GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Tencent Holdings Ltd (LTS:0Z4S) » Definitions » Piotroski F-Score

Tencent Holdings (LTS:0Z4S) Piotroski F-Score

: 8 (As of Today)
View and export this data going back to 2018. Start your Free Trial

Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Tencent Holdings has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Tencent Holdings's Piotroski F-Score or its related term are showing as below:

LTS:0Z4S' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 4   Max: 8
Current: 8

During the past 13 years, the highest Piotroski F-Score of Tencent Holdings was 8. The lowest was 3. And the median was 4.


Tencent Holdings Piotroski F-Score Historical Data

The historical data trend for Tencent Holdings's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tencent Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 7.00 6.00 3.00 -

Tencent Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 5.00 8.00 8.00 -

Competitive Comparison

For the Internet Content & Information subindustry, Tencent Holdings's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tencent Holdings Piotroski F-Score Distribution

For the Interactive Media industry and Communication Services sector, Tencent Holdings's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Tencent Holdings's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep23) TTM:Last Year (Sep22) TTM:
Net Income was 118671.04 + 29429.35 + 28625.331 + 38812.643 = HK$215,538 Mil.
Cash Flow from Operations was 39758.394 + 70955.966 + 44501.555 + 69752.698 = HK$224,969 Mil.
Revenue was 161872.265 + 170833.29 + 163200.808 + 165867.142 = HK$661,774 Mil.
Gross Profit was 69037.537 + 77658.951 + 77483.414 + 82086.67 = HK$306,267 Mil.
Average Total Assets from the begining of this year (Sep22)
to the end of this year (Sep23) was
(1652900.586 + 1762322.115 + 1728089.906 + 1681690.87 + 1653289.651) / 5 = HK$1695658.6256 Mil.
Total Assets at the begining of this year (Sep22) was HK$1,652,901 Mil.
Long-Term Debt & Capital Lease Obligation was HK$329,006 Mil.
Total Current Assets was HK$542,790 Mil.
Total Current Liabilities was HK$388,689 Mil.
Net Income was 116272.972 + 28867.89 + 21825.154 + 44665.373 = HK$211,631 Mil.

Revenue was 176553.501 + 167033.783 + 157114.386 + 156655.886 = HK$657,358 Mil.
Gross Profit was 70795.03 + 70371.416 + 67831.581 + 69311.113 = HK$278,309 Mil.
Average Total Assets from the begining of last year (Sep21)
to the end of last year (Sep22) was
(1889147.163 + 1974287.102 + 1842275.195 + 1711021.072 + 1652900.586) / 5 = HK$1813926.2236 Mil.
Total Assets at the begining of last year (Sep21) was HK$1,889,147 Mil.
Long-Term Debt & Capital Lease Obligation was HK$380,897 Mil.
Total Current Assets was HK$463,418 Mil.
Total Current Liabilities was HK$319,083 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Tencent Holdings's current Net Income (TTM) was 215,538. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Tencent Holdings's current Cash Flow from Operations (TTM) was 224,969. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep22)
=215538.364/1652900.586
=0.13040008

ROA (Last Year)=Net Income/Total Assets (Sep21)
=211631.389/1889147.163
=0.11202483

Tencent Holdings's return on assets of this year was 0.13040008. Tencent Holdings's return on assets of last year was 0.11202483. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Tencent Holdings's current Net Income (TTM) was 215,538. Tencent Holdings's current Cash Flow from Operations (TTM) was 224,969. ==> 224,969 > 215,538 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=329006.392/1695658.6256
=0.19402867

Gearing (Last Year: Sep22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep21 to Sep22
=380897.461/1813926.2236
=0.20998509

Tencent Holdings's gearing of this year was 0.19402867. Tencent Holdings's gearing of last year was 0.20998509. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep23)=Total Current Assets/Total Current Liabilities
=542790.231/388688.527
=1.39646579

Current Ratio (Last Year: Sep22)=Total Current Assets/Total Current Liabilities
=463418.199/319082.946
=1.45234399

Tencent Holdings's current ratio of this year was 1.39646579. Tencent Holdings's current ratio of last year was 1.45234399. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Tencent Holdings's number of shares in issue this year was 9597. Tencent Holdings's number of shares in issue last year was 9678. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=306266.572/661773.505
=0.46279667

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=278309.14/657357.556
=0.42337559

Tencent Holdings's gross margin of this year was 0.46279667. Tencent Holdings's gross margin of last year was 0.42337559. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep22)
=661773.505/1652900.586
=0.40037103

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep21)
=657357.556/1889147.163
=0.34796525

Tencent Holdings's asset turnover of this year was 0.40037103. Tencent Holdings's asset turnover of last year was 0.34796525. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+0+1+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Tencent Holdings has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Tencent Holdings  (LTS:0Z4S) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Tencent Holdings Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Tencent Holdings's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Tencent Holdings (LTS:0Z4S) Business Description

Address
No. 33 Haitian 2nd Road, Tencent Binhai Towers, Nanshan District, Shenzhen, CHN, 518054
Tencent is arguably the most influential internet firm in China as one can hardly go by a day without using its products. Tencent is the world's largest video game vendor and owns the world's top-grossing mobile game--Honor of Kings. Tencent also runs China's largest social media super app--WeChat. The app is now part of the fabric of life for Chinese people who use it to chat, shop, watch videos, play games, order food and taxis, and more. Equally as impressive as its own portfolio, Tencent is also among the world's largest venture capital and investment corporations. The firm is now one of the largest shareholders in leading tech companies like Meituan, JD, DiDi, Snap, PDD, Kuaishou, Epic Games, and more.

Tencent Holdings (LTS:0Z4S) Headlines

No Headlines