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Tencent Music Entertainment Gro (TME) Stock Analysis

Recovery setup

SellVALUE-TRAP 1/5High Confidence

Communication Services · Internet Content & Information

Sell if holding. Multiple concerning factors at $9.13: Leverage penalty (D/E 6.3): -1.5; Sector modifier (Communication Services): -0.8.

Tencent Music Entertainment Group operates online music entertainment platforms that provides music streaming, online karaoke, and live streaming services in the People's Republic of China. It provides QQ Music, Kugou Music, and Kuwo Music that enable users to discover, enjoy,... Read more

$9.13+56.2% A.UpsideScore 5.6/10#15 of 27 Internet Content & Information
QualityF-score7 / 9FCF yield31.03%
IncomeYield2.65%Payout29.21%sustainable
Stop $8.50Target $14.28(analyst − 10%)A.R:R 6.8:1
Analyst target$15.87+73.8%29 analysts
$14.28our TP
$9.13price
$15.87mean
$29

Sell if holding. Multiple concerning factors at $9.13: Leverage penalty (D/E 6.3): -1.5; Sector modifier (Communication Services): -0.8. Chart setup: Death cross but MACD improving, RSI 52. Score 5.6/10, high confidence.

Passes 8/9 gates (positive momentum, favorable risk/reward ratio, clean insider activity, no SEC red flags, news events none recent, earnings proximity 84d clear, semi cycle peak clear, materials cycle peak clear). Suitability: moderate.

Val8.5Qual6.4Grw2.1Mom5.5Sent7.6Ins5.0Peer4.8Tech3.4Risk6.25.6OVERALL

Recent Developments — Tencent Music Entertainment Gro

Latest news

Generated 2026-05-20T21:06:21Z.

Thesis

Rewards
Strong earnings beat streak (4/4)
Attractive valuation
Analyst upside: 56%
Risks
Sector modifier (Communication Services): -0.8
Leverage penalty (D/E 6.3): -1.5
Weak growth

Key Metrics

P/E (TTM)10.9
P/E (Fwd)8.5
Mkt Cap$14.8B
EV/EBITDA0.8
Profit Mgn26.5%
ROE11.9%
Rev Growth7.3%
Beta0.78
Dividend2.65%
Rating analysts35

Quality Signals

Piotroski F7/9

Options Flow

P/C0.43bullish
IV44%normal

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers

Growth below the gate floor. Component breakdown shows what dragged the score down.static

Earnings Growth
0.0
Revenue Growth
4.3

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

52w Position
0.0
Bollinger
5.1
Support Resistance
5.2
GatesDeath cross (50MA < 200MA)Momentum 5.5>=5.5A.R:R 6.8 ≥ 1.5Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 84d clearSEMI CYCLE PEAK CLEARMATERIALS CYCLE PEAK CLEARRecoverySuitability: Moderate
RSI
52 · Neutral
↓ 20D MA↓ 50D MA↓ 200D MADEATH CROSSSupport $8.44Resistance $9.91

Price Targets

$9
$14
A.Upside+56.4%
A.R:R6.8:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeRisk-Off

Analyst Consensus

Analysts35
Consensus3.9/5
Avg Target$16

Earnings

B
B
B
B
4/4 beats
Next Earnings2026-08-11 (84d)

Verdict History

reverse chrono — latest first
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Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is TME stock a buy right now?

Sell if holding. Multiple concerning factors at $9.13: Leverage penalty (D/E 6.3): -1.5; Sector modifier (Communication Services): -0.8. Chart setup: Death cross but MACD improving, RSI 52. Prior stop was $8.50. Score 5.6/10, high confidence.

What is the TME stock price target?

Take-profit target: $14.28 (+56.2% upside). Prior stop was $8.50. Stop-loss: $8.50.

What are the risks of investing in TME?

Sector modifier (Communication Services): -0.8; Leverage penalty (D/E 6.3): -1.5; Weak growth.

Is TME overvalued or undervalued?

Tencent Music Entertainment Gro trades at a P/E of 10.9 (forward 8.5). TrendMatrix value score: 8.5/10. Verdict: Sell.

What do analysts say about TME?

35 analysts cover TME with a consensus score of 3.9/5. Average price target: $16.

What does Tencent Music Entertainment Gro do?Tencent Music Entertainment Group operates online music entertainment platforms that provides music streaming, online...

Tencent Music Entertainment Group operates online music entertainment platforms that provides music streaming, online karaoke, and live streaming services in the People's Republic of China. It provides QQ Music, Kugou Music, and Kuwo Music that enable users to discover, enjoy, and share music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with audience base; and Lazy Audio, an audio platform. In addition, it sells artist-related merchandise, such as branded apparel, posters and art prints, and accessories; other music services, such as content licensing, sales of digital albums, sales of customized artist-related merchandises, live performances and concerts, and artist management services; and music subscriptions, as well as offers advertising services across its social entertainment platforms. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group operates as a subsidiary of Tencent Holdings Limited.

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