PNK · Communication Services

Tencent Holdings Limited

TCEHY · Internet Content & Information

$56.10

▲ 0.37 (0.66%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

N/A⤢

Fin. Health

D⤢

Years to Pay Off Debt 7.4 yrs

Working Capital vs Long-Term Debt -$211.9B

Working Capital $110.4B

Valuation

A⤢

Margin of Safety 57.6%

Price-to-Book 0.45x

Cash Flow

N/A⤢

Financial Health

Years to Pay Off Debt 7.4 yrs

Total Debt ÷ Net Income. Lower = stronger balance sheet. Important caveat: utilities, telecoms, REITs, and infrastructure companies carry large structural debt by design — their bond-like cash flows service it comfortably at ratios that would alarm Graham. Compare within sector.

Working Capital vs Long-Term Debt -$211.9B

Working Capital minus Long-Term Debt. Negative results are common and expected in capital-return-focused businesses like Apple, Domino's, and McDonald's — where aggressive buybacks and dividends intentionally reduce book equity. This does not indicate financial distress in high-FCF businesses.

Working Capital $110.4B

Current Assets minus Current Liabilities. Negative working capital can be a deliberate efficiency strategy in businesses that collect cash before paying suppliers (retailers, fast food franchises, subscription businesses). Assess alongside free cash flow generation for full context.

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

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.

Market Data

Market Cap $505.8B

Enterprise Value $546.6B

P/E (TTM) 15.76

Dividend Yield 8.55%

Exchange PNK

Key Margins

Gross Profit N/A

Operating Margin N/A

Net Margin N/A

Company Info

Sector Communication Services

Industry Internet Content & Information

Employees 114848

Country China

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Tencent Holdings Limited at $56.10.

The business passes only 2 of 5 of Graham's defensive criteria — well below his required standard.

At $56.10, the stock trades below its Graham Number of $132.40 — suggesting a margin of safety exists.

The margin of safety of 57.6% 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: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025
Gross Profit %	N/A•	N/A
Operating Margin %	N/A•	N/A
Net Income %	N/A•	N/A
Diluted EPS	6.30▲	6.28

Balance Sheet Highlights

Metric	Q2 2025
Total Assets	$2,013.3B
Total Debt	$412.5B
Working Capital	$110.4B
Years to Pay Debt	7.42

Income Statement

	2026	2025
Tax Effect Of Unusual Items
Tax Rate For Calcs
Normalized EBITDA
Total Unusual Items
Total Unusual Items Excluding Goodwill
Net Income From Continuing Operation Net Minority Interest
Reconciled Cost Of Revenue
EBITDA
Net Interest Income
Interest Expense
Interest Income
Normalized Income
Net Income From Continuing And Discontinued Operation
Total Expenses
Total Operating Income As Reported
Diluted Average Shares	9,173,000	9,282,983
Basic Average Shares	9,033,000	9,056,428
Diluted EPS	0	0
Basic EPS	0	0
Diluted NI Availto Com Stockholders
Average Dilution Earnings
Net Income Common Stockholders
Net Income
Minority Interests
Net Income Including Noncontrolling Interests
Net Income Continuous Operations
Tax Provision
Pretax Income
Other Non Operating Income Expenses
Special Income Charges
Other Special Charges
Write Off
Net Non Operating Interest Income Expense
Interest Expense Non Operating
Interest Income Non Operating
Operating Income
Operating Expense
Selling General And Administration
Selling And Marketing Expense
General And Administrative Expense
Gross Profit
Cost Of Revenue
Total Revenue
Operating Revenue

Balance Sheet

	2025
Treasury Shares Number	85,166
Ordinary Shares Number	9,080,347
Share Issued	9,165,514
Net Debt	211,758,000
Total Debt	412,486,000
Tangible Book Value	876,114,000
Invested Capital	1,508,454,000
Working Capital	110,386,000
Net Tangible Assets	876,114,000
Capital Lease Obligations	18,671,000
Common Stock Equity	1,114,639,000
Total Capitalization	1,436,943,000
Total Equity Gross Minority Interest	1,202,849,000
Minority Interest	88,210,000
Stockholders Equity	1,114,639,000
Other Equity Interest	-4,491,000
Treasury Stock	2,288,000
Retained Earnings	920,192,000
Additional Paid In Capital	52,346,000
Total Liabilities Net Minority Interest	810,461,000
Total Non Current Liabilities Net Minority Interest	375,350,000
Tradeand Other Payables Non Current	12,801,000
Non Current Deferred Revenue	4,402,000
Non Current Deferred Taxes Liabilities	16,888,000
Long Term Debt And Capital Lease Obligation	335,632,000
Long Term Capital Lease Obligation	13,328,000
Long Term Debt	322,304,000
Current Liabilities	435,111,000
Current Debt And Capital Lease Obligation	76,854,000
Current Capital Lease Obligation	5,343,000
Current Debt	71,511,000
Pensionand Other Post Retirement Benefit Plans Current	24,730,000
Payables	158,342,000
Other Payable	4,153,000
Total Tax Payable	23,688,000
Accounts Payable	130,501,000
Total Assets	2,013,310,000
Total Non Current Assets	1,467,813,000
Other Non Current Assets	6,479,000
Non Current Prepaid Assets	11,213,000
Non Current Deferred Taxes Assets	30,004,000
Investmentin Financial Assets	702,856,000
Financial Assets Designatedas Fair Value Through Profitor Loss Total	207,263,000
Long Term Equity Investment	314,404,000
Investmentsin Joint Venturesat Cost	6,831,000
Investmentsin Associatesat Cost	307,573,000
Investment Properties	895,000
Goodwill And Other Intangible Assets	238,525,000
Other Intangible Assets	238,525,000
Net PPE	159,593,000
Gross PPE	159,593,000
Construction In Progress	24,076,000
Other Properties	135,517,000
Current Assets	545,497,000
Other Current Assets	45,757,000
Restricted Cash	3,893,000
Prepaid Assets	26,893,000
Inventory	435,000
Other Receivables	34,912,000
Accounts Receivable	51,315,000
Allowance For Doubtful Accounts Receivable	-5,016,000
Gross Accounts Receivable	56,331,000
Cash Cash Equivalents And Short Term Investments	380,444,000
Other Short Term Investments	198,387,000
Cash And Cash Equivalents	182,057,000

Cash Flow

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

❌ Financial Condition

Current assets vs current liabilities — a real-time liquidity snapshot. Valid and reliable on quarterly data.

1.25x current ratio

vs ≥ 2.0x

Operating Cash Flow

N/A

Latest quarter · Buffett's cash reality check

ROIC

nan%

Based on latest annual operating income

Return on Invested Capital — Buffett's preferred measure for asset-light businesses. ROIC > 15% consistently signals a durable competitive advantage (moat). More meaningful than P/B for software, pharma, and consumer brand companies where most value is intangible and off-balance-sheet.

Market Cap / Net Assets

0.4x

Net Assets: $1,202.8B

Asset Context — Internet Content & Information

Platform and internet businesses derive value from network effects, user data, and brand — intangibles that accounting rules don't capitalise. A low or negative Net Assets figure is expected and not a risk signal. ROIC and FCF per share are more relevant valuation anchors.

Peers & Industry Comparison

Internet Content & Information — Auto-detected peers

Company	Price	Market Cap	P/E	Gross Margin	Net Margin	Revenue
TCEHY	$56.10	$505.8B	15.76	N/A	N/A	N/A
GOOGL Alphabet Inc.	$368.03	$4,490.9B	28.1	60.4%	37.9%	$422.5B
META Meta Platforms, Inc.	$577.22	$1,465.2B	21.0	81.9%	32.8%	$215.0B
SNAP Snap Inc.	$4.66	$7.7B	N/A	55.8%	-6.7%	$6.1B
PINS Pinterest, Inc.	$20.27	$11.4B	42.2	79.9%	7.6%	$4.4B

"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

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: $7,174,922

Chi Ping Lau

President

Age 52

Pay: $2,453,008

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: $2,385,530

Top Institutional Holders

Institution	% Owned	Shares
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
Triglav Investments, D.O.O.	N/A	86,868
Madison Asset Management, LLC	N/A	38,435
Boston Common Asset Management, LLC	N/A	19,548
Ramirez Asset Management, Inc.	N/A	167,713

Risk Analysis

Beta (Market Risk)

0.74

Low volatility — more stable than the market

Debt-to-Equity

0.33x

Conservative balance sheet — low financial risk

Current Ratio

1.43x

Adequate liquidity

52-Week Price Range

Low: $54.12 Current: $56.10 High: $87.68

Currently at 6% of 52-week range