Tencent Music Entertainment Group
NYSE:TME

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Tencent Music Entertainment Group
NYSE:TME
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Price: 11.62 USD -2.76%
Market Cap: 19.6B USD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Tencent Music Entertainment Group

Revenue
27.8B CNY
Cost of Revenue
-16.4B CNY
Gross Profit
11.4B CNY
Operating Expenses
-4.8B CNY
Operating Income
6.6B CNY
Other Expenses
-652m CNY
Net Income
6B CNY

Margins Comparison
Tencent Music Entertainment Group Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
CN
Tencent Music Entertainment Group
NYSE:TME
20B USD
41%
24%
22%
US
Netflix Inc
NASDAQ:NFLX
385.3B USD
45%
26%
21%
US
Walt Disney Co
NYSE:DIS
204.7B USD
36%
13%
5%
LU
Spotify Technology SA
NYSE:SPOT
91.7B USD
29%
5%
5%
NL
Universal Music Group NV
AEX:UMG
44.8B EUR
43%
14%
13%
US
Live Nation Entertainment Inc
NYSE:LYV
30.4B USD
25%
5%
1%
US
Warner Bros Discovery Inc
NASDAQ:WBD
25.7B USD
42%
-1%
-28%
US
TKO Group Holdings Inc
NYSE:TKO
24.2B USD
0%
20%
13%
FR
Bollore SE
PAR:BOL
16.4B EUR
32%
3%
22%
US
Warner Music Group Corp
NASDAQ:WMG
16.1B USD
48%
15%
7%
US
Endeavor Group Holdings Inc
NYSE:EDR
14.6B USD
54%
-2%
-8%
Country CN
Market Cap 20B USD
Gross Margin
41%
Operating Margin
24%
Net Margin
22%
Country US
Market Cap 385.3B USD
Gross Margin
45%
Operating Margin
26%
Net Margin
21%
Country US
Market Cap 204.7B USD
Gross Margin
36%
Operating Margin
13%
Net Margin
5%
Country LU
Market Cap 91.7B USD
Gross Margin
29%
Operating Margin
5%
Net Margin
5%
Country NL
Market Cap 44.8B EUR
Gross Margin
43%
Operating Margin
14%
Net Margin
13%
Country US
Market Cap 30.4B USD
Gross Margin
25%
Operating Margin
5%
Net Margin
1%
Country US
Market Cap 25.7B USD
Gross Margin
42%
Operating Margin
-1%
Net Margin
-28%
Country US
Market Cap 24.2B USD
Gross Margin
0%
Operating Margin
20%
Net Margin
13%
Country FR
Market Cap 16.4B EUR
Gross Margin
32%
Operating Margin
3%
Net Margin
22%
Country US
Market Cap 16.1B USD
Gross Margin
48%
Operating Margin
15%
Net Margin
7%
Country US
Market Cap 14.6B USD
Gross Margin
54%
Operating Margin
-2%
Net Margin
-8%
No Stocks Found

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Tencent Music Entertainment Group Competitors

Country Company Market Cap ROE ROA ROCE ROIC
CN
Tencent Music Entertainment Group
NYSE:TME
20B USD
11%
8%
11%
10%
US
Netflix Inc
NASDAQ:NFLX
385.3B USD
35%
15%
23%
22%
US
Walt Disney Co
NYSE:DIS
204.7B USD
5%
2%
7%
5%
LU
Spotify Technology SA
NYSE:SPOT
91.7B USD
21%
8%
16%
23%
NL
Universal Music Group NV
AEX:UMG
44.8B EUR
52%
11%
22%
14%
US
Live Nation Entertainment Inc
NYSE:LYV
30.4B USD
90%
1%
12%
8%
US
Warner Bros Discovery Inc
NASDAQ:WBD
25.7B USD
-28%
-10%
0%
0%
US
TKO Group Holdings Inc
NYSE:TKO
24.2B USD
25%
12%
24%
20%
FR
Bollore SE
PAR:BOL
16.4B EUR
16%
7%
1%
1%
US
Warner Music Group Corp
NASDAQ:WMG
16.1B USD
104%
5%
19%
10%
US
Endeavor Group Holdings Inc
NYSE:EDR
14.6B USD
-16%
-3%
-1%
-1%
Country CN
Market Cap 20B USD
ROE
11%
ROA
8%
ROCE
11%
ROIC
10%
Country US
Market Cap 385.3B USD
ROE
35%
ROA
15%
ROCE
23%
ROIC
22%
Country US
Market Cap 204.7B USD
ROE
5%
ROA
2%
ROCE
7%
ROIC
5%
Country LU
Market Cap 91.7B USD
ROE
21%
ROA
8%
ROCE
16%
ROIC
23%
Country NL
Market Cap 44.8B EUR
ROE
52%
ROA
11%
ROCE
22%
ROIC
14%
Country US
Market Cap 30.4B USD
ROE
90%
ROA
1%
ROCE
12%
ROIC
8%
Country US
Market Cap 25.7B USD
ROE
-28%
ROA
-10%
ROCE
0%
ROIC
0%
Country US
Market Cap 24.2B USD
ROE
25%
ROA
12%
ROCE
24%
ROIC
20%
Country FR
Market Cap 16.4B EUR
ROE
16%
ROA
7%
ROCE
1%
ROIC
1%
Country US
Market Cap 16.1B USD
ROE
104%
ROA
5%
ROCE
19%
ROIC
10%
Country US
Market Cap 14.6B USD
ROE
-16%
ROA
-3%
ROCE
-1%
ROIC
-1%
No Stocks Found

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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