Tencent Music Entertainment Group TME
Company Overview
Tencent Music Entertainment Group operates online music entertainment platforms that provides music streaming, online karaoke, and live streaming services in the People's Republic of China. It provides QQ Music, Kugou Music, and Kuwo Music that enable users to discover, enjoy, and share music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with audience base; and Lazy Audio, an audio platform. In addition, it sells artist-related merchandise, such as branded apparel, posters and art prints, and accessories; other music services, such as content licensing, sales of digital albums, sales of customized artist-related merchandises, live performances and concerts, and artist management services; and music subscriptions, as well as offers advertising services across its social entertainment platforms. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group operates as a subsidiary of Tencent Holdings Limited.
Why Investors Should Care
Net profit has compounded at 44.3% per year over the last five years.
Trades at a P/E of 11.3, below the sector median of 14.9.
Maintains a net profit margin of 26.5%.
Carries low leverage with a debt-to-equity ratio of 0.06.
Offers a dividend yield of 2.54%.
Generates positive free cash flow, funding growth and shareholder returns internally.
Recent Developments
- Dec 2025 Revenue of $32.90B (+15.8% YoY); net profit $11.06B.
- Trailing 12 Months Year-on-year growth — revenue +7.3%, earnings -51.8%.
- 5-Year Trend Long-term compounding — revenue CAGR 5.1%, profit CAGR 44.3%.
Growth & Price Performance
Compounded Sales Growth
| 5 Years: | 5.10% |
| 1 Year: | 7.30% |
Compounded Profit Growth
| 5 Years: | 44.33% |
| 1 Year: | -51.80% |
Stock Price Performance
| 1 Year: | -52.36% |
| 6 Months: | -40.33% |
| 3 Months: | +4.04% |
| 1 Month: | +10.56% |
Highlights auto-generated from reported financials and price data; not investment advice. Verify with official filings before acting.
- Price vs 50-DMAAbove
- Price vs 200-DMABelow
- RSI (14)60.22 · Neutral
P/E of 11.35 is below the sector median of 14.95 — relatively cheaper than peers.
Auto-generated from price history and fundamentals; not investment advice.
Price Chart
Technical Trend
Computed from daily close history using EMA cross, slope, and RSI signals.
Note: intraday data is not stored locally. “Hourly” uses the most recent 10 daily candles as a short-term proxy.
Fundamental Growth Charts
No fundamental data available for this stock.
Interactive charts for Revenue, Net Income, EBITDA, Free Cash Flow, EPS, ROE, ROCE, Gross/Net/Operating Margin and more — switch metric and period using the dropdowns above. CAGR is computed across the displayed window (quarterly CAGR is annualised). Visual growth charts make it easy to spot multi-year compounding trends at a glance — far faster than reading raw numbers in a table.
PROS
- Excellent profit margin of 26.5%.
- Profit CAGR of 44.3% over 5 years.
- Attractive dividend yield of 2.54%.
- Generates positive free cash flow.
CONS
- Trading 62.9% below its 52-week high.
- In a downtrend (50-DMA below 200-DMA).
* The pros and cons are auto-generated from financial metrics.
Valuation
Growth (CAGR)
Profitability & Returns
Balance Sheet & Liquidity
Ownership
Financial Snapshot
Peer comparison
Peer companies in the same sector (Communication Services).
