Tencent Music Entertainment Group (NYSE:TME) shares traded higher over the last trading session, gaining 3.88% on 06/01/21. The shares fell to a low of $16.075 before closing at $16.35. Intraday shares traded counted 22.16 million, which was 38.86% higher than its 30-day average trading volume of 36.25M. TME’s previous close was $15.74 while the outstanding shares total 1.68B. The firm has a 12-month trailing P/E ratio of 41.92, and a growth ratio of 22.93. The stock’s Relative Strength Index (RSI) is 49.40, with weekly volatility at 3.40% and ATR at 0.72. The TME stock’s 52-week price range has touched low of $12.00 and a $32.25 high.
Investors have identified the Internet Content & Information company Tencent Music Entertainment Group as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $27.09 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Tencent Music Entertainment Group (TME) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 4.42 billion total, with 1.45 billion as their total liabilities.
TME were able to record 287.0 million as free cash flow during the 08/16/2021 quarter of the year, this saw their quarterly net cash flow reduce by -130.0 million. In cash movements, the company had a total of 287.0 million as operating cash flow.
Potential earnings growth for Tencent Music Entertainment Group (TME)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/16/2021 quarter of the year, Tencent Music Entertainment Group recorded a total of 1.19 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 25.38% coming in sequential stages and their sales for the 08/16/2021 quarter reducing by -3.54%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 818.0 million trying to sell their products during the last quarter, with the result yielding a gross income of 376.0 million. This allows shareholders to hold on to 1.68B with the recently reported earning now reading 0.09 cents per share. This is a figure that compared to analyst’s prediction for their 08/16/2021 (0.09 cents a share).
Having a look at the company’s valuation, the company is expected to record 0.51 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on TME sounds very interesting.
Is the stock of TME attractive?
In the last 6 months, insiders have changed their ownership in shares of company stock by 9.76%.
18 out of 28 analysts covering the stock have rated it a Buy, while 7 have maintained a Hold recommendation on Tencent Music Entertainment Group. 0 analysts has assigned a Sell rating on the TME stock. The 12-month mean consensus price target for the company’s shares has been set at $23.42.