TME

Communication Services

Tencent Music Entertainment Group · Internet Content & Information · $14B

UQS Score — Balanced Preset
66.1
Good

Tencent Music Entertainment Group scores 66.1/100 using the Balanced preset.

68.3
Quality
35%
53.0
Moat
30%
34.6
Growth
20%
92.7
Risk
15%

TME — Key Takeaways

✅ Strengths

Tencent Music Entertainment Group shows strong profitability and capital efficiency
Tencent Music Entertainment Group shows conservative financial structure with manageable risk
Tencent Music Entertainment Group shows attractive valuation relative to fundamentals

TME — Score History

60657075Apr 2Apr 3Apr 4Apr 5Apr 6Apr 7Apr 8
DateUQSQualityMoatGrowthRiskValueChange
Apr 8, 202666.168.353.034.692.7100.00.0
Apr 7, 202666.168.353.034.592.7100.00.0
Apr 6, 202666.168.353.034.592.7100.00.0
Apr 5, 202666.168.353.034.592.7100.00.0
Apr 4, 202666.168.353.034.492.7100.00.0
Apr 3, 202666.168.353.034.492.7100.00.0
Apr 2, 202666.168.353.034.492.7100.0

TME — Pillar Breakdown

Quality

68.3/100 (25%)

Tencent Music Entertainment Group shows solid profitability with healthy returns on capital and reasonable margins.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityModerate

Profitability relative to shareholders' equity.

Operating ProfitabilityStrong

Ability to convert revenue into operating profit.

Net ProfitabilityStrong

Bottom-line profit as a share of revenue.

Gross Profit / AssetsWeak

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

34.6/100 (20%)

Tencent Music Entertainment Group faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthStrong

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthWeak

Analyst consensus for future earnings growth.

Risk

92.7/100 (15%)

Tencent Music Entertainment Group carries minimal financial risk with conservative leverage and strong solvency.

Financial LeverageStrong

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioModerate

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

100.0/100 (15%)

Tencent Music Entertainment Group appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Moat

53/100 (30%)

Tencent Music Entertainment Group possesses some competitive advantages but faces meaningful competition. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for TME.

Score Composition

Quality
68.3×25%17.1
Growth
34.6×20%6.9
Risk
92.7×15%13.9
Valuation
100.0×15%15.0
Moat
53.0×30%15.9
Total
66.1Good

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How is the TME UQS Score Calculated?

The UQS (Unified Quality Score) for Tencent Music Entertainment Group is calculated using a proprietary 5-pillar framework with 25 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Tencent Music Entertainment Group's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Tencent Music Entertainment Group is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.