Tencent Music Entertainment Group (TME): one to watch?

Cheap and cash-rich, but growth has stalled and a legacy revenue segment is shrinking — no clear catalyst to re-rate it yet.

👀 WATCH Fundamentals74/100

Down 74% from its all-time high of $30.42 — now $8.06

Why TME dropped

The stock's 2021 collapse from all-time highs was caused by a Chinese regulatory crackdown that banned exclusive music licensing deals and a general China-ADR selloff (Archegos-related and Beijing's tech crackdown); more recently it dropped sharply after August 11, 2026 earnings despite an EPS beat, as investors focused on decelerating user growth and a 17% year-over-year decline in the legacy "social entertainment" (live-streaming/karaoke) segment.

Fwd P/E 8.0Op margin 29.2%Rev growth 5.8%Debt/equity 20.8%Analyst upside 63.8%

How this scored 74/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 26.3%

✅ Generates cash Free cash flow $7.1B

✅ Not drowning in debt Debt/equity 20.8% (limit 200%)

✅ Can pay its bills Current ratio 1.7 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 19/25

Operating margin 29.2% 9/9

Net profit margin 26.3% 8/8

Return on equity 11.0% 2/8

Growth Is it getting bigger, or dying? 11/25

Revenue growth 5.8% 3/9

Earnings growth 2.4% 2/8

Expected profit change 18.3% 6/8

Value Is it cheap right now? 23/25

Forward P/E 8.0 10/10

PEG ratio 1.2 6/8

Analyst target upside 63.8% 7/7

Balance sheet Will it survive? 21/25

Debt / equity 20.8% 10/10

Current ratio 1.7 4/8

Free cash flow $7.1B 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-09-09. Research only — not financial advice.