Tencent Music Entertainment Group ADR (TME) Stock: A Closer Look at the Market Potential

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The price-to-earnings ratio for Tencent Music Entertainment Group ADR (NYSE: TME) is above average at 23.03x, Company’s 36-month beta value is 0.53.Analysts have differing opinions on the stock, with 21 analysts rating it as a “buy,” 10 as “overweight,” 3 as “hold,” and 0 as “sell.”

The public float for TME is 693.71M, and currently, short sellers hold a 3.26% ratio of that floaft. The average trading volume of TME on June 30, 2025 was 7.29M shares.

TME) stock’s latest price update

Tencent Music Entertainment Group ADR (NYSE: TME) has seen a rise in its stock price by 1.88 in relation to its previous close of 19.1. However, the company has experienced a 5.99% gain in its stock price over the last five trading sessions. seekingalpha.com reported 2025-06-19 that Tencent Music is refocusing on its core music streaming business, moving away from its “legacy” social entertainment segment. Management is also becoming more aware and active in unlocking the value of its non-paying user base. The recent $2.4 billion Ximalaya deal has improved its under-levered capital structure. There is considerable room for buybacks and leverage moving ahead.

TME’s Market Performance

TME’s stock has risen by 5.99% in the past week, with a monthly rise of 11.26% and a quarterly rise of 35.33%. The volatility ratio for the week is 2.21% while the volatility levels for the last 30 days are 3.06% for Tencent Music Entertainment Group ADR The simple moving average for the last 20 days is 5.73% for TME stock, with a simple moving average of 47.99% for the last 200 days.

Analysts’ Opinion of TME

Barclays gave a rating of “Overweight” to TME, setting the target price at $16 in the report published on November 06th of the previous year.

TME Trading at 18.92% from the 50-Day Moving Average

After a stumble in the market that brought TME to its low price for the period of the last 52 weeks, the company was able to rebound, for now settling with 0.31% of gains for the given period.

Stock Fundamentals for TME

Current profitability levels for the company are sitting at:

  • 0.4 for the present operating margin
  • 0.43 for the gross margin

The net margin for Tencent Music Entertainment Group ADR stands at 0.33. The total capital return value is set at 0.15. Equity return is now at value 14.37, with 10.74 for asset returns.

Based on Tencent Music Entertainment Group ADR (TME), the company’s capital structure generated 0.08 points at debt to capital in total, while cash flow to debt ratio is standing at 1.66. The debt to equity ratio resting at 0.08. The interest coverage ratio of the stock is 97.37.

Currently, EBITDA for the company is 8.23 billion with net debt to EBITDA at -0.51. When we switch over and look at the enterprise to sales, we see a ratio of 6.95. The receivables turnover for the company is 9.06for trailing twelve months and the total asset turnover is 0.3. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.83.

Conclusion

In a nutshell, Tencent Music Entertainment Group ADR (TME) has experienced a better performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.

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