Tencent posted its first quarter results, where revenue across all business segments slipped -0.12% from the year-ago quarter to 135.47 billion yuan —below FactSet consensus estimates for 140.82 billion yuan. The Chinese company’s profit attributable to shareholders decreased by -23% from a year ago.
Revenue from the business segment that includes gaming (which is Tencent's largest source of revenue) experienced mild growth from the prior quarter and the year-ago period to 72.74 billion yuan in first quarter revenue. The segment was impacted by challenges from Beijing's restrictions on licensing new games and a slower growth in the international market.
Revenue from Fintech and business services segment (Tencent’s second-largest revenue driver) plunged by -10.8% quarter-on-quarter-- the first sequential drop since Q1 2020 when there was COVID-19 related lockdowns across a large part of mainland China. The segment grew by 10% from a year ago, but missed FactSet estimates by 3.41 billion yuan. It also showed a substantial slowdown from a 25% increase in Q4 2021.
Tencent’s mobile payment apps WeChat registered monthly active users growth (domestically and internationally) of +3.8% from a year ago to 1.29 billion users.
The Moving Average Convergence Divergence (MACD) for TCEHY turned positive on April 22, 2024. Looking at past instances where TCEHY's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 22, 2024. You may want to consider a long position or call options on TCEHY as a result. In of 112 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TCEHY advanced for three days, in of 267 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 197 cases where TCEHY Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 7 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 6 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TCEHY declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TCEHY broke above its upper Bollinger Band on April 22, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TCEHY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.939) is normal, around the industry mean (19.638). P/E Ratio (16.393) is within average values for comparable stocks, (49.308). Projected Growth (PEG Ratio) (1.058) is also within normal values, averaging (3.441). Dividend Yield (0.007) settles around the average of (0.026) among similar stocks. P/S Ratio (5.461) is also within normal values, averaging (110.312).
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TCEHY’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 92, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Industry InternetSoftwareServices