As of Thursday close, Tencent Music Entertainment Group’s (NYSE:TME) stock was down -$0.04, moving down -0.58 percent to $6.82. The average number of shares traded per day over the past five days has been 9,461,360 shares. 3 times new highs have been achieved over the past 5 days, with a $0.31 gain in that time frame. In the last twenty days, the average volume was 8,621,045, while in the previous 50 days, it was 6,811,490.
Since last month, TME stock rose 7.06%. Shares of the company fell to $5.70 on 08/15/23, the lowest level in the past month. A 52-week high of $9.29 was reached on 01/04/23 after having rallying from a 52-week low of $3.14. Since the beginning of this year, TME’s stock price has dropped by -17.63% or -$1.46, and marked a new high 2 times. However, the stock has declined by -26.59% since its 52-week high.
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Valuation Metrics
Right now, Tencent Music Entertainment Group (TME) has a P/E ratio of about 16.92. The stock’s beta is 0.80. Besides these, the trailing price-to-sales (P/S) ratio of 2.94, the price-to-book (PB) ratio of 1.45, and the price-to-cash flow ratio of 11.17 may also be considered.
Financial Health
In the three months ended June 29, Tencent Music Entertainment Group’s quick ratio stood at 2.50, while its current ratio was 2.50, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending June 29 was 0.11, and the total debt-to-equity ratio was 0.11. On the profitability front, the trailing twelve-month gross margin is 33.20% percent. In the year ended June 29, EBITDA margin amounted to 15.44%, whereas operating margins totaled 15.10%. Based on annual data, TME earned $1.3 billion in gross profit and brought in $4.21 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 5.20%. Return on equity (ROE) for the past 12 months was 9.30%.
In Tencent Music Entertainment Group’s quarter-end financial report for June 29, it reported total debt of $0.89 million. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. TME’s revenue fell -10.25% during the quarter, while net income inched up to $4.21 billion. While analysts expected Tencent Music Entertainment Group to report $0.13 quarterly earnings, the actual figure was $0.13 per share. During the quarter, the company generated $172.0 million in EBITDA. The liabilities of Tencent Music Entertainment Group were 2.45 billion at the end of its most recent quarter ended June 29, and its total debt was $6.12 billion.
Technical Picture
This quick technical analysis looks at Tencent Music Entertainment Group’s (TME) price momentum. With a historical volatility rate of 34.34%, the RSI 9-day stood at 59.71% on 31 August.
With respect to its five-day moving average, the current Tencent Music Entertainment Group price is up by +4.76% percent or $0.31. At present, TME shares trade +4.44% above its 20-day simple moving average and -8.82% percent below its 100-day simple moving average. However, the stock is currently trading approximately -11.20% below its SMA50 and +54.65% above its SMA200.
Stochastic coefficient K was 89.74% and Stochastic coefficient D was 88.45%, while ATR was 0.30. Given the Stochastic reading of 86.15% for the 14-day period, the RSI (14) reading has been calculated as 54.40%. As of today, the MACD Oscillator reading stands at 0.22, while the 14-day reading stands at 0.31.
Analyst Ratings
Tencent Music Entertainment Group downgraded its rating on Tencent Music Entertainment Group (NYSE: TME) to a Neutral in a note to investors on July 31, 2023. The analysts firm previously had a Buy rating on the stock.Tencent Music Entertainment Group (TME) has been rated Overweight by analysts. According to 1 brokerage firm, TME is a sell, and 7 firms recommend it is a Hold. There are 0 analysts who say the stock is underweight. A total of 4 analysts rate Tencent Music Entertainment Group stock as buy, with 14 recommending it as overweight.
With a median target price of $61.20, the current consensus forecast for the stock is $41.53 – $80.15. Based on these forecasts, analysts predict Tencent Music Entertainment Group (TME) will achieve an average price target of $60.46.
