-Current Liabilities+	378M	325M	595M	64.32M	5.94B	5.75B	6.17B	6.32B	4.17B
Long-Term Debt	0	0	0	0	5.17B	5.06B	5.54B	5.64B	3.57B
Capital Lease Obligations	0	0	0	11.2M	218M	205M	306M	297M	219M
Deferred Tax Liabilities	350M	304M	354M	34.02M	265M	271M	211M	239M	198M
Other Non-Current Liabilities	28M	0	201M	0	204M	125M	0	0	0
Total Liabilities	2.9B	3.85B	6.83B	1.29B	15.54B	16.2B	17.88B	18.33B	20.72B
Total Debt+	0	0	0	21.1M	5.5B	5.36B	5.96B	6.05B	6.05B
Net Debt	-3.07B	-5.17B	-17.36B	-2.19B	-5.63B	-1.23B	-3.59B	-7.52B	-7.11B
Debt / Equity	-	-	-	0.00x	0.10x	0.10x	0.12x	0.11x	0.09x
Debt / EBITDA	-	-	-	0.00x	0.99x	1.12x	1.06x	0.89x	0.62x
Net Debt / EBITDA	-9.06x	-2.62x	-7.21x	-0.43x	-1.02x	-0.26x	-0.64x	-1.11x	-0.73x
Interest Coverage	-	-	58.26x	72.22x	48.56x	31.40x	38.63x	48.86x	70.24x
Total Equity+	20.63B	26.15B	37.77B	6.27B	52.73B	51.05B	49.13B	57.2B	69.73B
Equity Growth %	-	0.27%	0.44%	-0.83%	7.41%	-0.03%	-0.04%	0.16%	0.22%
Book Value per Share	12.61	15.98	23.91	3.75	31.38	30.36	30.38	36.11	44.54
Total Shareholders' Equity	20.63B	26.14B	37.72B	6.26B	52.24B	50.32B	48.1B	55.91B	67.86B
Common Stock	2M	2M	2M	287.12K	2M	2M	2M	2M	2M
Retained Earnings	-57M	1.23B	3.04B	875.58M	11.11B	14.19B	12.05B	16.97B	20.05B
Treasury Stock	0	0	0	-4.45M	-134M	-3.66B	-6.35B	-7B	-550M
Accumulated OCI	617M	997M	903M	444.32M	6.3B	3.73B	6.14B	9.66B	19.84B
Minority Interest	9M	7M	51M	12.63M	486M	738M	1.03B	1.29B	1.86B

Cash Flow

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	873M	2.5B	5.63B	6.2B	4.88B	5.24B	7.48B	7.34B	10.28B
Operating CF Margin %	0.2%	0.23%	0.3%	0.24%	0.17%	0.17%	0.26%	0.26%	0.36%
Operating CF Growth %	-	1.86%	1.25%	0.1%	-0.21%	0.07%	0.43%	-0.02%	0.4%
Net Income	114M	1.6B	2B	4.54B	4.63B	3.63B	4.37B	6.04B	8.71B
Depreciation & Amortization	236M	379M	369M	583M	824M	1B	1.16B	1B	978M
Stock-Based Compensation	170M	362M	487M	519M	569M	647M	665M	649M	596M
Deferred Taxes	-20M	-188M	150M	160M	0	0	0	0	0
Other Non-Cash Items	-32M	-105M	1.24B	-584M	-643M	-614M	-938M	-1.15B	-1.57B
Working Capital Changes	405M	455M	1.39B	982M	-497M	573M	2.22B	786M	1.56B
Change in Receivables	-266M	-447M	-182M	-733M	-520M	-769M	906M	-204M	-539M
Change in Inventory	-11M	-16M	-4M	9M	8M	-6M	10M	7M	-15M
Change in Payables	315M	4M	780M	717M	644M	631M	663M	52M	1.84B
Cash from Investing+	496M	-483M	-1.19B	-8.1B	-14.21B	-6B	-1.45B	-1.86B	-6.82B
Capital Expenditures	-41M	-77M	-144M	-286M	-108M	-159M	-85M	-165M	-319M
CapEx % of Revenue	0.01%	0.01%	0.01%	0.01%	0%	0.01%	0%	0.01%	0.01%
Acquisitions	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-
Other Investing	-510M	-591M	-24M	-14M	-347M	-2.51B	-890M	-895M	-630M
Cash from Financing+	1.71B	99M	7.74B	-31M	5.29B	-3.71B	-3.42B	-1.54B	-3.83B
Debt Issued (Net)	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	-19M	-32M	0	0	0	0	-1.51B
Share Repurchases	-	-	-	-	-	-	-	-	-
Other Financing	-189M	99M	441M	42M	96M	-128M	-165M	-225M	-263M
Net Change in Cash	-	-	-	-	-	-	-	-	-
Free Cash Flow+	832M	2.42B	5.49B	5.91B	4.38B	2.48B	6.43B	6.17B	9.24B
FCF Margin %	0.19%	0.22%	0.29%	0.23%	0.15%	0.08%	0.23%	0.22%	0.33%
FCF Growth %	-	1.91%	1.26%	0.08%	-0.26%	-0.43%	1.59%	-0.04%	0.5%
FCF per Share	0.51	1.48	3.47	3.53	2.61	1.48	3.97	3.90	5.90
FCF Conversion (FCF/Net Income)	10.65x	1.89x	3.07x	1.56x	1.18x	1.73x	2.03x	1.49x	1.55x
Interest Paid	0	0	0	0	0	0	0	0	0
Taxes Paid	0	0	0	0	0	0	0	0	0

