Tencent Music Entertainment GroupMEX:TMEN 78 ROA % is 8.36% as of Mar. 2026, which is 39% above its 10-year median of 6.03. GuruFocus rates MEX:TMEN with a GF Score™ of 78/100 and a GF Value™ of MXN271.77 (Significantly Undervalued). Among 568 Interactive Media companies, Tencent Music Entertainment Group ranks better than 76.76% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Tencent Music Entertainment Group's annualizedNet Income for the quarter that ended in Mar. 2026 was MXN21,884 Mil.
Tencent Music Entertainment Group's average Total Assets over the quarter that ended in Mar. 2026 was MXN261,674 Mil. Therefore, Tencent Music Entertainment Group's annualized ROA % for the quarter that ended in Mar. 2026 was 8.36%.
MEX:TMEN'
s ROA % Range Over the Past 10 Years
Min: 0.35 Med: 6.03 Max: 11.64
Current: 8.67
During the past 10 years, Tencent Music Entertainment Group's highest ROA % was 11.64%. The lowest was 0.35%. And the median was 6.03%.
MEX:TMEN's ROA % is ranked better than 76.76% of 568
companies
in the Interactive Media industry
Industry Median: 0.675
vs MEX:TMEN: 8.67
Tencent Music Entertainment Group (MEX:TMEN) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Tencent Music Entertainment Group ROA % Related Terms
Tencent Music Entertainment Group ROA % 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.
For the Internet Content & Information subindustry, Tencent Music Entertainment Group's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Tencent Music Entertainment Group's ROA % distribution charts can be found below:
* The bar in red indicates where Tencent Music Entertainment Group's ROA % falls into.
* 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.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Tencent Music Entertainment Group (MEX:TMEN) has a ROA % of 8.36% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Tencent Music Entertainment Group and its competitors. This is 39% above median its historical median of 6.03. Over the past decade, Tencent Music Entertainment Group's ROA % has ranged from 0.35 to 11.64. According to the industry distribution chart, Tencent Music Entertainment Group ranks #132 out of 568 companies in the Interactive Media industry, placing it in the top 23.2%.
Is Tencent Music Entertainment Group's ROA % too high?
Tencent Music Entertainment Group's current ROA % of 8.36% is 39% above median its 10-year median of 6.03. Over the past 10 years, this metric has ranged from a low of 0.35 to a high of 11.64. The Interactive Media industry median ROA % is 0.68. Tencent Music Entertainment Group's value of 8.36% is 1138.5% above this industry median. Based on the distribution chart, Tencent Music Entertainment Group ranks #132 out of 568 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 ROA % compare to PINS and SNAP?
According to the Interactive Media industry distribution chart, Tencent Music Entertainment Group ranks #132 out of 568 companies for ROA %. This places Tencent Music Entertainment Group in the top 23% of its industry — outperforming the majority of peers. The industry median ROA % is 0.68. Tencent Music Entertainment Group's value of 8.36% is 1138.5% above this benchmark. Historically, Tencent Music Entertainment Group's own ROA % has ranged from 0.35 to 11.64 over the past decade. While the company's 10-year median is 6.03 vs. the industry median of 0.68, 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 ROA % for an Interactive Media company?
The median ROA % among Interactive Media companies is 0.68, based on 568 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Tencent Music Entertainment Group's current ROA % of 8.36% is 1138.5% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Tencent Music Entertainment Group and its competitors. For the Interactive Media industry, the median ROA % is 0.68 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Tencent Music Entertainment Group's current ROA % is 8.36%, which is 39% above median its own 10-year median of 6.03. 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 MXN271.77, compared to a current price of MXN145.80 — trading 46.4% below its estimated fair value. The current ROA % is 8.36%, which is 39% above median its 10-year median of 6.03 and 1138.5% above the Interactive Media industry median of 0.68. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For Tencent Music Entertainment Group (MEX:TMEN), the current ROA % is 8.36% 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 46.4% below its estimated GF Value™ of MXN271.77.
GuruFocus considers Tencent Music Entertainment Group to be Significantly Undervalued.
Key valuation signals for MEX:TMEN:
ROA %: 8.36% (39% above median its 10-year median of 6.03)
GF Value™: MXN271.77 vs. price of MXN145.80 (46.4% below fair value)
Industry Position: 1138.5% above the Interactive Media median (#132 of 568)
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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