Intrinsiqq

Tencent Music Entertainment Group ADR (TME) Quality Score

TME
Quality88

Strong across all measured dimensions. No single area is pulling the score down meaningfully.

Broad-market heuristics · Not a buy/sell signal

Valuation and growth

Earnings Multiple
90/100
10.1x

Under 20x, reasonable relative to earnings

Cash Flow Multiple
100/100
9.4x

Under 20x cash flow, well covered

Revenue Growth
50/100
4.6%

2–5% CAGR, growing but slowly

Cash Flow Growth
100/100
10.7%

Above 10% CAGR, strong compounder

Business Quality & Capital Allocation

Share Dilution
100/100
-6.4%

Shrinking >2%, active buybacks

Margin Trend
100/100
+17.3pp

Expanded 3+pp, strong improvement

Capital Structure
100/100
-¥20.50B

Net cash position, no leverage concern

2022
¥20.88B
¥5.96B
2023
¥23.54B
¥6.05B
2024
¥27.21B
¥6.05B
2025
¥24.32B
¥3.81B
Return on Capital
60/100
10.2%

10–15%, respectable returns

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Tencent Music Entertainment Group ADR (TME) quality: score, margins and returns

Tencent Music Entertainment Group ADR (TME) scores 88/100 on Intrinsiqq's quality score (a high-quality business), a weighted blend of 8 metrics each scored 0 to 100, on 29.7% operating margins and 10.2% ROIC. Every metric is computed from company filings; this is analysis, not investment advice.

Frequently asked

Is Tencent Music Entertainment Group ADR (TME) a high-quality business?+

Tencent Music Entertainment Group ADR scores 88 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which rates it a high-quality business on these measures. Recent figures include a 29.7% operating margin and a 10.2% return on invested capital. Quality and price are separate questions: even a great business can be a poor investment if you overpay, so read this score alongside the valuation. The metric-by-metric breakdown is on this scorecard.

What does Tencent Music Entertainment Group ADR's quality score measure?+

Intrinsiqq's quality score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, change in share count, and balance-sheet strength, each computed from TME's company filings rather than opinion or sentiment. A higher score means a more durable, capital-efficient business; it is not a buy or sell signal. Open each metric on this page to see exactly where Tencent Music Entertainment Group ADR scores well and where it falls behind.

What is Tencent Music Entertainment Group ADR's return on invested capital (ROIC)?+

Tencent Music Entertainment Group ADR earns about 10.2% on its invested capital, which is solid. ROIC measures how much profit a company generates per dollar put to work; sustained ROIC above its cost of capital is one of the clearest signs of a real competitive moat. Compare it to TME's margins and growth on this scorecard to judge durability.

How profitable is Tencent Music Entertainment Group ADR?+

Tencent Music Entertainment Group ADR runs an operating margin of about 29.7% and a net margin of about 27.1%. Revenue has grown at roughly 1.3% a year recently. High, stable margins usually point to pricing power and operating discipline. Margins are most telling next to growth and returns on capital, all of which feed this quality score. This is analysis from company filings, not investment advice.

How the market compares: US profitability statistics

Related stocks: Internet Content & Information

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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.

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