MOMOHello Group Inc.
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.1×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Margins have held roughly steady, a stable cost structure.
A balanced mix of margins, efficiency, and leverage. ROE 7% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MOMO?
Hello Group Inc. earns 19% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 10.0 points above what the capital costs: growth creates value
- Operating margin
- 13%
Operating margin · Internet Content & Information median 4.9% · fiscal year to FY2025
- Cash conversion
- 1.11×
Cash conversion · 1.99× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −9.4%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 17% |
| FY2021 | −16% |
| FY2022 | 13% |
| FY2023 | 19% |
| FY2024 | 15% |
| FY2025 | 13% |
Details›
- Gross marginfiscal year to FY2025
- 38%
- Operating marginfiscal year to FY2025
- 13%
- Net marginfiscal year to FY2025
- 7.8%
- Free cash flow margin
- 6.7%
- R&D as % of revenue
- 7.5%
- Revenue, trailing twelve months
- $10.4B
- Free cash flow, trailing twelve months
- $691M
- Net income, trailing twelve months
- $804M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 19%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Internet Content & Information
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