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Tencent (TCTZF.US) – Strong Sell: Rating and Stock Analysis 2026/2027

54.19
Analysis framework by , founder of TradeDesk · Data: EODHD, insider trades from SEC Form 4 filings · Updated
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No analysts currently cover Tencent with a public price target. We add the price target automatically as soon as at least one analyst publishes a rating. Until then, use the technical analysis and the key figures below.

About Tencent – Internet Content & Information

Tencent Holdings is a huge Chinese company. It makes money mainly from online games, social networks, digital payments (called FinTech), cloud services, and online advertising. It also produces films and TV shows.

Online games and social networks are the company's biggest sources of income. Social networks are online platforms where people connect and communicate with each other. Cloud services mean Tencent provides computer storage and computing power that other businesses can rent over the internet, instead of buying their own equipment.

Tencent operates both in China and in other countries around the world. Its customers include everyday consumers who use its games, social media, and payment tools, as well as businesses that use its cloud and IT services.

The company was founded in 1998. Its headquarters is in Shenzhen, China. Read more about the company

Key Figures for Tencent

$499B Market cap
$788B Revenue
Internet Content & Information Industry
14.45 P/E
0.63 P/S
3.08 P/B
United States Listed on exchange
tencent.com Website
Communication Services Sector

What kind of stock is Tencent?

Value stock Quality stock

Tencent is classified as a value stock and quality stock. This means the stock combines several attractive traits, strong financial health (Piotroski 7/9).

Score Overview for Tencent

💰 Value Score 79/100 (High)
⭐ Quality Score 86/100 (Very High)
🚀 Momentum Score 27/100 (Low)
📊 Total Score 64/100

📈 Valuation

Tencent trades at a P/E ratio of 14.5, which is below the market average and can point to an attractive price. The forward P/E is 12.5 (14% lower), which suggests the market expects rising earnings. The P/S ratio is 0.6 (low — potentially undervalued relative to revenue). The P/B ratio is 3.1. The PEG ratio is 1.40.

💵 Profitability & Growth

Tencent has a profit margin of 29.9% (excellent) and an operating margin of 32.9%. Return on equity (ROE) is 19.9% — solid return on equity. Return on assets (ROA) is 7.9%. The latest quarterly earnings grew 1.8% year over year.

🏦 Financial Health

The Piotroski score is 7 out of 9 — good financial health. Altman Z2 is 4.15 (healthy balance sheet — low risk). The debt-to-equity ratio (D/E) is 74.7% — low debt, a solid balance sheet.

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Tencent Dividend 2026: 1.3% Dividend Yield

Dividend Key Figures for Tencent

Dividend yield
1.31%
Latest dividend per share
0.68 USD
Payout ratio
18.6%
Low
Dividend growth (6 years)
+353.3%
Avg. annual dividend (3 years)
1.28 USD

When does Tencent pay a dividend in 2026?

Latest ex-dividend date (traded without the dividend)
May 19, 2026
Latest payment date
June 1, 2026

How much does Tencent pay in dividends?

Tencent pays dividends to its shareholders. The most recently paid dividend was 0.68 USD per share, which corresponds to a dividend yield of 1.31%. Over the last 6 years, the annual dividend has grown by 353.3%, which shows positive dividend growth.

The payout ratio is 18.6%, which is low. This suggests the company prioritizes reinvesting in growth over dividend payments. There is good room to raise the dividend in the future.

Historical Dividend Payments for Tencent

We have registered dividend payments for Tencent since May 18, 2020. In that period the stock has paid a dividend 8 times, most recently on May 19, 2026. However, the stock does not qualify as a stable or sporadic dividend stock, because the dividend payments have been inconsistent in recent years.

Ex-datePayment dateAmountCurrency
2026-05-192026-06-010.68USD
2024-05-202024-05-310.44USD
2023-05-222023-06-052.40USD
2023-05-19N/A0.31USD
2022-05-232022-06-061.60USD
2022-05-20N/A0.20USD
2021-05-252021-06-070.21USD
2020-05-182020-05-290.15USD
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When Does Tencent Report Earnings?

The next earnings date for Tencent is not yet available. Check the company's investor calendar for more information.