Key Ratios

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	0.4%	5.67%	5.74%	18.08%	14.08%	5.84%	7.34%	9.25%	10.47%
Return on Invested Capital (ROIC)	0.44%	6.2%	7.39%	28.31%	13.81%	5.88%	6.99%	9.54%	11.63%
Gross Margin	28.25%	34.7%	38.33%	34.1%	31.91%	30.1%	30.96%	35.29%	42.34%
Net Margin	1.88%	12.08%	9.65%	15.66%	14.25%	9.69%	12.98%	17.73%	23.39%
Debt / Equity	-	-	-	0.00x	0.10x	0.10x	0.12x	0.11x	0.09x
Interest Coverage	-	-	58.26x	72.22x	48.56x	31.40x	38.63x	48.86x	70.24x
FCF Conversion	10.65x	1.89x	3.07x	1.56x	1.18x	1.73x	2.03x	1.49x	1.55x
Revenue Growth	-	151.8%	72.89%	33.97%	14.62%	7.17%	-9.3%	-2.07%	2.34%

Revenue by Segment

	2018	2019	2020	2021	2022	2023	2024
Online Music Services	-	-	-	-	12.48B	17.32B	21.74B
Online Music Services Growth	-	-	-	-	-	38.79%	25.49%
Online Music Services To Associates	18M	40M	206M	412M	276M	397M	365M
Online Music Services To Associates Growth	-	122.22%	415.00%	100.00%	-33.01%	43.84%	-8.06%
Social Entertainment Services And Others To Associates	63M	21M	213M	170M	71M	55M	43M
Social Entertainment Services And Others To Associates Growth	-	-66.67%	914.29%	-20.19%	-58.24%	-22.54%	-21.82%

Frequently Asked Questions

Valuation & Price

Tencent Music Entertainment Group (TME) has a price-to-earnings (P/E) ratio of 3.9x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Tencent Music Entertainment Group (TME) reported $31.72B in revenue for fiscal year 2024. This represents a 627% increase from $4.36B in 2016.

Tencent Music Entertainment Group (TME) grew revenue by 2.3% over the past year. Growth has been modest.

Yes, Tencent Music Entertainment Group (TME) is profitable, generating $10.81B in net income for fiscal year 2024 (23.4% net margin).

Dividend & Returns

Yes, Tencent Music Entertainment Group (TME) pays a dividend with a yield of 5.80%. This makes it attractive for income-focused investors.

Tencent Music Entertainment Group (TME) has a return on equity (ROE) of 10.5%. This is reasonable for most industries.

Tencent Music Entertainment Group (TME) generated $10.00B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

US Stock Screener

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Tencent Music Entertainment Group (TME) 10-Year Financial Performance & Capital Metrics

TME • • Industrial / General

Communication ServicesInternet ServicesDigital Content & Media PlatformsMusic & Audio Platforms

Revenue $28.4B +2.3%
EBITDA $9.69B +42.9%
Net Income $6.64B +35.0%
EPS (Diluted) 4.24 +36.8%
Gross Margin 42.34% +20.0%
EBITDA Margin 34.11% +39.6%
Operating Margin 30.67% +40.5%
Net Margin 23.39% +32.0%
ROE 10.47% +13.1%
ROIC 11.63% +21.9%
Debt/Equity 0.09 -17.9%
Interest Coverage 70.24 +43.8%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Strong Piotroski F-Score: 7/9
✓FCF machine: 32.5% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Healthy dividend yield of 5.8%
✓Healthy 5Y average net margin of 15.6%

