The stock of Tencent Music Entertainment Group (NYSE:TME) increased by $0.06 on Monday to finish at $6.15, up 0.99 percent. The last five days have seen an average of 6,150,060 shares of common stock traded. 2 times new highs were reached in the current year, with a fall of -$2.13. The average number of shares traded over the last 20 days was 7,081,270, while the average volume over the last 50 days totaled 6,645,456.
TME stock dropped -18.97% since last month. On 08/14/23, the company’s shares reached a one-month low of $5.99. The stock touched a high of $9.29 on 01/04/23, after rallying from a low of $3.14 in 52 weeks. The price of TME stock has declined by -25.72% or -$2.13 this year, reaching a new high 2 times. Still, the stock price is down -33.80% from the 52-week high.
Valuation Metrics
Tencent Music Entertainment Group (TME) has a trailing price-to-earnings (P/E) ratio of 16.80. Beta for the stock is 0.83. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 2.72, the price-to-book (PB) ratio of 1.36, and the price-to-cash flow ratio of 11.41.
Financial Health
For the three months ended March 30, Tencent Music Entertainment Group’s quick ratio was 2.40, while its current ratio was 2.40, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending March 30 is 0.11, and the total debt to equity ratio is 0.11. As far as profitability goes, gross margin for the trailing twelve months is 32.20% percent. Tencent Music Entertainment Group’s EBITDA margin for the year ended March 30 was 15.44%, whereas its operating margin stood at 13.20% for the same period. Based on annual data, it had gross profit of $1.3 billion and revenue of $4.21 billion.
Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. TME’s return on assets (ROA) during the last 12 months has been 6.30%. There was a 5.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 8.70%.
Earnings Surprise
According to Tencent Music Entertainment Group’s quarterly financial report for the quarter that ended March 30. A lower net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $4.21 billion, while revenues fell by -10.25% to $0.0. It was predicted that Tencent Music Entertainment Group’s quarterly earnings would be $0.12, but it ended up being $0.11, beating the consensus by 9.10%. EBITDA was $158.0 million for the quarter. At the end of Tencent Music Entertainment Group’s most recent quarter ended March 30, its liabilities totaled 2.48 billion, while its total debt was $5.86 billion.
Technical Picture
Here’s a quick look at Tencent Music Entertainment Group’s (TME) price momentum from a technical perspective. As of 14 August, the RSI 9-day stood at 34.86%, suggesting the stock is Neutral, with a 33.80% historical volatility rate.
The stochastic %K and %D were 13.72% and 18.02% respectively, while the average true range (ATR) was 0.31. Based on the 14-day stochastic reading of 13.33%, the RSI (14) reading is 36.86%. On the 9-day MACD Oscillator, the stock is at -0.14, and the 14-day reading is at -0.29.
Analyst Ratings
Tencent Music Entertainment Group (NYSE: TME) was downgraded by Citigroup to a a Neutral rating in its latest research report. The stock was previously rated as a a Buy. Analysts have assigned Tencent Music Entertainment Group (TME) an Overweight rating. TME is a stock that is recommended for selling by 1 brokerage firm, while 8 companies recommend holding. The stock is underweighted by 0 analysts. Among the analysts who rate the stock, 5 rates it overweight and 14 others recommend it as a buy.
What is TME’s price target for the next 12 months?
The current consensus forecast for the stock is between $42.97 and $79.34, with a median target price of $67.40. In analyzing these forecasts, the average price target given by analysts for Tencent Music Entertainment Group (TME) is $65.13.