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Technical Analysis of Tencent 2026 – Signal: Strong Sell

Overall Technical Signal: Strong Sell

Based on trend analysis (SMA50/SMA200) and MACD trend (positive/negative on a daily + weekly basis). Updated October 7, 2026.

Trend Analysis of Tencent Holdings Limited

Tencent Holdings Limited is in a short-term downtrend. The price of $54.19 is 1.5% below the 20-day average ($54.99). Medium term, the picture is negative: the price is 4.5% below the 50-day average ($56.75). Long term, the stock is 13.8% below the 200-day average ($62.88), which signals a long-term downtrend.

Death Cross: The 50-day average (56.75) is below the 200-day average (62.88), which is a classic bearish signal for Tencent Holdings Limited.

Is Tencent Holdings Limited overbought or oversold?

Tencent Holdings Limited has an RSI of 45.1, right in the middle of the neutral zone. There is no clear buying or selling pressure.

MACD Analysis for Tencent Holdings Limited

Daily MACD: MACD is negative (-0.574), which means the short-term trend is bearish (the 12-day EMA is below the 26-day EMA). MACD is below the signal line (-0.504) by 0.070, which confirms growing negative momentum in the downtrend.

Weekly MACD: MACD5 is negative (-2.645), which indicates a broader bearish long-term trend. MACD5 is above the signal line (-2.825) by 0.180, which suggests the negative long-term momentum is fading – a bigger trend reversal could be ahead.

Overall MACD assessment: Both the daily and weekly trend are bearish (MACD negative). However, momentum shows signs of improving on a weekly basis – a potential trend reversal could be ahead, but it is not confirmed yet.

Risk Profile for Tencent Holdings Limited

Tencent Holdings Limited has an annual standard deviation of 41.8%, which classifies the stock as medium risk. The price can swing noticeably when the market moves.

Overall Technical Conclusion for Tencent Holdings Limited

Trend: Negative. The price trades below SMA50 and SMA200.

MACD trend (zero line): Daily bearish (-0.574). Weekly bearish (-2.645).

MACD momentum (signal): Daily falling. Weekly rising.

RSI: 45.1 – neutral.

Technical signal: Strong Sell

The price is in a downtrend (below SMA50/SMA200) and MACD is negative on both a daily and weekly basis. Avoid buying and consider closing existing positions.

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Frequently Asked Questions About Tencent stock in 2026

