JOYY (JOYY) AI Stock Analysis

• Market Cap: $2.64B
• Dividend Yield: 7.39%
• Average Volume (3M): 313.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -3.61%
• EPS Growth: -143.37%
• Country: US
• Employees: 5,815
• Sector: Communication Services
• Sector Strength: 92
• Industry: Internet Content & Information
• EPS (TTM): 1.18
• Shares Outstanding: 35,396,515
• 10 Day Avg. Volume: 283,554
• 30 Day Avg. Volume: 313,972
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $63.00
• Price Target Upside: 23.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 64 Neutral
• Price Target: $53.00 ▲(4.13%Upside)

JOYY's overall score reflects robust technical momentum and a positive earnings call, showcasing growth in non-live streaming revenue and strong shareholder returns. However, declining revenues and profitability, along with liquidity challenges, weigh down the financial performance score. The high dividend yield offers some valuation support despite negative earnings.

Positive Factors

Capital Returns

Management is expected to increase capital returns to shareholders, potentially including cash dividends and ongoing buyback plans.

International Expansion

Strong growth in overseas ad business amid geographic and categories expansion is likely to offset weakness in the live streaming business.

Mergers and Acquisitions

The finalized sale of YY Live to Baidu for $2.1 billion in cash reduces uncertainty and mitigates downside risks to the company's net cash position.

Negative Factors

Deal Uncertainty

Uncertainties related to the Baidu & YY Live deal remain, and any updates could ease market concerns.

Regulatory Environment

Domestic audio streaming is under transition with further business adjustment amid a tightened regulatory environment.

JOYY Business Overview & Revenue Model

Company Description

JOYY Inc., together with its subsidiaries, operates social media platforms that offer users engaging and experience across various video and audio-based social platforms. The company operates Bigo Live, a live streaming platform that allows users to live stream specific moments, such as showcase talents, socialize, and connect with other users worldwide; Likee, a short-form video social platform that focuses on enabling users to create short-form video; Hago, a casual game-oriented social platform; and imo, a chat and instant messaging application with functions, including video calls and other communication tools, such as group calls, document sharing, etc.. It operates in the People's Republic of China, the United States, the Great Britain, Japan, South Korea, Australia, the Middle East, and Southeast Asia and others. The company was formerly known as YY Inc. and changed its name to JOYY Inc. in December 2019. JOYY Inc. was founded in 2005 and is headquartered in Singapore.

How the Company Makes Money

JOYY Inc. generates revenue primarily through user-generated content and the monetization of its social media platforms. The company makes money through several key revenue streams, including virtual gifts, advertisements, and subscription services. Users purchase virtual items or gifts to enhance their live streaming experience, which contributes significantly to the company's earnings. Additionally, JOYY partners with advertisers to display ads on its platforms, generating income from ad placements. Subscription services, where users pay for premium features or enhanced experiences, also contribute to the company's revenue. The combination of these strategies allows JOYY to capitalize on its large user base and the growing demand for digital social entertainment.

JOYY Financial Statement Overview

Summary

JOYY faces challenges with declining revenues and profitability, reflected in negative net income and EBIT margins. However, the company maintains a strong balance sheet with low debt levels. Cash flow issues need attention to ensure liquidity and operational efficiency.

Income Statement

JOYY has shown a declining revenue trend with a decrease from $2.62 billion in 2021 to $2.24 billion in 2024. The gross profit margin decreased slightly from 32% in 2023 to 36% in 2024, indicating a drop in efficiency. The net profit margin turned negative in 2024, reflecting challenges in controlling costs. EBIT and EBITDA margins deteriorated, with EBIT turning negative in 2024, signaling operational inefficiencies.

Balance Sheet

The balance sheet remains strong with a high equity ratio of 62.7% in 2024, indicating financial stability and low leverage. The debt-to-equity ratio is very low, at 0.01, showcasing prudent debt management. However, the return on equity has turned negative due to the net loss, signaling a need for improved profitability.

Cash Flow

The cash flow statement reflects challenges with zero free cash flow and operating cash flow in 2024, indicating potential liquidity concerns. The free cash flow to net income ratio is non-calculable due to negative net income, and the operating cash flow to net income ratio is not available, highlighting potential cash management issues.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

JOYY Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JOYY, the sentiment is Positive. The current price of 50.9 is above the 20-day moving average (MA) of 48.53, above the 50-day MA of 44.38, and above the 200-day MA of 40.01, indicating a bullish trend. The MACD of 1.75 indicates Negative momentum. The RSI at 74.04 is Negative, neither overbought nor oversold. The STOCH value of 87.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JOYY.

JOYY Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OPRA	80 Outperform	$1.65B	25.06	9.18%	4.22%	26.71%	-23.67%
MOMO	79 Outperform	$1.37B	8.02	12.39%	―	-11.02%	-5.17%
TME	76 Outperform	$27.59B	22.30	14.37%	0.94%	4.59%	83.27%
WB	73 Outperform	$2.37B	7.15	10.79%	8.48%	0.83%	22.06%
JOYY	64 Neutral	$2.64B	―	-2.48%	7.39%	-3.61%	-143.37%
Sector *	61 Neutral	$41.40B	-1.28	-14.21%	3.95%	2.45%	-73.69%
ZH	47 Neutral	$342.44M	―	-0.39%	―	-19.68%	99.02%