PNK · Communication Services

Tencent Holdings Limited

TCEHY · Internet Content & Information

$60.43

▼ -0.77 (-1.26%)

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Mr. Market is currently offering Tencent Holdings Limited at $60.43.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 56.2%

Operating Margin 33.1%

Net Income Margin 29.9%

Fin. Health C

Working Capital vs Long-Term Debt -$151.9B

Working Capital $182.7B

Valuation A

Margin of Safety 77.1%

Price-to-Book 0.47x

Cash Flow C

Free Cash Flow $190.2B

CapEx % of Net Income 50.2%

Owner Earnings $403.8B

4/7

Graham Score

Enterprising

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $546.5B

Enterprise Value $623.6B

P/E (TTM) 17.12

Dividend Yield 7.78%

Exchange PNK

Key Margins

Gross Profit 56.2%

Operating Margin 33.1%

Net Margin 29.9%

Company Info

Sector Communication Services

Industry Internet Content & Information

Employees 115849

Country China

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Tencent Holdings Limited at $60.43.

The business passes 4 of 7 of Graham's defensive criteria — adequate but not exceptional.

At $60.43, the stock trades below its Graham Number of $263.45 — suggesting a margin of safety exists.

The margin of safety of 77.1% exceeds Graham's recommended 33% threshold — a rare opportunity.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: This stock is better suited for Graham's Enterprising investor — one willing to devote time and skill to security selection.

About Tencent Holdings Limited

Tencent Holdings Limited, an investment holding company, provides value-added services, marketing services, fintech, and business services in Mainland China and internationally. The company's consumers business includes communications and social services, such as instant messaging and social networks; digital content, including online games, videos, live streaming, news, music, and literature; fintech services, which include mobile payment, wealth management, consumer loans, and securities trading; and various tools comprising network security management, browsing, navigation, application management, email, etc. Its enterprise business comprises marketing solutions, which offer digital tools, including user insight, creative management, placement strategy, and digital assets management; and cloud services, such as cloud computing, big data analytics, artificial intelligence, Internet of Things, and security and other technologies for financial services, education, healthcare, retail, industry, transport, energy, and radio and television industries. The company also invests in, produces, and distributes films and television programs; offers copyrights licensing and merchandise sales and other services; provides internet advertisement services; and offers software development, and information technology and system integration services, as well as develops and operates mobile games. The company was formerly known as Tencent (BVI) Limited and changed its name to Tencent Holdings Limited in February 2004. Tencent Holdings Limited was founded in 1998 and is headquartered in Shenzhen, the People's Republic of China.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	56.2% ▲	52.9%	48.1%	43.1%	N/A
Operating Margin %	33.1% ▲	31.6%	27.2%	20.5%	N/A
Net Income %	29.9% ▲	29.4%	18.9%	33.9%	N/A
Diluted EPS	24.15 ▲	20.49	11.89	19.34	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$2,039.0B	$1,781.0B	$1,577.2B	$1,578.1B	N/A
Total Debt	N/A •	N/A	N/A	N/A	N/A
Working Capital	$182.7B ▲	$99.3B	$166.3B	$131.8B	N/A
Years to Pay Debt	N/A	N/A	N/A	N/A	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022
Free Cash Flow	$190.2B ▲	$162.5B	$174.6B	$95.2B
Owner Earnings	$403.8B	$346.3B	$221.6B	$300.3B
CapEx % of Net Income	50.2%	49.5%	41.1%	27.0%

