Perplexed to see TME so undervalued based on fundamental financial analysis. In addtion to the recent debt offering and management's statement some of the funds would be used for share repurchases, these are the positives that make me a buyer.
Cash and investments in Current Assets on the balance sheet at June 30 - $5.2 billion
Investments/financial assets non-current - $5.4 billion
Debt as of June 30 - $2.5 billion (recent debt being offering used to pay off some maturing debt)
Net cash and investments = $8.1 billion
Market Cap - Net cash and investments = $5.5 billion
Annual revenue $5 billion & growing (trading at 1X revenue)
Annual cash flow from Operations - $1.5 billion
Annual dividend yield 2.96%
TME stock trades at 1/4 to 1/2 the valuation metrics of Spotify, another foreign company. They also have much better profit margins than SPOT.
Yes, I know it is based in China., which means they operate in a part of the world where they have billions of potential new customers. This is one of the most grossly underpriced stocks today in my opinion.