Tencent Music Entertainment Group
TME · Price history
Price at last available close
$8.49
+$0.12 (+1.43%) 1M
2026-10-27
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Company & revenue
About Tencent Music Entertainment Group
Primary reporting period: 2025-12-31 · Research updated Oct 12, 2026. A research update is not a new financial filing.
Who they are
Tencent Music Entertainment Group (TME) is a premier operator of online music entertainment platforms across the People's Republic of China, offering a range of services including music streaming, digital karaoke, and live interactive broadcasting. Its offerings encompass popular streaming platforms like QQ Music, Kugou Music, and Kuwo Music, which facilitate personalized music discovery and listening for users. The company also developed WeSing, an engaging application that allows users to sing, socialize with friends, share their performances, and explore songs sung by others.
How they make money
Tencent Music Entertainment Group generates revenue primarily through online music subscriptions, digital content licensing, and social entertainment services. The company monetizes its platforms through user subscriptions, virtual gift sales in live streaming, advertising, and the sale of digital albums and artist-related merchandise.
Products & services
The company operates online music and audio entertainment platforms including QQ Music, Kugou Music, Kuwo Music, and WeSing, offering music streaming, online karaoke, live streaming, and long-form audio content.
Brands & revenue mix
A primary music streaming application operated by the company.
Separate brand revenue is not available in this research.Source
A major music streaming application operated by the company.
Separate brand revenue is not available in this research.Source
A music streaming application operated by the company.
Separate brand revenue is not available in this research.Source
An online karaoke and social entertainment application.
Separate brand revenue is not available in this research.Source
Revenue share is not unit sales or a best-seller ranking. Parent brands and included sub-brands can overlap; do not add overlapping rows.
Product / operating segments
No reconciled product or operating-segment revenue breakdown is available for the current research period. Company-wide revenue remains separate from segment disclosure.
Geographic revenue
No reconciled geographic revenue breakdown was confirmed for the current research period.
Customer concentration
The company does not disclose specific major customers, but notes that its operations are conducted through variable interest entities (VIEs) which contributed 93.6% of total net revenues for the fiscal year ended December 31, 2025.
Suppliers, materials & equipment
- Content providers and record labels — The company relies on various record labels and music content providers to license music catalogs for its streaming services.Source
Competitors
- NetEase Cloud Music — A major competitor in the online music streaming market in China.Source
Strengths
Sources
Financial risk observations and what to check
These are saved observations about business performance, not predictions. Review the company filings alongside the interpretation below. Latest stored financial period end: 2026-06-30.
Total debt increased 179.4% versus the same quarter last year.
Compare the added borrowing with available cash, cash generation and maturities. A percentage increase from a small starting balance can look large without measuring the full debt burden.
Wall Street Score
Overall investment score · Quality, value, risk and opportunity
55
Fair
View category scores →
Company Quality
How good is the actual business—regardless of today’s stock price?
84
Strong
Financial Strength
91
Business Quality / Moat
87
Management
100
Growth Quality
37
Risk / Durability
89
Uses financial strength, moat, management, growth quality and durability. It excludes share price, P/E, market cap, intrinsic value and margin of safety.
Opportunity
Opportunity Score · How does the current price compare with estimated value?
79
Fair
Based on current valuation, company quality, recent trends, and available market signals.
View score details →
Model Outlook
12-month model · What does the model think happens next?
75/100
Building Historical Record
Model Score 75/100 — estimates relative performance potential, distinct from the overall Wall Street Score and the separate Company Quality score.
Probability unavailable — the model has not produced a calibrated probability yet.
Click for full breakdown →
WSS View
The quick read
The overall Wall Street Score is mixed across its combined quality, valuation and risk inputs. Review the category scores to identify what is helping or hurting the result.
At today’s price, the WSS valuation framework currently reads as relatively attractive.
The model outlook is currently positive.
- •Balance-sheet / debt profile scores strongly
- •Asset quality scores strongly
- •Valuation scores attractively
- •Recent buyback activity is present
- •Repurchase headline · Sep 16, 2026
- •Revenue fundamentals are weak
Company-specific research
Questions worth answering for TME
These questions are generated from this company's current financial and score data so the page adds context instead of treating the headline score as a stand-alone conclusion.
- •Can TME maintain its current revenue growth rate and improve the amount of that revenue that turns into earnings and cash?
- •Is TME's positive free cash flow repeatable, or is the current level being helped by temporary working-capital or spending changes?