Income Statement

	2025	2024	2023	2022	2021
Tax Effect Of Unusual Items	1,789,596	1,055,519	-1,883,420	12,297,460
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	344,154,000	303,114,000	239,143,000	144,007,000
Total Unusual Items	12,579,000	7,031,000	-6,926,000	137,419,000
Total Unusual Items Excluding Goodwill	10,457,000	5,662,000	-7,021,000	120,154,000
Net Income From Continuing Operation Net Minority Interest	224,842,000	194,073,000	115,216,000	188,243,000
Reconciled Depreciation	66,028,000	56,213,000	59,008,000	61,216,000
Reconciled Cost Of Revenue	329,173,000	311,011,000	315,906,000	315,806,000
EBITDA	356,733,000	310,145,000	232,217,000	281,426,000
EBIT	290,705,000	253,932,000	173,209,000	220,210,000
Net Interest Income	3,453,000	3,557,000	1,923,000	-1,393,000
Interest Expense	13,456,000	12,447,000	11,885,000	9,985,000
Interest Income	16,909,000	16,004,000	13,808,000	8,592,000
Normalized Income	218,296,596	190,835,519	120,448,580	97,651,460
Net Income From Continuing And Discontinued Operation	224,842,000	194,073,000	115,216,000	188,243,000
Total Expenses	502,999,000	451,471,000	443,357,000	440,612,000
Total Operating Income As Reported	241,562,000	208,099,000	160,074,000	110,827,000
Diluted Average Shares	9,244,000	9,408,000	9,610,000	9,695,000
Basic Average Shares	9,085,000	9,269,000	9,455,000	9,528,000
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	223,270,000	192,730,000	114,230,000	187,503,000
Average Dilution Earnings	-1,572,000	-1,343,000	-986,000	-740,000
Net Income Common Stockholders	224,842,000	194,073,000	115,216,000	188,243,000
Net Income	224,842,000	194,073,000	115,216,000	188,243,000
Minority Interests	-4,959,000	-2,394,000	-2,832,000	-466,000
Net Income Including Noncontrolling Interests	229,801,000	196,467,000	118,048,000	188,709,000
Net Income Continuous Operations	229,801,000	196,467,000	118,048,000	188,709,000
Tax Provision	47,448,000	45,018,000	43,276,000	21,516,000
Pretax Income	277,249,000	241,485,000	161,324,000	210,225,000
Other Non Operating Income Expenses	-7,205,000	-687,000	-2,589,000	-3,113,000
Special Income Charges	7,722,000	3,021,000	-4,902,000	127,904,000
Other Special Charges	-4,942,000	-12,810,000	-1,288,000	-172,707,000
Write Off	-4,902,000	8,420,000	6,095,000	27,538,000
Restructuring And Mergern Acquisition		1,369,000	95,000	17,265,000
Net Non Operating Interest Income Expense	3,453,000	3,557,000	1,923,000	-1,393,000
Interest Expense Non Operating	13,456,000	12,447,000	11,885,000	9,985,000
Interest Income Non Operating	16,909,000	16,004,000	13,808,000	8,592,000
Operating Income	248,767,000	208,786,000	165,658,000	113,940,000
Operating Expense	173,826,000	140,460,000	127,451,000	124,806,000
Other Operating Expenses				5,124,000	2,050,000
Selling General And Administration	177,854,000	149,149,000	137,736,000	135,925,000
Selling And Marketing Expense	41,727,000	36,388,000	34,211,000	29,229,000
General And Administrative Expense	136,127,000	112,761,000	103,525,000	106,696,000
Gross Profit	422,593,000	349,246,000	293,109,000	238,746,000
Cost Of Revenue	329,173,000	311,011,000	315,906,000	315,806,000
Total Revenue	751,766,000	660,257,000	609,015,000	554,552,000
Operating Revenue	751,766,000	660,257,000	609,015,000	554,552,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	87,415	82,740	91,783
Ordinary Shares Number	9,032,821	9,142,175	9,391,209	9,568,739
Share Issued	9,120,236	9,224,915	9,482,993	9,568,739
Net Debt	246,692,000	206,096,000	176,298,000	177,624,000
Tangible Book Value	916,423,000	741,875,000	599,813,000	524,283,000
Invested Capital	1,541,885,000	1,312,163,000	1,157,209,000	1,055,754,000
Working Capital	182,709,000	99,271,000	166,289,000	131,785,000
Net Tangible Assets	916,423,000	741,875,000	599,813,000	524,283,000
Capital Lease Obligations	18,666,000	19,497,000	22,622,000	24,778,000
Common Stock Equity	1,154,152,000	973,548,000	808,591,000	721,391,000
Total Capitalization	1,488,725,000	1,250,655,000	1,101,511,000	1,033,728,000
Total Equity Gross Minority Interest	1,241,065,000	1,053,896,000	873,681,000	782,860,000
Minority Interest	86,913,000	80,348,000	65,090,000	61,469,000
Stockholders Equity	1,154,152,000	973,548,000	808,591,000	721,391,000
Other Equity Interest	-7,124,000	-5,093,000	-5,350,000	-4,226,000
