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Tencent Holdings Piotroski F-Score

: 4 (As of Today)
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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 4 indicating the company's financial situation is typical for a stable company.

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

OTCPK:TCEHY' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 5   Max: 8
Current: 4

3
8

During the past 13 years, the highest Piotroski F-Score of Tencent Holdings was 8. The lowest was 3. And the median was 5.


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 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.00 6.00 4.00 3.00 7.00

Tencent Holdings Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 6.00 7.00 7.00 8.00 4.00

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 (Jun21) TTM:Last Year (Jun20) TTM:
Net Income was 5659.1196076704 + 9068.5547382747 + 7336.466540724 + 6628.326848249 = $28,692 Mil.
Cash Flow from Operations was 6831.703520982 + 7472.665269983 + 7833.6328310986 + 4973.0739299611 = $27,111 Mil.
Revenue was 18419.375679088 + 20440.872876302 + 20780.998018707 + 21518.910505837 = $81,160 Mil.
Gross Profit was 8317.4756996447 + 9004.1747587662 + 9620.0218095809 + 9765.7587548638 = $36,707 Mil.
Average Total Assets from the begining of this year (Jun20)
to the end of this year (Jun21) was
(163740.39765025 + 174731.88852671 + 203909.4398483 + 218577.0016434 + 236229.10505837) / 5 = $199437.56654541 Mil.
Total Assets at the begining of this year (Jun20) was $163,740 Mil.
Long-Term Debt & Capital Lease Obligation was $42,405 Mil.
Total Current Assets was $51,562 Mil.
Total Current Liabilities was $43,207 Mil.
Net Income was 2865.175646991 + 3077.1204927499 + 4115.9461576811 + 4675.0734297334 = $14,733 Mil.

Revenue was 13668.836189325 + 15080.057601551 + 15392.778292144 + 16222.746272029 = $60,364 Mil.
Gross Profit was 5971.4353992999 + 6573.9909035174 + 7519.9772096005 + 7513.8386805242 = $27,579 Mil.
Average Total Assets from the begining of last year (Jun19)
to the end of last year (Jun20) was
(118425.5621439 + 120362.399314 + 136017.50859033 + 144568.76290862 + 163740.39765025) / 5 = $136622.92612142 Mil.
Total Assets at the begining of last year (Jun19) was $118,426 Mil.
Long-Term Debt & Capital Lease Obligation was $37,691 Mil.
Total Current Assets was $48,214 Mil.
Total Current Liabilities was $35,951 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 28,692. ==> 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 27,111. ==> 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 (Jun20)
=28692.467734918/163740.39765025
=0.17523145

ROA (Last Year)=Net Income/Total Assets (Jun19)
=14733.315727155/118425.5621439
=0.12440993

Tencent Holdings's return on assets of this year was 0.17523145. Tencent Holdings's return on assets of last year was 0.12440993. ==> 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 28,692. Tencent Holdings's current Cash Flow from Operations (TTM) was 27,111. ==> 27,111 <= 28,692 ==> CFROA <= ROA ==> Score 0.

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: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=42404.6692607/199437.56654541
=0.21262127

Gearing (Last Year: Jun20)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun19 to Jun20
=37691.482150926/136622.92612142
=0.27587963

Tencent Holdings's gearing of this year was 0.21262127. Tencent Holdings's gearing of last year was 0.27587963. ==> 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: Jun21)=Total Current Assets/Total Current Liabilities
=51561.86770428/43207.003891051
=1.19336828

Current Ratio (Last Year: Jun20)=Total Current Assets/Total Current Liabilities
=48214.104157253/35951.197469498
=1.3410987

Tencent Holdings's current ratio of this year was 1.19336828. Tencent Holdings's current ratio of last year was 1.3410987. ==> 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 9695. Tencent Holdings's number of shares in issue last year was 9618. ==> There is larger number of shares in issue this year. ==> Score 0.

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
=36707.431022856/81160.157079934
=0.45228388

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=27579.242192942/60364.418355049
=0.45687912

Tencent Holdings's gross margin of this year was 0.45228388. Tencent Holdings's gross margin of last year was 0.45687912. ==> Last year's gross margin is higher ==> Score 0.

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 (Jun20)
=81160.157079934/163740.39765025
=0.49566361

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun19)
=60364.418355049/118425.5621439
=0.50972457

Tencent Holdings's asset turnover of this year was 0.49566361. Tencent Holdings's asset turnover of last year was 0.50972457. ==> Last year's asset turnover is higher ==> Score 0.

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+0+1+0+0+0+0
=4

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

Tencent Holdings has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Tencent Holdings  (OTCPK:TCEHY) 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

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Tencent Holdings Business Description

Tencent Holdings logo
Industry
Address
No. 33 Haitian 2nd Road, Tencent Binhai Towers, Nanshan District, Shenzhen, CHN, 518054
Tencent is a Chinese Internet giant with businesses and investments in a wide variety of Internet services and contents. Major services include communication and social networking (Weixin/Weixin and QQ), online PC and mobile games, content (news, videos, music, comics, and literature), utilities (email, app store, mobile security, and mobile browser), cloud services, and financial technology. Tenpay in Weixin/Weixin and QQ is a payment solution that enables closed-loop transactions in Tencent's ecosystems and has been adopted by many third-party partners and offline merchants. Tencent has an aggregate monthly active user base of less than 600 million for QQ and over 1.2 billion for Weixin/Weixin.

Tencent Holdings Headlines

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