Tencent Music Entertainment Group
NYSE:TME

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Tencent Music Entertainment Group
NYSE:TME
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Price: 12.87 USD -3.38% Market Closed
Market Cap: 21.7B 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
21.7B USD
41%
24%
22%
US
Netflix Inc
NASDAQ:NFLX
370.7B USD
46%
27%
22%
US
Walt Disney Co
NYSE:DIS
190.3B USD
37%
14%
6%
LU
Spotify Technology SA
NYSE:SPOT
99.7B USD
30%
9%
7%
NL
Universal Music Group NV
AEX:UMG
49.6B EUR
43%
14%
13%
US
Live Nation Entertainment Inc
NYSE:LYV
28.8B USD
28%
5%
3%
US
Warner Bros Discovery Inc
NASDAQ:WBD
26B USD
43%
1%
-29%
US
TKO Group Holdings Inc
NYSE:TKO
24.3B USD
0%
20%
13%
US
Warner Music Group Corp
NASDAQ:WMG
17.7B USD
47%
14%
8%
FR
Bollore SE
PAR:BOL
16.4B EUR
32%
3%
22%
US
Endeavor Group Holdings Inc
NYSE:EDR
13.4B USD
54%
-1%
-11%
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
21.7B USD
10%
8%
10%
11%
US
Netflix Inc
NASDAQ:NFLX
370.7B USD
38%
17%
25%
24%
US
Walt Disney Co
NYSE:DIS
190.3B USD
6%
3%
8%
6%
LU
Spotify Technology SA
NYSE:SPOT
99.7B USD
28%
11%
24%
34%
NL
Universal Music Group NV
AEX:UMG
49.6B EUR
52%
11%
22%
14%
US
Live Nation Entertainment Inc
NYSE:LYV
28.8B USD
1 055%
3%
13%
18%
US
Warner Bros Discovery Inc
NASDAQ:WBD
26B USD
-29%
-10%
1%
1%
US
TKO Group Holdings Inc
NYSE:TKO
24.3B USD
25%
12%
24%
20%
US
Warner Music Group Corp
NASDAQ:WMG
17.7B USD
100%
6%
17%
9%
FR
Bollore SE
PAR:BOL
16.4B EUR
16%
7%
1%
1%
US
Endeavor Group Holdings Inc
NYSE:EDR
13.4B USD
-18%
-4%
0%
0%
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.