Reading the tape
NYSE: TME
Tencent Music Entertainment Group
Communication Services · Internet Content & Information
Market Cap
$14.06B
52w High
$26.70
52w Low
$8.78
P/E
8.54
Volume
9.19M
Outstanding Shares
1.53B
Price vs Fundamentals
Why The Stock Is Moving
Likely multiple compressionModerate confidence
Note: The most recent financial data is over 3 months old. Metrics shown may not reflect the latest reporting period.
1Y Price: -31.67%Revenue (TTM): 12.69%FCF (TTM): -21.25%P/FCF: 10th pct
What changed
The stock fell 31.67% over the last year. Revenue grew 12.69% over the trailing twelve months. Operating margin moved from 30.67% to 41.06%. Free cash flow declined 21.25% over the trailing twelve months.
What the market seems to be pricing
Visible fundamentals weakened far less than the stock price, and the shares now sit around the 10th percentile of their historical P/FCF range. That looks more like a rerating of the multiple than a collapse in the business.
What would invalidate this read
This read changes if operating margin (currently 41.06%) continues to decline, or if revenue growth turns negative. The bull case requires the business to hold its current trajectory.
Company profile
Tencent 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.
CEOZhu Liang
SectorCommunication Services
IndustryInternet Content & Information
Employees5,353
IPO dateDec 12, 2018
Valuation
Forward P/E—
EV/EBITDA12.41
Enterprise value$183.32B
Stock splits
No stock splits recorded for this ticker.
Profitability & growth
Revenue growth3.84%
Gross margin47.22%▲34.62%vs FY2024
Operating margin42.73%▲33.89%vs FY2024
ROE13.39%▲36.74%vs FY2024
Analyst consensus
RatingHold
Target price$17.82▲94.33%
11
Buy
12
Hold
1
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
May 12, 2026
Q2 FY26 · EPS est $0.21 · Revenue est $1.14B
View
Dividends
$0.23/shareAnnualSafeTME pays a dividend with a 2.54% dividend yield, covered 5.1× by free cash flow.
Dividend Yield
2.54%
Annual Div / Share
$0.23
TTM $0.82
CAGR
—
Payout Ratio
17.92%
Safe
Dividend Growth Rate
Dividend Safety
10/10Safe
Dividend History
Annualized dividend cycles per share
YearAnnual DivYoY
2026$0.23+29.3%
2025$0.18+31.4%
2024$0.14—
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$25/yr
$2/mo
In 5 yrs
$25/yr
$2/mo
In 10 yrs
$25/yr
$2/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$25/yr $2/mo | $25/yr $2/mo | $25/yr $2/mo |
Analysis
Dividend Strengths
Well-covered by free cash flow
The dividend is covered 5.1× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Risks to Watch
No strong risk signal stands out from the latest period pair.