✗Weaknesses

✗Trading more than 30% below 52-week high

Price & Volume

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Growth Metrics

Revenue CAGR

10Y-

5Y2.23%

3Y-3.13%

TTM13.95%

Profit (Net Income) CAGR

10Y-

5Y10.78%

3Y29.93%

TTM80.38%

EPS CAGR

10Y-

5Y12.24%

3Y33.05%

TTM81.77%

ROCE

10Y Avg9.56%

5Y Avg10.38%

3Y Avg10.27%

Latest12.68%

Peer Comparison

Music & Audio Platforms

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
SPOTSpotify Technology S.A.	104.6B	508.04	92.37	18.31%	8.32%	18.2%	2.18%	0.36
TMETencent Music Entertainment Group	11.76B	16.60	3.92	2.34%	34.08%	12.65%	78.6%	0.09
PODCPodcastOne, Inc.	65.39M	2.43	-9.35	20.36%	-9.57%	-37.06%

Profit & Loss

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	4.36B	10.98B	18.98B	25.43B	29.15B	31.24B	28.34B	27.75B	28.4B
Revenue Growth %	-	1.52%	0.73%	0.34%	0.15%	0.07%	-0.09%	-0.02%	0.02%
Cost of Goods Sold+	3.13B	7.17B	11.71B	16.76B	19.85B	21.84B	19.57B	17.96B	16.38B
COGS % of Revenue	0.72%	0.65%	0.62%	0.66%	0.68%	0.7%	0.69%	0.65%	0.58%
Gross Profit+	1.23B	3.81B	7.28B	8.67B	9.3B	9.4B	8.77B	9.79B	12.03B
Gross Margin %	0.28%	0.35%	0.38%	0.34%	0.32%	0.3%	0.31%	0.35%	0.42%
Gross Profit Growth %	-	2.09%	0.91%	0.19%	0.07%	0.01%	-0.07%	0.12%	0.23%
Operating Expenses+	1.14B	2.4B	3.97B	4.05B	4.59B	5.6B	4.33B	3.74B	3.31B
OpEx % of Revenue	0.26%	0.22%	0.21%	0.16%	0.16%	0.18%	0.15%	0.13%	0.12%
Selling, General & Admin	1.15B	2.43B	3.97B	4.74B	5.58B	6.69B	5.56B	5.02B	4.68B
SG&A % of Revenue	0.26%	0.22%	0.21%	0.19%	0.19%	0.21%	0.2%	0.18%	0.16%
Research & Development	449M	797M	937M	1.16B	0	0	2.58B	2.52B	0
R&D % of Revenue	0.1%	0.07%	0.05%	0.05%	-	-	0.09%	0.09%	-
Other Operating Expenses	1M	6M	-1.58B	-1.85B	-984M	-1.08B	-3.81B	-3.81B	-1.36B
Operating Income+	103M	1.59B	2.04B	4.62B	4.71B	3.8B	4.44B	6.06B	8.71B
