Tencent Music Entertainment GroupMEX:TMEN -4.08%78 Operating Margin % is 29.58% as of Mar. 2026, which is 100% above its 10-year median of 14.80. GuruFocus rates MEX:TMEN with a GF Score™ of 78/100 and a GF Value™ of MXN270.92 (Significantly Undervalued). Among 553 Interactive Media companies, Tencent Music Entertainment Group ranks better than 88.61% on this metric.
Tencent Music Entertainment Group (MEX:TMEN) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Tencent Music Entertainment Group Operating Margin % Related Terms
Tencent Music Entertainment Group Operating Margin % Historical Data
* 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.
Tencent Music Entertainment Group Operating Margin % Chart
MEX:TMEN vs PINS, SNAP, MTCH: Operating Margin % Comparison
For the Internet Content & Information subindustry, Tencent Music Entertainment Group's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Music Entertainment Group Operating Margin % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Tencent Music Entertainment Group's Operating Margin % falls into.
Tencent Music Entertainment Group Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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.
Tencent Music Entertainment Group (MEX:TMEN) has a Operating Margin % of 29.58% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Tencent Music Entertainment Group and its competitors. This is 100% above median its historical median of 14.80. Over the past decade, Tencent Music Entertainment Group's Operating Margin % has ranged from 2.13 to 29.82. According to the industry distribution chart, Tencent Music Entertainment Group ranks #63 out of 553 companies in the Interactive Media industry, placing it in the top 11.4%.
Is Tencent Music Entertainment Group's Operating Margin % too high?
Tencent Music Entertainment Group's current Operating Margin % of 29.58% is 100% above median its 10-year median of 14.80. Over the past 10 years, this metric has ranged from a low of 2.13 to a high of 29.82. The Interactive Media industry median Operating Margin % is 2.99. Tencent Music Entertainment Group's value of 29.58% is 889.3% above this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #63 out of 553 companies in the Interactive Media industry, which is in the top quartile — a strong position relative to peers. Overall, Tencent Music Entertainment Group has a GF Score™ of 78/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tencent Music Entertainment Group's Operating Margin % compare to PINS and SNAP?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #63 out of 553 companies for Operating Margin %. This places Tencent Music Entertainment Group in the top 11% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 2.99. Tencent Music Entertainment Group's value of 29.58% is 889.3% above this benchmark. Historically, Tencent Music Entertainment Group's own Operating Margin % has ranged from 2.13 to 29.82 over the past decade. While the company's 10-year median is 14.80 vs. the industry median of 2.99, Tencent Music Entertainment Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Interactive Media company?
The median Operating Margin % among Interactive Media companies is 2.99, based on 553 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Music Entertainment Group's current Operating Margin % of 29.58% is 889.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Tencent Music Entertainment Group and its competitors. For the Interactive Media industry, the median Operating Margin % is 2.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Music Entertainment Group's current Operating Margin % is 29.58%, which is 100% above median its own 10-year median of 14.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tencent Music Entertainment Group stock overvalued right now?
Based on GuruFocus' analysis, Tencent Music Entertainment Group (MEX:TMEN) is currently considered Significantly Undervalued. The stock's GF Value™ is MXN270.92, compared to a current price of MXN145.80 — trading 46.2% below its estimated fair value. The current Operating Margin % is 29.58%, which is 100% above median its 10-year median of 14.80 and 889.3% above the Interactive Media industry median of 2.99. Tencent Music Entertainment Group's overall GF Score™ is 78/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Tencent Music Entertainment Group (MEX:TMEN), the current Operating Margin % is 29.58% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Tencent Music Entertainment Group (MEX:TMEN) Overvalued in 2026?
Based on GuruFocus' analysis, Tencent Music Entertainment Group stock appears to be undervalued.
The current stock price of MXN145.80 is trading 46.2% below its estimated GF Value™ of MXN270.92.
GuruFocus considers Tencent Music Entertainment Group to be Significantly Undervalued.
Key valuation signals for MEX:TMEN:
Operating Margin %: 29.58% (100% above median its 10-year median of 14.80)
GF Value™: MXN270.92 vs. price of MXN145.80 (46.2% below fair value)
Industry Position: 889.3% above the Interactive Media median (#63 of 553)
No single metric tells the full story. See the MEX:TMEN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Tencent Music Entertainment Group Business Description
Tencent Music is the largest online music streaming platform in China, established in 2016 through the merger of QQ Music, Kuwo Music, and Kugou Music. Tencent, its largest shareholder, holds over 50% of the shares and more than 90% of the voting rights. Beyond streaming services, Tencent Music generates revenue through a diverse range of offerings, including podcasts, livestreaming, concerts, and karaoke.
78GF Score
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