Hello Group (MOMO) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: N/A
• Average Volume (3M): 988.35K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.46
• Revenue Growth: -4.66%
• EPS Growth: -38.42%
• Country: US
• Employees: 1,390
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.30
• Shares Outstanding: 120,487,236
• 10 Day Avg. Volume: 795,004
• 30 Day Avg. Volume: 988,354
• PEG Ratio: -0.22
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 1.00
• P/FCF Ratio: 7.77
• Enterprise Value/Market Cap: 4.51
• Enterprise Value/Revenue: 0.46
• Enterprise Value/Gross Profit: 1.23
• Enterprise Value/Ebitda: 2.86
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $7.00 ▲(0.29% Upside)

The overall stock score of 61 reflects significant challenges in financial performance, particularly in revenue and profitability, which are the most heavily weighted factors. Technical analysis indicates bearish momentum, further impacting the score. Valuation provides some support with a relatively low P/E ratio, but the lack of dividend yield is a drawback. The earnings call highlights mixed results, with overseas growth and AI integration offering some optimism amidst domestic struggles and tax impacts.

Positive Factors

Overseas Revenue Growth

Significant growth in overseas revenue indicates successful international expansion, diversifying income sources and reducing reliance on domestic markets.

AI Integration

AI integration enhances user experience and engagement, potentially increasing user retention and monetization, supporting long-term growth.

Cash Flow Conversion

Efficient cash conversion supports operational stability and provides financial flexibility for strategic investments and debt management.

Negative Factors

Revenue Decline

Declining revenue reflects challenges in maintaining growth, potentially impacting profitability and market competitiveness if not addressed.

Decrease in Paying Users

A reduction in paying users indicates potential issues in user engagement or competition, which could affect revenue from value-added services.

Withholding Tax Adjustment

Increased tax expenses reduce net income, impacting financial performance and potentially limiting resources for reinvestment and growth.

Hello Group Business Overview & Revenue Model

Company Description

Hello Group Inc. provides mobile-based social and entertainment services in the People's Republic of China. It operates Momo platform that includes its Momo mobile application, as well as various related properties, features, functionalities, tools, and services. The company's Momo mobile application connects people and facilitates interactions based on location and interests; and various recreational activities, including live talent shows, short videos, and social games, as well as other video- and audio-based interactive experiences, such as online parties, mobile karaoke, and user participated reality shows. It also operates Tantan, a social and dating application, which enables users to find and establish romantic connections, and meet interesting people; and provides live video, quick chat, value-added, mobile marketing, and other services, as well as mobile games and audio chatrooms. In addition, it allows its platform's users to livestream a variety of content and activities that comprise talent shows, such as singing, dancing, and talk shows, as well as casual chatting, and other forms of interactions between broadcasters and viewers. The company was formerly known as Momo Inc. and changed its name to Hello Group Inc. in August 2021. Hello Group Inc. was incorporated in 2011 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

Hello Group generates revenue through multiple streams, primarily from value-added services such as premium memberships and virtual gifts that enhance user experience on its platform. The company also earns income from advertising, allowing businesses to target users based on their interests and demographics. Additionally, Hello Group has established partnerships with other companies to expand its service offerings, which contributes to its overall earnings. The combination of these revenue streams, along with a growing user base and innovative features, helps sustain the company's financial performance.

Hello Group Financial Statement Overview

Summary

Hello Group faces challenges with declining revenue and profitability, as evidenced by the income statement. The balance sheet shows improved leverage but reduced return on equity. Cash flow analysis indicates strong cash conversion but declining free cash flow growth. Overall, the company needs to address revenue growth and profitability to improve its financial health.

Income Statement

Hello Group's income statement shows a declining trend in revenue over the years, with a significant drop in the TTM period. Gross profit margins have decreased slightly, and net profit margins have also declined, indicating reduced profitability. The EBIT and EBITDA margins have shown some resilience, but overall, the company is facing challenges in maintaining revenue growth and profitability.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, which has improved in the TTM period, suggesting better leverage management. Return on equity has decreased, indicating reduced efficiency in generating profits from shareholders' equity. The equity ratio remains stable, showing a reasonable proportion of equity financing.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, with negative growth in the TTM period. The operating cash flow to net income ratio is stable, but the free cash flow to net income ratio indicates a strong conversion of earnings into cash. Despite these strengths, the overall cash flow position is weakened by declining free cash flow growth.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.43B	10.56B	12.00B	12.70B	14.58B	14.20B
Gross Profit	3.87B	4.12B	4.94B	5.28B	6.19B	6.52B
EBITDA	1.66B	2.01B	2.79B	2.23B	-1.76B	3.34B
Net Income	753.91M	1.04B	1.96B	1.48B	-2.92B	1.99B
Balance Sheet
Total Assets	13.74B	18.38B	16.23B	15.83B	18.11B	23.22B
Cash, Cash Equivalents and Short-Term Investments	8.74B	6.15B	6.89B	10.62B	8.43B	10.93B
Total Debt	159.91M	4.58B	2.29B	2.77B	4.83B	4.93B
Total Liabilities	2.53B	6.95B	4.24B	4.90B	7.53B	8.39B
Stockholders Equity	1.57B	11.43B	11.80B	10.78B	10.45B	14.64B
Cash Flow
Free Cash Flow	862.97M	1.35B	1.70B	1.15B	1.46B	2.96B
Operating Cash Flow	1.06B	1.64B	2.28B	1.23B	1.56B	3.08B
Investing Cash Flow	149.79M	-558.89M	2.41B	1.72B	2.55B	-748.47M
Financing Cash Flow	-5.56B	236.20M	-1.70B	-3.43B	-1.79B	-1.50B

Hello Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MOMO, the sentiment is Neutral. The current price of 6.98 is above the 20-day moving average (MA) of 6.62, above the 50-day MA of 6.80, and below the 200-day MA of 7.16, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 49.88 is Neutral, neither overbought nor oversold. The STOCH value of 51.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MOMO.

Hello Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TME	71 Outperform	$24.83B	17.77	14.47%	1.02%	13.86%	80.97%
MOMO	61 Neutral	$1.05B	11.15	6.57%	―	-4.66%	-38.42%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
JOYY	60 Neutral	$3.38B	-32.94	-2.29%	4.25%	-7.60%	-160.75%
WB	60 Neutral	$2.63B	6.07	12.46%	8.13%	-1.29%	22.48%
Z	58 Neutral	$16.56B	-493.30	-0.66%	―	15.17%	75.90%
NBIS	46 Neutral	$24.66B	106.14	3.45%	―	-87.55%	336.73%

Hello Group Corporate Events

Hello Group Reports Q3 2025 Financial Results with Overseas Growth

Hello Group Inc. reported its unaudited financial results for the third quarter of 2025, highlighting a slight decline in net revenues by 0.9% year-over-year to RMB2,650.1 million. Despite a decrease in the user base for its Momo and Tantan apps, the company experienced a significant 69% increase in overseas revenues, driven by the expansion of social entertainment and dating brands. The net income attributable to Hello Group Inc. decreased to RMB348.9 million from RMB449.4 million in the previous year, reflecting the challenges faced in the domestic market. However, the growth in overseas operations is expected to contribute significantly to future revenue growth.

The most recent analyst rating on (MOMO) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Hello Group stock, see the MOMO Stock Forecast page.