TCTZF (Tencent Holdings) Profitability Rank: 9 (As of Jun. 2026) — 10% Below Median

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TCTZF Tencent Holdings Ltd TCTZF
79 GF Score
Price $55.09
GF Value $68.64
Valuation Modestly Undervalued
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What is Tencent Holdings Profitability Rank?

Tencent Holdings TCTZF -2.96% 79 Profitability Rank is 9 as of Jun. 2026, which is 10% below its 10-year median of 10.00. GuruFocus rates TCTZF with a GF Score™ of 79/100 and a GF Value™ of $68.64 (Modestly Undervalued).

Tencent Holdings has the Profitability Rank of 9. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Tencent Holdings's Operating Margin % for the quarter that ended in Jun. 2026 was 33.09%. As of today, Tencent Holdings's Piotroski F-Score is 6.


Tencent Holdings Profitability Rank Related Terms


TCTZF vs GOOGL, META, SPOT: Profitability Rank Comparison

For the Internet Content & Information subindustry, Tencent Holdings's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank vs Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Tencent Holdings's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Tencent Holdings's Profitability Rank falls into.


TCTZF
79GF Score
Tencent Holdings Ltd TCTZF
Profitability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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Tencent Holdings Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Tencent Holdings has the Profitability Rank of 9. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

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.

Tencent Holdings's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2026 ) / Revenue (Q: Jun. 2026 )
=9999.705 / 30222.999
=33.09 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Tencent Holdings has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Tencent Holdings Ltd operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank

Frequently Asked Questions Learn more about Profitability Rank →
What does a Profitability Rank of 9 mean?
Tencent Holdings (TCTZF) has a Profitability Rank of 9 as of Jun. 2026. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Tencent Holdings and its competitors. This is 10% below median its historical median of 10.00. Over the past decade, Tencent Holdings' Profitability Rank has ranged from 9.00 to 10.00.
Is Tencent Holdings' Profitability Rank too high?
Tencent Holdings' current Profitability Rank of 9 is 10% below median its 10-year median of 10.00. Over the past 10 years, this metric has ranged from a low of 9.00 to a high of 10.00. Overall, Tencent Holdings has a GF Score™ of 79/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Tencent Holdings' Profitability Rank compare to GOOGL and META?
Tencent Holdings' Profitability Rank of 9 can be compared against companies in the Interactive Media industry. Historically, Tencent Holdings' own Profitability Rank has ranged from 9.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for an Interactive Media company?
A good Profitability Rank depends on the Interactive Media industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on Tencent Holdings and its competitors. Tencent Holdings's current Profitability Rank is 9, which is 10% below median its own 10-year median of 10.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Tencent Holdings stock overvalued right now?
Based on GuruFocus' analysis, Tencent Holdings (TCTZF) is currently considered Modestly Undervalued. The stock's GF Value™ is $68.64, compared to a current price of $55.09 — trading 19.7% below its estimated fair value. The current Profitability Rank is 9, which is 10% below median its 10-year median of 10.00. Tencent Holdings' overall GF Score™ is 79/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For Tencent Holdings (TCTZF), the current Profitability Rank is 9 as of Jun. 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 Holdings (TCTZF) Overvalued in 2026?

Based on GuruFocus' analysis, Tencent Holdings stock appears to be undervalued. The current stock price of $55.09 is trading 19.7% below its estimated GF Value™ of $68.64. GuruFocus considers Tencent Holdings to be Modestly Undervalued.

Key valuation signals for TCTZF:

  • Profitability Rank: 9 (10% below median its 10-year median of 10.00)
  • GF Value™: $68.64 vs. price of $55.09 (19.7% below fair value)
  • GF Score™: 79/100

No single metric tells the full story. See the TCTZF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Tencent Holdings Business Description

Address No. 33 Haitian 2nd Road, Tencent Binhai Towers, Nanshan District, Shenzhen, CHN, 518054
Tencent is the world's largest game publisher, with top-grossing mobile hits like Honor of Kings and Peacekeeper Elite and a steady pipeline of new titles. It also operates WeChat-China's super-app with roughly 1.3 billion users-embedded in daily life for messaging, short video, mini programs, payments, and shopping. Beyond its own platforms, Tencent is a prolific strategic investor, holding stakes in leading internet companies such as PDD, Kuaishou, and Xiaohongshu.
79GF Score

Get the complete analysis for TCTZF

Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$55.09
Price
$68.64
GF Value