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HUYA Inc Class A HUYA

Morningstar Rating
$4.55 +0.10 (2.25%)
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Company Report

Huya Earnings: Upgrading Capital Allocation to Standard Amid Special Dividend and Share Buyback

We are upgrading Huya’s Morningstar Capital Allocation Rating to Standard from Poor following the announcement of a $150 million special dividend, or an equivalent of 15% of the company’s market capitalization. We previously wrote that the lack of distribution was the main the reason why shares were trading at significant discount to the value of its net cash. But now that the company is committed to distribute that cash, shareholders should feel more assured. Despite the recent run-up in Huya’s share price, we still see upside, as the $4.40 closing price on March 20 still implies a 23% discount to the company’s $5.70 per share net cash position.

Price vs Fair Value

HUYA is trading at a 42% discount.
Price
$4.46
Fair Value
$6.80
Uncertainty
Very High
1-Star Price
$41.25
5-Star Price
$4.96
Economic Moat
Bnjv
Capital Allocation
Qmfbbwgt

Bulls Say, Bears Say

Bulls

Exclusive deals on top esports events enable Huya to maintain high user stickiness and elevate user spending.

Bears

Increasing revenue-sharing costs to streamers will continue to dim the margin outlook of Huya over the next few years.

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News

Trading Information

Previous Close Price
$4.45
Day Range
$4.474.64
52-Week Range
$2.164.90
Bid/Ask
$4.52 / $4.64
Market Cap
$1.06 Bil
Volume/Avg
1.3 Mil / 1.6 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
1.05
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Established in 2011, Huya is the largest online game livestreaming company in China. Headquartered in Guangzhou, Huya mainly provides livestreamed videos on esports games such as League of Legends and Honor of Kings and collects virtual tips from viewers. Its products include the Huya Live platform in China and Nimo TV in Southeast Asia and South America. As of 2023, Huya was a subsidiary of Tencent, which owned 63% of its equity stake and held 94% of the voting power.
Sector
Communication Services
Industry
Entertainment
Stock Style Box
Total Number of Employees
1,521

Competitors

Valuation

Metric
HUYA
TME
09899
Price/Earnings (Normalized)
21.6019.42
Price/Book Value
0.712.582.13
Price/Sales
1.054.432.25
Price/Cash Flow
15.9425.25
Price/Earnings
HUYA
TME
09899

Financial Strength

Metric
HUYA
TME
09899
Quick Ratio
4.782.173.71
Current Ratio
5.162.463.97
Interest Coverage
32.6456.71
Quick Ratio
HUYA
TME
09899

Profitability

Metric
HUYA
TME
09899
Return on Assets (Normalized)
−1.03%8.59%4.11%
Return on Equity (Normalized)
−1.22%11.73%5.56%
Return on Invested Capital (Normalized)
−5.27%9.04%1.39%
Return on Assets
HUYA
TME
09899
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