Treasury Stock	3,450,000	3,597,000	4,740,000	1,868,000
Retained Earnings	1,010,436,000	892,030,000	813,911,000	705,981,000
Additional Paid In Capital	63,796,000	43,079,000	37,989,000	62,418,000
Total Liabilities Net Minority Interest	797,921,000	727,099,000	703,565,000	795,271,000
Total Non Current Liabilities Net Minority Interest	385,170,000	330,190,000	351,408,000	361,067,000
Tradeand Other Payables Non Current	10,544,000	10,201,000	12,169,000	9,067,000
Non Current Deferred Revenue	2,210,000	6,236,000	3,435,000	3,503,000
Non Current Deferred Taxes Liabilities	21,684,000	18,546,000	17,635,000	12,162,000
Long Term Debt And Capital Lease Obligation	347,853,000	291,004,000	309,388,000	330,761,000
Long Term Capital Lease Obligation	13,280,000	13,897,000	16,468,000	18,424,000
Long Term Debt	334,573,000	277,107,000	292,920,000	312,337,000
Current Liabilities	412,751,000	396,909,000	352,157,000	434,204,000
Current Debt And Capital Lease Obligation	58,546,000	67,108,000	61,852,000	28,380,000
Current Capital Lease Obligation	5,386,000	5,600,000	6,154,000	6,354,000
Current Debt	53,160,000	61,508,000	55,698,000	22,026,000
Pensionand Other Post Retirement Benefit Plans Current	40,579,000	33,340,000	30,747,000	27,664,000
Payables	182,976,000	175,560,000	125,724,000	261,683,000
Other Payable	39,568,000	36,224,000	2,740,000	3,151,000
Dividends Payable			0	147,965,000	102,451,000
Total Tax Payable	22,281,000	20,624,000	22,036,000	18,186,000
Accounts Payable	121,127,000	118,712,000	100,948,000	92,381,000
Total Assets	2,038,986,000	1,780,995,000	1,577,246,000	1,578,131,000
Total Non Current Assets	1,443,526,000	1,284,815,000	1,058,800,000	1,012,142,000
Other Non Current Assets	6,994,000	6,833,000	7,547,000	8,099,000
Non Current Prepaid Assets	113,000	9,000	3,201,000	6,597,000
Non Current Deferred Taxes Assets	28,618,000	28,325,000	29,017,000	29,882,000
Financial Assets				6,987,000	1,261,000
Investmentin Financial Assets	635,426,000	586,036,000	456,924,000	426,655,000
Available For Sale Securities	428,269,000	381,037,000	245,779,000	220,570,000
Financial Assets Designatedas Fair Value Through Profitor Loss Total	207,157,000	204,999,000	211,145,000	206,085,000
Long Term Equity Investment	348,712,000	297,415,000	261,665,000	252,715,000
Investmentsin Joint Venturesat Cost	6,303,000	7,072,000	7,969,000	6,672,000
Investmentsin Associatesat Cost	342,409,000	290,343,000	253,696,000	246,043,000
Investment Properties	950,000	801,000	570,000	559,000
Goodwill And Other Intangible Assets	237,729,000	231,673,000	208,778,000	197,108,000
Other Intangible Assets	83,940,000	89,547,000	82,558,000	80,377,000
Goodwill	153,789,000	142,126,000	126,220,000	116,731,000
Net PPE	181,116,000	130,349,000	87,431,000	85,731,000
Accumulated Depreciation	-125,535,000	-104,583,000	-87,407,000	-77,753,000
Gross PPE	306,651,000	234,932,000	174,838,000	163,484,000
Construction In Progress	13,844,000	32,485,000	13,735,000	9,229,000
Other Properties	17,367,000	17,679,000	20,464,000	22,524,000
Machinery Furniture Equipment	234,570,000	152,055,000	114,116,000	106,508,000
Buildings And Improvements	40,870,000	32,713,000	26,523,000	25,223,000
Current Assets	595,460,000	496,180,000	518,446,000	565,989,000
Other Current Assets	35,600,000	34,009,000	25,205,000	173,099,000
Hedging Assets Current				1,278,000	1,749,000
Restricted Cash	6,977,000	3,334,000	3,818,000	2,783,000
Prepaid Assets	28,729,000	31,265,000	27,824,000	24,393,000
Inventory	530,000	440,000	456,000	2,333,000
Other Receivables	45,150,000	34,039,000	32,071,000	24,376,000
Taxes Receivable		2,228,000	1,596,000	1,524,000	1,151,000
Accounts Receivable	49,930,000	48,203,000	46,606,000	45,467,000
Allowance For Doubtful Accounts Receivable	-5,039,000	-6,684,000	-7,749,000	-6,536,000
Gross Accounts Receivable	54,969,000	54,887,000	54,355,000	52,003,000
Cash Cash Equivalents And Short Term Investments	426,753,000	343,159,000	379,155,000	290,756,000
Other Short Term Investments	285,712,000	210,640,000	206,835,000	134,017,000
Cash And Cash Equivalents	141,041,000	132,519,000	172,320,000	156,739,000
Cash Equivalents	55,310,000	43,336,000	45,079,000	51,972,000
Cash Financial	85,731,000	89,183,000	127,241,000	104,767,000

