Tencent Music Entertainment Group (TME) Stock Price, News & Analysis

Company Overview

Tencent Music Entertainment Group (NYSE:TME) is a China-based online music entertainment platform that offers a suite of digital music services, social entertainment features and interactive live streaming. Leveraging a comprehensive suite of mobile and PC applications, the company provides users with on-demand music streaming, personalized playlists and music discovery tools. Its primary platforms include QQ Music, Kugou Music and Kuwo Music, each tailored to distinct user segments across mainland China.

Since its founding in 2016 as a subsidiary of Tencent Holdings Limited, Tencent Music Entertainment has forged licensing partnerships with global and domestic record labels, independent artists and music publishers. These agreements grant the company rights to a broad catalog of songs spanning multiple genres and languages. By integrating social features such as real-time music sharing, lyrics synchronization and animated gifting, the company has cultivated an engaged community that bridges music consumption with interactive entertainment.

In addition to streaming services, Tencent Music Entertainment offers an online karaoke platform and live audio rooms where users can host and attend performances in real time. Monetization streams include paid subscriptions, digital album sales, virtual gifting in social and live-streaming channels, and targeted advertising. The company’s ability to blend music and social engagement has driven user retention and provided artists with diverse revenue opportunities.

Tencent Music Entertainment Group serves users throughout mainland China and continues to expand its content offerings and technological capabilities. Backed by the resources and expertise of Tencent Holdings, the company’s management team is composed of industry professionals with experience in media, technology and entertainment. As it evolves, the company seeks to deepen its music licensing relationships, enhance product innovation and explore emerging digital entertainment formats.

Key Stats

• Today's Range: $23.16 to $23.65
• 50-Day Range: $20.53 to $26.37
• 52-Week Range: $10.11 to $26.70
• Volume: 2.45 million shs
• Average Volume: 7.26 million shs
• Market Capitalization: $40.20 billion
• P/E Ratio: 25.75
• Dividend Yield: 0.73%
• Price Target: $24.47
• Consensus Rating: Buy

Tencent Music Entertainment Group Stock Analysis - MarketRank™

Tencent Music Entertainment Group scored higher than 75% of companies evaluated by MarketBeat, and ranked 108th out of 294 stocks in the consumer discretionary sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.9 / 5
• Analyst Rating: Buy

Consensus Rating

Tencent Music Entertainment Group has received a consensus rating of Buy. The company's average rating score is 3.18, and is based on 9 buy ratings, no hold ratings, and no sell ratings.

Upside/Downside

The consensus price target for Tencent Music Entertainment Group is close to its current price, suggesting limited near-term upside or downside.

Amount of Analyst Coverage

Tencent Music Entertainment Group has been the subject of 7 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Earnings and Valuation

• Score: 2.5 / 5
• Proj. Earnings Growth: 25.40%

Earnings Growth

Earnings for Tencent Music Entertainment Group are expected to grow by 25.40% in the coming year, from $0.63 to $0.79 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Tencent Music Entertainment Group is 25.77, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 281.49.

Price to Earnings Ratio vs. Sector

The P/E ratio of Tencent Music Entertainment Group is 25.77, which means that it is trading at a more expensive P/E ratio than the Consumer Discretionary sector average P/E ratio of about 18.55.

Price to Book Value per Share Ratio

Tencent Music Entertainment Group has a P/B Ratio of 4.15. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

Short Interest

• Score: 5.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

3.24% of the float of Tencent Music Entertainment Group has been sold short.

Short Interest Ratio / Days to Cover

Tencent Music Entertainment Group has a short interest ratio ("days to cover") of 2.9, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Tencent Music Entertainment Group has recently decreased by 15.49%, indicating that investor sentiment is improving significantly.

Dividend

• Score: 1.7 / 5
• Dividend Strength: Weak

Dividend Yield

Tencent Music Entertainment Group has a dividend yield of 0.72%, which is in the bottom 25% of all stocks that pay dividends.

Dividend Growth

Tencent Music Entertainment Group does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Tencent Music Entertainment Group is 18.68%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Tencent Music Entertainment Group will have a dividend payout ratio of 21.52% next year. This indicates that Tencent Music Entertainment Group will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

3.24% of the float of Tencent Music Entertainment Group has been sold short.

Short Interest Ratio / Days to Cover

Tencent Music Entertainment Group has a short interest ratio ("days to cover") of 2.9, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Tencent Music Entertainment Group has recently decreased by 15.49%, indicating that investor sentiment is improving significantly.