- •Does TME's balance between cash and debt leave enough flexibility if business conditions weaken?
- •Is TME's valuation discount tied to a temporary concern or to a longer-term business risk?
- •What does the current fundamental change risk warning mean for the reliability or interpretation of TME's score?
Essential Investment Snapshot
Wall Street Score
55
Opportunity Score
79
Market Cap
$12.69B
P/E Ratio
10.3
EPS
$0.83
52-Week High
$23.86
52-Week Low
$7.66
Beta
0.75
Intrinsic Value
$15.55
Analyst Target
$12.50
Shares Outstanding
1.55B
Total Revenue
$4.93B
Total Debt
$2.52B
Reported Dividend Yield
2.27%
Liquidation Value / Share
$7.80
Momentum & Volatility Signals
Two different market-behavior signals. Momentum measures direction and trend strength. Volatility measures how large and unstable the price moves are, regardless of direction.
Neutral / mixed momentum
Low movement
A high momentum score means price has been trending upward with confirming short- and medium-term strength. A low score means downward or weakening momentum.
A high volatility score means larger, less stable price swings. It can happen while a stock is rising or falling, so high volatility is not automatically bullish or bearish.
Important: the volatility score above is based on realized price volatility. Implied volatility (IV) comes from options prices and represents the market's expected future movement. Wall Street Score will keep IV separate and will only display it when a verified options-chain feed is available.
Notices for TME
Detected from reported data — verify before acting.Dividend history reported
The provider reports a dividend yield. Confirm the latest declaration before treating it as a current payment.
Historical repurchase activity
Reported cash flows or share-count measures indicate past repurchase activity. This does not verify an active buyback authorization or future purchases.
Repurchase headline · Sep 16, 2026
Tencent Music's 2026 Outlook: $400 Million Share Repurchase Program Reflects Financial Discipline — This is a provider-linked headline, not an independently confirmed event. Check the article and company filings for the subject, proposed/completed status, and subsequent updates.
The Motley FoolCommunity Sentiment
0 active · 0 total callsNo personal call yet on TME.
Potential upside factors
- +Growth opportunities may come from revenue expansion, margin improvement, new products, market-share gains, and stronger cash flow.
- +Leading market position in China's online music and audio entertainment industry.
- +Extensive library of licensed music content.
- +Positive free cash flow may provide capacity to invest in growth.
Potential downside factors
- −Key risks may include competition, margin pressure, debt levels, valuation risk, and changes in demand within the Internet Content & Information industry.
- −Heavy reliance on variable interest entities (VIEs) and associated regulatory risks in China.
- −Evolving PRC-U.S. regulatory environment affecting foreign-listed companies.
These research factors come from saved company research and financial data, not community votes. They are starting points to verify against filings, not buy or sell recommendations.
Create a free account to make a call.
Scores
Click any score for full breakdownWas this stock page easy to understand?
One click helps us improve the research experience. This is not tied to an investment decision.
Score Changes
3 historical score records availablePrevious Score
55
Oct 1, 2026
Change
Unchanged
Current Score
55
Oct 22, 2026
Category Changes
TME score was unchanged.
Negative Contributors
- − Capital declined by 3 points
- − Valuation declined by 2.9 points
Projected Score
Projected Score
58
Projected Change
+3.2 points
Preliminary comparable-period financial changes suggest improvement of approximately 3.2 points. This is a projected estimate, not the official WallStreetScore.
Price vs. Value
UndervaluedCurrent Price
$8.49
Model Intrinsic Value
$15.55
Difference
−$7.06
-45.4% vs IV
Margin of Safety
45.4%
Financial Charts
Revenue
Additional Metrics
Operating Cash Flow
Total Debt
Total Assets
Net Margin %
Free includes 3 annual periods plus available TTM; Premium includes up to 10 annual periods. History depends on available company filings. Swipe the table horizontally to see older periods. A dash means unavailable, not zero.
| Line Item | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $4.93B | $4.92B | $4.25B | $4.15B | ···· | ···· | ···· | ···· | ···· | ···· | ···· |
| Cost of Revenue | $2.13B | $2.75B | $2.45B | $2.68B | ···· | ···· | ···· | ···· | ···· | ···· | ···· |
| Gross Profit | $2.80B | $2.17B | $1.80B | $1.46B | ···· | ···· | ···· | ···· | ···· | ···· | ···· |
| Research & Development | $0.00 | $346.4M | $0.00 | $377.5M | ···· | ···· | ···· | ···· | ···· | ···· | ···· |
| SG&A Expenses | $410.7M | $379.7M | $699.0M | $750.2M | ···· | ···· | ···· | ···· | ···· | ···· | ···· |
| Operating Expenses | $1.20B | $717.3M | $495.6M | $558.5M | ···· | ···· | ···· | ···· | ···· | ···· | ···· |
| EBITDA | $2.25B | $2.21B | $1.47B | $897.4M | ···· | ···· | ···· | ···· | ···· | ···· | ···· |
| Operating Income | $1.60B | $1.46B | $1.30B | $905.8M | ···· | ···· | ···· | ···· | ···· | ···· | ···· |
| Interest Expense | $20.1M | $18.2M | $18.5M | $18.5M | ···· | ···· | ···· | ···· | ···· | ···· | ···· |
| Income Before Tax | $1.61B | $1.98B | $1.30B | $903.7M | ···· | ···· | ···· | ···· | ···· | ···· | ···· |
| Income Tax Expense | $280.9M | $287.6M | $239.6M | $123.3M | ···· | ···· | ···· | ···· | ···· | ···· | ···· |
| Net Income | $1.29B | $1.65B | $993.2M | $735.5M | ···· | ···· | ···· | ···· | ···· | ···· | ···· |
| Basic EPS | $0.83 | $1.05 | $0.64 | $0.47 | ···· | ···· | ···· | ···· | ···· | ···· | ···· |
| Basic Shares | 1.54B | 1.53B | 1.57B | 1.58B | ···· | ···· | ···· | ···· | ···· | ···· | ···· |
| Diluted Shares | 1.56B | 1.55B | 1.57B | 1.58B | ···· | ···· | ···· | ···· | ···· | ···· | ···· |
Earnings Summary
Revenue
$1.34B
Estimate unavailable.
Revenue Beat/Miss
Not available (no estimate stored)
EPS
$0.24
Estimate unavailable.
EPS Beat/Miss
Not available (no estimate stored)
Debt Change
+179.4%
Cash Change
+115.5%
Margin Change
-0.9 pp
Debt and cash show percentage changes versus the comparison period; margin shows the change in percentage points (pp). These are company-wide changes, not per-share amounts.
Financial Changes Since Prior Period
What Improved
- Cash position grew
What Weakened
- Margins contracted
- Debt increased
Potential Score Impact
Positive indicators included revenue growth, EPS growth, cash levels. Pressure indicators included debt levels, net income margin. These factors may support or pressure the Revenue, Management, Financial, and Debt categories; this summary does not claim that the stored scores changed.
Stored Earnings Analysis
Revenue increased 5.8%. EPS increased 1.3%. Cash increased 115.5%. Total debt increased 179.4%. Net income margin declined by 0.9 percentage points.
Earnings-Call Transcript
Earnings-call transcript analysis is not currently available.
These results may influence future scores when the next evaluation is completed.
Insider Activity
Guru / Smart Money
Guru Score
40
Smart Money
40
Number of Gurus
3
Total Guru Value
Avg Portfolio Weight
Largest Holder
Largest Holder %
New Positions
Increased Positions
Reduced Positions
Exited Positions
Net Guru Sentiment
Short Interest
Dividend History
A dividend is reported, but detailed payment history is temporarily unavailable or awaiting refresh.
Conservative Projected Values
3 Years
$———.——
5 Years
$———.——
10 Years
$———.——
Conservative Projection Rate
——%
Conservative Projected Values — price projections derived from actual 10-year adjusted historical returns, conservatively adjusted and capped at 8% annually. These are distinct from the Outperformance Model Score and WallStreetScore.
Conservative Projected Values
Premium unlocks the 3-year, 5-year, and 10-year conservative projected values with full calculation breakdowns based on actual historical returns.
Start 7-Day Free TrialHistorical Outperformance Record
Premium includes stored forecasts and any available evaluated results. Completed results, win rates and calibrated probabilities are shown only when supported records exist; access does not create historical outcomes.
Start 7-Day Free TrialHistorical Trends
3 historical recordsHistorical Score Chart
3 of 3 records shownWall Street Score
Debt Score
Revenue Score
Asset Score
Capital Score
Management Score
Moat Score
Valuation Score
Buffett Score
Intrinsic Value
Value Reference
Margin of Safety %
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Rumor Mill · TME
Corporate developments & opportunities
No reviewed developments match this filter.
Evidence credibility is not a forecast of stock performance. Rumor Mill is separate from the WSS score.
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