| # | Name | CMP $ | P/E | Mkt Cap | Div Yld % | ROCE % | ROE % | Rev CAGR 5Y % | Profit CAGR 5Y % |
|---|---|---|---|---|---|---|---|---|---|
| 1 | TME Tencent Music Entertainment Group | 9.53 | 11.35 | $7.67B | 2.54% | 11.07% | 11.95% | 5.10% | 44.33% |
| 2 | WBD Warner Bros. Discovery, Inc. NDXSPX | 25.97 | -37.10 | $65.11B | 0.00% | 1.49% | -4.96% | 43.97% | -18.87% |
| 3 | TLK Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk | 14.80 | 14.95 | $14.61B | 8.33% | 16.02% | 17.68% | -0.13% | -5.52% |
| 4 | SATS EchoStar Corporation SPXR2K | 92.03 | -1.83 | $14.58B | 0.00% | -56.67% | -112.28% | -6.97% | -228.37% |
| 5 | Z Zillow Group, Inc. | 36.10 | 144.40 | $6.51B | 0.00% | -0.64% | 1.33% | 9.67% | - |
| 6 | WLY John Wiley & Sons, Inc. R2K | 54.46 | 13.09 | $2.29B | 2.73% | 16.33% | 27.69% | 0.25% | 3.48% |
| 7 | ZD Ziff Davis, Inc. R2K | 52.72 | 45.06 | $1.94B | 0.00% | 7.07% | 2.08% | 11.86% | -2.63% |
| 8 | ZG Zillow Group, Inc. | 36.89 | 147.56 | $1.56B | 0.00% | -0.64% | 1.33% | 9.67% | - |
| 9 | TDAY USA TODAY Co., Inc. R2K | 8.66 | 48.11 | $1.27B | 0.00% | -3.25% | 19.91% | 12.15% | - |
Financial Statements Quarterly Results · Profit & Loss · Balance Sheet · Cash Flows · Ratios
Quarterly Results
Figures in USD.
| Metric | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 |
|---|---|---|---|---|---|
| Revenue | 7.36B | 8.44B | 8.46B | 8.64B | 7.89B |
| Cost of Revenue | 4.11B | 4.69B | 4.78B | 4.78B | 4.35B |
| Gross Profit | 3.24B | 3.75B | 3.68B | 3.86B | 3.55B |
| Operating Expenses | 1.14B | 1.16B | 1.31B | 1.19B | 1.21B |
| Operating Income | 2.10B | 2.59B | 2.37B | 2.67B | 2.33B |
| EBITDA | 4.86B | 2.99B | 2.72B | 2.83B | 2.64B |
| Interest Expense | 25.00M | 12.00M | 32.00M | 53.00M | 46.00M |
| Pretax Income | 4.83B | 2.98B | 2.69B | 2.77B | 2.59B |
| Tax Provision | 446.00M | 515.00M | 477.00M | 486.00M | 457.00M |
| Net Income | 4.29B | 2.41B | 2.15B | 2.20B | 2.09B |
| Diluted EPS | 2.78 | 1.56 | 1.38 | 1.42 | 1.34 |
Profit & Loss (Annual)
Figures in USD.
| Metric | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|
| Revenue | 28.34B | 27.75B | 28.40B | 32.90B |
| Cost of Revenue | 19.57B | 17.96B | 16.38B | 18.37B |
| Gross Profit | 8.77B | 9.79B | 12.03B | 14.54B |
| Operating Expenses | 5.24B | 4.82B | 4.59B | 4.80B |
| Operating Income | 3.53B | 4.97B | 7.44B | 9.74B |
| EBITDA | 5.65B | 7.17B | 9.81B | 14.77B |
| Interest Expense | 115.00M | 124.00M | 124.00M | 122.00M |
| Pretax Income | 4.37B | 6.04B | 8.71B | 13.28B |
| Tax Provision | 534.00M | 825.00M | 1.60B | 1.92B |
| Net Income | 3.68B | 4.92B | 6.64B | 11.06B |
| Diluted EPS | 2.28 | 3.10 | 4.24 | 7.12 |
Balance Sheet (Annual)
Figures in USD.
| Metric | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Total Assets | - | 67.01B | 75.54B | 90.44B | 102.52B |
| Current Assets | - | 26.56B | 29.94B | 34.54B | 32.46B |
| Cash & Equivalents | - | 9.55B | 13.57B | 13.16B | 8.47B |
| Inventory | - | 14.00M | 8.00M | 23.00M | 41.00M |
| Receivables | - | 2.67B | 2.92B | 3.51B | 3.90B |
| Total Liabilities | - | 17.88B | 18.33B | 20.72B | 19.47B |
| Current Liabilities | - | 11.72B | 12.01B | 16.55B | 14.59B |
| Long Term Debt | - | 5.54B | 5.64B | 3.57B | 3.50B |
| Total Debt | - | 5.96B | 6.05B | 6.05B | 3.81B |
| Total Equity | - | 48.10B | 55.91B | 67.86B | 80.29B |
| Shares Outstanding | - | 3.43B | 3.43B | 3.10B | 3.15B |
Cash Flows (Annual)
Figures in USD.
