Hello Group Inc. American Depositary Shares (MOMO)

FairStock Score: 61/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses priced conservatively. Hello Group runs Momo, Tantan, and QOOL, mobile social and entertainment services in China and internationally. At the 2026-10-13 close, the market values the company at $977.4 million. The data show $1.0 billion of trailing free cash flow, a FairStock FCF yield of 105.0%. That is extraordinary, and it suggests the market is skeptical about durability. The balance sheet looks conservative: debt-to-equity is 0.01. Returns are modest, with FairStock ROE of 10.22% and ROCE of 5.02%. The Piotroski F-score is 7/9, which is a positive sign, but the Altman Z-score of 1.16 flags financial distress risk under that model. Growth is the problem. The provided growth figures show revenue down 5.35% and profit down 18.70%. In the second quarter of 2026, revenue was $2.5 billion and net income was $237.4 million, a 9.55% margin. Valuation looks statistically cheap: FairStock P/E is 4.70, P/B is 0.42, Graham Number is $30.28 versus the $4.75 price, a margin of safety of 84.31%. The negative EV/EBITDA of -3.60 is unusual and points to deep pessimism. A durable moat is not obvious; social apps depend on network effects, but user habits can shift. The stock is near the low end of its 52-week range of $4.61 to $7.25. I would need evidence that revenue and cash flow are stable before trusting the cheapness.

In plain English: Hello Group runs mobile social and entertainment apps such as Momo and Tantan. In the second quarter of 2026, the company reported $2.5 billion of revenue and $237.4 million of net income, but the supplied growth figures show revenue and profit falling. At $4.75, the shares look cheap compared with reported profits and net assets, yet the shrinking business is a real risk.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer