Is Tencent Music Entertainment Group (TME) Halal?
Shariah Screening — 5 Standards
Based on financial data from December 2024
| Standard | Debt Ratio | Cash Ratio | Receivables | Income | Status |
|---|---|---|---|---|---|
| AAOIFI | 26.4% / 30% | 118.6% / 30% | 20.9% / 30% | 4.21% / 5% | ✗ NOT HALAL |
| DJIM | 26.4% / 33% | 118.6% / 33% | 20.9% / 33% | 4.21% / 5% | ✗ NOT HALAL |
| MSCI | 6.7% / 33% | 30.1% / 33% | 5.3% / 33% | 4.21% / 5% | ✓ HALAL |
| S&P | 26.4% / 33% | 118.6% / 33% | 20.9% / 33% | 4.21% / 5% | ✗ NOT HALAL |
| FTSE | 6.7% / 33% | 30.1% / 33% | 5.3% / 50% | 4.21% / 5% | ✓ HALAL |
Financial Highlights
Profitability
| Gross Margin | 44.2% | |
| Operating Margin | 29.9% | |
| Net Margin | 33.6% | |
| Return on Equity (ROE) | 14.9% | |
| Return on Assets (ROA) | 8.0% |
Cash Flow & Balance Sheet
| Operating Cash Flow | $10.3B |
| Free Cash Flow | $9.2B |
| Total Debt | $6.1B |
| Debt-to-Equity | 4.6 |
| Current Ratio | 2.2 |
| Total Assets | $90.4B |
Price & Trading
| Last Close | $9.49 |
| 50-Day MA | $14.49 |
| 200-Day MA | $19.54 |
| Avg Volume | 8.0M |
| Beta | 0.6 |
|
52-Week Range
$9.36
| |
About Tencent Music Entertainment Group (TME)
Tencent Music Entertainment Group operates online music entertainment platforms that provides music streaming, online karaoke, and live streaming services in the People's Republic of China. It offers QQ Music, Kugou Music, and Kuwo Music that enable users to discover, enjoy, and share music in personalized ways; long-form audio content, including audiobooks, podcasts and talk shows, as well as music-oriented video content comprising music videos, live performances, and short videos; and WeSing, which enables users to sing along from its library of karaoke songs and share their performances in audio or video formats with friends. The company also delivers music-centric live streaming services primarily through the Live Streaming tab on QQ Music, Kugou Music, Kuwo Music, WeSing, Kugou Live, and Kuwo Live that provides an interactive online stage for performers and users to showcase their talent and engage with audience base; and Lazy Audio, an audio platform. In addition, it sells artist-related merchandise, such as branded apparel, posters and art prints, and accessories; other music services, such as content licensing, sales of digital albums, sales of customized artist-related merchandises, live performances and concerts, and artist management services; and music subscriptions, as well as offers advertising services across its social entertainment platforms. The company is headquartered in Shenzhen, China. Tencent Music Entertainment Group is a subsidiary of Tencent Holdings Limited.
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Frequently Asked Questions
Is Tencent Music Entertainment Group (TME) halal to invest in?
Based on our screening using AAOIFI Standard 21 (the strictest methodology), Tencent Music Entertainment Group is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.
What is Tencent Music Entertainment Group's debt ratio?
Tencent Music Entertainment Group's debt ratio is 26.4% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 6.7%.
What are Tencent Music Entertainment Group's key financial metrics?
Tencent Music Entertainment Group has a market capitalization of $15.9B, trailing P/E ratio of 9.2, and revenue of $28.4B. The company maintains a gross margin of 44.2% and a net margin of 33.6%. Return on equity stands at 14.9%.
How often is the screening data updated?
Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.
Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.