News and Social Media

• Score: 3.6 / 5
• News Sentiment: 1.47

News Sentiment

Tencent Music Entertainment Group has a news sentiment score of 1.47. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a higher news sentiment than the 0.94 average news sentiment score of Consumer Discretionary companies.

News Coverage This Week

MarketBeat has tracked 11 news articles for Tencent Music Entertainment Group this week, compared to 9 articles on an average week.

Search Interest

Only 3 people have searched for TME on MarketBeat in the last 30 days. This is a decrease of -75% compared to the previous 30 days.

MarketBeat Follows

8 people have added Tencent Music Entertainment Group to their MarketBeat watchlist in the last 30 days.

Company Ownership

• Score: 0.0 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Tencent Music Entertainment Group insiders have not sold or bought any company stock.

Percentage Held by Institutions

Only 24.32% of the stock of Tencent Music Entertainment Group is held by institutions.

TME Stock Analysis - Frequently Asked Questions

How have TME shares performed this year?

Tencent Music Entertainment Group's stock was trading at $11.35 at the start of the year. Since then, TME shares have increased by 106.4% and is now trading at $23.4250.

How were Tencent Music Entertainment Group's earnings last quarter?

Tencent Music Entertainment Group Sponsored ADR (NYSE:TME) issued its quarterly earnings data on Tuesday, November, 14th. The company reported $0.74 earnings per share for the quarter, beating analysts' consensus estimates of $0.11 by $0.63. The company's quarterly revenue was down 10.8% compared to the same quarter last year.
Read the conference call transcript.

When did Tencent Music Entertainment Group IPO?

Tencent Music Entertainment Group (TME) raised $1.1 billion in an IPO on Wednesday, December 12th 2018. The company issued 82,000,000 shares at a price of $13.00-$15.00 per share. Morgan Stanley, Goldman Sachs (Asia), J.P. Morgan, Deutsche Bank Securities and BofA Merrill Lynch served as the underwriters for the IPO and Credit Suisse, CICC, Allen & Company, BOCI, China Renaissance. HSBC, KeyBanc Capital Markets and Stifel were co-managers.

Who are Tencent Music Entertainment Group's major shareholders?

Tencent Music Entertainment Group's top institutional investors include Schroder Investment Management Group (3.96%), JPMorgan Chase & Co. (1.14%), Cantillon Capital Management LLC (1.09%) and State Street Corp (0.73%).

How do I buy shares of Tencent Music Entertainment Group?

Shares of TME stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.

What other stocks do shareholders of Tencent Music Entertainment Group own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Tencent Music Entertainment Group investors own include Zomedica (ZOM), NVIDIA (NVDA), Meta Platforms (META), Alibaba Group (BABA), Advanced Micro Devices (AMD), NIO (NIO) and PayPal (PYPL).

Company Calendar

• Last Earnings: 11/14/2023
• Today: 9/25/2025
• Next Earnings (Estimated): 11/11/2025
• Fiscal Year End: 12/31/2025

Industry, Sector and Symbol

• Stock Exchange: NYSE
• Sector: Consumer Discretionary
• Industry: MEDIA CONGLOM
• Sub-Industry: Communication
• Current Symbol: NYSE:TME
• CIK: 1744676
• Web: www.tencentmusic.com
• Phone: 8675586013388
• Fax: N/A
• Employees: 5,353
• Year Founded: 2012

Price Target and Rating

• Average Price Target for Tencent Music Entertainment Group: $24.47
• High Price Target: $29.80
• Low Price Target: $13.00
• Potential Upside/Downside: +3.2%
• Consensus Rating: Buy
• Rating Score (0-4): 3.18
• Research Coverage: 11 Analysts

Profitability

• EPS (Trailing Twelve Months): $0.91
• Trailing P/E Ratio: 26.05
• Forward P/E Ratio: 37.63
• P/E Growth: N/A
• Net Income: $924.18 million
• Net Margins: 33.72%
• Pretax Margin: 30.67%
• Return on Equity: 10.75%
• Return on Assets: 8.39%

Debt

• Debt-to-Equity Ratio: 0.04
• Current Ratio: 1.87
• Quick Ratio: 1.87

Sales & Book Value

• Annual Sales: $30.27 billion
• Price / Sales: 1.34
• Cash Flow: $0.66 per share
• Price / Cash Flow: 36.01
• Book Value: $5.65 per share
• Price / Book: 4.20

Miscellaneous

• Outstanding Shares: 1,716,077,000
• Free Float: N/A
• Market Cap: $40.68 billion
• Optionable: Optionable
• Beta: 0.54