Cash Flow

	2025	2024	2023	2022
Free Cash Flow	190,171,000	162,473,000	174,555,000	95,241,000
Repurchase Of Capital Stock	-73,312,000	-102,331,000	-43,767,000	-29,307,000
Repayment Of Debt	-178,502,000	-128,904,000	-54,146,000	-23,829,000
Issuance Of Debt	231,208,000	114,584,000	63,450,000	30,236,000
Issuance Of Capital Stock	-2,148,000	-1,488,000	-3,308,000	-1,887,000
Capital Expenditure	-112,881,000	-96,048,000	-47,407,000	-50,850,000
End Cash Position	141,041,000	132,519,000	172,320,000	156,739,000
Beginning Cash Position	132,519,000	172,320,000	156,739,000	167,966,000
Effect Of Exchange Rate Changes	-1,643,000	359,000	1,353,000	7,506,000
Changes In Cash	10,165,000	-40,160,000	14,228,000	-18,733,000
Financing Cash Flow	-87,155,000	-176,494,000	-82,573,000	-59,953,000
Net Other Financing Charges	-4,531,000	-8,325,000	-4,884,000	-4,738,000
Interest Paid Cff	-13,180,000	-12,417,000	-11,478,000	-9,342,000
Cash Dividends Paid	-37,535,000	-28,859,000	-20,983,000	-12,952,000
Common Stock Dividend Paid	-37,535,000	-28,859,000	-20,983,000	-12,952,000
Net Common Stock Issuance	-75,460,000	-103,819,000	-47,075,000	-31,194,000
Common Stock Payments	-73,312,000	-102,331,000	-43,767,000	-29,307,000
Common Stock Issuance	-2,148,000	-1,488,000	-3,308,000	-1,887,000
Net Issuance Payments Of Debt	52,706,000	-14,320,000	9,304,000	6,407,000
Net Short Term Debt Issuance	-7,828,000	22,514,000	19,920,000	-7,677,000
Short Term Debt Payments	-121,385,000	-40,049,000	-9,889,000	-15,378,000
Short Term Debt Issuance	113,557,000	62,563,000	29,809,000	7,701,000
Net Long Term Debt Issuance	60,534,000	-36,834,000	-10,616,000	14,084,000
Long Term Debt Payments	-57,117,000	-88,855,000	-44,257,000	-8,451,000
Long Term Debt Issuance	117,651,000	52,021,000	33,641,000	22,535,000
Investing Cash Flow	-205,732,000	-122,187,000	-125,161,000	-104,871,000
Interest Received Cfi	14,534,000	14,913,000	10,349,000	8,506,000
Dividends Received Cfi	6,500,000	3,521,000	2,011,000	2,192,000
Net Investment Purchase And Sale	-79,596,000	-39,690,000	-82,126,000	-61,412,000
Sale Of Investment	410,516,000	345,222,000	220,764,000	120,610,000
Purchase Of Investment	-490,112,000	-384,912,000	-302,890,000	-182,022,000
Net Business Purchase And Sale	-34,717,000	-4,941,000	-8,900,000	-1,235,000
Sale Of Business	1,568,000	4,895,000	4,383,000	22,654,000
Purchase Of Business	-36,285,000	-9,836,000	-13,283,000	-23,889,000
Net Intangibles Purchase And Sale	-25,393,000	-33,121,000	-26,399,000	-27,645,000
Sale Of Intangibles	6,000
Purchase Of Intangibles	-25,399,000	-33,121,000	-26,399,000	-27,645,000
Net PPE Purchase And Sale	-87,330,000	-62,724,000	-20,751,000	-22,829,000
Sale Of PPE	152,000	203,000	257,000	376,000
Purchase Of PPE	-87,482,000	-62,927,000	-21,008,000	-23,205,000
Operating Cash Flow	303,052,000	258,521,000	221,962,000	146,091,000
Taxes Refund Paid	-44,699,000	-46,184,000	-34,729,000	-27,669,000
Change In Working Capital	16,484,000	21,881,000	19,233,000	-18,472,000
Change In Other Current Assets	6,143,000	16,533,000	3,821,000	-6,637,000
Change In Payable	-5,335,000	3,744,000	9,071,000	-9,130,000
Change In Prepaid Assets	17,007,000	2,632,000	5,469,000	-5,840,000
Change In Inventory	-89,000	20,000	1,882,000	-1,201,000
Change In Receivables	-1,242,000	-1,048,000	-1,010,000	4,336,000
Other Non Cash Items	-3,453,000	-3,557,000	-1,923,000	1,393,000
Stock Based Compensation	25,660,000	20,702,000	21,073,000	24,949,000
Deferred Tax	47,448,000	45,018,000	43,276,000	21,516,000
Depreciation And Amortization	66,028,000	56,213,000	59,008,000	61,216,000
Amortization Cash Flow	33,229,000	28,881,000	32,703,000	32,772,000
Depreciation	32,799,000	27,332,000	26,305,000	28,444,000
Gain Loss On Investment Securities	-4,532,000	-3,356,000	1,573,000	6,802,000
Net Foreign Currency Exchange Gain Loss	1,674,000	-466,000	383,000	-633,000
Gain Loss On Sale Of PPE	-211,000	-194,000	-126,000	-108,000
Gain Loss On Sale Of Business	-4,942,000	-12,810,000	-4,283,000	-172,707,000
Net Income From Continuing Operations	229,801,000	196,467,000	118,048,000	188,709,000

