Tencent Music Entertainment Group (NYSE:TME) saw an upside of 0.96% to close Tuesday at $6.30 after adding $0.06 on the day. The 5-day average trading volume is 5,542,060 shares of the company’s common stock. It has gained $6.70 in the past week and touched a new high 2 times within the past 5 days. An average of 7,125,555 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 6,848,670.
TME’s 1-month performance is -13.82% or -$0.95 on its low of $6.01 reached on 08/08/23. The company’s shares have touched a 52-week low of $3.14 and high of $9.29, with the stock’s rally to the 52-week high happening on 01/04/23. YTD, TME has lost -23.91% or -$1.98 and has reached a new high 2 times. However, the current price is down -32.19% from the 52-week high price.
Valuation Metrics
TME stock has a beta of 0.82. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.74 while the price-to-book (PB) in the most recent quarter is 1.38, with the price to cash flow ratio at 11.48.
Tencent Music Entertainment Group’s quick ratio for the period ended March 30 was 2.40, with the current ratio over the same period at 2.40. As well, the company’s long term debt to equity for the quarter ending March 30 was 0.11, while the total debt to equity was 0.11.. In terms of profitability, the gross margin trailing 12 months is 32.20%. The firm’s gross profit as reported stood at $1.3 billion against revenue of $4.21 billion.
Earnings Surprise
For the quarterly period ending March 30 this year, Net income and sales went down compared to those figures reported in the previous quarter. Net income grew 17.62% to $546.03 million, while revenue of $0.0 was 100.0% off the previous quarter. Analysts expected TME to announce $0.11 per share in earnings in its latest quarter, but it posted $0.12, representing a 9.10% surprise. EBITDA for the quarter stood at more than $158.0 million. TME stock balance sheet for the quarter ending March 30 shows that total liabilities totaled 2.48 billion, with total debt at $5.86 billion.
Let’s look briefly at Tencent Music Entertainment Group (TME) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 08 August was 37.02% to suggest the stock is trending Neutral, with historical volatility in this time period at 75.56%.
The stock’s 5-day moving average is $6.38, reflecting a -5.83% or -$0.39 change from its current price. TME is currently trading -16.33% above its 20-day SMA, -16.33% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by -13.34% and SMA200 by+65.35%.
Stochastic %K and %D was 13.66% and 12.42% and the average true range (ATR) pointed at 0.34. The RSI (14) points at 38.45%, while the 14-day stochastic is at 24.58% with the period’s ATR at 0.34. The stock’s 9-day MACD Oscillator is pointing at -0.23 and -0.28 on the 14-day charts.
Analyst Ratings
In the most recent analyst report for Tencent Music Entertainment Group (NYSE: TME), Citigroup downgraded it to a Neutral rating. They previously had a Buy rating on the stock.
