HUYA Inc Class A HUYA

Morningstar Rating
$5.53 +0.24 (4.54%)
View Full Chart

Company Report

Huya Operates a Mediocre Business, but We See Value in Its Cash Balance

Huya is China's largest game livestreaming platform with over 80 million monthly active users. As the market leader for years, Huya has maintained an edge over competitors on game content by signing exclusive licensing deals with esports tournaments. While this enhances user loyalty to the platform, we believe competition on licenses remains fierce, as peers will likely bid up for top events at time of renewals. In addition, we think slowing revenue growth will pressure Huya to sublicense some of its events to competitors, bridging the gap on content.

Price vs Fair Value

HUYA is trading at a 486% premium.
Price
$5.53
Fair Value
$6.10
Uncertainty
Very High
1-Star Price
$36.86
5-Star Price
$1.98
Economic Moat
Fqc
Capital Allocation
Vqqyhnp

Bulls Say, Bears Say

Bulls

Exclusive deals on top esports events enable Huya to maintain high user stickiness and elevate user spending.

Bears

Increasing revenue-sharing costs to streamers will continue to dim the margin outlook of Huya over the next few years.

News

Trading Information

Previous Close Price
$5.29
Day Range
$5.375.73
52-Week Range
$2.786.84
Bid/Ask
$5.42 / $5.51
Market Cap
$1.25 Bil
Volume/Avg
3,984 / 1.4 Mil

Key Statistics

Price/Earnings (Normalized)
87.11
Price/Sales
1.51
Dividend Yield (Trailing)
0.00%
Dividend Yield (Forward)
0.00%
Total Yield
2.29%

Company Profile

Established in 2011, Huya is the largest online game livestreaming company in China. Headquartered in Guangzhou, Huya mainly provides livestreamed videos on esports games such as League of Legends and Honor of Kings and collects virtual tips from viewers. Its products include the Huya Live platform in China and Nimo TV in Southeast Asia and South America. As of 2023, Huya was a subsidiary of Tencent, which owned 63% of its equity stake and held 94% of the voting power.
Sector
Communication Services
Industry
Entertainment
Stock Style Box
Total Number of Employees
1,345

Competitors

Valuation

Metric
HUYA
09626
TME
Price/Earnings (Normalized)
87.1123.67
Price/Book Value
0.966.702.74
Price/Sales
1.513.775.67
Price/Cash Flow
37.98119.9117.16
Price/Earnings
HUYA
09626
TME

Financial Strength

Metric
HUYA
09626
TME
Quick Ratio
3.910.962.09
Current Ratio
4.271.022.34
Interest Coverage
−39.3760.12
Quick Ratio
HUYA
09626
TME

Profitability

Metric
HUYA
09626
TME
Return on Assets (Normalized)
0.82%−6.56%8.70%
Return on Equity (Normalized)
0.99%−14.51%11.66%
Return on Invested Capital (Normalized)
−3.58%−11.73%9.05%
Return on Assets
HUYA
09626
TME

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