Tencent Holdings Limited (0700), also known as Tencent, is a Chinese multinational technology conglomerate with various investments in major Chinese technology brands. As one of the world's largest companies, Tencent offers popular services like WeChat and Tencent Music. It is also the owner of various global gaming brands such as Riot Games (developer of the titles Valorant and League of Legends) and Supercell (developer of the popular titles Brawl Stars and Clash of Clans).
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| Open | HK$324.8 |
|---|---|
| High | HK$325.8 |
| Low | HK$319 |
| Close | HK$319 |
| Previous close | HK$327 |
| Change | HK$-8 |
| Change % | -2.4465% |
| Volume | 15,149,684 |
| 52-week range | HK$262.2113 - HK$413.6576 |
|---|---|
| 50-day moving average | HK$305.868 |
| 200-day moving average | HK$335.299 |
| Target price | HK$448.05 |
| PE ratio | 14.7914 |
| Dividend yield | HK$2.123 (0.75%) |
| Earnings per share (TTM) | HK$14.97 |
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The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Historical closes compared with the last close of HK$319
| 1 week (2023-11-24) | -0.68% |
|---|---|
| 1 month (2023-11-02) | 10.53% |
| 3 months (2023-08-31) | -1.85% |
| 6 months (2023-06-02) | -4.55% |
| 1 year (2022-12-02) | 7.77% |
|---|---|
| 2 years (2021-12-02) | -32.64% |
| 3 years (2020-12-02) | -44.43% |
| 5 years (2018-11-30) | 2.24% |
Valuing Tencent stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Tencent's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Tencent's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 15x. In other words, Tencent shares trade at around 15x recent earnings.
Tencent's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.0497. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Tencent's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
Tencent's EBITDA (earnings before interest, taxes, depreciation and amortisation) is HKDHK$150.2 billion (£15.1 billion).
The EBITDA is a measure of a Tencent's overall financial performance and is widely used to measure a its profitability.
| Revenue TTM | HKDHK$598.8 billion |
|---|---|
| Operating margin TTM | 28.65% |
| Gross profit TTM | HKDHK$245.9 billion |
| Return on assets TTM | 5.37% |
| Return on equity TTM | 23.9% |
| Profit margin | 32.48% |
| Book value | HK$81.307 |
| Market capitalisation | HKDHK$3.1 trillion |
TTM: trailing 12 months
Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Tencent.
When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.
Total ESG risk: 28.4
Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Tencent's overall score of 28.4 (as at 01/01/2019) is nothing to write home about – landing it in it in the 45th percentile of companies rated in the same sector.
ESG scores are increasingly used to estimate the level of risk a company like Tencent is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).
Environmental score: 7.6/100
Tencent's environmental score of 7.6 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Tencent is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.
Social score: 17.67/100
Tencent's social score of 17.67 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Tencent is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.
Governance score: 15.63/100
Tencent's governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that Tencent is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.
Controversy score: 2/5
ESG scores also evaluate any incidences of controversy that a company has been involved in. Tencent scored a 2 out of 5 for controversy – the second-highest score possible, reflecting that Tencent has, for the most part, managed to keep its nose clean.
Tencent Holdings Ltd was last rated for ESG on: 2019-01-01.
| Total ESG score | 28.4 |
|---|---|
| Total ESG percentile | 44.78 |
| Environmental score | 7.6 |
| Environmental score percentile | 8 |
| Social score | 17.67 |
| Social score percentile | 8 |
| Governance score | 15.63 |
| Governance score percentile | 8 |
| Level of controversy | 2 |
Dividend payout ratio: 32.06% of net profits
Recently Tencent has paid out, on average, around 32.06% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.49% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Tencent shareholders could enjoy a 1.49% return on their shares, in the form of dividend payments. In Tencent's case, that would currently equate to about HK$2.123 per share.
While Tencent's payout ratio might seem fairly standard, it's worth remembering that Tencent may be investing much of the rest of its net profits in future growth.
The latest dividend was paid out to all shareholders who bought their shares by 19 May 2023 (the "ex-dividend date").
Tencent's shares were split on a 5:1 basis on 15 May 2014. So if you had owned 1 share the day before the split, the next day you would own 5 shares. This wouldn't directly have changed the overall worth of your Tencent shares – just the quantity. However, indirectly, the new 80% lower share price could have impacted the market appetite for Tencent shares which in turn could have impacted Tencent's share price.
Over the last 12 months, Tencent's shares have ranged in value from as little as HKDHK$262.2113 up to HKDHK$413.6576. A popular way to gauge a stock's volatility is its "beta".
Beta measures a share's volatility in relation to the market. The market (HK average) beta is 1, while Tencent's is 0.632. This would suggest that Tencent's shares are less volatile than average (for this exchange).
Tencent Holdings Limited, an investment holding company, offers value-added services (VAS), online advertising, fintech, and business services in the People's Republic of China and internationally. It operates through VAS, Online Advertising, FinTech and Business Services, and Others segments. The company's consumers business provides communication and services, such as instant messaging and social network; digital content including online games, videos, live streaming, news, music, and literature; fintech services, which includes mobile payment, wealth management, loans, and securities trading; and various tools, such as network security management, browser, navigation, application management, email, etc. Its enterprise business comprises marketing solutions, which offers digital tools including user insight, creative management, placement strategy, digital assets management, etc.; and cloud services, such as cloud computing, big data analytics, artificial intelligence, Internet of Things, security and other technologies for financial services, education, healthcare, retail, industry, transport, energy, and radio & television application. In addition, the company operates innovation business, which includes artificial intelligences; and discover and develops enterprise and next-generation technologies for food production, energy, and water management application. Tencent Holdings Limited was formerly known as Tencent (BVI) Limited and changed its name to Tencent Holding Limited in February 2004. The company was founded in 1998 and is headquartered in Shenzhen, the People's Republic of China.
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