Tencent Holdings Ltd. (700) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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Cloud Music, Inc.

Bairong, Inc.

Zhihu, Inc.

Dingdang Health Technology Group Ltd.

Why is Tencent Holdings Ltd. ?

High Debt company with Weak Long Term Fundamental Strength

Poor long term growth as Operating profit has grown by an annual rate 14.31% of over the last 5 years
The company is Net-Debt Free

With ROE of 20.37%, it has a Fair valuation with a 3.06 Price to Book Value

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -10.72%, its profits have risen by 18% ; the PEG ratio of the company is 0.8

Majority shareholders : Non Institution

Underperformed the market in the last 1 year

Even though the market (Hang Seng Hong Kong) has generated returns of 0.26% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -10.72% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Tencent Holdings Ltd. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Tencent Holdings Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Tencent Holdings Ltd.

-10.72%

32.19

31.87%

Hang Seng Hong Kong

0.26%

0.01

20.12%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

7.64%

EBIT Growth (5y)

14.31%

EBIT to Interest (avg)

14.83

Debt to EBITDA (avg)

0.11

Net Debt to Equity (avg)

0.01

Sales to Capital Employed (avg)

0.51

Tax Ratio

18.25%

Dividend Payout Ratio

19.75%

Pledged Shares

Institutional Holding

0.00%

ROCE (avg)

17.85%

ROE (avg)

22.65%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.06

EV to EBIT

13.84

EV to EBITDA

10.86

EV to Capital Employed

3.21

EV to Sales

4.54

PEG Ratio

0.79

Dividend Yield

0.00%

ROCE (Latest)

23.18%

ROE (Latest)

20.37%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

Here's what is working for Tencent Holdings Ltd.

Net Sales - Half Yearly

At HKD 334,713.07 MM has Grown at 4.68 %

Year on Year (YoY)

MOJO Watch

Near term sales trend is positive

Net Sales (HKD MM)

Inventory Turnover Ratio- Half Yearly

Highest at 1,340.79 times and Grown

each half year in the last five half yearly periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Operating Cash Flow - Annually

Highest at HKD 245,267.57 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (HKD MM)

Cash and Cash Equivalents - Half Yearly

Highest at HKD 193,928.88 MM

in the last six half yearly periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents (HKD MM)

Debt-Equity Ratio - Half Yearly

Lowest at -0.04 times

in the last five half yearly periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend Payout Ratio (DPR) - Annually

Highest at 25.25 %

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Here's what is not working for Tencent Holdings Ltd.

Profit After Tax (PAT) - Quarterly

At HKD 30,106 MM has Fallen at -50.0 %

over average PAT of the previous four periods of HKD 60,230 MM

MOJO Watch

Near term PAT trend is very negative

PAT (HKD MM)

Profit After Tax (PAT) - Quarterly

Lowest at HKD 30,106 MM.

in the last five periods

MOJO Watch

Near term PAT trend is negative

PAT (HKD MM)