Operating Margin %	0.02%	0.15%	0.11%	0.18%	0.16%	0.12%	0.16%	0.22%	0.31%
Operating Income Growth %	-	14.47%	0.28%	1.27%	0.02%	-0.19%	0.17%	0.36%	0.44%
EBITDA+	339M	1.97B	2.41B	5.14B	5.53B	4.8B	5.6B	6.78B	9.69B
EBITDA Margin %	0.08%	0.18%	0.13%	0.2%	0.19%	0.15%	0.2%	0.24%	0.34%
EBITDA Growth %	-	4.82%	0.22%	1.14%	0.08%	-0.13%	0.17%	0.21%	0.43%
D&A (Non-Cash Add-back)	236M	379M	369M	522M	824M	1B	1.16B	720M	978M
EBIT	93M	1.6B	2.04B	4.09B	4.73B	3.75B	4.49B	5B	8.84B
Net Interest Income+	32M	93M	247M	547M	523M	410M	596M	928M	1.07B
Interest Income	32M	93M	282M	615M	622M	530M	711M	1.05B	1.2B
Interest Expense	0	0	35M	64M	97M	121M	115M	124M	124M
Other Income/Expense	20M	185M	-36M	-82M	-78M	-168M	-70M	-14M	2M
Pretax Income+	114M	1.6B	2B	4.54B	4.63B	3.63B	4.37B	6.04B	8.71B
Pretax Margin %	0.03%	0.15%	0.11%	0.18%	0.16%	0.12%	0.15%	0.22%	0.31%
Income Tax+	29M	278M	171M	563M	456M	417M	534M	825M	1.6B
Effective Tax Rate %	0.72%	0.83%	0.92%	0.88%	0.9%	0.83%	0.84%	0.81%	0.76%
Net Income+	82M	1.33B	1.83B	3.98B	4.16B	3.03B	3.68B	4.92B	6.64B
Net Margin %	0.02%	0.12%	0.1%	0.16%	0.14%	0.1%	0.13%	0.18%	0.23%
Net Income Growth %	-	15.17%	0.38%	1.17%	0.04%	-0.27%	0.21%	0.34%	0.35%
Net Income (Continuing)	85M	1.32B	1.83B	3.98B	4.18B	3.21B	3.84B	5.22B	7.11B
Discontinued Operations	0	0	0	0	0	0	0	0	0
Minority Interest	9M	7M	51M	12.63M	486M	738M	1.03B	1.29B	1.86B
EPS (Diluted)+	0.05	0.81	1.16	2.38	2.48	1.80	2.28	3.10	4.24
EPS Growth %	-	15.17%	0.43%	1.05%	0.04%	-0.27%	0.27%	0.36%	0.37%
EPS (Basic)	0.05	0.82	1.19	2.44	2.50	1.82	2.30	3.16	4.30
Diluted Shares Outstanding	1.64B	1.64B	1.58B	1.67B	1.68B	1.68B	1.62B	1.58B	1.57B
Basic Shares Outstanding	1.62B	1.62B	1.54B	1.64B	1.66B	1.66B	1.6B	1.58B	1.57B
Dividend Payout Ratio	-	-	0.01%	0.01%	-	-	-	-	0.23%