These metrics estimate what Tencent Holdings Limited is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$263.45

Margin of Safety

77.1%

Market Cap ÷ Company Value

1.20

P/B Ratio

0.47

Warren's Owner Earnings

$403.8B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

4/7 — Enterprising Investor

✅ Adequate Size

$751.8B

vs > $1.5B revenue

❌ Strong Financial Condition

1.44x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

7.78%

vs Uninterrupted dividends

❌ Earnings Growth

+24.9% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

17.1x

vs P/E ≤ 15.0x

✅ Moderate Price-to-Book

0.47x P/B (P/E×P/B: 8.1)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-22.40

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$305.87

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022
Capital Expenditure % of Net Income	50.2%	49.5%	41.1%	27.0%
Repurchase of Capital Stock	-$73.3B	-$102.3B	-$43.8B	-$29.3B
Free Cash Flow	$190.2B ▲	$162.5B ▼	$174.6B ▲	$95.2B •
Warren's Owner Earnings	$403.8B	$346.3B	$221.6B	$300.3B

Peers & Industry Comparison

Internet Content & Information — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
TCEHY	$60.43	$546.5B	17.12	56.2%	29.9%	$751.8B
GOOGL Alphabet Inc.	$383.12	$4,641.6B	29.2	60.4%	37.9%	$422.5B
META Meta Platforms, Inc.	$611.34	$1,551.8B	22.2	81.9%	32.8%	$215.0B
SNAP Snap Inc.	$6.16	$10.4B	N/A	55.0%	-7.8%	$5.9B
PINS Pinterest, Inc.	$20.55	$13.2B	33.7	80.1%	9.9%	$4.2B

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.00%

Low — management has little skin in the game

Return on Equity (ROE)

19.5%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

11.0%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$73.3B

Management is returning capital to shareholders via buybacks

Leadership Team

Huateng Ma

Co-Founder, Chairman & CEO

Age 53

Pay: $7,106,735

0.003% of net income

Chi Ping Lau

President

Age 52

Pay: $2,429,696

0.001% of net income

Liqing Zeng

Co-Founder & Advisor Emeritus

Age 55

Chenye Xu

Co-Founder & Chief Information Officer

Age 54

Zhidong Zhang

Co-Founder & Advisor Emeritus

Age 53

Pay: $2,362,859

0.001% of net income

Top Institutional Holders

Institution	% Owned	Shares
Madison Asset Management, LLC	N/A	31,859
Triglav Investments, D.O.O.	N/A	42,000
Ramirez Asset Management, Inc.	N/A	143,368
DRW Securities, LLC	N/A	82,740
Henry James International Management Inc.	N/A	86,058
Generali Investments Cee, Investicni Spolecnost, A.s.	N/A	52,064
Raiffeisen Bank International AG	N/A	200,088
Cortland Associates, Inc.	N/A	197,732

Risk Analysis

Beta (Market Risk)

0.75

Low volatility — more stable than the market

Debt-to-Equity

0.33x

Conservative balance sheet — low financial risk

Current Ratio