TENCENT

Tencent Holdings offers value-added services, online advertising, fintech, and business services globally. It operates through VAS, Online Advertising, FinTech, Business Services, and Others segments. The consumers business provides communication, digital content, fintech services, and tools like network security management. Enterprise business includes marketing solutions and cloud services for various industries. Innovation business focuses on AI, and develops enterprise technologies for food production, energy, and water management. The company was founded in 1998 and is headquartered in Shenzhen, China.

Overview

Sector

Internet Content

Target Price

299.1 HKD

Current Price

535.0 HKD

Potential

-44%

Strengths

The company has low debt. Net Debt to EBITDA Ratio is 0.68 and it is lower than the sector mean.
The company has high returns. ROIC (19.70%) is higher than the sector mean (10.83%).
EV/EBIT (18.92) is lower than the sector mean.
Strong EBITDA Margin of 46.12%.

Weaknesses

With a depreciation Potential of -45.62%, based on our fundamental analysis, it suggests the stock may be overvalued.

Key Financial Data

Indicator	Value
PER	23.0
EV/EBITDA	15.4
Price/Free Cash Flow'	27.5
ROIC	19.7%
Net Debt/EBITDA	0.7