Balance Sheet

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	5B	7.47B	20.78B	3.89B	31.69B	26.79B	26.56B	29.94B	34.54B
Cash & Short-Term Investments	3.33B	5.17B	17.44B	3.23B	26.02B	20.43B	20.88B	23.54B	27.21B
Cash Only	3.07B	5.17B	17.36B	2.21B	11.13B	6.59B	9.55B	13.57B	13.16B
Short-Term Investments	261M	0	81M	1.01B	14.89B	13.84B	11.33B	9.97B	14.04B
Accounts Receivable	809M	1.3B	1.48B	344.69M	2.99B	3.8B	2.92B	2.92B	3.51B
Days Sales Outstanding	67.71	43.28	28.51	4.95	37.41	44.36	37.65	38.38	45.08
Inventory	14M	30M	35M	3.73M	18M	24M	14M	8M	23M
Days Inventory Outstanding	1.63	1.53	1.09	0.08	0.33	0.4	0.26	0.16	0.51
Other Current Assets	35M	39M	55M	62.16M	53M	56M	87M	267M	1.38B
Total Non-Current Assets+	18.54B	22.53B	23.83B	3.68B	36.59B	40.46B	40.45B	45.6B	55.9B
Property, Plant & Equipment	108M	127M	168M	46.94M	487M	526M	721M	857M	1.1B
Fixed Asset Turnover	40.38x	86.46x	113.01x	541.79x	59.86x	59.40x	39.31x	32.38x	25.87x
Goodwill	15.76B	16.26B	17.09B	2.46B	17.49B	19.12B	19.49B	19.54B	19.65B
Intangible Assets	2.01B	1.72B	1.76B	232.86M	2.02B	4.32B	4.85B	4.47B	4.41B
Long-Term Investments	302M	4.12B	3.78B	813.56M	15.33B	15.4B	14.33B	19.84B	29.89B
Other Non-Current Assets	272M	204M	901M	117.15M	956M	743M	709M	540M	425M
Total Assets+	23.54B	30B	44.6B	7.56B	68.27B	67.25B	67.01B	75.54B	90.44B
Asset Turnover	0.19x	0.37x	0.43x	3.36x	0.43x	0.46x	0.42x	0.37x	0.31x
Asset Growth %	-	0.27%	0.49%	-0.83%	8.03%	-0.01%	-0%	0.13%	0.2%
Total Current Liabilities+	2.52B	3.53B	6.24B	1.23B	9.6B	10.45B	11.72B	12.01B	16.55B
Accounts Payable	998M	1.04B	1.83B	367.37M	3.56B	4.33B	5B	5.01B	6.88B
Days Payables Outstanding	116.42	53.19	57.05	8	65.55	72.35	93.24	101.75	153.32
Short-Term Debt	0	0	0	9.91M	0	0	0	0	2.15B
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	0	1.05B	0	527.73M	0	-12M	0	0	0
Current Ratio	1.98x	2.12x	3.33x	3.16x	3.30x	2.56x	2.27x	2.49x	2.09x
Quick Ratio	1.98x	2.11x	3.33x	3.16x	3.30x	2.56x	2.27x	2.49x	2.09x
Cash Conversion Cycle	-47.07	-8.39	-27.45	-2.97	-27.81	-27.59	-55.33	-63.21	-107.73
Total Non-Current Liabilities+	378M	325M	595M	64.32M	5.94B	5.75B	6.17B	6.32B	4.17B
Long-Term Debt	0	0	0	0	5.17B	5.06B	5.54B	5.64B	3.57B
Capital Lease Obligations	0	0	0	11.2M	218M	205M	306M	297M	219M
Deferred Tax Liabilities	350M	304M	354M	34.02M	265M	271M	211M	239M	198M
Other Non-Current Liabilities	28M	0	201M	0	204M	125M	0	0	0
Total Liabilities	2.9B	3.85B	6.83B	1.29B	15.54B	16.2B	17.88B	18.33B	20.72B
Total Debt+	0	0	0	21.1M	5.5B	5.36B	5.96B	6.05B	6.05B
Net Debt	-3.07B	-5.17B	-17.36B	-2.19B	-5.63B	-1.23B	-3.59B	-7.52B	-7.11B
Debt / Equity	-	-	-	0.00x	0.10x	0.10x	0.12x	0.11x	0.09x
Debt / EBITDA	-	-	-	0.00x	0.99x	1.12x	1.06x	0.89x	0.62x
Net Debt / EBITDA	-9.06x	-2.62x	-7.21x	-0.43x	-1.02x	-0.26x	-0.64x	-1.11x	-0.73x
Interest Coverage	-	-	58.26x	72.22x	48.56x	31.40x	38.63x	48.86x	70.24x
Total Equity+	20.63B	26.15B	37.77B	6.27B	52.73B	51.05B	49.13B	57.2B	69.73B
Equity Growth %	-	0.27%	0.44%	-0.83%	7.41%	-0.03%	-0.04%	0.16%	0.22%
Book Value per Share	12.61	15.98	23.91	3.75	31.38	30.36	30.38	36.11	44.54
Total Shareholders' Equity	20.63B	26.14B	37.72B	6.26B	52.24B	50.32B	48.1B	55.91B	67.86B
Common Stock	2M	2M	2M	287.12K	2M	2M	2M	2M	2M
Retained Earnings	-57M	1.23B	3.04B	875.58M	11.11B	14.19B	12.05B	16.97B	20.05B
Treasury Stock	0	0	0	-4.45M	-134M	-3.66B	-6.35B	-7B	-550M
Accumulated OCI	617M	997M	903M	444.32M	6.3B	3.73B	6.14B	9.66B	19.84B
Minority Interest	9M	7M	51M	12.63M	486M	738M	1.03B	1.29B	1.86B

