TME · NYSE · STOCK
Tencent Music Entertainment Group (TME) Stock Analysis
$8.38
52W $7.66 – $23.86
64/100
$12.88B
9.5
0.75
Is TME Bullish or Bearish?
Bullish.
Innellis AI committee rates Tencent Music Entertainment Group (TME) Buy with a composite score of 64/100
, based on 6 analysts with 50% agreement.
Last updated October 10, 2026.
What Would Change This View
- Upgrade to Strong Buy
- Requires a committee score of 75.0 — +11.04 from today. Applies on the first day at or above the line; upgrades are never dampened.
- Downgrade to Watch
- Requires the score to fall below 55.0 — -8.96 from today. The band boundary is 60.0, but a one-step downgrade must clear a further margin first. A score oscillating around the line should not change the rating every night.
Executive Summary
The committee is genuinely divided. Risk Analyst sees a compelling case — low leverage (debt-to-equity 0.05) -- balance sheet can absorb a shock. Portfolio Manager remains cautious — sector concentration is already high (hhi 2796.97). This disagreement is itself the signal — the setup is not clean in either direction.
Bull & Bear Case
Bull Case
- P/E of 8.6 is inexpensive for the broad market — Value
- Quarter-over-quarter growth rate is ACCELERATING, not just positive — Growth
- MACD histogram positive -- bullish momentum — Technical
- Weekly trend (downtrend) confirms the daily trend -- multi-timeframe agreement — Technical
- Low leverage (debt-to-equity 0.05) -- balance sheet can absorb a shock — Risk
Bear Case
- EPS declining -13.5% YoY despite any revenue growth — Growth
- Price structure making lower highs and lower lows — Technical
Both cases are generated from quantitative data signals, not qualitative or
forward-looking judgement. They summarise what the numbers say today.
Price History (6M)
AI Investment Committee
Committee Consensus
As of October 10, 2026
Overall Committee Score
64/100
Agreement
50%
Analysts
6
Conviction
Contested
Sector Rank
Top 10%
of 55 Communication Services peers
Value Analyst
bullish
68
/ 100 · Moderate confidence
Classic value case: cheap on multiples with earnings power to back it up
+ P/E of 8.6 is inexpensive for the broad market
Growth Analyst
neutral
57
/ 100 · High confidence
Moderate growth -- present but not remarkable
+ Quarter-over-quarter growth rate is ACCELERATING, not just positive
− EPS declining -13.5% YoY despite any revenue growth
Technical Analyst
neutral
56
/ 100 · High confidence
Mixed or range-bound price action
+ MACD histogram positive -- bullish momentum
− Price structure making lower highs and lower lows
Risk Analyst
bullish
80
/ 100 · Low confidence
Risk profile is manageable -- leverage, volatility, and event exposure all look contained
+ Low leverage (debt-to-equity 0.05) -- balance sheet can absorb a shock
Macro Analyst
bullish
65
/ 100 · Low confidence
Macro backdrop is supportive of risk assets generally, and this name's beta works in its favor
News Analyst
neutral
58
/ 100 · Low confidence
News flow is mixed or quiet -- no strong signal either way right now
Portfolio Manager
bearish
30
/ 100 · Moderate confidence
The existing book itself argues for caution here, independent of how good this specific stock looks
− Sector concentration is already high (HHI 2796.97)
Investment Thesis Evolution
Committee score moved marginally from 64.0 to 64.0.
- Bullish support removed: 1 signal(s) disappeared.
- New bullish signals: 1 appeared.
Analyst-level changes:
- Value Analyst: +1 bullish signal(s).
Comparing 2026-10-09 to 2026-10-10 (1 day apart).
Technical Analysis
RSI (14)
68.3
Neutral
MACD Histogram
0.046
Bullish Momentum
Trend Direction
Downtrend
Weekly: Downtrend
Market Structure
Mixed
Support
$7.94
Resistance
$9.94
Bollinger %B
0.88
Inside Bands
Price vs Moving Averages
EMA 9
$8.05
Above
EMA 21
$8.09
Above
EMA 50
$8.36
Above
EMA 200
$10.90
Below
Fundamental Analysis
Valuation
100
Growth
72
Profitability
84
Financial Health
89
Cash Flow
70
Valuation
P/E Ratio
9.5×
P/B Ratio
1.08×
PEG Ratio
-0.66
Dividend Yield
2.96%
52W High
$23.86
52W Low
$7.66
Quality & Growth
ROE
1376.2%
ROA
1077.7%
Gross Margin
4727.8%
Operating Margin
3308.0%
Revenue Growth YoY
—
Debt / Equity
0.22
AI Fundamental Assessment
P/E ratio of 9.5 (inexpensive relative to a 15-40x range); Price-to-book of 1.1x; PEG ratio of -0.7 (under 1.0 suggests growth is undervalued relative to price); Return on equity of 13.8%; Return on assets of 10.8%; Net margin of 26.3%; Gross margin of 47.3%; Current ratio of 1.74 (healthy short-term liquidity); Debt-to-equity of 0.22; Free cash flow per share is positive (5.68); Most recent quarter beat estimates by 5.2%; 2 consecutive earnings beats; EPS growth accelerating (-8.8% -> +16.4% QoQ); Analyst estimates flat over recent quarters
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