| Metric | Dec 2021 | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | - | 7.48B | 7.34B | 10.28B | 10.23B |
| Investing Cash Flow | - | -1.45B | -1.86B | -6.82B | -10.23B |
| Financing Cash Flow | - | -3.42B | -1.54B | -3.83B | -4.65B |
| Capital Expenditure | - | -1.05B | -1.16B | -1.03B | -1.19B |
| Free Cash Flow | - | 6.43B | 6.17B | 9.24B | 9.04B |
| Net Change in Cash | - | 2.62B | 3.94B | -373.00M | -4.64B |
Ratios (Annual)
Figures in %.
| Metric | Dec 2022 | Dec 2023 | Dec 2024 | Dec 2025 |
|---|---|---|---|---|
| Gross Margin % | 31.0% | 35.3% | 42.3% | 44.2% |
| Operating Margin % | 12.5% | 17.9% | 26.2% | 29.6% |
| Net Margin % | 13.0% | 17.7% | 23.4% | 33.6% |
| ROE % | 7.6% | 8.8% | 9.8% | 13.8% |
| ROCE % | 6.4% | 7.8% | 10.1% | 11.1% |
Shareholding Pattern
Top Institutional Holders
| # | Holder | % Held | Shares | Value |
|---|---|---|---|---|
| 1 | Schroder Investment Management Group | 10.36% | 76.83M | $732.19M |
| 2 | Blackrock Inc. | 4.26% | 31.59M | $301.08M |
| 3 | Invesco Ltd. | 3.02% | 22.40M | $213.50M |
| 4 | JPMORGAN CHASE & CO | 2.46% | 18.20M | $173.49M |
| 5 | ARGA Investment Management, LP | 2.45% | 18.19M | $173.32M |
| 6 | Krane Funds Advisors LLC | 2.41% | 17.88M | $170.44M |
| 7 | Overlook Investments LP | 2.14% | 15.87M | $151.23M |
| 8 | Vanguard Capital Management LLC | 2.11% | 15.68M | $149.39M |
| 9 | FMR, LLC | 1.62% | 12.04M | $114.73M |
| 10 | BAILLIE GIFFORD & CO | 1.31% | 9.74M | $92.78M |
Analyst View
Analyst aggregate. Targets and ratings update periodically; not investment advice.
Latest News
Recent headlines for TME
HD, LULU, TME Stocks Hit 52-Week Lows Today: What's Dragging Them? - Stocktwits
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Tencent Music Entertainment Group (TME) Rebounds, Is The Stock Still Cheap? - simplywall.st
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Here is Why Tencent Music (TME) is One of the Top Value Stocks to Buy Under $10 - Yahoo Finance
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TME Stock Price: Tencent Music Entertainment Group Explained - VT Markets
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TME — Frequently Asked Questions
What is the current share price of Tencent Music Entertainment Group (TME)?
As of 2026-08-05 17:25 PDT, Tencent Music Entertainment Group (TME) trades at $9.53 on NYSE. Its 52-week range is $8.16 to $25.67.
What is the market capitalisation of TME?
Tencent Music Entertainment Group (TME) has a market capitalisation of $7.67B on NYSE.
What is the P/E ratio of TME?
TME trades at a trailing price-to-earnings (P/E) ratio of 11.35. The industry average P/E is 14.95. Its price-to-book (P/B) ratio is 1.34.
Does TME pay a dividend?
Tencent Music Entertainment Group (TME) currently offers a dividend yield of 2.54%.
What is the return on equity (ROE) of TME?
TME has a return on equity (ROE) of 11.95%. Its return on capital employed (ROCE) is 11.07%.
Is TME a good stock to buy?
This page provides a data-driven analysis of Tencent Music Entertainment Group (TME), including valuation ratios, profitability, growth trends, auto-generated pros and cons, peer comparison and AI exposure. Review these fundamentals alongside your own research and risk tolerance. This is informational content, not investment advice.