Cash Flow

	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	873M	2.5B	5.63B	6.2B	4.88B	5.24B	7.48B	7.34B	10.28B
Operating CF Margin %	0.2%	0.23%	0.3%	0.24%	0.17%	0.17%	0.26%	0.26%	0.36%
Operating CF Growth %	-	1.86%	1.25%	0.1%	-0.21%	0.07%	0.43%	-0.02%	0.4%
Net Income	114M	1.6B	2B	4.54B	4.63B	3.63B	4.37B	6.04B	8.71B
Depreciation & Amortization	236M	379M	369M	583M	824M	1B	1.16B	1B	978M
Stock-Based Compensation	170M	362M	487M	519M	569M	647M	665M	649M	596M
Deferred Taxes	-20M	-188M	150M	160M	0	0	0	0	0
Other Non-Cash Items	-32M	-105M	1.24B	-584M	-643M	-614M	-938M	-1.15B	-1.57B
Working Capital Changes	405M	455M	1.39B	982M	-497M	573M	2.22B	786M	1.56B
Change in Receivables	-266M	-447M	-182M	-733M	-520M	-769M	906M	-204M	-539M
Change in Inventory	-11M	-16M	-4M	9M	8M	-6M	10M	7M	-15M
Change in Payables	315M	4M	780M	717M	644M	631M	663M	52M	1.84B
Cash from Investing+	496M	-483M	-1.19B	-8.1B	-14.21B	-6B	-1.45B	-1.86B	-6.82B
Capital Expenditures	-41M	-77M	-144M	-286M	-108M	-159M	-85M	-165M	-319M
CapEx % of Revenue	0.01%	0.01%	0.01%	0.01%	0%	0.01%	0%	0.01%	0.01%
Acquisitions	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-
Other Investing	-510M	-591M	-24M	-14M	-347M	-2.51B	-890M	-895M	-630M
Cash from Financing+	1.71B	99M	7.74B	-31M	5.29B	-3.71B	-3.42B	-1.54B	-3.83B
Debt Issued (Net)	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	-19M	-32M	0	0	0	0	-1.51B
Share Repurchases	-	-	-	-	-	-	-	-	-
Other Financing	-189M	99M	441M	42M	96M	-128M	-165M	-225M	-263M
Net Change in Cash	-	-	-	-	-	-	-	-	-
Free Cash Flow+	832M	2.42B	5.49B	5.91B	4.38B	2.48B	6.43B	6.17B	9.24B
FCF Margin %	0.19%	0.22%	0.29%	0.23%	0.15%	0.08%	0.23%	0.22%	0.33%
FCF Growth %	-	1.91%	1.26%	0.08%	-0.26%	-0.43%	1.59%	-0.04%	0.5%
FCF per Share	0.51	1.48	3.47	3.53	2.61	1.48	3.97	3.90	5.90
FCF Conversion (FCF/Net Income)	10.65x	1.89x	3.07x	1.56x	1.18x	1.73x	2.03x	1.49x	1.55x
Interest Paid	0	0	0	0	0	0	0	0	0
Taxes Paid	0	0	0	0	0	0	0	0	0

Key Ratios

Metric	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	0.4%	5.67%	5.74%	18.08%	14.08%	5.84%	7.34%	9.25%	10.47%
Return on Invested Capital (ROIC)	0.44%	6.2%	7.39%	28.31%	13.81%	5.88%	6.99%	9.54%	11.63%
Gross Margin	28.25%	34.7%	38.33%	34.1%	31.91%	30.1%	30.96%	35.29%	42.34%
Net Margin	1.88%	12.08%	9.65%	15.66%	14.25%	9.69%	12.98%	17.73%	23.39%
Debt / Equity	-	-	-	0.00x	0.10x	0.10x	0.12x	0.11x	0.09x
Interest Coverage	-	-	58.26x	72.22x	48.56x	31.40x	38.63x	48.86x	70.24x
FCF Conversion	10.65x	1.89x	3.07x	1.56x	1.18x	1.73x	2.03x	1.49x	1.55x
Revenue Growth	-	151.8%	72.89%	33.97%	14.62%	7.17%	-9.3%	-2.07%	2.34%

Revenue by Segment

	2018	2019	2020	2021	2022	2023	2024
Online Music Services	-	-	-	-	12.48B	17.32B	21.74B
Online Music Services Growth	-	-	-	-	-	38.79%	25.49%
Online Music Services To Associates	18M	40M	206M	412M	276M	397M	365M
Online Music Services To Associates Growth	-	122.22%	415.00%	100.00%	-33.01%	43.84%	-8.06%
Social Entertainment Services And Others To Associates	63M	21M	213M	170M	71M	55M	43M
Social Entertainment Services And Others To Associates Growth	-	-66.67%	914.29%	-20.19%	-58.24%	-22.54%	-21.82%

Frequently Asked Questions

Valuation & Price

Tencent Music Entertainment Group (TME) has a price-to-earnings (P/E) ratio of 3.9x. This may indicate the stock is undervalued or faces growth challenges.

Growth & Financials

Tencent Music Entertainment Group (TME) reported $31.72B in revenue for fiscal year 2024. This represents a 627% increase from $4.36B in 2016.

Tencent Music Entertainment Group (TME) grew revenue by 2.3% over the past year. Growth has been modest.

Yes, Tencent Music Entertainment Group (TME) is profitable, generating $10.81B in net income for fiscal year 2024 (23.4% net margin).

Dividend & Returns

Yes, Tencent Music Entertainment Group (TME) pays a dividend with a yield of 5.80%. This makes it attractive for income-focused investors.

Tencent Music Entertainment Group (TME) has a return on equity (ROE) of 10.5%. This is reasonable for most industries.

Tencent Music Entertainment Group (TME) generated $10.00B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.