Should you buy Tencent stock now?
No, the technical signal for Tencent is currently Strong Sell. Tencent trades at $54.19 as of Oct 7, 2026. The technical analysis shows the following: MACD is negative (bearish trend) at -0.574 with falling momentum (signal: -0.504); RSI is at 45.1 (neutral zone); the stock is in a short-term downtrend (price below the 20-day average). The stock is in a broader downtrend (below SMA50/SMA200). Buying in a downtrend is generally not recommended. This is a technical observation based on current data, not investment advice.
What is the price target for Tencent stock?
There is currently no active analyst price target for Tencent.
Is Tencent a dividend stock?
Yes, Tencent is a dividend stock with a dividend yield of 1.31%. The latest dividend was $0.68 per share. The latest ex-dividend date (traded without the dividend) was May 19, 2026. The payout ratio is 18.6%, which is considered sustainable.
When does Tencent pay a dividend in 2026?
The next dividend date for Tencent has not been set yet. The latest ex-dividend date (last trading day with dividend rights) was May 19, 2026. The latest dividend was $0.68 per share with an ex-dividend date of May 19, 2026. The dividend yield is 1.31%. The payout ratio of 18.6% points to a sustainable dividend with room to grow.
What is the risk of Tencent stock?
Tencent is rated as a stock in the risk category Moderate. the annual standard deviation is 41.8%, which classifies the stock as Moderate.
Is Tencent overvalued?
Tencent has the following valuation ratios: a P/E ratio of 14.5 (moderately valued), a P/S ratio of 0.6, a P/B ratio of 3.1.
Is Tencent overbought?
No, Tencent is not overbought. RSI is at 45.1 (neutral zone). The technical indicators show: RSI is at 45.1 (neutral zone between 30-70), which signals neither overbought nor oversold. In addition, the price is 1.5% below the 20-day average (short-term downtrend). In addition, MACD is negative with falling momentum (bearish).
When is the next Tencent earnings report?
The date of the next earnings report for Tencent has not been published yet. Check the company's investor calendar for updates.
Is Tencent shorted?
There is currently no registered short interest for Tencent, or the data is not available.
Are insiders buying Tencent stock?
There is currently no registered insider trading for Tencent.
Is Tencent a good stock?
Based on our total score, Tencent is rated as a good stock with a total score of 64 out of 100. The stock scores above average on value, quality and momentum. The score is made up of Value: 79/100, Quality: 86/100, Momentum: 27/100. In addition: a dividend of 1.31%; technical signal: Strong Sell. Whether Tencent is a good investment depends on your time horizon, risk profile and portfolio. This is a data-driven observation, not investment advice.
What is the outlook for Tencent stock?
The outlook for Tencent based on current data: the stock is in a downtrend (below SMA50 and SMA200); the P/E ratio is 14.5 (low – a possible value stock). Keep in mind that stock prices are affected by many factors, including earnings reports, the economy and market sentiment. Past returns are no guarantee of future returns.
Why is Tencent stock moving?
Tencent is stable right now. The technical indicators show: the price is close to the 20-day average; MACD is negative with falling momentum (bearish signal). For the latest context, see our technical analysis and insider section above.
How high can Tencent go?
There is currently no active analyst price target for Tencent. The stock has traded between $51.49 and $88.04 over the last 52 weeks. The price is 38.5% below the 52-week high, which can indicate potential if the underlying fundamentals are intact. Keep in mind that price targets are estimates, not guarantees. Actual price moves depend on earnings, market conditions and unexpected events.
How low can Tencent fall?
The stock has traded as low as $51.49 over the last 52 weeks — that is 5.0% below the current price of $54.19. The biggest decline (drawdown) in the same period was 41.5% from high to low. Within a year, the price typically swings about ±41.8% (standard deviation — a measure of price swings). A difficult year could therefore mean a further decline of that size. Remember: past price swings are no guarantee for the future — a stock can fall further than the last 52 weeks suggest, especially on profit warnings, sector crises or a market crash. Use stop-loss orders and spread your portfolio to limit losses in single stocks.
What does Tencent do?
Tencent Holdings is a huge Chinese company. It makes money mainly from online games, social networks, digital payments (called FinTech), cloud services, and online advertising. It also produces films and TV shows. Online games and social networks are the company's biggest sou... The company belongs to the Communication Services sector, more specifically the Internet Content & Information industry, is headquartered in United States, and is traded on the USA Stocks. See the key figures, earnings history and price development above to evaluate Tencent as an investment.
Did Tencent raise or lower its guidance?
Over the last 60 days we have not registered a guidance raise or cut from Tencent. The company can still adjust its guidance at quarterly reports or between reports — see the earnings history above.
Is Tencent making money or losing money?
Yes, Tencent is making money, not losing it. The company has a profit margin (the share of revenue left over as profit) of 29.9% — which is excellent. The operating margin (profit before interest and taxes) is 32.9%. At a P/E ratio of 14.5, you currently pay 14.5 dollars for every dollar of the company's annual earnings. A consistently profitable company is usually more resilient than growth stocks that are not yet making money.
Can Tencent go bankrupt?
The bankruptcy risk of Tencent is rated as low. Altman Z2 (a model for assessing financial distress) is 4.15 — that places the company in the healthy zone. The company has a healthy balance sheet with limited debt relative to earnings and assets. The Piotroski score (financial health 0-9, higher is better) is 7 — which is strong. Debt relative to equity is 75% (moderate). Remember: models like Altman Z2 are statistical — unexpected shocks (fraud, a sector collapse, lawsuits) can always happen. Spread your portfolio.
Does Tencent have a lot of debt?
No, Tencent has low debt relative to equity. The debt-to-equity ratio (D/E — interest-bearing debt to equity) is 75%. For the communication services sector, anything below 80% counts as low debt. Telecom and media companies invest moderately in infrastructure — 80-150% is a typical level. Note: D/E levels are highly sector-specific — a bank at 300% debt is normal, a tech stock at 300% is extremely leveraged. Always compare with similar companies in the same sector. Can Tencent service its debt? Can service its debt without problems — the interest coverage ratio (how many times earnings can cover interest payments) is 22.7x, and net debt equals 0.9 years of earnings (EBITDA).
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