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Tencent Holdings Ltd ADR TCEHY

Morningstar Rating
$50.45 +0.95 (1.92%)
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Company Report

Tencent Leverages Unrivaled Network Effects to Fuel Growth on Multiple Fronts

Over the past decade, Tencent has capitalized on the industry shift toward mobile gaming. The firm owns some of the world's most popular titles, like Honor of Kings and PUBG Mobile. To date, games remain Tencent's primary monetization model—as we estimate more than 40% of the group's operating income comes from this segment. Tencent should continue to leverage its unrivaled access to user data and financial capital to create innovative, high-quality, and long-cycle games with a mobile-first approach.

Price vs Fair Value

TCEHY is trading at a 99% premium.
Price
$50.45
Fair Value
$63.00
Uncertainty
High
1-Star Price
$851.30
5-Star Price
$62.00
Economic Moat
Lsswh
Capital Allocation
Lwhmnvtfr

Bulls Say, Bears Say

Bulls

Many of Tencent's products are still in the early stages of monetization.

Bears

Chinese regulators have become more assertive. There is always the possibility that the government may want more control over internet businesses by curbing monetization, limiting collection of user data, or restricting acquisitions.

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News

Trading Information

Previous Close Price
$49.50
Day Range
$50.4051.02
52-Week Range
$33.0052.10
Bid/Ask
$50.35 / $50.49
Market Cap
$470.37 Bil
Volume/Avg
2.6 Mil / 2.4 Mil

Key Statistics

Price/Earnings (Normalized)
21.55
Price/Sales
5.63
Dividend Yield (Trailing)
0.86%
Dividend Yield (Forward)
0.86%
Total Yield
2.17%

Company Profile

Tencent holds a prominent position in China's internet sector, with a diverse portfolio of products and services used daily by a significant portion of the population. The company is the world's largest video game publisher and owns Honor of Kings, a top-grossing mobile game globally. Tencent also operates WeChat, China's largest social media super app, which has become deeply integrated into the daily lives of Chinese people for communication, entertainment, shopping, and more. Beyond its offerings, Tencent is a significant player in global venture capital and investment. The company holds substantial stakes in leading tech companies, including PDD, Kuaishou, and Epic Games.
Sector
Communication Services
Industry
Internet Content & Information
Stock Style Box
Large Core
Total Number of Employees
104,787

Competitors

Valuation

Metric
TCEHY
NTES
BABA
Price/Earnings (Normalized)
21.5513.139.17
Price/Book Value
3.973.351.40
Price/Sales
5.634.101.54
Price/Cash Flow
17.9312.197.38
Price/Earnings
TCEHY
NTES
BABA

Financial Strength

Metric
TCEHY
NTES
BABA
Quick Ratio
1.302.371.55
Current Ratio
1.472.531.79
Interest Coverage
13.416.67
Quick Ratio
TCEHY
NTES
BABA

Profitability

Metric
TCEHY
NTES
BABA
Return on Assets (Normalized)
10.08%14.59%4.42%
Return on Equity (Normalized)
20.37%22.05%7.83%
Return on Invested Capital (Normalized)
12.97%15.46%7.04%
Return on Assets
TCEHY
NTES
BABA
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