Operate the Momo mobile application, a social and entertainment platform in China. Now — the numbers.
That much dependence is a risk in itself: if this one line weakens, the whole company feels it directly.
This is an established company with proven profits.
If every debt were paid off today, $1.3B would still be left in the vault — a solid cushion for hard times.
The market pays 6.7× for every dollar of annual profit — cheap, which is either an opportunity or a warning.
Against companies in its own sector, it looks cheaper than 78% of them.
Analysts' average target sits 102% above today's price.
We compared this company with its own sector across five subjects.
A score of 50 means class average.
Clearly above the class average — a step short of the very top.
Debt is low and cash is strong; the finances stand solid.
Clearly above the class average — a step short of the very top.
Clearly below the class average.
Clearly below the class average.
Growth: Sales growth trails the sector average.
Price Momentum: The stock has lagged the market in recent months; investor interest is weak right now.
An investor who bought at the very peak is down 65% today. The business is the same; what changed most is the price — and the expectations — the market pins on it.
There is $1.3B in the vault; even if every debt were paid off, $1.3B would remain.
It pays out $0.28 per share each year — regular cash for whoever holds the stock.
Over the last 4 years, sales fell about 8% a year on average. Profit is holding up, but a shrinking business is a risk worth watching.
The growth engine is running at low revs right now. Report-card grade: 32/100.
Buyers haven’t stepped back in yet; the price hasn’t found its footing. Report-card grade: 34/100. For a turnaround signal, the stock first needs to close the gap with the market.
On our five-subject report card, MOMO sits in the middle of the class: some subjects shine, others don’t. The grade moves as the numbers move.
The takeaway: MOMO is an established business that has proven its profits for years. The real debate isn’t the quality of the business — it’s what that quality should cost.
The total grade weighs these five subjects against the sector — it isn’t a simple average of the five.